24 CFR 970.17 - Specific criteria for HUD approval of disposition requests.
In addition to other applicable requirements of this part, HUD will approve a request for disposition by sale or other transfer of a public housing project or other real property if the PHA certifies that the retention of the property is not in the best interests of the residents or the PHA for at least one of the following reasons, unless information available to HUD is inconsistent with the certification:
(a) Conditions in the area surrounding the project (density, or industrial or commercial development) adversely affect the health or safety of the tenants or the feasible operation of the project by the PHA;
(b) Disposition allows the acquisition, development, or rehabilitation of other properties that will be more efficiently or effectively operated as low-income housing developments;
(d) In the case of disposition of property other than dwelling units (community facilities or vacant land), the PHA certifies that:
(1) The non-dwelling facilities or land exceeds the needs of the development (after DOFA); or
(2) The disposition of the property is incidental to, or does not interfere with, continued operation of the remaining portion of the development.