Friday, August 28, 2026HUD Increases Flexibility and Lowers Barriers for Public Housing Repositioning

WASHINGTON - HUD today announced updates to its public housing demolition and disposition program to make it easier for public housing authorities (PHAs) to address distressed public housing and maintain affordable housing in their communities through redevelopment.

"Public housing should not be synonymous with blighted or derelict buildings," said Secretary Turner. "With today's announcement, HUD is enhancing local housing authorities' ability to rehabilitate failing projects and breathe new life into their communities. Under President Trump's leadership, HUD is making public housing safe, serviceable, and better positioned to help residents transition to self-sufficiency."

Across the country, PHAs manage public housing properties with an estimated $170 billion capital-needs backlog and physical deficiencies. Families living in these projects are three times more likely to live in higher crime neighborhoods and four times more likely to live in higher concentrations of poverty.

HUD's updated guidance provides PHAs with more tools to keep their buildings safe, modern, and affordable through public-private partnerships that help demolish, sell, or reposition public housing. These tools will reposition public housing to the Section 8 platform where agencies can more readily leverage private capital to achieve affordable housing goals and reduce reliance on federal funds.

The updated guidelines focus on three main areas:

• Expanding the definition of obsolete buildings: Agencies can now redevelop, modernize, demolish, or sell buildings that have outdated design features.
• Fewer barriers for small agencies: PHAs with 75 or fewer units can now reposition all their properties at once and exit the public housing program with far less administrative paperwork and the option to consolidate with larger, nearby housing agencies.
• Relief for financially struggling properties: HUD has expanded which properties qualify for demolition and disposition, giving relief to agencies and owners managing "mixed-finance" properties and expanding the definition of scattered sites.

To learn more about these updates, visit www.hud.gov.

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