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Management authority must move from the sole province of the government, through the public housing authority, to a shared authority between local and federal government and the public housing residents in the form of a management cooperative.
The management cooperative is two tiered:
- A citywide cooperative housing board (CHB) overseeing finance and operations;
- A co-op management committee (CMC) governing each housing development.
The citywide Cooperative Housing Board (CHB)
All public housing units in a city will be turned over to a local Cooperative Housing Board (CHB). The board will oversee citywide operation and budget for the former public housing units as cooperatives and coordinate the work of the project based co-op management committees (CMC).
Other features of the CHB are:
- Four of the seven members of the CHB are elected by the residents of the housing units. Three members are appointed by local government.
- Each local PHA governing board will transfer ownership of all public housing operated by the PHA to the housing cooperative board of directors one year after resident elections are conducted.
- Prospective CHB resident members are elected from a pool of qualified cooperative housing residents with each household having one vote.
- Resident and nonresident board members become qualified to stand for election after successfully completing training and passing an examination conducted by a qualified independent training entity that is funded and approved by HUD.
- CHB member's terms will be staggered. Members can serve no more than two consecutive three year terms. Members are compensated at the rate of $100 per month.
- Tenant eligibility and income guidelines for residency as well as operating rules applicable to public housing authorities remain in place.
- Residents accumulate no equity and would not be allowed to sell their apartment.
- Protections will be put in place to prevent unreasonable rent increases as tenant incomes rise.
The project Co-Op Management Committee (CMC)
Co-Op Management Committee (CMC) will be established in each development to manage and operate the day to day affairs of the housing development. Residents control, manage and own the development through their ability to elect and serve on the local CMC and CHB.
Residents will hire and fire the property manager and make decisions on project budget issues through the CMC. The CMC also has the authority to screen prospective residents for admission using reasonable standards and guidelines developed by HUD.
Other features of the CMC are:
- The resident members of the CMC and the CHB will be elected by residents from among qualified residents through a fair election, supervised by an independent third party, under guidelines developed by HUD.
- The CMC will begin to function immediately through the existing resident councils with an election to be held one year after the CHB is established.
- Full management power will not be vested in the CMC until after the elected representatives take office.
- Qualifications for election to the CMC would be based on successful completion of training and passing an examination.
- Training and examination would be provided through the CHB using funds provided by HUD.
- Each household within the development would have one vote in the election.
- The number of members of the CMC would be determined by the size of the development. CMC members would receive remuneration of $100 per month for their service.
- Member's terms would be staggered. Members could serve no more than two consecutive three year terms.
- HUD will develop reasonable guidelines to prevent conflicts of interest by resident directors, while assuring that resident directors are not barred from full participation in policy-making and operations.
- The CHB will construct no barriers that interfere with the capacity of resident representatives on CMS's to fully exercise membership rights that may accrue to non-resident members.
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THE PUBLIC HOUSING DEBATE