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42 U.S. Code § 1437p. Demolition and disposition of public housing
(a) Applications for demolition and dispositionExcept as provided in subsection (b), upon receiving an application by a public housing agency for authorization, with or without financial assistance under this subchapter, to demolish or dispose of a public housing project or a portion of a public housing project (including any transfer to a resident-supported nonprofit entity), the Secretary shall approve the application, if the public housing agency certifies—
(1) in the case of—
(A) an application proposing demolition of a public housing project or a portion of a public housing project, that—
(i)
the project or portion of the public housing project is obsolete as to physical condition, location, or other factors, making it unsuitable for housing purposes; and
(ii)
no reasonable program of modifications is cost-effective to return the public housing project or portion of the project to useful life; and
(B)
an application proposing the demolition of only a portion of a public housing project, that the demolition will help to ensure the viability of the remaining portion of the project;
(2) in the case of an application proposing disposition by sale or other transfer of a public housing project or other real property subject to this subchapter—
(A) the retention of the property is not in the best interests of the residents or the public housing agency because—
(i)
conditions in the area surrounding the public housing project adversely affect the health or safety of the residents or the feasible operation of the project by the public housing agency; or
(ii)
disposition allows the acquisition, development, or rehabilitation of other properties that will be more efficiently or effectively operated as low-income housing;
(B) the public housing agency has otherwise determined the disposition to be appropriate for reasons that are—
(i)
in the best interests of the residents and the public housing agency;
(ii)
consistent with the goals of the public housing agency and the public housing agency plan; and
(iii)
otherwise consistent with this subchapter; or
(C)
for property other than dwelling units, the property is excess to the needs of a public housing project or the disposition is incidental to, or does not interfere with, continued operation of a public housing project;