HOUSING CHOICE VOUCHER PROGRAM

PROJECT-BASED ASSISTANCE

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.

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

Planned Rulemaking for PBA

HUD will issue a proposed rule for PBA this fall

Seek comment on implementation of law changes

Streamline part 983

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However, certain of the part 983 regulations are superseded by the new law.

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.

New! 20% Limit

A PHA may attach up to 20% of its voucher assistance to units

I.e., Up to 20% of baseline units

New! Existing Housing

Law authorizes PBA for existing housing in addition to new construction and rehabilitation.

An “existing unit” is a unit that requires < $1,000 per unit in repairs to meet HQS.

No AHAP is needed for existing housing.

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

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.

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

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 < 25% PBA…

Existing Housing < 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.

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 < 20 percent

HUD may approve exceptions

New! Rent Limits

Gross rent may not exceed higher of:

110% of FMRHUD-approved exception payment

standard amount

Except…

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

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

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.

New! HAP Contract Term

The HAP contract may have a term of up to 10 years, subject to appropriations and funding under the PHA’s 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.

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.

New! Income Targeting

At least 75% of families admitted

during the PHA fiscal year to the

PHA’s combined tenant-based and

PBA programs must be ELI.

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).

Family Share and HAP

HAP = Gross Rent - TTP

Family Share = Gross Rent - HAP

Family Share = TTP

Stays like PBC

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.

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.