---
kind: "section"
citation: "42 U.S.C. § 1437r"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1437r"
heading: "Public housing resident management"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/1437r"
units:
  - "Chapter 8 — Low-Income Housing"
  - "Subchapter I — General Program of Assisted Housing"
---

# §1437r. Public housing resident management

- (a) **Purpose—** The purpose of this section is to encourage increased resident management of public housing [projects](/usc/42/13641.md?p=2), as a means of improving existing living conditions in public housing [projects](/usc/42/13641.md?p=2), by providing increased flexibility for public housing [projects](/usc/42/13641.md?p=2) that are managed by residents by—
  - (1) permitting the retention, and use for certain purposes, of any revenues exceeding operating and [project](/usc/42/13641.md?p=2) costs; and
  - (2) providing funding, from amounts otherwise available, for technical assistance to promote formation and development of resident management entities.

  For purposes of this section, the term “public housing [project](/usc/42/13641.md?p=2)” includes one or more contiguous buildings or an area of contiguous row houses the elected resident councils of which approve the establishment of a resident management [corporation](/usc/42/2297h.md?p=2) and otherwise meet the requirements of this section.

- (b) **Program requirements—**
  - (1) **Resident council—** As a condition of entering into a resident management program, the elected resident council of a public housing [project](/usc/42/13641.md?p=2) shall approve the establishment of a resident management [corporation](/usc/42/2297h.md?p=2). When such approval is made by the elected resident council of a building or row house area, the resident management program shall not interfere with the rights of other families residing in the [project](/usc/42/13641.md?p=2) or harm the efficient operation of the [project](/usc/42/13641.md?p=2). The resident management [corporation](/usc/42/2297h.md?p=2) and the resident council may be the same organization, if the organization complies with the requirements applicable to both the [corporation](/usc/42/2297h.md?p=2) and council. The [corporation](/usc/42/2297h.md?p=2) shall be a [nonprofit](/usc/42/300s–3.md?p=3) [corporation](/usc/42/2297h.md?p=2) organized under the laws of the [State](/usc/42/2021b.md?p=14) in which the [project](/usc/42/13641.md?p=2) is located, and the tenants of the [project](/usc/42/13641.md?p=2) shall be the sole voting members of the [corporation](/usc/42/2297h.md?p=2). If there is no elected resident council, a majority of the households of the public housing [project](/usc/42/13641.md?p=2) shall approve the establishment of a resident council to determine the feasibility of establishing a resident management [corporation](/usc/42/2297h.md?p=2) to manage the [project](/usc/42/13641.md?p=2).
  - (2) **Public housing management specialist—** The resident council of a public housing [project](/usc/42/13641.md?p=2), in cooperation with the public housing [agency](/usc/42/8262.md?p=1), shall select a qualified public housing management specialist to assist in determining the feasibility of, and to help establish, a resident management [corporation](/usc/42/2297h.md?p=2) and to provide training and other duties agreed to in the daily operations of the [project](/usc/42/13641.md?p=2).
  - (3) **Bonding and insurance—** Before assuming any management responsibility for a public housing [project](/usc/42/13641.md?p=2), the resident management [corporation](/usc/42/2297h.md?p=2) shall provide fidelity bonding and insurance, or equivalent protection, in accordance with regulations and requirements of the [Secretary](/usc/42/242q–4.md?p=2) and the public housing [agency](/usc/42/8262.md?p=1). Such bonding and insurance, or its equivalent, shall be adequate to protect the [Secretary](/usc/42/242q–4.md?p=2) and the public housing [agency](/usc/42/8262.md?p=1) against loss, theft, embezzlement, or fraudulent acts on the part of the resident management [corporation](/usc/42/2297h.md?p=2) or its employees.
  - (4) **Management responsibilities—** A resident management [corporation](/usc/42/2297h.md?p=2) that qualifies under this section, and that supplies insurance and bonding or equivalent protection sufficient to the [Secretary](/usc/42/242q–4.md?p=2) and the public housing [agency](/usc/42/8262.md?p=1), shall enter into a contract with the public housing [agency](/usc/42/8262.md?p=1) establishing the respective management rights and responsibilities of the [corporation](/usc/42/2297h.md?p=2) and the public housing [agency](/usc/42/8262.md?p=1). Such contract shall be consistent with the requirements of this chapter applicable to public housing [projects](/usc/42/13641.md?p=2) and may include specific terms governing management personnel and compensation, access to public housing [project](/usc/42/13641.md?p=2) records, submission of and adherence to budgets, rent collection procedures, tenant income verification, tenant eligibility determinations, tenant eviction, the acquisition of supplies and materials, rent determination, community service requirements,,[^1] and such other matters as may be appropriate. The contract shall be treated as a contracting out of services and shall be subject to any provision of a collective bargaining agreement regarding contracting out to which the public housing [agency](/usc/42/8262.md?p=1) is subject.
  - (5) **Annual audit—** The books and records of a resident management [corporation](/usc/42/2297h.md?p=2) operating a public housing [project](/usc/42/13641.md?p=2) shall be audited annually by a certified public accountant. A written report of each audit shall be forwarded to the public housing [agency](/usc/42/8262.md?p=1) and the [Secretary](/usc/42/242q–4.md?p=2).
- (c) **Assistance amounts—** A contract under this section for management of a public housing [project](/usc/42/13641.md?p=2) by a resident management [corporation](/usc/42/2297h.md?p=2) shall provide for—
  - (1) the public housing [agency](/usc/42/8262.md?p=1) to provide a portion of the assistance to [agency](/usc/42/8262.md?p=1) from the Capital and Operating Funds to the resident management [corporation](/usc/42/2297h.md?p=2) in accordance with [subsection (e)](#e) for purposes of operating the public housing [project](/usc/42/13641.md?p=2) covered by the contract and performing such other eligible activities with respect to the [project](/usc/42/13641.md?p=2) as may be provided under the contract;
  - (2) the amount of income expected to be derived from the [project](/usc/42/13641.md?p=2) itself (from sources such as rents and charges);
  - (3) the amount of income to be provided to the [project](/usc/42/13641.md?p=2) from the other sources of income of the public housing [agency](/usc/42/8262.md?p=1) (such as interest income, administrative fees, and rents); and
  - (4) any income generated by a resident management [corporation](/usc/42/2297h.md?p=2) of a public housing [project](/usc/42/13641.md?p=2) that exceeds the income estimated under the contract shall be used for eligible activities under subsections (d)(1) and (e)(1) of [section 1437g of this title](/usc/42/1437g.md).
- (d) **Waiver of Federal requirements—**
  - (1) **Waiver of regulatory requirements—** Upon the request of any resident management [corporation](/usc/42/2297h.md?p=2) and public housing [agency](/usc/42/8262.md?p=1), and after notice and an opportunity to comment is afforded to the affected tenants, the [Secretary](/usc/42/242q–4.md?p=2) may waive (for both the resident management [corporation](/usc/42/2297h.md?p=2) and the public housing [agency](/usc/42/8262.md?p=1)) any requirement established by the [Secretary](/usc/42/242q–4.md?p=2) (and not specified in any statute) that the [Secretary](/usc/42/242q–4.md?p=2) determines to unnecessarily increase the costs or restrict the income of a public housing [project](/usc/42/13641.md?p=2).
  - (2) **Waiver to permit employment—** Upon the request of any resident management [corporation](/usc/42/2297h.md?p=2), the [Secretary](/usc/42/242q–4.md?p=2) may, subject to applicable collective bargaining agreements, permit residents of such [project](/usc/42/13641.md?p=2) to volunteer a portion of their labor.
  - (3) **Exceptions—** The [Secretary](/usc/42/242q–4.md?p=2) may not waive under this subsection any requirement with respect to income eligibility for purposes of [section 1437n of this title](/usc/42/1437n.md), rental payments under [section 1437a(a) of this title](/usc/42/1437a.md?p=a), tenant or applicant protections, employee organizing rights, or rights of employees under collective bargaining agreements.
- (e) **Direct provision of operating and capital assistance—**
  - (1) **In general—** The [Secretary](/usc/42/242q–4.md?p=2) shall directly provide assistance from the Operating and Capital Funds to a resident management [corporation](/usc/42/2297h.md?p=2) managing a public housing development pursuant to a contract under this section, but only if—
    - (A) the resident management [corporation](/usc/42/2297h.md?p=2) petitions the [Secretary](/usc/42/242q–4.md?p=2) for the release of the funds;
    - (B) the contract provides for the resident management [corporation](/usc/42/2297h.md?p=2) to assume the primary management responsibilities of the public housing [agency](/usc/42/8262.md?p=1); and
    - (C) the [Secretary](/usc/42/242q–4.md?p=2) determines that the [corporation](/usc/42/2297h.md?p=2) has the capability to effectively discharge such responsibilities.
  - (2) **Use of assistance—** Any assistance from the Operating and Capital Funds provided to a resident management [corporation](/usc/42/2297h.md?p=2) pursuant to this subsection shall be used for purposes of operating the public housing developments of the [agency](/usc/42/8262.md?p=1) and performing such other eligible activities with respect to public housing as may be provided under the contract.
  - (3) **Responsibility of public housing agency—** If the [Secretary](/usc/42/242q–4.md?p=2) provides direct funding to a resident management [corporation](/usc/42/2297h.md?p=2) under this subsection, the public housing [agency](/usc/42/8262.md?p=1) shall not be responsible for the actions of the resident management [corporation](/usc/42/2297h.md?p=2).
  - (4) **Calculation of Operating Fund allocation—** Notwithstanding any provision of [section 1437g of this title](/usc/42/1437g.md) or any regulation under such section, and subject to the exception provided in [paragraph (3)](#e-3), the portion of the amount received by a public housing [agency](/usc/42/8262.md?p=1) under [section 1437g of this title](/usc/42/1437g.md) that is due to an [allocation](/usc/42/2021b.md?p=2) from the Operating Fund and that is allocated to a public housing [project](/usc/42/13641.md?p=2) managed by a resident management [corporation](/usc/42/2297h.md?p=2) shall not be less than the public housing [agency](/usc/42/8262.md?p=1) per unit monthly amount provided in the previous year as determined on an individual [project](/usc/42/13641.md?p=2) basis.
  - (5) **Calculation of total income—**
    - (A) Subject to [subparagraph (B)](#e-5-B), the amount of funds provided by a public housing [agency](/usc/42/8262.md?p=1) to a public housing [project](/usc/42/13641.md?p=2) managed by a resident management [corporation](/usc/42/2297h.md?p=2) may not be reduced during the 3-year period beginning on February 5, 1988, or on any later date on which a resident management [corporation](/usc/42/2297h.md?p=2) is first established for the [project](/usc/42/13641.md?p=2).
    - (B) If the total income of a public housing [agency](/usc/42/8262.md?p=1) (including any amounts from the Capital or Operating Funds provided to the public housing [agency](/usc/42/8262.md?p=1) under [section 1437g of this title](/usc/42/1437g.md)) is reduced or increased, the income provided by the public housing [agency](/usc/42/8262.md?p=1) to a public housing [project](/usc/42/13641.md?p=2) managed by a resident management [corporation](/usc/42/2297h.md?p=2) shall be reduced or increased in proportion to the reduction or increase in the total income of the public housing [agency](/usc/42/8262.md?p=1), except that any reduction in amounts from the Operating Fund that occurs as a result of fraud, waste, or mismanagement by the public housing [agency](/usc/42/8262.md?p=1) shall not affect the funds provided to the resident management [corporation](/usc/42/2297h.md?p=2).
  - (6) **Retention of excess revenues—**
    - (A) Any income generated by a resident management [corporation](/usc/42/2297h.md?p=2) of a public housing [project](/usc/42/13641.md?p=2) that exceeds the income estimated for purposes of this subsection shall be excluded in subsequent years in calculating (i) the [allocations](/usc/42/2021b.md?p=2) from the Operating Fund for the public housing [agency](/usc/42/8262.md?p=1) under [section 1437g of this title](/usc/42/1437g.md); and (ii) the funds provided by the public housing [agency](/usc/42/8262.md?p=1) to the resident management [corporation](/usc/42/2297h.md?p=2).
    - (B) Any revenues retained by a resident management [corporation](/usc/42/2297h.md?p=2) under [subparagraph (A)](#e-6-A) shall be used for purposes of improving the maintenance and operation of the public housing [project](/usc/42/13641.md?p=2), for establishing business enterprises that employ residents of public housing, or for acquiring additional dwelling units for low-income families.
- (f) **, (g) Repealed. Pub. L. 105–276, title V, § 532(a)(5), Oct. 21, 1998, 112 Stat. 2575—**
- (h) **Applicability—** Any management contract between a public housing [agency](/usc/42/8262.md?p=1) and a resident management [corporation](/usc/42/2297h.md?p=2) that is entered into after November 7, 1988, shall be subject to this section and the regulations issued to carry out this section.

## Footnotes

[^1]: So in original.

## Source credit

(Sept. 1, 1937, ch. 896, title I, § 20, as added Pub. L. 100–242, title I, § 122, Feb. 5, 1988, 101 Stat. 1839; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; amended Pub. L. 100–628, title X, § 1003, Nov. 7, 1988, 102 Stat. 3263; Pub. L. 101–625, title IV, § 415, title V, §§ 514, 572(1), Nov. 28, 1990, 104 Stat. 4160, 4196, 4236; Pub. L. 102–550, title I, § 117, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 105–276, title V, § 532(a), Oct. 21, 1998, 112 Stat. 2574.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 1437r, act Sept. 1, 1937, ch. 896, § 20, as added Nov. 6, 1986, Pub. L. 99–603, title I, § 121(b)(6), 100 Stat. 3391, related to payment for implementation of immigration status verification system, prior to repeal by Pub. L. 100–242, § 164(f)(2).

### Amendments

1998—Subsec. (b)(4). Pub. L. 105–276, § 532(a)(1), inserted “, rent determination, community service requirements,” after “materials”.

Subsec. (c). Pub. L. 105–276, § 532(a)(2), added subsec. (c) and struck out heading and text of former subsec. (c). Text read as follows: “Public housing projects managed by resident management corporations may be provided with comprehensive improvement assistance under section 1437l of this title for purposes of renovating such projects in accordance with such section. If such renovation activities (including the planning and architectural design of the rehabilitation) are administered by a resident management corporation, the public housing agency involved may not retain, for any administrative or other reason, any portion of the assistance provided pursuant to this subsection unless otherwise provided by contract.”

Subsec. (d)(3), (4). Pub. L. 105–276, § 532(a)(3), redesignated par. (4) as (3) and struck out heading and text of former par. (3). Text read as follows: “Not later than 6 months after February 5, 1988, the Secretary shall submit to the Congress a report setting forth any additional waivers of Federal law that the Secretary determines are necessary or appropriate to carry out the provisions of this section. In preparing the report, the Secretary shall consult with resident management corporations and public housing agencies.”

Subsec. (e)(1) to (3). Pub. L. 105–276, § 532(a)(4)(B), added subsec. heading and pars. (1) to (3) and struck out former subsec. heading and former pars. (1) to (3), which in par. (1), specified amount of operating subsidy to be allocated to a public housing project managed by a resident management corporation; in par. (2), set forth requirements for any contract for management of a project entered into by a public housing agency and a resident management corporation; and in par. (3), prohibited reduction of funds provided by an agency to a project during 3-year period beginning on date on which resident management corporation is first established for the project, and provided for proportional reduction or increase if total income of agency is reduced or increased.

Subsec. (e)(4), (5). Pub. L. 105–276, § 532(a)(4)(B), added pars. (4) and (5). Former par. (4) redesignated (6).

Subsec. (e)(6). Pub. L. 105–276, § 532(a)(4)(A), redesignated par. (4) as (6).

Subsec. (e)(6)(A)(i). Pub. L. 105–276, § 532(a)(4)(C), substituted “the allocations from the Operating Fund for” for “the operating subsidies provided to”.

Subsec. (f). Pub. L. 105–276, § 532(a)(5), struck out heading and text of subsec. (f) which required Secretary to provide financial assistance to resident management corporations or resident councils that obtain technical assistance for the development of resident management entities, limited assistance to $100,000 with respect to any public housing project, authorized appropriations for fiscal years 1993 and 1994, and limited assistance to corporations or councils where assistance was provided under subchapter II–A of this chapter.

Subsec. (g). Pub. L. 105–276, § 532(a)(5), struck out heading and text of subsec. (g). Text read as follows: “Not later than 3 years after February 5, 1988, the Secretary shall—

“(1) conduct an evaluation and assessment of resident management, and particularly of the effect of resident management on living conditions in public housing; and

“(2) submit to the Congress a report setting forth the findings of the Secretary as a result of the evaluation and assessment and including any recommendations the Secretary determines to be appropriate.”

1992—Subsec. (f)(3). Pub. L. 102–550 amended par. (3) generally. Prior to amendment, par. (3) read as follows: “(3) Funding.—Of amounts made available for financial assistance under section 1437l of this title, the Secretary may use to carry out this subsection not more than $5,000,000 for each of fiscal years 1991 and 1992.”

1990—Subsec. (e)(4)(B). Pub. L. 101–625, § 572(1), substituted “low-income families” for “lower income families”.

Subsec. (f)(3). Pub. L. 101–625, § 514, amended par. (3) generally. Prior to amendment, par. (3) read as follows: “Of the amounts available for financial assistance under section 1437l of this title, the Secretary may use to carry out this subsection not more than $2,500,000 for fiscal year 1988 and not more than $2,500,000 for fiscal year 1989.”

Subsec. (f)(4). Pub. L. 101–625, § 415, added par. (4).

1988—Subsec. (h). Pub. L. 100–628 added subsec. (h).

### Statutory Notes and Related Subsidiaries

### Effective Date of 1998 Amendment

Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title.