This authority regulates the conditions and the process by which housing authorities may receive permission to demolish or otherwise dispose of housing units that they have previously agreed to operate as public housing.
 

The Annual Contributions Contract (ACC) is the instrument by which the Federal Government agrees to provide annual subsidies to specific publicly owned housing units, in exchange for a commitment from the housing authority to maintain those units for low-income use under the system of rules that governs federally funded public housing. The ACC prohibits public housing authorities (HAs) from demolishing these units, disposing of them, or leasing them for periods longer than a year without the approval of the Secretary. However, when public housing units have outlived their usefulness or can better serve the community in another form, Demo/Dispo provides the housing authority with an avenue for seeking permission to remove them from the ACC and thereby deregulate their use.
 

HUD does not provide funds specifically for performing demolition or other disposition activities. However, housing authorities may use funds provided under HOPE VI [LINK], the Comprehensive Improvement Assistance Program (CIAP), the Comprehensive Improvement Assistance Program (CIAP), Comprehensive Grant Program (CGP), Public Housing Development, as well as funds from nonfederal sources.
 

The Secretary has delegated approval of Demolition/Disposition applications to the Assistant Secretary for Public and Indian Housing. Once the Special Applications Center (SAC) is in operation, this authority will be delegated to its Director. HAs may apply at any time to the Processing Center serving their area. After May 6, 1998, HAs will apply directly to the SAC in Chicago.
 

Demo/Dispo is governed by 24 CFR 970. These regulations, as well as other relevant information, are available online through HUDCLIPS. The Demo/Dispo page on HUD's website has technical assistance material and other information to make applications simple. An application form has been published in the Federal Register for public comment. The comment period ends in March 1998.