HUD PIH Notice § 2019-05

                                 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
                                                WASHINGTON, DC 20410-5000


OFFICE OF PUBLIC AND INDIAN HOUSING




SPECIAL ATTENTION OF:                                              NOTICE PIH 2019-05 (HA)

Regional Managers; Office of Public Housing                        Issued: March 21, 2019
Directors; Program Center Coordinators:
Public Housing Agencies: Resident                                  Expires: This notice remains in
Management Corporations                                            effect until amended, superseded or
                                                                   rescinded

                                                       Cross-references: 24 CFR part 972,
                                                       2 CFR part 200, PIH Notice 2017-
                                                       22, PIH Notice 2016-20, PIH Notice
                                                       2016-23
______________________________________________________________________________
Subject: Streamlined Voluntary Conversions of Last Remaining Projects of Small Public
Housing Agencies

1) Purpose. Section 22 of the United States Housing Act of 1937, (42 U.S.C. 1437t) (the 1937
Act) and its implementing regulations at 24 CFR part 972, subpart B, authorize Public Housing
Agencies (PHAs) to convert public housing to tenant-based assistance. HUD is authorized under
Section 22(b)(3) to waive the conversion assessment or require a streamlined conversion
assessment for “any public housing project or class of public housing projects.” Assistance for
residents is through tenant protection vouchers (TPVs) under Section 22(b)(3). For purposes of
this notice, a small PHA has 250 or fewer Section 9 public housing units under its Consolidated
Annual Contributions Contract (CACC) with HUD.1 Conversion to Housing Choice Vouchers
(HCVs) gives small PHAs greater flexibility to respond to local needs, allows them to pursue
private financing, and provides greater housing choice and mobility to assisted households.

2) Background. HUD and PHAs remain committed to providing deeply subsidized rental
assistance to the nation’s most vulnerable populations, including the elderly, disabled and
formerly homeless families. Meeting this commitment has been challenged by significant capital
backlog, combined with regulatory burdens and limited access to private capital. Despite best
efforts, PHAs, particularly small PHAs, struggle to preserve their stock of deeply assisted
housing. This notice represents one of an array of tools that HUD is offering to PHAs to allow
them to voluntarily reposition public housing units to more sustainable funding platforms in
order to meet local objectives. Other opportunities that PHAs should evaluate for repositioning
include the Rental Assistance Demonstration (RAD) program and new flexibilities in the Section
18 Demolition and Disposition process (see PIH Notice 2018-04). HUD is committed to
working with each PHA as it determines which, or which combination, of these tools may be
most appropriate to achieve sustainability of assisted housing in its particular housing market and
community, while balancing overall cost-effectiveness for the Federal government.

1
 The number of public housing units under a PHA’s ACC is based on the data in the Information Management
System/PIH Information (IMS/PIC).
Section 22(c) permits PHAs to convert a Section 9 public housing project (or portion thereof)
(i.e., a public housing project or portion thereof receiving Section 9 assistance under the 1937
Act) to HCV assistance if the PHA demonstrates conversion 1) is not more expensive than
continuing to operate as public housing; 2) principally benefits residents, the PHA, and the
community; and 3) has no adverse effect on the availability of affordable housing in the
community. In accordance with Section 22(b)(1)(A) of the 1937 Act, as amended by Section
553 of the Quality Housing and Work Responsibility Act of 1996 (P.L. 105-276), and HUD’s
implementing regulations at 24 CFR 972.212 and 972.218, PHAs shall conduct a conversion
assessment and provide a timeline identifying PHA actions to convert to HCV assistance. The
conversion assessment consists of a cost analysis, market value analysis, rental market analysis,
and an impact analysis on the neighborhood.

Recognizing that small PHAs typically have reduced staff and limited funding available to
conduct a full conversion assessment, even if the conversion to HCV serves the best interests of
residents and has no adverse effect on the availability of affordable housing in affected
neighborhoods, HUD is exercising its authority under Section 22(b)(3) of the 1937 Act to waive
the conversion assessment for small PHAs as described at Sections 22(b)(1)(A)-(E) and 24 CFR
972.218(a)-(e). This waiver does not affect other voluntary conversion requirements or
procedures under the statute, regulations, directives, or guidance.

3) Eligibility. A Section 9 public housing project(s) is eligible for conversion under this notice if
it meets the criteria listed below:

    A. As of the date of application submission, the project or projects are owned by a small
       PHA, as defined in Section 1 of this notice, that confirms its intent to close-out its public
       housing program after all units are converted2; and

    B. Conversion of the project or projects will result in the conversion of all public housing
       units owned by the PHA.

4) Application Submission and Conversion Plan Components. To apply for conversion under
this notice, PHAs submit a conversion plan to HUD in the Inventory Removals Submodule of the
IMS/PIC under “Streamlined VC.” PHAs are required to complete the electronic IMS/PIC
application and upload completed Forms HUD-52860 and HUD-52860-E. PHAs complete only
question #2 of the HUD-52860-E form related to future use. The other questions are not
applicable to streamlined voluntary conversions under this notice. The conversion plan and
application include:

    A. PHA Plan. Explicit reference to the proposed conversion in the PHA Annual or Moving
       To Work (MTW) Plan or Significant Amendment to the PHA or MTW Annual Plan. See


2
 A PHA may close-out its public housing program through ACC termination (see PIH Notice 2016-23 or any
replacement notice) or Consolidation/Voluntary Transfer (see PIH Notice 2014-24 or any replacement notice).



                                                       2
         Form HUD-52860 and instructions. Qualified PHAs must discuss the proposed
         conversion at a public hearing, as required by 24 CFR 903.17.3

    B. Resident Involvement. Evidence the conversion plan was developed with resident
       participation as required by 24 CFR 972.227(c).4 The PHA must summarize resident
       comments and provide its responses to significant issues raised by the commenters
       including a description of actions taken by the PHA as a result of the comments. See
       Form HUD-52860 and instructions.

    C. Board Approval. Evidence by a copy of PHA’s Board of Commissioners resolution
       approving the conversion plan. See Form HUD-52860 and instructions.

    D. Local Government Review. Evidence consultation with appropriate public officials as
       required by 24 CFR 972.227(b).5 See Form HUD-52860 and instructions.

    E. Future Use. Consistent with 24 CFR 972.230(a), describe the planned future use for all
       assets (real property) that comprise the units proposed for conversion. If the units are in
       different buildings and/or on different sites, provide a future use plan for each property.
       Describe any disposition (i.e. sale, ground lease), demolition, rehabilitation, or new
       construction, and anticipated financing (i.e. LIHTCs). See question #2 of HUD-52860-E
       form.

         If a PHA proposes to retain the property in its own name (retention), HUD reviews the
         retention request pursuant to HUD policies under 2 CFR 200.311 and PIH Notice 2016-
         20 (or any successor notice), except the PHA is not required to submit a separate
         Retention Application to HUD. Instead, the PHA must include the submission
         requirements outlined in PIH Notice 2016-20 (or any successor notice) as part of the
         conversion plan.

         If a PHA proposes to dispose of the property to another entity through sale or ground
         lease (disposition), the PHA must include a description of the disposition in the

3
 A qualified PHA is defined by the Housing and Economic Recovery Act (HERA) as a PHA that (1) has a
combined unit total of 550 or less public housing units and HCVs; (2) is not designated under section 6(j)(2) of the
1937 Act, the Public Housing Assessment System (PHAS), as a troubled public housing agency during the prior 12
months; and (3) does not have a failing score under the Section 8 Management Assessment Program (SEMAP)
during the prior 12 months.
4
  To satisfy the requirement for significant participation by residents of the development, in addition to the public
participation requirements for the PHA Annual Plan, a PHA must hold at least one meeting with the residents of the
affected sites (including the Resident Council, if any) at which the PHA must explain the voluntary conversion
requirements especially as they apply to residents of the affected projects and provide draft copies of the conversion
plan to them. PHAs must also provide residents with a reasonable comment period.
5
  PHAs can satisfy this requirement by obtaining a certification from the appropriate state or local officials that the
conversion plan is consistent with that jurisdiction’s Consolidated Plan. This may be the same certification as is
required for the PHA Annual Plan that includes the conversion plan, so long as the certification specifically
addresses the conversion plan.


                                                           3
         conversion plan pursuant to Section 22(d)(3) of the 1937 Act and 24 CFR 972.230.
         Consistent with Section 22(c) of the 1937 Act, a disposition proposed as part of a
         conversion plan must principally benefit residents, the PHA, and the community.

         If a project continues to operate as rental housing, the PHA (or subsequent owner) must
         allow the families to remain in their units using the HCV in the form of tenant-based
         assistance. See 24 CFR 972.230(g)(ii)(E).

         If a PHA plans to project-base a property in accordance with the Section 8 project-based
         voucher (PBV) program, all applicable PBV program requirements apply. PBV program
         requirements may be found in Section 8(o) of the 1937 Act (as amended by HOTMA,
         P.L. 114-201, 130 Stat. 782), program regulations at 24 CFR Part 983, and applicable
         guidance. Applicable program guidance includes, but is not limited to: the HOTMA
         Federal Register Implementation Notice at 82 Fed. Reg. 5458 (January 18, 2017), PIH
         Notice 2017-21, subsidy layering review requirements published in the Federal Register
         on July 9, 2010 (FR–5417–N–01) http://edocket.access.gpo.gov/2010/pdf/2010-
         16827.pdf and as described in PIH Notice 2013-11 (or any replacement notice) and
         environmental requirements described in PIH Notice 2016-22.6

         Because section 22(d)(4)(C) of the 1937 Act requires that families be provided with the
         option to remain in their unit using tenant-based HCV assistance when a property will be
         used as housing after conversion, in order to provide project-based (PBV) assistance at a
         property as part of or immediately after conversion, families must voluntarily consent to
         the PBV assistance. Tenant consent means a family, after being fully informed of its
         options, voluntarily giving up the ability to receive a tenant-based HCV voucher (that it
         could use at the property or off-site in the private market) in order to be assisted under a
         PBV contract at the property. The informed and voluntary consent a family gives is to
         forego tenant-based HCV assistance (for use at the property or in the private market). If a
         family fails to consent to the PBV assistance and chooses to remain using tenant-based
         HCV assistance, that family’s unit is excluded from the PBV HAP until the family moves
         out or consents to switching to PBV assistance. To obtain such consent, the PHA must
         follow the requirements outlined in Appendix A. Note that the requirements in Appendix
         A are in addition to the relocation requirements (including 90-day notice requirements) of
         24 CFR 972.230(g) and PHAs must be cognizant of applicable timing requirements of
         both.

    F. Environmental Requirements. Conversion plans must have environmental clearance
       before HUD approves a conversion plan. Environmental clearance means final approval
       from a HUD Approving Official of an environmental review conducted under 24 CFR

6
  Note that three HOTMA exceptions may apply when former Section 9 public housing projects are converted to
project-based rental assistance under the PBV program: (1) a percentage cap exception where public housing units
approved for conversion may not count toward the PBV program unit limitation (PHA-wide); (2) an exception to the
income-mixing requirement where public housing units approved for conversion may not count toward the required
project PBV cap; and (3) a competitive process exception where a PHA may be able to attach PBVs without
following a competitive process to a former Section 9 public housing project in which it has an ownership interest or
over which it has control, and for which the PHA is engaged in an initiative to improve, develop, or replace the
public housing property or site. See PIH Notice 2017-21. PHAs consult their Field Office for technical assistance.

                                                         4
          part 50, or the final electronic signature of the HUD approving official approving a
          Request for Release of Funds in HEROS or on form HUD-7015.16 for an environmental
          review conducted under 24 CFR part 58. See PIH Notice 2016-22. The PHA may not
          demolish or dispose of units or property until completion of the environmental review.
          See 24 CFR 972.212(b). PHAs are responsible for providing to the Responsible Entity or
          local Office of Public Housing (Field Office) a full description of the activities (including
          relocations, demolition, disposition and planned future use as described in response to
          section 4(E) of this notice) to comply with aggregation requirements.7 Site re-use is not
          limited to future actions by the PHA, but encompasses future re-use, including use of the
          project as rental housing after conversion. Even if there are no planned physical
          alterations and the project is categorically excluded from the National Environmental
          Policy Act (NEPA), a Categorically Excluded Subject To (CEST) environmental review
          addressing related environmental laws and authorities in Sections 58.5 and 58.6 or 50.4
          needs to be completed. It is possible the environmental review may reveal risks or
          circumstances that do not allow for approval of the conversion plan.

      G. Impact Analysis. Provide a brief narrative statement describing the likely impact of the
         conversion on the neighborhood(s) in which the public housing is located. Describe: (i)
         the impact on the availability of affordable housing; (ii) the impact on the concentration
         of poverty; and (iii) other substantial impacts on the neighborhood. See HUD-52860-E.

      H. Relocation Activities. Provide a summary of information concerning the relocation plan
         required by 24 CFR 972.230(g), including information on counseling services, direct
         relocation assistance, providing the relocation notice, and relocation expenses. See Form
         HUD-52860. As part of the Form HUD-52860, PHAs certify the provision of a written
         notice to families, as required by paragraph 24 CFR 972.230(g)(4). To the extent that
         tenants are displaced as a direct result of demolition, acquisition, or rehabilitation of real
         property that receives federal financial assistance through the conversion of public
         housing as described in this notice, the requirements of the Uniform Relocation
         Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C.
         4601-4655) (URA), and its implementing regulations at 49 CFR part 24 apply. For the
         purposes of this paragraph, the term “project” is defined at 49 CFR 24.2(a)(22); the URA
         may therefore apply even if federal funds do not pay for the demolition, acquisition, or
         rehabilitation that causes the displacement. If voluntary conversion is subject to the
         URA, the PHA must also comply with the requirements in 24 CFR 972.230(g)(5).

          Generally, PHAs fulfill requirements for comparable housing by offering HCV assistance
          through the award of Tenant Protection Vouchers (TPVs) (see Section 6 of this notice).
          To receive HCV assistance, a family must be low-income (less than 80 percent of AMI).
          Although the families were previously receiving public housing assistance, the PHA must
          still screen families for TPV eligibility consistent with the requirements in 24 CFR part
          982. Accordingly, PHAs must also address relocation needs for families who do not
          qualify for HCV assistance (i.e., over-income families).


7
    See 24 CFR 58.32 and 24 CFR 50.21.


                                                    5
         To plan effectively for the relocation needs of individuals with disabilities, PHAs should
         consult HUD’s Relocation Handbook 1378, and in particular, the guidance at Exhbit 3-1.

         To plan effectively for the relocation needs of individuals with disabilities, PHAs should
         consult HUD’s Relocation Handbook 1337.0, and in particular, the relocation planning
         checklist at Appendix 3-1.

         If a project continues to operate as rental housing, the PHA (or subsequent owner) must
         allow the families to remain in their units using the HCV in the form of tenant-based
         assistance, as provided in section 22(d)(4)(C) of the 1937 Act.8 The family may also
         choose to move from the unit and use continued tenant-based assistance in accordance
         with HCV program requirements. See section 4(E) of this notice for more information on
         using PBV assistance at the project after conversion. The PHA should consult with
         families early in the conversion process to determine which residents will choose to
         remain at the project using HCV assistance.

    I. Close-Out Information. The PHA evidences its intention to close-out its public housing
       program by including a completed Form HUD-5837 with its conversion plan submission.
       Section D of the Form HUD-5837 requires the PHA to identify any potential issues
       related to close-out and how those issues can be addressed. In identifying issues, the
       PHA assesses the likely impact of the close-out on the PHA’s staffing, repayment
       agreements, other obligations, and remaining liabilities. Field Offices may require
       additional information from PHAs as part of their review of the Form HUD-5837. See
       PIH Notice 2016-23 (or successor notice). The PHA should reach out to its Field Office
       for technical assistance.

    J. Public Housing Only PHAs. If the applicant PHA does not administer a Section 8 HCV
       program, then another PHA with a Section 8 HCV program must be identified to
       administer the TPVs. A Public Housing Only PHA may enter into an agreement with an
       HCV PHA or may contact its Field Office for assistance in identifying an appropriate
       PHA to administer the TPV assistance. In all instances and as stipulated by PIH Notice
       2018-09, or subsequent notice, the HCV PHA must have the jurisdictional authority to
       administer its program in the Section 9 public housing project’s geographic location
       under state and local law. Additionally, the HCV PHA must have the administrative
       capacity to administer TPVs and be in compliance with federal civil rights laws. Public
       Housing Only PHAs are encouraged to identify and contact potentially interested HCV
       PHAs in the early stages of conversion planning, as the PHAs’ agreement to cooperate in
       the conversion must be established prior to HUD’s approval of the conversion plan. As
       stipulated by PIH Notice 2018-09, or subsequent notice, once the Field Office approves
       the partnership, the two PHAs must enter into a written agreement regarding the roles and
       responsibilities of the two PHAs, including communication with the residents. Public

8
 Families must be provided with the option to remain in their unit using tenant-based HCV assistance. However,
families can also be offered the option to remain in their units using PBV assistance. In this case, families would
need to voluntarily consent to the PBV assistance. HUD is available to provide technical assistance on how PHAs
can inform families of their options.


                                                          6
           Housing Only PHAs should consult their Field Offices for technical assistance with these
           agreements.

5) HUD Processing. HUD will not process an application found to be deficient or incomplete
(i.e., missing required supporting documentation); HUD will return the application to the PHA
and inform the PHA of the deficiencies.9 If a property will not be used as rental housing after the
conversion (and the residents therefore do not have the option of remaining in their units using
HCV assistance), HUD may conduct a rental market analysis by examining the PHA’s Section 8
success rate data, leasing data, and utilization. In addition, HUD may require additional
information from PHAs about its conversion plan, including information on Section 8 data, with
consideration of the impacted residents (such as large households, elderly or disabled family
members), as well as the availability of rental housing and proximity to schools, jobs and
transportation. If the applicant PHA is a Public Housing Only PHA, HUD will conduct this
analysis on the PHA administering the TPVs.

PHAs may not proceed with a conversion plan without a written approval from HUD. HUD
must provide a preliminary response within 90 days of the PHA submitting the conversion plan,
otherwise the plan is treated by HUD as automatically approved. A longer process may be
required where HUD’s review of the plan raises questions that require further discussion
with the PHA. See 24 CFR 972.236.

6) Tenant-Protection Vouchers (TPVs). The premise of the voluntary conversion program is
that public housing units are converted from the Section 9 funding stream through the provision
of tenant-based assistance for the residents in the form of TPVs. As a result, PHAs will be
provided replacement TPVs subject to the availability of funding. HUD determines a PHA’s
maximum TPV award based on relevant appropriations and promulgates such determinations
through guidance (including, but not limited to, the annual HCV funding implementation notice).
Please see PIH Notice 2018-09 or the most recent notice regarding TPV eligibility and awards.

HUD will continuously monitor PHA requests for TPVs through certain activities such as
demolition, disposition, and voluntary conversions. As needed, HUD plans to issue guidance
that describes how it will manage available TPV resources, including prioritizing the
circumstances or conditions warranting TPV issuance for a range of eligible actions, including
those of voluntary conversions. Such guidance may place constraints on the voluntary
conversion approval process under this notice, which may affect the order in which HUD
reviews and approves voluntary conversion applications, limiting the number of units that HUD
will approve for voluntary conversions in a given fiscal year, or temporarily suspending the
voluntary conversion approval process until TPV resources are determined to be sufficient to
meet the demand for tenant protection actions.

7) Asset Repositioning Fee (ARF). Refer to PIH Notice 2017-22 (or any replacement notice) to
determine if units approved for conversion under this notice are eligible for ARF pursuant to 24
CFR 990.190(h)(1).



9
    HUD returns applications to PHAs by changing the status of the application to DRAFT status in IMS/PIC.

                                                         7
8) Demolition Disposition Transitional Funding (DDTF). PHAs are not eligible to receive
DDTF under 24 CFR 905.400(j) for conversions approved under this notice.

9) Other Requirements.

   A. Existing Financial Transactions. PHAs with an approved transaction through the Capital
      Fund Financing Program (CFFP), Section 30 (including PHA Mortgaged Transaction
      (PMT)), Energy Performance Contracting (EPC), Operating Fund Financing Program
      (OFFP), or Repayment Agreements required by HUD must comply with additional
      instructions provided by HUD regarding such financing and may not take any steps to
      implement a conversion plan without receiving confirmation from HUD that all
      applicable requirements of the financing are satisfied. PHAs must certify an existing
      financial agreement is not at-risk because of the proposed conversion.

   B. Reporting Requirements. PHAs must work with their Field Offices and the Special
      Application Center (SAC) to ensure the accuracy of data in IMS/PIC—specifically to
      ensure units are put into Removed from Inventory (RMI) status upon completion of the
      conversion to HCV assistance. On a case-by-case basis, HUD may require other
      reporting information.

   C. False Certifications and HUD Enforcement. Any person knowingly presenting a false,
      fictitious or fraudulent statement or claim in a HUD matter, including certifications and
      supporting documentation for submitted conversion plans, are subject to criminal
      penalties, civil liability, or administrative actions which HUD may prosecute. HUD may
      pursue debarment/suspensions of principals and PHAs, and any enforcement actions
      available including, but not limited to, injunctive relief and other equitable remedies
      under HUD program and other Federal authorities. See 18 U.S.C. §§ 1001, 1010 and
      1012; 2 CFR 180 and 2424; 31 U.S.C. §§ 3729-3731; and 31 U.S.C. §§ 3801-3812.
      Procedures and possible consequences of a false or otherwise invalid civil rights
      certification under Section 5A of the 1937 Act are incorporated in HUD regulations at 24
      CFR 903.7(o) and 903.15(d)(3).

   D. Civil Rights Requirements.

          i) PHA Certification. As part of the conversion plan and application, PHAs certify
             compliance with all applicable civil rights nondiscrimination and equal
             opportunity requirements, including, but not limited to, Title VI of the Civil
             Rights Act of 1964, the Fair Housing Act, Section 504 of the Rehabilitation Act
             of 1973, and Title II of the Americans with Disabilities Act of 1990, and will
             affirmatively further fair housing. A PHA’s certification that it will affirmatively
             further fair housing means: (1) for a PHA that has completed an Assessment of
             Fair Housing (AFH) which has been accepted by HUD, that it will take
             meaningful actions to further the goals identified in the AFH conducted in
             accordance with 24 CFR 5.150 through 5.180, and that it will take no action that
             is materially inconsistent with its obligation to affirmatively further fair housing,
             and that it will address fair housing issues and contributing factors in its

                                                8
   programs, in accordance with 24 CFR 903.7(o)(3); or (2) for a PHA that is not yet
   required to and has not submitted an AFH, that it must continue complying with
   the requirements that existed prior to August 17, 2015, with respect to
   affirmatively furthering fair housing. PHAs also certify that if HUD approves the
   conversion plan, subsequent implementation of the approved conversion will
   comply with all applicable civil rights requirements, including conditions imposed
   in an environmental review to address environmental justice concerns.

ii) Disclosure of Remedial Orders and Compliance Agreements. In its conversion
    plan and application, the PHA provides a certification that the conversion does
    not violate any remedial civil rights order or agreement, voluntary compliance
    agreement, final judgment, consent decree, settlement agreement, or other court
    order or agreement (per 24 CFR 972.224(b)(2)). In addition, the PHA states
    whether it is operating under any federal, state, or local remedial order,
    compliance agreement, final judgment, consent decree, settlement agreement or
    other court order or agreement, including but not limited to those related to a fair
    housing or other civil rights finding of noncompliance. If the PHA is operating
    under such a document, it must provide a citation to the document and attach a
    narrative description explaining how the proposed conversion is consistent with
    such document.

iii) HUD Civil Rights Review. HUD’s Office of Fair Housing and Equal
     Opportunity (FHEO) conducts a civil rights review of conversion plans.

iv) Federal Labor Standards and Economic Opportunity. PHAs using Public Housing
    funds for a conversion must comply with all applicable federal labor standards of
    section 12 of the 1937 Act (42 U.S.C. 1437j) (Davis-Bacon) and requirements of
    Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C 1701u),
    as amended. Such activities include but are not limited to demolition and resident
    relocation. Under Section 3 and HUD’s implementing rule at 24 CFR 135,
    recipients of certain HUD public housing financial assistance must provide
    employment, training, contracting, and economic opportunities to the greatest
    extent feasible to Section 3 residents or business concerns. Section 3 obligations
    apply to PHAs, their contractors, and their subcontractors regardless of the
    amount of funds received by the PHA or the amount of the contract or
    subcontract. See 24 CFR 134.3(a)(3).

v) Accessible Resident Consultation, Meetings, and Notices. To ensure individuals
   with disabilities have reasonable opportunities to consult on the conversion plan
   and application, as well as ensuring that other communications and meetings are
   effective for individuals with disabilities, PHAs must ensure communications and
   materials are accessible and in compliance with Section 504 of the Rehabilitation
   Act of 1973 and implementing rules at 24 CFR 8.6 and Title II of the Americans
   with Disabilities Act of 1990 and implementing rules at 28 CFR 35 and 36. This
   includes ensuring written and oral communications, including resident meetings,
   are provided in appropriate alternative formats as needed, e.g., Braille, audio,

                                      9
              large type, accessible electronic communications, assistive listening devices, sign
              language interpreters, computer-assisted real time transcription of meetings,
              brailed materials, large print documents, accessible web-based and email
              communications, and when providing materials via the Internet. In selecting
              locations for consultation with residents, the PHA must provide equal access for
              persons with disabilities, conducting sessions at locations that are physically
              accessible to persons with disabilities, including individuals who use wheelchairs.
              Individuals with disabilities must receive services in the most integrated setting
              appropriate to their needs, meaning the needs of qualified individuals with
              disabilities that enables interactions to the fullest extent possible. The PHA is
              guided by the goal of maximizing participation in an integrated setting so that
              residents with disabilities and residents without disabilities may hear and consider
              each other’s views. Priority shall be given to on-site accessible locations (e.g.,
              TV rooms or informal gathering places) even if to do so requires multiple sessions
              with smaller groups of residents.

              Title VI of the Civil Rights Act of 1964 and regulations at 24 CFR 1 require
              PHAs to take reasonable steps to ensure meaningful access to their programs and
              activities for persons who have limited ability to read, speak, or understand
              English (i.e., individuals who have limited English proficiency or LEP persons).
              Written materials provided in English are to be provided in regularly encountered
              languages among the residents. PHAs may need to provide interpreters to
              communicate between different languages to ensure LEP persons have
              meaningful access. PHAs hold meetings in languages other than English to
              provide direct communication and participation.

10) Technical Assistance. Contact SACTA@hud.gov.

11) Paperwork Reduction Act. The information collection requirements contained in this
notice are approved by the Office of Management and Budget (OMB) under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control numbers are 2577-0075,
2577-0169, 2577-0226, and 2577-0276.

12) Public Comments. HUD welcomes public comments on this notice. Comments may be
submitted to HUD via email at SACTA@hud.gov or to HUD’s Special Applications Center
(SAC), 77 W. Jackson Blvd. Chicago, IL 60604. It is helpful to organize comments by specific
sections of the notice to assist with the subsequent review and response. Explain your views and
reasoning as clearly as possible; outline the basis for assumptions; and supporting evidence or
data, wherever possible. If you disagree with an aspect, provide alternatives that implement your
suggestions. Add an analysis of how your alternative(s) would better serve the public interest
and specific examples to illustrate your concerns, again, as possible.

_____________/s/____________________
Dominique Blom,
 General Deputy Assistant Secretary for
 Public and Indian Housing

                                               10
                                         APPENDIX A

Voluntary Relinquishment of Voucher Assistance in Exchange for Project-Based Voucher
                     Assistance in Public Housing Conversions

If a PHA plans to use Project-Based Voucher (PBV) assistance as part of, or immediately
following, conversion of a public housing property, neither the PHA nor the owner can require
families to relinquish tenant-based vouchers already received by the eligible family, or tenant-
based vouchers that have not yet been issued but will be received by the eligible family, pursuant
to the public housing conversion. Provided all applicable PBV requirements are met, PBV
assistance may only be attached to units in the project occupied by families eligible for tenant-
based assistance resulting from the conversion, if the following conditions are satisfied:

A) Family Briefing – PHAs must schedule a family briefing for all families potentially
   impacted by the proposed attachment of PBV assistance. A representative from the HUD
   Field Office of Public Housing must be invited and must attend the briefing either in person,
   or by teleconference. At a minimum, the briefing must include:
   1) Information on families’ right to remain in the unit using tenant-based HCV assistance;
   2) Information on the significant differences between PBV assistance and HCV assistance
       including income limits and the family’s total tenant payment;
   3) An opportunity for families to ask questions;
   4) Written material available for families concerning PBV assistance and HCV assistance,
       including mobility options, rent levels, rent payments, provision of supportive services,
       etc.;
   5) Provision of a written consent form explaining that a family’s decision to consent to
       relinquish its right to receive HCV assistance, or, if a voucher has already been issued,
       consent to relinquish its HCV assistance, is completely voluntary (see Paragraph B
       below);
   6) Information on the anticipated date of the conversion action and the execution of the PBV
       contract between the owner and the PHA.

   In selecting the proper venue for the briefing, PHA’s must give priority to methods that
   provide physical access to individuals with disabilities, i.e., holding the briefing in an
   accessible location, in accordance with the regulations implementing Section 504 of the
   Rehabilitation Act of 1973 and Titles II and III of the Americans with Disabilities Act of
   1990, as applicable. If accessibility is not achievable, PHAs must give priority to alternative
   methods of product delivery that allow persons with disabilities to access the family briefing
   in the most integrated setting appropriate. PHAs must ensure that persons with disabilities
   have an equal opportunity to participate in the family briefing. PHAs must provide
   appropriate auxiliary aids where necessary to afford persons with disabilities an equal
   opportunity to participate in the family briefing (see 24 CFR §8.6). Additionally, the PHA
   must take reasonable steps to provide meaningful access to the family briefing for persons
   with Limited English Proficiency (LEP). This may include the provision of translated
   notices of the date, time and location of the family briefing and qualified interpreters at the
   family briefing. The PHA must also make available any written materials that are provided at

                                               11
     the family briefing in the appropriate languages for persons with LEP10. PHAs must keep
     records of their efforts to comply with these requirements.

B) Written Consent – The family must be given at least 30 days from the date of the family
   briefing to make their decision. The consent form provided to each family at the briefing
   must explicitly acknowledge a family’s consent or non-consent. The consent form must
   indicate that it must be signed by the head of household and include the name and telephone
   number of a PHA employee that families can contact directly if they should have any
   questions or need additional information. If a family does not respond, informs the PHA that
   they wish to retain HCV assistance, or affirmatively withholds consent, the PHA shall not
   include that unit under a PBV HAP contract.

     The consent form must be provided in an accessible format for persons with disabilities and
     must include a TDD/TTY number or other equally effective communication system for
     persons with disabilities to use if they wish to contact the PHA with any questions or request
     for additional information (see 24 CFR §8.6). Additionally, the consent form should be
     translated into the appropriate language for persons with LEP and must include information
     on how persons with LEP can access language assistance if they wish to contact the PHA
     with any questions or requests for additional information.




10
  See HUD’s Final Guidance to Federal Financial Assistance Recipients Regarding Title VI Prohibition Against
National Origin Discrimination Affecting Limited English Proficient Persons, published in the Federal Register on
January 22, 2007 (72 FR 2732)

                                                        12