Conversion Cost Calculator Spreadsheet

Information by State  Print version

HUD Releases Required and Voluntary Conversion Rules

On September 17, 2003, HUD published in the Federal Register two final rules and a proposed rule regarding conversion of distressed public housing developments to tenant-based assistance.

• Required Conversion of Developments From Public Housing Stock; Final Rule
• Voluntary Conversion of Developments From Public Housing Stock; Final Rule
• Conversion of Developments From Public Housing Stock; Methodology for Comparing Costs of Public Housing and Tenant-Based Assistance; Proposed Rule

These three rules implement the required and voluntary conversion programs authorized by the Quality Housing and Work Responsibility Act of 1998 (Title V of the Fiscal Year 1999 HUD Appropriations Act; Pub. L. 105-276.) and will provide PHAs with asset management tools to remove distressed properties that are not viable from the public housing inventory, and in place to provide families with replacement units or vouchers.

On March 20, 2006, a final rule on the methodology for comparing the cost of individual public housing developments to the cost of providing Section 8 housing choice voucher assistance was published in the Federal Register. This rule (the Conversion Cost Calculator Rule) became effective on April 20, 2006. The cost methodology for Required Conversion is different than that for Voluntary conversion.

The cost methodology rule outlines a methodology for comparing costs for public housing and Section 8 tenant-based assistance codified as an appendix at 24 CFR Part 972.

The Special Applications Center (SAC) administers these rules and reviews required and voluntary conversion proposals submitted by PHAs. The SAC website will post all information regarding how PHAs are to apply for required and voluntary conversion approval. This will include a verification process for PHAs that operate any public housing developments with more than 250 units with a vacancy rate at or above 15% for a cumulative three-year period. PHAs are required to indicate whether continuing to operate and maintain these properties is cost-effective and less than providing vouchers or these properties must be removed from the inventory. PHAs that operate any properties subject to required conversion are required to submit conversion assessments within their next PHA Agency Plan, and a required conversion plan to HUD's Special Application no later than the due date of their next Annual Plan. All Conversion Plans are reviewed and approved by the SAC.

The SAC will be posting additional application requirements and instructions for PHAs to prepare required and voluntary conversion proposals and a list of potential properties that are required conversion candidates in the near future. The SAC website can be found at: http://www.hud.gov/offices/pih/centers/sac/ The Cost Comparison Spreadsheet posted below will enable PHAs to conduct cost assessments comparing public housing and voucher costs to make decisions regarding voluntary and required conversions.

Cost Comparison Spreadsheet (MS-Excel)