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Wichita seeks HUD approval to dispose of final tranche of public-housing units under Section 18
Summary
City staff said HUD advised the city it could file a single Section 18 application covering about 137 homes and 10 nonhousing parcels to complete disposition; timing for HUD approval varies between 75 days and eight months in prior cases.
City staff told the council during agenda review that the Wichita Public Housing Authority plans to seek HUD approval to dispose of the remaining public-housing inventory through a Section 18 application.
A staff presentation said 67 properties had closed financing and that about 60 properties had approvals but not closings; staff said there remain roughly 215 properties without approved contracts. Staff explained that HUD had recently stopped approving Section 22 voluntary streamline conversions after litigation, but that HUD’s Special Applications Center indicated the city could apply for the remainder as a single Section 18 packet covering “137 homes plus the 10 parcels of non housing units.”
Staff cautioned that prior HUD case-processing times varied widely: the fastest approval took 75 days and the slowest about eight months. “This is the largest. It's more than double the size of any of the others,” staff said, and noted that federal timing is uncertain.
Council members asked whether the upcoming Section 18 application would be the last step in the disposition process; staff replied that it would be the last such administrative packet, and that property sales could move forward once HUD approves the application.
Ending: Staff said the city will file the Section 18 application and then await HUD’s review; no final HUD decision was recorded during the Feb. 28 meeting.
