HOUSING CHOICE VOUCHER PROGRAM

1

PROJECT-BASED ASSISTANCE

• HOUSING CHOICE VOUCHER PROGRAM

2
October 2000 Law Change

• The HUD FY 2001 appropriations act made
  substantial revisions to PBA.
• H.R. 5482, section 232.
• HUD announced in a January 16, 2001 Federal
  Register notice that most of the new changes are
  implemented immediately.

3
January 16, 2001 Federal Register Notice

• Implements most of the new law changes for PBA
• Provides limited initial guidance
• Most of part 983 PBC regulations remain in force

4
Planned Rulemaking for PBA

• HUD will issue a proposed rule for PBA this fall
• Seek comment on implementation of law changes
• Streamline part 983

5
PBC Projects in the Pipeline

• If a PBA project does not yet have an AHAP, it is
  subject to both the new law and to the part 983
  regulations.
• However, certain of the part 983 regulations are
  superseded by the new law.

6
Current PBC Contracts

• Existing PBC contracts are NOT affected by the
  new law or by the January 16 FR notice.
• PBC contracts remain in force in accordance with
  their provisions.

7
New! 20 Limit

• A PHA may attach up to 20 of its voucher
  assistance to units
• I.e., Up to 20 of baseline units

8
New! Existing Housing

• Law authorizes PBA for existing housing in
  addition to new construction and rehabilitation.
• An existing unit is a unit that requires
  lt 1,000 per unit in repairs to meet HQS.
• No AHAP is needed for existing housing.

9
New! Consistent with PHA Plan

• Law requires that PBA must be consistent with the
  PHA plan.
• The plan must state
• Projected number of PBA units
• General locations for PBA
• How PBA is consistent with the plan

10
Rule Change

• No longer any requirement to notify HUD of intent
  to implement PBA (except as part of PHA plan).
• No HUD authorization needed to proceed to
  implement PBA.
• HUD will no longer check that PHA is within
  20 limit for PBA or that vouchers are available
  for project-based subsidies.

11
New! Partially Assisted Buildings

• Not more than 25 of the dwellings in any
  building may be assisted with PBA
• Except
• Single-family dwellings (1 - 4 units)
• Units for elderly or disabled families
• Units for families receiving supportive services
  - not yet implemented
• Will define in rulemaking

12
Competitive Selection

• Competitive selection rules at
  section 983.51 remain in force
• Written unit selection policy
• Advertising requirements
• Owner application requirements
• Except for Existing Housing lt 25 PBA

13
Existing Housing lt 25 PBA

• Must meet advertising standards comparable to
  983.51(b)
• Advertise in newspaper of general circulation
• Publish once a week for 3 consecutive weeks
• Specify number of units that can be assisted
• Application deadline at least 30 days after ad
• Consider only applications in response to ad
• Advertisement must state selection policies.

14
New! Deconcentrating Poverty

• Law states PBA must be consistent with the goals
  of deconcentrating poverty and expanding housing
  economic opportunities
• January 16 FR notice - PBA must be only in CTs
  with poverty rates lt 20 percent
• HUD may approve exceptions

15
New! Rent Limits

• Gross rent may not exceed higher of
• 110 of FMR
• HUD-approved exception payment standard amount
• Except

16
Tax Credit Project Outside Qualified CT

• For a tax credit project outside a qualified
  census tract, the rent limit may be the rent
  charged for a LIHTC rent-restricted unit if it is
  higher
• All PBA rents must be reasonable

17
New! Rent Adjustments

• The same rent limits apply for adjustments as for
  the initial gross rent
• Adjusted rent must be reasonable in comparison
  with rents charged for comparable unassisted
  units
• Annual adjustment factors and special rent
  adjustments do NOT apply

18
HQS

• PBA units must meet HQS before the effective date
  of the HAP contract.
• Uniform physical condition standards do NOT
  apply.
• PHAs are not required to make annual inspections
  of each PBA unit.
• Requirements will be determined by rulemaking.

19
New! HAP Contract Term

• The HAP contract may have a term of up to 10
  years, subject to appropriations and funding
  under the PHAs ACC.
• ACC funding renewals are still provided in
• one-year increments.
• HAP contracts may be extended subject to funding.
• For period PHA determines is appropriate.

20
Family Selection for PBA

• Families must be selected from the PHA waiting
  list and referred to the owner.
• Families referred by the owner to the PHA must be
  placed on the PHA waiting list.
• A PHA may establish a separate waiting list for
  PBA, but must offer families on tenant-based
  waiting list the opportunity to be placed on the
  PBA waiting list.

21
New! Income Targeting

• At least 75 of families admitted
• during the PHA fiscal year to the
• PHAs combined tenant-based and
• PBA programs must be ELI.

22
New! Family Choice to Move

• A family may choose to move out of a PBA unit
  with continued assistance at any time after 12
  months.
• The PHA must offer a voucher or other comparable
  tenant-based assistance.
• If no voucher available, the PHA must give
  priority for next available voucher (except for
  special purpose vouchers).

23
Family Share and HAP

• HAP Gross Rent - TTP
• Family Share Gross Rent - HAP
• Family Share TTP
• Stays like PBC

24
New! Optional Vacancy Payments

• PHAs may continue to provide assistance for a
  vacant unit for up to 60 days.
• Only if
• Vacancy was not fault of the owner.
• PHA and owner take every reasonable action to
  minimize any vacancy.

25
PBA Forms

• There is no new AHAP continue to use the PBC
  AHAP.
• There is a new HAP contract form for PBA new
  construction and rehabilitation available from
  your HUD field office.
• A new HAP contract form for existing housing will
  be available shortly.
• Continue to use the PBC lease addendum.
• Forms will be updated after rulemaking.