HUD - 52860-B Total Development Cost (TDC) Addendum

Public reporting burden for this collection of information is estimated to average 2 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.

This information is required to as a supplement to the HUD-52860 for all inventory removal actions that involve a demolition action or a disposition action justified by obsolescence based on requirements of Section 18 of the United States housing Act of 1937 as amended (“Act”) and 24 CFR Part 970. HUD will use this information to determine whether, and under what circumstances, to permit PHAs to remove from their inventories all or a portion of a public housing development, as well as to track removals for other record keeping requirements. Responses to this collection of information are statutory and regulatory to obtain a benefit. Please refer to the instructions for each section for additional guidance on how to complete this application. HUD approval of the proposed removal from inventory action in this application does not constitute HUD approval for funding of the proposed action. All capitalized terms not defined in this form have the meanings as defined in the Act and the HUD Regulations. The information requested does not lend itself to confidentiality.

1. Inventory Removal Application Number DDA_____________________________

Development Name & Number ____________________________

4. Rehabilitation Cost % (estimated cost of Rehabilitation/Total TDC) x 100 = ________

HUD-52860-B: Total Development Cost (TDC) Form Instructions:

PHAs proposing to demolish all or a portion of a public housing development (or proposing to dispose of public housing based on obsolescence) must complete this HUD-52860-B in order to demonstrate to HUD that no reasonable program of modification/rehabilitation (rehabilitation) is cost-effective to return a development to its useful life.

Item 1: Insert the number of the HUD Notice from which the PHA extracted the Total Development Cost (TDC) data. The year of the HUD Notice should coincide with the year the rehabilitation estimate was generated, which should not be more than two years prior to the application submission date. Insert the name of the nearest locality to the Development

Item 2: TDC Calculation: Complete the TDC calculation for the affected Development.

Item 3: Rehabilitation Calculation: Attach the estimated cost of rehabilitation for the Development that is necessary to bring the Development up to current new construction standards. Provide details at the work item level (e.g. roofs, windows, heat, etc.). Show contingency, consultants and administrative cost as separate cost items.

To show obsolescence of non-dwelling structures, obtain comparable new construction costs from the nationally recognized estimating sources referenced in the applicable HUD Notice for TDC, and do a similar analysis. In your attachment, identify the source and year of the benchmark amount.

HUD generally will not consider rehabilitation to be cost-effective if the costs of such rehabilitation exceed 62.5 percent of TDC for developments with elevators or 57.14 percent of TDC for developments, and all other types of structure, without elevators. If the rehabilitation cost for the affected Development does not result in these percentages, the PHA should attach to this form an explanation for why HUD should still approve the proposed demolition/disposition action.

Provide attachments as needed. form HUD-52860-B (10/2007)

All attachments must reference the Page 2 of 2

Section and line number to which

they apply. Previous versions obsolete.