# 24 CFR § 972.127: Standards for determining whether a property is viable in the long term > Federal · Regulations · In force URL: https://www.frixlaw.com/law-library/statutes/ecfr-24-972.127 ## Section - **Citation:** 24 CFR § 972.127 - **Heading:** Standards for determining whether a property is viable in the long term - **Jurisdiction:** Federal - **Kind:** Regulations - **Status:** In force - **Text as of:** September 22, 2026 - **Source:** Publisher's official text - **Location:** Title 24—Housing and Urban Development > Subtitle B—Regulations Relating to Housing and Urban Development > CHAPTER IX—OFFICE OF ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT > PART 972—CONVERSION OF PUBLIC HOUSING TO TENANT-BASED ASSISTANCE > Subpart A—Required Conversion of Public Housing Developments > Identifying Developments Subject to Required Conversion ## Text In order for a property to meet the standard of long-term viability, as discussed in § 972.124, the following criteria must be met: (a) The investment to be made in the development is reasonable. (1) Proposed revitalization costs for viability must be reasonable. Such costs must not exceed, and ordinarily would be substantially less than, 90 percent of HUD's total development cost (TDC) limit for the units proposed to be revitalized (100 percent of the total development cost limit for any “infill” new construction subject to this regulation). The revitalization cost estimate used in the PHA's most recent Annual Plan or 5-Year Plan is to be used for this purpose, unless the PHA demonstrates, or HUD determines, that another cost estimate is clearly more realistic to ensure viability and to sustain the operating costs that are described in paragraph (a)(2) of this section. (2) The overall projected cost of the revitalized development must not exceed the Section 8 cost under the method contained in the Appendix to this part, even if the cost of revitalization is a lower percentage of the TDC than the limits stated in paragraph (a)(1) of this section. (3) The source of funding for such a revitalization program must be identified and available. In addition to other resources already available to the PHA, it may assume that future formula funds provided through the Capital Fund over five years are available for this purpose. (b) Appropriate density is achieved. The resulting public housing development must have a density which is comparable to that which prevails in or is appropriate for assisted rental housing or for other similar types of housing in the community (typically family). (c) A greater income mix can be achieved. (1) Measures generally will be required to broaden the range of resident incomes over time to include a significant mix of households with at least one full-time worker. Measures to achieve a broader range of household incomes must be realistic in view of the site's location. Appropriate evidence typically would include census or other recent statistical evidence demonstrating some mix of incomes of other households located in the same census tract or neighborhood, or unique advantages of the public housing site. (2) For purposes of judging appropriateness of density reduction and broader range of income measures, overall size of the public housing site and its number of dwelling units will be considered. The concerns these measures would address generally are greater as the site's size and number of dwelling units increase. ## Nearby sections - [24 CFR § 972.100 § 972.100 Purpose.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.100.md) - [24 CFR § 972.103 § 972.103 Definition of “conversion.”](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.103.md) - [24 CFR § 972.106 § 972.106 Procedure for required conversion of public housing developments to tenant-based assistance.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.106.md) - [24 CFR § 972.109 § 972.109 Conversion of developments.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.109.md) - [24 CFR § 972.112 § 972.112 Relationship between required conversion and demolition/disposition requirements.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.112.md) - [24 CFR § 972.115 § 972.115 Relationship between required conversions and HOPE VI developments.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.115.md) - [24 CFR § 972.118 § 972.118 Applicability of Uniform Relocation Act.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.118.md) - [24 CFR § 972.121 § 972.121 Developments subject to this subpart.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.121.md) - [24 CFR § 972.124 § 972.124 Standards for identifying public housing developments subject to required conversion.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.124.md) - [24 CFR § 972.127 § 972.127 Standards for determining whether a property is viable in the long term.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.127.md) - [24 CFR § 972.130 § 972.130 Conversion plan components.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.130.md) - [24 CFR § 972.133 § 972.133 Public and resident consultation process for developing a conversion plan.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.133.md) - [24 CFR § 972.136 § 972.136 Timing of submission of conversion plans to HUD.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.136.md) - [24 CFR § 972.139 § 972.139 HUD actions with respect to required conversions.](https://www.frixlaw.com/law-library/statutes/ecfr-24-972.139.md) --- Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/ecfr-24-972.127. Check the current official text before relying on it. Not legal advice.