HUD Releases Guidance on Demo/Dispo Asset-Repositioning Fee (ARF)

On November 8, HUD released Notice PIH-2017-22 titled “Guidance on Eligibility for Asset-Repositioning Fee (ARF) when Public Housing Units Are Approved for Demolition, Disposition, or Transitioned to Homeownership.” The Notice applies to all PHAs administering Public Housing, including MTW PHAs.

PHAs that transition projects or entire buildings within a project out of the public inventory may be eligible for ARF, which is an add-on to Operating Subsidy eligibility. ARF supplements costs associated with administration of demolition and disposition, tenant relocation, and minimum protection and services associated with such efforts. It is not intended for individual units within a multi-unit building.

The guidance discusses which units would be considered eligible for ARF, the timeline for homeownership and non-homeownership ARF, how to identify unit months for units eligible to receive ARF, how to calculate ARF amounts, how to determine the ARF funding period versus the Operating Subsidy funding year, how to use ARF when a PHA demolishes and/or disposes of different buildings in one project in multiple phases, and how to adjust the rolling base if some units in a project are ARF eligible and others are not.

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