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This final rule would revise the HUD regulation governing the demolition and/or disposition of public housing projects (dwelling units, non-dwelling structures, and vacant land). This rule would govern the process and requirements that public housing agencies (PHAs) and private owners of public housing developed pursuant to mixed-finance rules must follow should they choose to voluntarily request HUD approval to demolish or dispose of a public housing project (other than demolitions through the HOPE VI program). This rule would clarify existing requirements and includes more detail to assist PHAs in carrying out their responsibilities under the demolition/disposition program. The areas to be addressed by this rule would include: PHA application submission requirement; resident relocation requirements; acceptable justifications for demolition and/or disposition; methods of disposition; use of proceeds; and future use restrictions on former public housing property. The rule would also add a new subpart that provides an exception to the normal process by which PHAs (and private owners of public housing developed pursuant to mixed-finance rules) request releases from HUD of public housing use restrictions under declarations of trust and annual contributions contracts on property, thus permitting these entities to retain former public housing property free of Federal public housing restrictions.