Assessment of the Reasonable Revitalization Potential of Certain Public Housing Required by Law

On September 26, 1996, HUD published a notice implementing section 202 of the Omnibus Consolidated Rescissions and Appropriations Act of 1996. Section 202 requires PHAs to identify certain distressed public housing developments that cost more than Section 8 rental assistance and cannot be reasonably revitalized. Households in occupancy that will be affected by the activities will be offered tenant-based or project-based assistance (that can include other public housing units) and will be relocated, to other decent, safe, sanitary, and affordable housing which is, to the maximum extent practicable, housing of their choice. After residents are relocated, the distressed developments (or affected buildings) for which no reasonable means of revitalization exists will be removed from the public housing inventory. The September 26, 1996 notice invited public comments. This interim rule takes into consideration the comments received on the September 26, 1996 notice and codifies the modified requirements in a new part 971.