New Requirements for ACC Termination and PHA Closeout

HUD recently released Notice PIH 2019-13 (HA), titled “Public Housing ACC Termination and PHA Closeout.” The Notice supersedes Notice PIH 2016-23, which outlined prior ACC termination and closeout requirements. The notice outlines the requirements a PHA must must complete when proposing to remove their remaining public housing units from the public housing program and terminate their ACC. PHAs can only remove units from their ACC through one of more of the following authorities: demo/dispo, voluntary or required conversion, homeownership, Choice Neighborhoods demolitions, property retentions, personal property dispositions, eminent domain, or RAD.

The process of ACC termination begins when the PHA submits its IMS/PIC removal application for the last units in its public housing program. As an attachment to that IMS/PIC removal application, the PHA must submit form HUD-5837, Notification of Public Housing Closeout or Future Development. PHAs must then meet specific mandatory closeout activities prior to terminating the ACC. These include disposition of all non-dwelling real property and personal property; resolving all outstanding legal matters and grants and approvals; completing a public housing audit; and reconciling  public housing funds, program income, and disposition proceeds.

The notice further discusses what PHAs should do with closeout costs, the legal status of the PHA after closeout, necessary board resolution and legal opinion if the board has disbanded, and required recordkeeping and responsibilities after ACC termination.