HUD Publishes Updated Demolition and Disposition Guidance

On August 28, HUD published PIH Notice 2026-23, “Demolition and/or Disposition of Public Housing Property, Eligibility for Tenant-Protection Vouchers, and Associated Requirements.” The notice updates the previous Section 18 notice, PIH 2024-40, so it covers many of the same topics, including application requirements to dispose of or demolish public housing property, acceptable justifications, key definitions, and other requirements as part of this process.

Throughout the notice, HUD connects this guidance to Rental Assistance Demonstration guidance — the two programs are frequently combined into RAD blends — and Housing Choice Voucher notices for the use of Tenant Protection Vouchers. This notice updates the previous notice by expanding definitions and making clarifications to components of the Section 18 program.

In addition to tying Section 18 to other notices affecting the program, this notice also provides Section 18 flexibilities to a greater number of small agencies. It expands the definition of very small agencies to those with up to 75 units for purpose of closing out a program. It also makes definition and process updates to other components of the Section 18 program. NAHRO supports giving agencies increased freedom to operate programs in response to their communities’ needs.

The notice provides an update on the availability of Tenant Protection Vouchers (TPVs). Because the HCV notice covers the limited availability of TPVs, one specific type of Section 18 transaction, dispositions for improved efficiency or effectiveness, limits the use of TPVs to 25% of occupied units. This is the only instance of this limitation listed in the notice. This guidance is pulled from the HCV notice, so agencies should monitor future years’ HCV notices for updates.