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Housing officials say HUD approvals delayed public‑housing repositioning; cite $30 billion backlog

August 08, 2025 | Fargo , Cass County, North Dakota


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Housing officials say HUD approvals delayed public‑housing repositioning; cite $30 billion backlog
Housing authority officials described lengthy HUD review timelines that delayed repositioning of aging public housing and increased costs for local redevelopment.

Why it matters: Repositioning under HUD’s Section 18 process can convert aging, subsidized public‑housing stock into mixed‑finance developments that remove the units from annual operating subsidies and create modern, self‑sustaining properties. Local authorities said slow federal approvals and repeated documentary requirements impede that process.

Derek Johnson of the Housing Authority of Cass County said North Dakota has about 1,900 public‑housing units funded with capital and operating funds. Johnson said the agency could transition those units into roughly 2,600 self‑sustaining units if Section 18 and related approvals moved faster. He described a project the agency submitted on May 14, 2023, that he said sat in HUD review for 15 months before staff engagement led to approval within two weeks.

“We submitted the package to HUD, and it sat for 15 months,” Johnson said. He urged HUD to review internal procedures so other projects do not face similar delays; he also described repeated costs for market studies and environmental re‑checks that add to overhead when approvals lag.

Turner responded that HUD has been working to improve internal efficiency and that the agency is committed to speedier processing. He acknowledged the backlog and said HUD has a team focused on process improvement and faster approvals.

Discussion vs. decision: The meeting produced no new federal approvals; however HUD officials said they would review internal processing and continue to work with the agency’s special applications teams to improve timelines. Local officials said they would provide program staff with specific project timelines and documentation to support faster reviews.

Clarifying detail: Johnson cited the larger HUD public‑housing backlog figure — $30,000,000,000 — as context for why repositioning is needed. He also said the agency had to produce multiple market studies at roughly $5,000 each as approvals were delayed and studies became outdated.

Next steps: Housing authority leaders said they will follow up with HUD regional staff to accelerate pending repositioning requests and to share operational examples.

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Scribe from Workplace AI
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