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U.S. Code as of:
01/19/04
Section 1437w. Transfer of management of certain housing to independent manager at request of residents
(a) Authority
The Secretary may transfer the responsibility and authority for
management of specified housing (as such term is defined in
subsection (h) of this section) from a public housing agency to an
eligible management entity, in accordance with the requirements of
this section, if -
(1) a request for transfer of management of such housing is
made and approved in accordance with subsection (b) of this
section; and
(2) the Secretary or the public housing agency, as appropriate
pursuant to subsection (b) of this section, determines that -
(A) due to the mismanagement of the agency, such housing has
deferred maintenance, physical deterioration, or obsolescence
of major systems and other deficiencies in the physical plant
of the project;
(B) such housing is located in an area such that the housing
is subject to recurrent vandalism and criminal activity
(including drug-related criminal activity); and
(C) the residents can demonstrate that the elements of
distress for such housing specified in subparagraphs (A) and
(B) can be remedied by an entity or entities, identified by the
residents, that has or have a demonstrated capacity to manage,
with reasonable expenses for modernization.
(b) Request for transfer
The responsibility and authority for managing specified housing
may be transferred only pursuant to a request made by a majority
vote of the residents for the specified housing that -
(1) in the case of specified housing that is owned by a public
housing agency that is designated as a troubled agency under
section 1437d(j)(2) of this title -
(A) is made to the public housing agency or the Secretary;
and
(B) is approved by the agency or the Secretary; or
(2) in the case of specified housing that is owned by a public
housing agency that is not designated as a troubled agency under
section 1437d(j)(2) of this title -
(A) is made to and approved by the public housing agency; or
(B) if a request is made to the agency pursuant to
subparagraph (A) and is not approved, is subsequently made to
and approved by the Secretary.
(c) Capital and operating assistance
Pursuant to a contract under subsection (d) of this section, the
Secretary shall require the public housing agency for specified
housing to provide to the manager for the housing, from any
assistance from the Capital and Operating Funds under section 1437g
of this title for the agency, fair and reasonable amounts for the
housing for eligible capital and operating activities under
subsection (d)(1) and (e)(1) of section 1437g of this title. The
amount made available under this subsection to a manager shall be
determined by the Secretary based on the share for the specified
housing of the aggregate amount of assistance from such Funds for
the public housing agency transferring the housing, taking into
consideration the operating and capital improvement needs of the
specified housing, the operating and capital improvement needs of
the remaining public housing units managed by the public housing
agency, and the public housing agency plan of such agency.
(d) Contract between Secretary and manager
(1) Requirements
Pursuant to the approval of a request under this section for
transfer of the management of specified housing, the Secretary
shall enter into a contract with the eligible management entity.
(2) Terms
A contract under this subsection shall contain provisions
establishing the rights and responsibilities of the manager with
respect to the specified housing and the Secretary and shall be
consistent with the requirements of this chapter applicable to
public housing projects.
(e) Compliance with public housing agency plan
A manager of specified housing under this section shall comply
with the approved public housing agency plan applicable to the
housing and shall submit such information to the public housing
agency from which management was transferred as may be necessary
for such agency to prepare and update its public housing agency
plan.
(f) Demolition and disposition by manager
A manager under this section may demolish or dispose of specified
housing only if, and in the manner, provided for in the public
housing agency plan for the agency transferring management of the
housing.
(g) Limitation on PHA liability
A public housing agency that is not a manager for specified
housing shall not be liable for any act or failure to act by a
manager or resident council for the specified housing.
(h) Definitions
For purposes of this section, the following definitions shall
apply:
(1) Eligible management entity
The term "eligible management entity" means, with respect to
any public housing project, any of the following entities:
(A) Nonprofit organization
A public or private nonprofit organization, which may -
(i) include a resident management corporation; and
(ii) not include the public housing agency that owns or
operates the project.
(B) For-profit entity
A for-profit entity that has demonstrated experience in
providing low-income housing.
(C) State or local government
A State or local government, including an agency or
instrumentality thereof.
(D) Public housing agency
A public housing agency (other than the public housing agency
that owns or operates the project).
The term does not include a resident council.
(2) Manager
The term "manager" means any eligible management entity that
has entered into a contract under this section with the Secretary
for the management of specified housing.
(3) Nonprofit
The term "nonprofit" means, with respect to an organization,
association, corporation, or other entity, that no part of the
net earnings of the entity inures to the benefit of any member,
founder, contributor, or individual.
(4) Private nonprofit organization
The term "private nonprofit organization" means any private
organization (including a State or locally chartered
organization) that -
(A) is incorporated under State or local law;
(B) is nonprofit in character;
(C) complies with standards of financial accountability
acceptable to the Secretary; and
(D) has among its purposes significant activities related to
the provision of decent housing that is affordable to
low-income families.
(5) Public nonprofit organization
The term "public nonprofit organization" means any public
entity that is nonprofit in character.
(6) Specified housing
The term "specified housing" means a public housing project or
projects, or a portion of a project or projects, for which the
transfer of management is requested under this section. The term
includes one or more contiguous buildings and an area of
contiguous row houses, but in the case of a single building, the
building shall be sufficiently separable from the remainder of
the project of which it is part to make transfer of the
management of the building feasible for purposes of this section.
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