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The U.S. Housing Act of 1937 established the Public Housing program. The goal of this program has always been to provide decent, safe, and sanitary housing for low-income families. As a result, Public Housing Agencies (PHAs) were established to develop, own and manage low-income housing.

PHAs are autonomous local entities created by state enabling law. The State housing authority statute is analogous to a corporate charter or articles of incorporation. It provides for the organization and the powers granted to a local housing authority. State enabling law gives the responsibility to County and municipal governments to establish PHAs for their local communities. Any government entity or public body which is responsible for developing or managing low-income housing can be designated as a PHA by the local government.

Before public housing can be developed in a community, the PHA must enter into a Cooperative Agreement with the local governing body. Under the Cooperative Agreement, the locality provides services such as fire and police protection. In return, PHAs make a Payment in Lieu of Taxes (PILOT) to the locality.

The PHA and HUD
Most of a PHA's funding for public housing is federal funding provided through the Department of Housing and Urban Development (HUD). HUD provides funding for special purposes, such as modernization and drug elimination, among others. HUD also provides annual operating subsidy funding, designed to make up the difference between the PHA's operating expenses and the rental income generated by the PHA.

Because PHAs receive federal funding to manage federal programs, they are subject to federal law and HUD oversight regarding those programs. PHAs must comply with applicable federal regulations, as well as HUD handbooks and notices, related to such programs as Public Housing, Section 8 rental assistance, Comprehensive Grant Program, among others. HUD personnel monitor PHA activities through the use of reviews. HUD also provides analysis, advice, and technical assistance to PHAs. When problems are identified, HUD works with the PHA to try to resolve the problems.

It's important to note that federal regulations and HUD guidance are focused primarily on the objectives and requirements of the housing programs, not on the internal structure or management of the PHA. Regulations and guidance do not, nor are they intended to, govern every aspect of a PHA's operation or management.

HUD and the PHA enter into an Annual Contributions Contract (ACC). The ACC sets forth specific obligations and responsibilities that the PHA must meet in managing low-income housing, including:

• Ensuring that only eligible families are assisted;
• Ensuring that developments are maintained in good repair;
• Ensuring that books and records are maintained in accordance with HUD requirements;
• Ensuring that the Public Housing program is operated with efficiency and economy.

In essence, HUD contracts with the PHA to operate the Public Housing program but the PHA retains direct responsibility for conducting its daily operations, in compliance with the law, as any contractor would. The PHA retains a high degree of freedom and flexibility to make its own decisions in the areas of general management and administration, organizational structure, personnel and staffing, office facilities and equipment, expenditures, etc.

For more information about public housing or to view the agency's Annual Plan please click here to be re-directed to the HUD homepage.