"Faircloth Limit" Unit Counts - Section 9(g)(3) of the United States Housing Act of 1937 ("Faircloth Amendment") limits the construction of new public housing units. The Faircloth Amendment states that the Department cannot fund the construction or operation of new public housing units with Capital or Operating Funds if the construction of those units would result in a net increase in the number of units the PHA owned, assisted or operated as of October 1, 1999. This requirement is referred to as the “Faircloth Limit.” The Faircloth Limit is adjusted for PHA transfers of ACC units, consolidations, and RAD removals.
PHAs will not be funded for those units that exceed the Faircloth limit, and PHAs are responsible for reviewing the published Faircloth limits and notifying HUD if they believe their posted Faircloth Limit is in error.
To notify HUD of a possible error in the posted Faircloth Limit that may impact FFY 2024 Capital Fund grant awards, PHAs should send an email to PIHOCI@hud.gov with “Faircloth Limit Correction for…” and the PHA code in the subject line, NO LATER THAN March 25, 2024.
TL;DR: housing is very VERY regulated