Laws: Cases and Codes : U.S. Code : Title 42 : Section 1437w


   
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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