Why sell public housing?
Because of decades of Congressional underfunding for the public housing program, there is a significant backlog of capital needs for these homes. The federal program’s restrictions prevent Housing Catalyst from using any of the methods a private owner would use to perform repairs and modernization, such as refinancing, grants, and tax credits.
Selling or repositioning these deteriorating properties will allow Housing Catalyst to build and operate more efficient, sustainable, and high-quality housing. Section 18 of the 1937 Housing Act allows housing authorities to apply to HUD for approval to dispose of public housing and convert to Section 8 voucher-based assistance. Net proceeds must be used to provide low-income housing or to benefit residents.
Housing Catalyst plans to use sales proceeds to renovate existing affordable properties, build new affordable housing developments, and fund Resident Services staff who will working with residents, property managers, and community partners to identify needs and coordinate referrals, resources, and community partnerships that promote the overall healthy communities.