Low Income Public Housing Progression from Mandatory Conversion to Section 18 Demo/Dispo Announcement

Mobile Housing Board Low Income Public Housing Progression from Mandatory Conversion to Section 18 Demo/Dispo Announcement

Earlier this year, the Department of Housing and Urban Development (HUD) informed the Mobile Housing Board (MHB) that Mandatory Conversion was required for Thomas James and R.V. Taylor public housing units because the developments had vacancy rates at or above 12 percent for each of the last three years.

During a series of meetings, MHB informed its Resident Advisory Board, impacted residents and elected officials of HUD’s requirement and the implications.  Because Demolition and Disposition Transitional Funds (DDTF) and Operating subsidy (ARF) are not awarded with Mandatory Conversion, MHB sought relief from HUD to allow MHB to submit Section 18 Demo/Dispo applications instead.  With this change, MHB will receive approximately $18-$21 million in DDTF and ARF over five years.  HUD recently agreed to allow the submission of Section 18 Demo/Dispo applications.

Section 18 Demo/Dispo is similar to Mandatory Conversion in that MHB will not require impacted residents to accept tenant-based voucher and they are able to move to other public housing residential communities.  It could take up to five years to move every family in both communities; therefore, we do not anticipate moving any families within the next 8-12 months.

MHB is still in the Demo/Dispo application phase and will be developing the five-year demolition plan over the coming months.  However, MHB will ensure current residents affected by Section 18 Demo/Dispo remain engaged and kept informed throughout the process through postings on the MHB website, resident meetings and flyer distribution.

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