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42 U.S. Code § 1437w. Transfer of management of certain housing to independent manager at request of residents
(a) AuthorityThe Secretary may transfer the responsibility and authority for management of specified housing (as such term is defined in subsection (h)) from a public housing agency to an eligible management entity, in accordance with the requirements of this section, if—
(1)
a request for transfer of management of such housing is made and approved in accordance with subsection (b); and
(2) the Secretary or the public housing agency, as appropriate pursuant to subsection (b), determines that—
(A)
due to the mismanagement of the agency, such housing has deferred maintenance, physical deterioration, or obsolescence of major systems and other deficiencies in the physical plant of the project;
(B)
such housing is located in an area such that the housing is subject to recurrent vandalism and criminal activity (including drug-related criminal activity); and
(C)
the residents can demonstrate that the elements of distress for such housing specified in subparagraphs (A) and (B) can be remedied by an entity or entities, identified by the residents, that has or have a demonstrated capacity to manage, with reasonable expenses for modernization.