Like other cities nationwide, the capital's housing authority wants to dispose of its public housing by converting some to the federal rental assistance program known as Section 8 vouchers, which will keep low-income residents in affordable projects. The rest of the units could be sold and the profit put toward building affordable housing for the homeless, elderly and low-income families.

Rosemary Kappes, the housing authority director, said she could double the number of low-income or mixed-income housing units from 637 to up to 1,200 with the $25 million expected from the sale. She would sell 237 units and convert 400 to Section 8 vouchers.

“I never thought I would be the one advocating for doing away with public housing,” Kappes told the Salt Lake City Council on Thursday night. But, “all the way around it's a win-win.”

The concept of public housing is unpopular, Kappes noted, and the U.S. Congress doles out more money for Section 8 vouchers than for public-housing units. She anticipates the majority of people living in the city's public housing apartments or duplexes will be able to remain even after those buildings are sold because they can use those vouchers. Other nonprofits will likely buy the buildings.

However, up to 91 people who live in the authority's homes could be displaced. The housing authority will have to pay for their relocation expenses and may have to cover increased rents.

If the housing authority held on to its public housing units Kappes anticipates losing $297,000. She would have to cut staff and reduce upkeep of the homes. “I don't want to turn our lovely public housing into slums,” she said.

She plans to build 100 units for seniors, 100 units for the chronically homeless and family units. She will have a detailed plan by July.

While the new units won't be considered public housing, they will help the same low-income people that use such housing, she said.

Advocates for the poor are withholding judgment on the proposal, but are wary.

"I'm very skeptical," said Tara Rollins, executive director of the Utah Housing Coalition. "We were blindsided by this. It's on the fast-track and I don't know why. It just doesn't make sense to turn public housing into vouchers when federal funding for the voucher program has been so unstable."

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