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Preserving Single-Family Homes 2019-03-15T14:22:28-06:00

Preserving Single-Family Homes

Using HUD’s “Section 18” program to fund home improvements and preserve public housing

WHY is MPHA applying for this HUD program?

MPHA needs to maintain and update more than 700 family homes across the city. To preserve these homes, MPHA has decided to apply for HUD’s Section 18 program. The program will give MPHA more money to take care of public housing.

WHAT does this mean for residents?

MPHA’s commitments to families:

  • You will not have to move.
  • You will not lose your housing benefits.
  • MPHA will still be your property manager.
  • Your rent calculation will remain at 30% of your adjusted income, the same as now.
  • MPHA’s use of the Section 18 program will not eliminate, reduce, or privatize any public housing.
  • You may experience more improvements and repairs to your home with the increased funding.
  • The long-term arrangement will guarantee the homes serve only low-income families.

HOW does the new program work?

  • STEP 1: APPLY

    Since current federal funding is not enough to operate and maintain housing long-term, MPHA is applying for HUD’s Section 18 program. Through Section 18, MPHA will apply “disposition” of these properties (sometimes referred to as MPHA’s “scattered sites”).

  • STEP 2: MPHA-OWNED NONPROFIT

    In this case, “disposition” means MPHA will transfer the properties to our own public nonprofit that is 100% controlled by the housing authority. Residents will sign a new lease. The change will otherwise have little or no impact for most residents.

  • STEP 3: FUNDING

    The approved Section 18 application leads to a large increase in the subsidy amount, which allows MPHA to improve and rehab housing.

  • STEP 4: CONVERSION

    MPHA will convert the subsidy into project-based vouchers (PBVs). PBVs are attached permanently to the scattered-site house and operate much the way public housing currently operates. MPHA will continue to property-manage this family housing through the nonprofit.

WHAT properties are not included in the Section 18 program?

Our townhome properties (the Glendale Townhomes and Minnehaha Townhomes) are not included in MPHA’s application for the Section 18 program, which is specifically designed to address the Section 18 guidance for “scattered sites.” (Townhomes are not scattered sites, per HUD’s definition.) MPHA’s highrises are also not included in this application. MPHA has applied for a different federal program called the Rental Assistance Demonstration for one highrise.

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