Title
Approval to Submit Housing and Urban Development, Section 18 Disposition Application (Ordinance S-53036) - Citywide
Description
Request to authorize the sale of 57 Scattered Sites single-family homes pursuant to a U.S. Department of Housing and Urban Development (HUD) Section 18 program. This report further requests to authorize the City Manager, or his designee, to submit a HUD Section 18 Disposition Application, and if approved, proceed with the disposition. There is no impact to the General Fund.
Report
Summary
The Scattered Sites Program began in 1990 to encourage qualified Public Housing residents to become homeowners. Over the years, these properties have become increasingly challenging to operate due to the distance between homes, the lack of uniform systems, and the loss of federal subsidies for capital improvements and operating expenses. The Section 18 Disposition Program allows homes designated as public housing to be sold “as is.” With approval, the Housing Department will submit a Section 18 application and applicable Tenant Protection Vouchers to HUD. The 57 homes are listed in Attachment A.
Residents will have the opportunity to purchase their home or receive a tenant protection voucher. Approximately half of the homes will be sold to owner-occupants at no less than 90 percent of the property's appraised value. Homes will be appraised within six months of the sale date. The Housing Department will use the proceeds from the single-family home sales to support Housing Programs, as required by federal regulations, furthering the goal of the Council-approved Fiscal Year (FY) 2026-27 Annual Agency Plan to provide more affordable housing in the City of Phoenix.
Financial Impact
There is no impact to the General Fund. The Scattered Sites Program is federally funded. Proceeds from the sale of the single-family homes will be used to support the HUD Housing Program as required by federal regulations.
Concurrence/Previous Council Action
- On December 4, 2019, Formal Meeting, the City Council approved the adoption of the sale of 130 scattered sites single-family homes and the submission of HUD Section 18 disposition application for 40 vacant scattered sites single-family homes through Ordinance S-46222.
- On March 23, 2022, the Assisted Housing Governing Board (AHGB) approved the submission of HUD Section 18 disposition application for 90 scattered sites single-family homes through Resolution No. 211.
- On March 4, 2026, the AHGB approved the FY 2026-27 Annual Agency Plan, Section 8 Housing Choice Voucher Administrative Plan, the Public Housing Admissions and Continued Occupancy Policy, the Capital Fund Program and the Capital Fund Five-Year Action Plan through Resolution 232.
Public Outreach
The approved 2026-27 Annual Agency Plan includes the Housing Department’s plan to dispose of the scattered-site single-family homes through HUD’s Section 18 Disposition Program. The seven-member Resident Advisory Board met on February 12, 2026, and it was approved. As required by federal regulations, a 45-day public comment period was provided, and a public hearing was held on February 17, 2026, to receive comments. No comments were received. Additionally, on February 5, 2026, and April 6, 2026, notices were sent to residents within the Scattered Sites Portfolio, and individual outreach was also conducted.
Department
Responsible Department
This item is submitted by Deputy City Manager Gina Montes and the Housing Department.