The Housing Authority of the County of Chester plans to demolish or sell off every public housing property it owns in West Chester and end its 63-year-old public housing program.

HACC's board approved the 2027 Annual Plan at its Sept. 22 meeting at the Denny Reyburn building in West Chester, the West Chester Chronicle first reported. The plan calls for filing federal applications to demolish or dispose of King Terrace, Oxford Terrace, Church Street Tower, Maple Court, Locust Court and Spruce Court. Units at Fairview Villa are also included.

Those properties represent the last public housing units in HACC's portfolio. Approving the plan sets the stage to close out the agency's Section 9 public housing program, which HACC has operated since 1963. Residents would shift to Project-Based Vouchers (PBVs) under the Section 8 program, where private landlords own and manage the properties while the government covers a significant share of the rent.

HACC said in the plan it will request up to 231 PBVs to replace the current units.

Executive Director Paul Diggs said the move is driven by the condition of the housing stock. "The current housing stock under Section 9, public housing, needs repair. HUD only provides us with a certain amount of capital funds to do repairs," Diggs said at the Sept. 22 meeting.

The plan states that residents will need to relocate during rehabilitation and construction but that no permanent displacement is anticipated. HACC said it will manage the relocation process and cover costs so no family has out-of-pocket expenses.

How many families currently live in the affected West Chester properties is unclear. HACC's website lists 206 public housing units the agency owns and manages countywide, plus 99 units owned by limited partnerships throughout Chester County.

The plan comes while HACC remains under federal scrutiny. The agency has carried a "Troubled" designation from the U.S. Department of Housing and Urban Development since 2023, meaning its Public Housing Assessment System score fell below 59%.

Chester County's own 2026 Action Plan confirmed the designation in fiscal years 2023 and 2024, citing challenges with financial management. Under HUD rules, a housing authority in Troubled status for 24 months is considered in "Substantial Default" and can be seized by the federal agency. The West Chester Chronicle reported it has asked HUD why no action has been taken; HUD had not responded as of the Chronicle's report.

HACC is also soliciting bids for general real estate services, development and redevelopment legal counsel, and 501(c)(3) consulting services, according to the Chronicle's reporting.

HACC Chairman Pat Bokovitz also serves as director of the Chester County Department of Human Services. The authority's five-member board is appointed by the Chester County Commissioners.

The board currently has one vacancy.

No timeline for when HACC would file the federal demolition or disposition applications, or when construction or demolition would begin, has been announced. HACC's next board meeting is scheduled for Tuesday, Oct. 27.