**U.S Department of Housing and Urban
Development**![](media/image1.wmf){width="0.63125in" height="0.6125in"}

**Office of Public and Indian Housing**

Special Attention: **NOTICE PIH 2005-24 (HA)**

Public Housing Hub

Office Directors; PIH Program Center Issued: July 8, 2005

Coordinators; and Housing Choice Voucher

Public Housing Agencies Expired: July 31, 2006

Cross References:

**\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_**

**Subject: Housing Choice Voucher Program -- Enhanced Vouchers \--
Adjustment of Voucher Housing Assistance Payments for Certain Families
that Received "Preservation" Voucher Assistance as the Result of an
Owner Prepayment or Voluntary Termination of Mortgage Insurance for a
Preservation Eligible Property in Federal Fiscal Year (FY) 1997, FY
1998, and FY 1999**

**1. [Purpose]{.underline}.**

This notice revises the procedure for the calculation of voucher housing
assistance payments (HAP) under PIH Notices 97-29, 98-19, 99-16, and
00-09 for families that received enhanced vouchers as the result of an
owner decision to prepay the mortgage or voluntarily terminate the FHA
mortgage insurance of a "preservation eligible" property in FY 1997,
1998, and 1999. The notice provides instructions to PHAs on identifying
impacted families, re-calculating housing assistance payments (HAP) for
the period in question, and paying this assistance directly to the
impacted families.

[This notice only applies to families that were admitted to the voucher
program as the result of an owner prepayment of the mortgage or the
voluntary termination of the mortgage insurance of a preservation
eligible property in FY 1997, 1998, and 1999. The PHA in such cases
received a special allocation of vouchers (known at the time as
"preservation vouchers") from HUD to provide assistance to residents as
a result of an owner prepayment or voluntary termination of mortgage
insurance for a specific preservation eligible property]{.underline}.

This notice does not apply to any families that received certificates,
or to any families that received vouchers or certificates as a result of
any other category of Housing conversion action besides preservation
prepayments (e.g., opt-outs are not covered by this notice). Attachment
A of this notice is a list of the projects for which HUD assigned
preservation vouchers to PHAs based on an owner notification of a
prepayment or voluntary termination of mortgage insurance for a
preservation eligible project for the years in question.

2.  **[Background]{.underline}.**

Enhanced vouchers differ from regular vouchers in two main respects: (1)
the family must pay an enhanced voucher minimum rent and (2) the gross
rent (rent to owner plus PHA allowance for tenant-paid utilities) of the
unit is the payment standard used to determine the amount of the housing
assistance payment (so long as the family resides in the same project).
The gross rent is used as the payment standard instead of the PHA's
normally applicable payment standard that caps the amount of subsidy
that is paid on behalf of a voucher family. (The rent to owner must
always be reasonable compared to similar unassisted units in the
relevant market). In other words, the gross rent is always used to
determine the family's enhanced voucher subsidy, even in cases where the
PHA's normally applicable payment standard would have ordinarily limited
the amount of subsidy paid on behalf of the family.

Before FY 2000, HUD Appropriations Acts only authorized enhanced voucher
assistance in cases where the owner either prepaid the mortgage or
voluntarily terminated the mortgage insurance of a preservation eligible
project (hereafter referred to as "preservation prepayments"), and only
if, as the result of a rent increase occurring no later than one year
following the effective date of the prepayment or voluntary termination
of mortgage insurance, the family would be required to pay more than 30
percent of adjusted monthly income for rent.

HUD issued HUD Notices PIH 97-29, 98-29, and 99-16, which have now
expired, to provide guidance on the administration of these enhanced
vouchers to cover preservation prepayment or voluntary terminations of
mortgage insurance that occurred in FY 1997, 1998, and 1999. These
notices provided that the requirement to use the gross rent as the
payment standard for a preservation voucher ("preservation payment
standard") applied to the first rent increase following the effective
date of the owner's prepayment or voluntary termination (the rent
increase that triggered the family's eligibility for the preservation
voucher). While the family would retain this "preservation payment
standard" for as long as the family resided in the project, normal
voucher program rules applied in the case of all subsequent rent
increases (under which the family would be responsible for any portion
of the rent increase that exceeds the applicable payment standard).

Title V of the Department of Housing and Urban Development's FY 2000
Appropriations Act (Public Law 106-74, enacted October 20, 1999; 113
Stat. 1100, 1122) amended Section 8 of the United States Housing Act of
1937 by creating a new subsection (t) providing permanent statutory
authority for enhanced voucher assistance. Section 8(t)(1)(B) of the
United States Housing Act of 1937 provides that the "enhanced" voucher
payment standard is equal to the rent for the dwelling unit, as such
rent is increased from time to time over the course of the family's
assisted tenancy in the same project. (This provision was subsequently
amended by section 2801 of Public Law 106-246, July 13, 2000; 114 Stat.
569.)

Section 8(t)(3) of the United States Housing Act of 1937 (as amended by
Section 538(a) of Title V, subtitle C) provided that, notwithstanding
any other provision of law, any preservation voucher assistance provided
under the FY 1997, 1998, and 1999 Appropriations Acts is subject to the
same requirements as enhanced voucher authority provided under Section
8(t). HUD Notice PIH 00-9, which was issued March 7, 2000, but has since
expired, provided guidance on implementation of this provision. The
notice provided that in order to conform the existing program practices
to the new enhanced voucher rules, the PHA must henceforth use the
current gross rent as the payment standard at all times (provided the
rent is reasonable and exceeds the normally applicable payment
standard), commencing on the effective date of the family's first annual
re-examination of family income (as required pursuant to section 8(o)(5)
of the United States Housing Act of 1937) on or after October 20, 1999,
the date of enactment.

In part to avoid the possibility of plaintiffs filing lawsuits against
individual PHAs, HUD has determined it is in HUD's and the PHAs' best
interest to negotiate a settlement agreement in the Federal litigation
([Taylor vs. Jackson]{.underline}). As part of the settlement agreement,
HUD is amending the above policy to make the conversion of the
preservation voucher assistance for an eligible family to the enhanced
voucher rules under section 8(t) effective from the effective date of
the prepayment or voluntary termination of mortgage insurance.
Preservation voucher families that paid out-of-pocket for owner rent
increases (i.e., the reasonable gross rent of the unit exceeded the
payment standard used to calculate the family's preservation voucher
subsidy) at the project are eligible for a retroactive adjustment of
their assistance.

**3. [Eligibility for Retroactive Adjustments of Preservation Voucher
Assistance.]{.underline}**

> In order to be eligible for a retroactive adjustment of preservation
> voucher assistance, [all]{.underline} of the following conditions must
> apply to the family:

(1) The family must have received a preservation voucher as the result
    of a rent increase occurring no later than one year from the
    effective date of the owner's prepayment of the mortgage or the
    voluntary termination of the mortgage insurance in a preservation
    eligible project that occurred in FY 1997, 1998 or 1999. See the
    project listing (Attachment A) of this notice;

(2) Following the initial rent increase that established both the
    family's eligibility for the preservation voucher and the
    preservation voucher payment standard, the owner of the project
    subsequently increased the rent for the unit before the family's
    preservation voucher assistance was converted to the enhanced
    voucher rules established under section 8(t); and

(3) The family continued to live in the same project. The family was
    required to pay for the rent increase or increases at the project
    out-of-pocket because the new gross rent of the unit in the project
    exceeded the payment standard used to calculate the family's
    preservation voucher housing assistance payments.

Families that meet all of the requirements described above are eligible
for an adjustment. So long as the family meets the above criteria, the
family is eligible for an adjustment even though the family may no
longer reside at the project, or in the jurisdiction of the PHA that
issued the preservation voucher. A family need not still be a voucher
program participant to be eligible. The family may be unassisted or may
be assisted through another housing program.

**4. [PHA Procedures.]{.underline}**

**A. [Determination of Family Eligibility and Calculation of the
Adjustment.]{.underline}**

Family eligibility shall be determined in the following manner:

(1) If a family that received a preservation voucher from a PHA is still
    a current participant in the PHA's voucher program, the PHA will
    automatically determine if the family is eligible for an adjustment.
    If the PHA compiled and retained a master list of the families that
    were issued preservation vouchers as the result of a covered
    prepayment, the PHA shall review their records to determine if any
    of the families are entitled to an adjustment.

> If the PHA does not have a master list of the families that received
> preservation vouchers as the result of a covered prepayment, the PHA
> must determine eligibility for an adjustment as part of the current
> participant's next regular annual re-examination following receipt of
> this notice. The PHA shall determine if the family received a
> "preservation voucher" under a special allocation of voucher
> assistance provided to the PHA as a result of a covered prepayment or
> voluntary termination that occurred in FY 1997, 1998, or 1999.
>
> The PHA may obtain this information by reviewing the family file or
> interviewing the family about the circumstances of their admission to
> the housing choice voucher program (assuming the PHA conducts
> in-person reexaminations) and then verifying the information provided
> by the family with the PHA's records.
>
> In cases where the family received a preservation voucher in FY 1997,
> 1998, or 1999, the PHA will determine if any subsequent rent increase
> at the project for the preservation voucher family resulted in the
> gross rent of the unit exceeding the payment standard used to
> calculate the family's preservation voucher housing assistance
> payment.

If the gross rent of the unit exceeded the payment standard used to
determine the amount of the housing assistance, the PHA shall calculate
the amount of additional housing assistance payment for the family. To
calculate the retroactive amount to be provided to the family, the PHA
shall subtract the payment standard used to calculate the family's
voucher housing assistance payment at the time from the gross rent. This
difference is then multiplied by the number of months for the time that
the gross rent exceeded the payment standard by such amount. In cases
where the family was impacted by more than one increase, the PHA will
calculate the impact of each rent increase and then add the amounts
together to determine the adjustment. Attachment D provides two examples
of the calculations.

(2) With regard to families that have utilized the portability rules to
    move from an initial PHA to a receiving PHA, if the initial PHA has
    a master list of preservation families then the initial PHA shall
    review the relevant files of those families on the list, including
    those that moved under the portability procedures. If the family has
    ported and the initial PHA is being billed by the receiving PHA on
    behalf of the family, the initial PHA shall contact the family
    directly at the address indicated on the billing form if the family
    is eligible for an adjustment. If the family file indicates that the
    family ported but was absorbed by the receiving PHA, the initial PHA
    that issued the family the preservation voucher shall contact the
    receiving PHA and ask the receiving PHA to have the family contact
    the initial PHA concerning the adjustment.

> In the case where the initial PHA does not have a master list, the
> initial PHA shall examine the files of any portability families under
> billing arrangements when it receives the annual recertification
> notice from the receiving PHA. If the family is eligible for an
> adjustment, the initial PHA will contact the family directly at the
> address listed in the portability records if the family is eligible
> for an adjustment.
>
> Any adjustment for a family that moved under the portability
> procedures is paid by the initial PHA directly to the family. The
> receiving PHA is not involved in either the calculation of the
> adjustment or in making the adjustment.[^1]
>
> \(3\) PHAs need not automatically determine if former voucher program
> participants in their program are eligible for a retroactive housing
> assistance payment pursuant to this notice. Rather, such families must
> apply to the PHA for retroactive assistance. All PHAs shall post one
> of the two attached uniform Notice of Enhanced Voucher Retroactive
> Adjustment (Tenant Notice) at their own facilities. PHAs that did not
> receive preservation vouchers as a result of a preservation prepayment
> or voluntary termination of mortgage insurance in FY 1997, 1998, or
> 1999 shall use Version A of the Tenant Notice (attachment B of this
> notice). PHAs that received preservation vouchers for a covered
> project shall use Version B of the Tenant Notice (attachment C of this
> notice). PHAs shall also distribute the applicable Notice of Enhanced
> Voucher Retroactive Adjustment to welfare offices, unemployment
> offices, and major community action groups located in their
> jurisdictions, and request that these institutions post the notices in
> a public place. PHAs shall also request such institutions to publish
> the Notice of Enhanced Voucher Retroactive Adjustment in their
> newsletters, if applicable, HUD encourages, if feasible, that PHAs use
> other means that they believe will be effective in order to reach such
> families that no longer participate in the program, but who may be
> eligible for the retroactive adjustment pursuant to this notice.

PHAs shall examine their records to verify if families that apply for
the retroactive adjustment are eligible for a housing assistance payment
pursuant to this notice. If the PHA has disposed of the records in
question, the PHA may consider documentation provided by the family in
verifying that the family is eligible and in calculating the retroactive
adjustment. The PHAs shall determine if the documentation validates the
families' claims for retroactive adjustment.

\(4\) The PHA must copy and retain a copy of any documentation submitted
by the family upon which the PHA bases a retroactive adjustment for at
least three years.

**B. [Payment of Retroactive Enhanced Voucher Assistance.]{.underline}**

After the PHA determines the amount of retroactive enhanced voucher
assistance for an eligible family as described above, the PHA shall pay
the assistance directly to the eligible resident in one lump sum
payment, if feasible. If a lump sum payment is not feasible (e.g.,
sufficient funding is not immediately available to make a lump sum
payment or the PHA payment system is not compatible with providing lump
sum adjustments), the PHA may opt to provide assistance to the eligible
family by reducing the family share until the total off-set the family
receives is equal to the total amount of the retroactive adjustment for
the family. If necessary, PHAs may make retroactive adjustments to
portable families by prorating the amount of the adjustment and paying a
portion to the family until the amount paid to the family equals the
total amount of the retroactive adjustment for the family. In the case
where a PHA may make a lump-sum payment to some families but not others,
families that are currently assisted through the portability procedures
must be given priority to receive a lump-sum over families currently
assisted in the PHA jurisdiction.

The PHA may only make such payments or prorations to the extent that the
PHA has sufficient budget authority [available under its
ACC]{.underline} to do so. Should the PHA lack sufficient funding,
payments or prorations are be made in the future subject to the
availability of appropriated funds and subject to any limitations in the
law or in HUD regulations and requirements. In determining whether it
has sufficient funding, the PHA must take into the consideration ACC
program reserves, including reserves resulting from the turnover of
housing choice vouchers. Under no circumstances may the PHA make
retroactive adjustments if continued assistance for current voucher
program participants would be jeopardized as a result. In such a case,
the PHA must delay making the retroactive payment adjustments.

If the family currently owes the PHA or another PHA money in connection
with the Section 8 or public housing program, the PHA may reduce the
amount of the adjustment to satisfy the family's debt to the PHA or
another PHA.

**5. [Record-keeping and retention]{.underline}.** The PHA is reminded
to keep a record of retroactive adjustments provided under this notice
in order to support PHA budget and financial statements for the program
in accordance with 24 CFR 982.158, Program accounts and records. For
each project, the PHA must maintain the names of the families, the
amount of the retroactive assistance payment, and the date by which the
payment was made (or the period of the off-set if the PHA is unable to
make a single lump-sum payment). The PHA must make this record available
to HUD at HUD's request.

**6. [Paperwork Reduction Act.]{.underline}** The information collection
requirements contained in this notice have been approved by the Office
of Management and Budget (OMB) under the Paperwork Reduction Act of 1995
(44 U.S.C. 3520) and assigned OMB control number 2577-0169. In
accordance with the Paperwork Reduction Act, HUD may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless the collection displays a currently valid OMB control
number.

**7. [Additional Information]{.underline}.** Any questions related to
the eligibility of families and the calculation of the retroactive
adjustment under this notice should be addressed to the Housing Voucher
Management and Operations Division at (202) 708-0477.

[/s/]{.underline}

Paula O. Blunt, General Deputy Assistant Secretary

for Public and Indian Housing

Attachment A

FY 1999 FUNDING STATUS WORKSHEET

PRESERVATION / **PREPAYMENTS:**

Unassisted units assigned by project (PHA)

  ---------------------------------------------------------- ------------
  1522 ST. ANDREWS (LA CITY)                                 1

  1541 ST. ANDREWS (LA CITY)                                 1

  1819 ST. ANDREWS (LA CITY)                                 2

  929 HOUSE (CAMBRIDGE)                                      55

  ADMIRALTY APTS (JEFFERSON COUNTY)                          6

  ALPINE MANOR (BOISE)                                       35

  AMY LOWELL HOUSE (BOSTON)                                  65

  AMY LOWELL HOUSE (BOSTON)                                  1

  ASHLEY APTS (COLUMBIA)                                     98

  ATLANTIC GARDENS (JACKSONVILLE)                            32

  AUDOBON PARK (CLERMONT)                                    47

  BEECH HILL PARK I (MANCHESTER)                             125

  BEECH HILL PARK II (MANCHESTER)                            73

  BELLE PLAINE BLDG (CHICAGO)                                5

  BLOOMFIELD MANOR (NJDCA)                                   16

  BRADFORD SQUARE (MARION CITY)                              14

  BRADFORD VILLAGE (MARION CITY)                             36

  BRENTWOOD EST. (PENNINGTON)                                1

  BRIGHTON GARDEN (BOSTON)                                   51

  BRIGHTON GARDENS (BOSTON)                                  1

  BROOK VILLAGE SOUTH (MILFORD)                              93

  BROOKSIDE ESTATES (COLUMBUS)                               70

  BRUNSWICK VILLAGE (GARY)                                   40

  CAMPBRIDGE SQUARE (HIALEAH)                                102

  CANTERBURY HS (FT. LAUDERDALE)                             15

  CARRIAGE HOUSE (JONESBORO)                                 112

  CARRIER ARMS (GRAND PRAIRIE)                               79

  CASCADIA VILLAGE (LINN-BENTON)                             18

  CEDAR VALLEY (CEDAR RAPIDS)                                18

  CHERRY CREEK VIEW (MILWAUKEE C)                            89

  CHESAPEAKE APTS (VHDA)                                     92

  CLINTON PLAZA (MSHDA)                                      35

  CLINTON PLAZA II (MSHDA)                                   24

  COLLEGE PARK APTS (TEMPLE)                                 50

  COLUMBIA VILLA (NW MT RESOURCE)                            4

  COVERT VILLLAGE (EVANSVILLE)                               32

  CROSSROADS VILLAGE (LIBERTY)                               38

  DELTA VILLAGE (SAN JOAQUIN)                                49

  DONNA LYNN (GRAND PRAIRIE)                                 70

  DOVER APTS (RALEIGH)                                       95

  DOVER APTS (RALEIGH)                                       4

  EL CAPITAN (MESQUITE)                                      35

  FAWN RIDGE EAST (DALLAS CO)                                46

  FLANDER EAST (CT DOSS)                                     71

  FOX HOLLOW (GRAND PRAIRIE)                                 57

  GARLAND GARDENS (GARLAND)                                  70

  GLEN MEADOWS (FRANKLIN)                                    113

  GLENWOOD GARDENS (SC REGION I)                             21

  GREEN MEADOWS APTS (DUPAGE COUNTY)                         53

  HAGERSTOWN III (HAGERSTOWN)                                59

  HAMPTON GARDENS (N. HAMPTON)                               8

  HDR FUND II APTS (LA CITY)                                 11

  HIGHLAND HILLS DRIVE (LANCASTER)                           9

  HIGHLAND RD VILLAGE (DALLAS CO)                            59

  HILLCREST APTS (MESQUITE)                                  59

  HOMESTEAD APTS (LUBBOCK)                                   8

  HUDSON ESTATES (NJDCA)                                     39

  INDEPENDENCE PLACE I (PARMA)                               162

  INDIAN HEAD MANOR (PG COUNTY)                              83

  JACKSON MANOR (MESQUITE)                                   92

  JAMESTON STREET (WEATHERFORD)                              29

  JOHN ADAMS MANOR (SAN DIEGO HC)                            10

  LA VATTA VILLA (MT DOC)                                    2

  LANCASTER ESTATES (INDIANAPOLIS)                           79

  LANCASTER MANOR (LOS ANGELES)                              18

  LITTLE CHICO GARDENS (BUTTE CO)                            64

  LOS ANGELES PRO I (LA CITY)                                18

  LOS CABALLEROS (ADAMS CO)                                  2

  MARK VI (LA CITY)                                          1

  MAUNA ULU (HAWAII CO)                                      11

  MAURICE ARMS (GRAND JUNCTION)                              3

  MAYFAIR APTS (MSHDA)                                       43

  MAYWOOD APTS (MAYWOOD)                                     4

  MCBEE APTS (GREENVILLE)                                    60

  MEADOWBROOK PARK (S. BERNARDINO)                           56

  MIDWAY APTS (NJDCA)                                        15

  MOANALUA HILLSIDE (HONOLULU)                               199

  MOHAWK FOREST (NORTH ADAMS)                                9

  MORAYA NORTH (SPOKANE)                                     36

  MORAYA NORTH (SPOKANE)                                     6

  MOUNTAIN VIEW I (BERNALILLO CO)                            34

  MOUNTAIN VIEW III (ALBUQUERQUE)                            4

  MT. SCOTT TERRACE (PORTLAND)                               24

  MUSKEGON TWNHS I (MSHDA)                                   14

  MUSKEGON TWNHS II (MSHDA)                                  8

  MUSKEGON TWNHS III (MSHDA)                                 6

  MYSTIC VALLEY TWRS (MEDFORD)                               284

  NEW KENSINGTON APTS (COOK CO)                              315

  NORTHCREST APTS (PLANO)                                    29

  NORTHCREST APTS (PLANO)                                    40

  NORTHVALE I APTS (NJDCA)                                   2

  NORTHVALE I APTS (NJDCA)                                   33

  NORTHVALE II APTS (NJDCA)                                  2

  NORTHVALE II APTS (NJDCA)                                  27

  NORTHVALE IIIA (NJDCA)                                     16

  NORTHWOOD APTS (FT. COLLINS)                               81

  OAKWOOD TERRACE (MO HDC)                                   43

  OAKWOOD VILLAGE (MHSDA)                                    19

  PADDOCK FARMS (LANSING)                                    85

  PARKSIDE VILLAGE (MISSOULA)                                60

  PARKVIEW -- WALLA (WALLA WALLA)                            13

  PINE MANOR                                                 61

  PRAIRIE CREEK MANOR (DALLAS)                               60

  QUEEN ANNE'S GATE II (MA DHCD)                             42

  QUEEN ANNES GATE II (MA DHCD)                              4

  QUEEN BEE APTS (CHICAGO)                                   2

  RANCHO NORTH (TARRANT CO)                                  19

  RIO LINDO APTS (BUTTE COUNTY)                              47

  RIVIERA GDNS (SANTA FE SPRINGS)                            23

  ROLLING GREEN (FALL RIVER)                                 250

  RONDEL COURT (CLACKAMAS CO)                                1

  ROSELAND APTS I (CHARLOTTE)                                166

  ROSELAND APTS II (CHARLOTTE)                               138

  ROYAL LANE (DALLAS)                                        178

  SAMPSON GARDENS (YUBA)                                     67

  SCOTT GARDENS I (WATERBURY)                                5

  SCOTT GARDENS II (WATERBURY)                               3

  SHADYWOOD (TARRANT COUNTY)                                 72

  SINGING OAKS (DENTON)                                      105

  SOUTHGATE APTS (RALEIGH)                                   3

  SPRINGDALE WEST (LONG BEACH)                               24

  SPRINGDALE WEST (LONG BEACH)                               2

  SPRUCE HILL APTS (ASHEVILLE)                               74

  ST. JOHN VILLAGE (SEMINOLE CO)                             58

  ST. JOHN VILLAGE II (SEMINOLE CO)                          192

  SUBURBAN PARK VILLAGE (HOC)                                125

  SUN TERRACE (LA CITY)                                      68

  SUN TERRACE (LOS ANGELES)                                  2

  SUSANVILLE GARDENS (LASSEN CO)                             45

  SWAN CREEK (TACOMA)                                        47

  TANARA VILLA I (TACOMA)                                    61

  TOWN BANK MANOR (NJDCA)                                    34

  VACAVILLE PARK (VACAVILLE)                                 10

  VALLEY APTS (ALBUQUERQUE)                                  53

  VALLEY ARMS APTS (STATESVILLE)                             17

  VALLEY VIEW APTS (MT DOC)                                  32

  VALLEYVIEW APTS (EVANSVILLE)                               32

  VICTORIA APTS (LEXINGTON)                                  48

  WASHINGTON ESTATES (NJDCA)                                 38

  WAVERLY APTS (BOSTON)                                      11

  WEDGEWOOD VILLAGE (VHDA)                                   107

  WESTCHESTER COMMONS (JACKSON)                              34

  WILLOW APTS (ANNE ARUNDEL CO)                              136

  WILLOW VIEW (NJDCA)                                        23

  WILSON TWNHS II (BERKS CO)                                 91

                                                             
  ---------------------------------------------------------- ------------

FY 1998 FUNDING STATUS WORKSHEET

PRESERVATION / **PREPAYMENTS:**

Unassisted units assigned by project (PHA)

  --------------------------------------------------------- -------------
  ADAIR I MANOR (KCDC)                                      51

  ADAIR MANOR II (KCDC)                                     1

  AEGAN APTS (VACAVILLE)                                    40

  AQUA VIEW APTS (SPOKANE)                                  12

  AUBURN GARDENS (SACRAMENTO)                               42

  AUBURN TERRACE (PORTLAND)                                 85

  BEASELEY ARMS (NASH-EDGECOMB)                             6

  BEDFORD MANOR (ST. FRANCIS)                               34

  BIRCHWOOD GARDENS (PG CO)                                 40

  BOULEVARD APTS (DENVER)                                   47

  BOULEVARD VILLA (METRO COUNCIL)                           48

  BROOKSIDE MANOR (KILLEEN)                                 67

  BUTTONWOOD ACRES (NEW BEDFORD)                            76

  CAMELBACK WEST (PHOENIX)                                  71

  CANADA MANOR (MSHDA)                                      6

  CANTERBURY COMMONS (LANSING)                              27

  CANTERBURY COMMONS (LANSING)                              35

  CARRIAGE HOUSE N. (INDIANAPOLIS)                          171

  CASA FELIZ (TUCSON)                                       62

  CASA FELIZ (TUCSON)                                       29

  CASTLE PARK (SAN DIEGO CO)                                37

  CASTLE PARK (SAN DIEGO CO)                                7

  CEDAR CREST (LINN-BENTON)                                 9

  CEDAR VALLEY (CEDAR RAPIDS)                               48

  CHADBURNE (LANSING)                                       43

  CHADBURNE (LANSING)                                       43

  CHATEAU CLEARY (JEFF PARISH)                              28

  CHATEAU CLEARY (JEFF PARISH)                              19

  CHATEAU VILLA (APPLETON)                                  4

  CHERRY HILL (COLUMBUS)                                    24

  CHURCHLAND SQ (PORTSMOUTH)                                123

  CHURCHPARK (DHCD)                                         7

  CITY LINE TOWERS (PG CO, MD)                              68

  CITY LINE TOWERS (PG CO, MD)                              65

  COLLEGE GARDENS (SACRAMENTO)                              175

  COUGAR CREEK I (VANCOUVER)                                7

  COUGAR CREEK II (VANCOUVER)                               9

  COUNTRY CLUB (CHICAGO)                                    109

  COUNTRY VIEW I (BLOOMINGTON)                              5

  DEANSWOOD (WILSON)                                        53

  DEANSWOOD (WILSON)                                        11

  DUNDALE ARMS (NORFOLK)                                    92

  E. WINTONBURY HILL (HARTFORD)                             41

  E. WINTONBURY HILL (HARTFORD)                             7

  EAST GREEN HILLS (METRO DADE)                             47

  EASTMONT TERR (WENANCHEE)                                 17

  ESSEX HOUSE APTS (ALEXANDRIA)                             185

  FANO GARDENS (BALDWIN PARK)                               36

  FELLOWS CREEK (MSHDA)                                     63

  FOX HILL (HAMPTON)                                        79

  FRIENDSHIP ESTATES (VALLEJO)                              14

  FULTONVIEW GARDENS (MT VERNON)                            38

  GENTRY MANOR (DUPAGE)                                     85

  GRACE STREET APTS (CHICAGO)                               152

  GREEN MOUNTAIN (LAKEWOOD)                                 6

  GREENBROOK APTS (MILWAUKEE)                               45

  GREENFIELD ACRES (GREENFIELD)                             71

  HARPERS SQUARE (VA BEACH)                                 390

  HICKORY CREEK (FT. WAYNE)                                 50

  HIGHLAND TERRACE (WESTMORELAND)                           93

  HOLLOWAY CT (KINSTON)                                     33

  HOLLOWAY CT (KINSTON0                                     2

  HUNTINGTON BEACH (ORANGE CO)                              1

  JACKSON TRAILS (FT. WALTON BEACH)                         42

  JOHN KNOX TOWERS (NORFOLK)                                113

  JONATHON ACRES (METRO COUNCIL)                            25

  JOSEY PLACE (DALLAS COUNTY)                               162

  KENNESAW VILLAGE (MARIETTA)                               87

  KIMBERLY I (COLUMBUS)                                     48

  KIMBERLY II (COLUMBUS)                                    49

  KOHLER GDNS APTS (SACRAMENTO)                             22

  LAKE MANN GARDENS (ORLANDO)                               175

  LAKE VILLAGE (CHESAPEAKE)                                 77

  LAKE VILLAGE I (CHESAPEAKE)                               101

  LAKEVIEW GARDENS (DENTON)                                 75

  LANDMARK APTS (ALEXANDRIA)                                30

  LARCHMONT GDNS (SACRAMENTO)                               105

  LARCHMONT GDNS (SACRAMENTO)                               55

  LAS GOLONDRIAS (LOS ANGELES CO)                           1

  LAUREL GLADE (FAIRFAX)                                    88

  LAURELWOOD GARDENS (KING CO)                              62

  LEESBURG VILLAGE (VHDA)                                   120

  LENORE ST. GARDENS (MDHA)                                 49

  LIBERTY HILL (NORTHAMPTON CO)                             165

  LITCHFIELD GARDENS (WINCHESTER)                           38

  MAPLE COURT (YAMHILL)                                     3

  MAPLE TERR (WASHINGTON CO)                                8

  MAYFAIR APTS (LAFAYETTE)                                  80

  MEADOWS EAST (RENO)                                       123

  MONTAIN VIEW I (BERNALILLO CO)                            48

  MOUNTAIN KNOLL (CO SPRINGS)                               88

  NORMANDY APTS (ROCKFORD)                                  6

  NORTHFIELD MANOR (KENTUCKY)                               5

  NORTHWAY MANOR (ELKHART)                                  43

  NOTTINGHAM APTS (SOUTH DELTA)                             16

  OAKLAND HEIGHTS (FLORENCE)                                54

  ORANGE GARDENS (ORANGE CO)                                2

  ORANGE GARDENS (ORANGE CO)                                2

  OXFORD APTS (SEATTLE)                                     3

  PARC CHATEAU I (DEKALB CO)                                76

  PARC CHATEAU II (DEKALB CO)                               77

  PARK CREEK (ARVADA)                                       2

  PARK CREEK (ARVADA)                                       46

  PARK GROVE SQ (ARLINGTON)                                 63

  PARKSIDE APTS (MONTANA DOC)                               2

  PARKWEST I (ATLANTA)                                      54

  PARKWEST II (ATLANTA)                                     10

  PERSON CT (NC COMM OF I.A.)                               2

  PINECREST VILLAGE I (TAMPA)                               174

  PIPERBROOK APTS (W. HARTFORD)                             50

  PLACE 35 (COUNCIL BLUFFS)                                 25

  PLEASONTON GREENS (ALAMEDA CO)                            97

  QUEEN ANNES GATE (DHCD)                                   44

  QUEEN HEIGHTS (MID-COLUMBIA)                              3

  RANCHO ELLEN (OXNARD)                                     151

  RIVERSIDE APTS (MSHDA)                                    19

  RIVERVIEW APTS (BROWN CO)                                 1

  ROCKDALE WEST (NEW BEDFORD)                               126

  ROLLING GREEN (AMHERST)                                   14

  ROLLING GREEN (MILFORD)                                   153

  ROLLING GREEN AMHERST (AMHERST)                           99

  ROLLING MEADOWS (LANCASTER)                               112

  ROSEVILLE GARDENS (ROSEVILLE)                             45

  ROSS COLONY COURT (NHFHA)                                 24

  S.J. GREENBACK I (SACRAMENTO)                             104

  S.J. GREENBACK II (SACRAMENTO)                            40

  SCOTT GARDENS I (WATERBURY)                               46

  SCOTT GARDENS II (WATERBURY)                              60

  SEAWARD ARMS (SAN DIEGO HC)                               7

  SEAWARD ARMS (SAN DIEGO HC)                               2

  SHADOWOOD VILLAGE (DUPAGE)                                71

  SHAFTER VILLAGE (KERN CO)                                 7

  SHEYENNE TERR. I (CASS CO)                                11

  SHEYENNE TERR. II (CASS CO)                               10

  SOUTHGATE APTS (RALEIGH)                                  107

  SOUTHGATE APTS (RALEIGH)                                  11

  SOUTHMOOR (GREELEY)                                       27

  SPARTAN VILLA (SPARTANBURG)                               74

  SPRING VALLEY (TARRANT CO)                                105

  SPRUCE SQUARE (DALLAS)                                    44

  ST. CROIX MANOR (WI HEDA)                                 40

  STOCKTON GARDENS (SAN JOAQUIN)                            53

  STOCKTON TERR (SAN JOAQUIN)                               70

  SUGAR GROVE SQ (COLUMBUS)                                 100

  SUNDALE ARMS (ALAMEDA)                                    112

  SUNSHINE LAKES I (METRO DADE)                             59

  SUNSHINE LAKES II (METRO DADE)                            65

  SUTTER TERRACE (SACRAMENTO)                               48

  TANGLEWOOD PARK I (NW OREGON)                             3

  THE MEADOWS (RENO)                                        43

  THUNDERBIRD (N. LAS VEGAS)                                32

  TIMBERCROFT IV & V (BALT. CO)                             264

  TINKER CREEK APTS (ROANOKE)                               2

  TRANS PACIFIC GARDENS (BUTTE CO)                          82

  TRASK APTS (ORANGE CO)                                    7

  UJIMORE APTS (HONOLULU)                                   38

  UNIVERSITY GARDENS (NYCHA)                                4

  VAL VERDE (SCHERTZ)                                       10

  VILLA CAPRI (SALT LAKE CO)                                8

  VILLAGE NAPPANNEE (IDFSS)                                 21

  VISTA ORIENTE (ALBUQUERQUE)                               62

  WALNUT MANOR (SAN ANTONIO)                                54

  WATERMAN APTS (SAN BERNARD.)                              3

  WATERSIDE I (MSHDA)                                       34

  WELDON SQ II (COLUMBUS MHA)                               33

  WELDON SQUARE II (COLUMBUS MHA)                           69

  WEST PARK TERR (WASHINGTON CO)                            1

  WESTGATE MANOR (GOSHEN)                                   32

  WESTGATE VILLAGE (PLYMOUTH)                               9

  WESTMINISTER A. (GARDEN GROVE)                            20

  WESTMINISTER ARMS (GARDEN GROVE)                          5

  WESTWOOD GLEN (MA DHCD)                                   78

  WESTWOOD GLEN (MA DHCD)                                   52

  WIDEFIELD APTS (EL PASO CO)                               79

  WILSON TWNHS I (BERKS CO)                                 127

                                                            
  --------------------------------------------------------- -------------

FY 1997 FUNDING STATUS WORKSHEET

PRESERVATION / **PREPAYMENTS:**

Unassisted units assigned by project (PHA)

  ---------------------------------------------------------- ------------
  CHURCH PARK (BOSTON)                                       3

  CHURCH PARK (DHCD)                                         1

  CHURCH PARK APTS (BOSTON)                                  26

  CONWAY ARMS I (CONWAY)                                     56

  DOGWOOD FOREST I (MYRTLE BEACH)                            42

  DOGWOOD FOREST II (MYRTLE BEACH)                           53

  DRONFIELD TWNHSES (LOS ANGELES)                            13

  ELDEN TERRACE (FAIRFAX CO)                                 108

  ESCONDIDCO PARK (SAN DIEGO CO)                             3

  ESCONDIDO PARK (SAN DIEGO CO)                              17

  ESCONDIDO PARK (SAN DIEGO)                                 11

  FAIRBROOK HGTS (BALTIMORE CO)                              3

  FAIRVIEW GARDENS (SANTA ANA)                               16

  FIFTH AVE APTS I (NW OREGON)                               11

  FOREST GARDENS (DALLAS)                                    94

  FOX RIDGE (BALTIMORE CO)                                   9

  FULLERTON HILLS (ORANGE CO)                                149

  GATEWAY APTS (MDCA)                                        87

  GENESEE PARK (SAND DIEGO HSG COMM)                         8

  GLENDALE APTS (JEFFERSON CO)                               13

  GOLIAD GARDENS (SAN ANTONIO)                               53

  HAGERSTOWN II (HAGERSTOWN)                                 115

  HANOVER APTS (LEXINGTON-FAYETTE)                           7

  HERITAGE MANOR (RENO)                                      108

  HERITAGE MANOR (RENO)                                      1

  HICKORY HILL (TALLAHASSEE)                                 57

  HOLLY CIRCLE (HARFORD CO)                                  34

  HUNTINGTON BEACH (ORANGE CO)                               51

  HURON TOWERS (CAMBRIDGE)                                   68

  INDIANA MANOR (SICHA)                                      29

  JOHN ADAMS MANOR (SAN DIEGO HC)                            1

  KAY RAY MAR (TACOMA)                                       7

  KINGSTON TWNHSES (BALTIMORE CO)                            7

  KINGSTOWNE (OGDEN)                                         20

  KNOTT TOWNHOUSES (ORANGE CO)                               2

  KNOTT TOWNHOUSES (ORANGE)                                  4

  LA DAWN APTS (OGDEN)                                       1

  LAFAYETTE VILLAS (SUMTER)                                  62

  LANCASTER MANOR (SAN DIEGO CO)                             121

  LANDMARK APTS (ALEXANDRIA)                                 2

  LAWRENCE ROAD (SANTA CLARA)                                1

  LAWRENCE ROAD (SANTA CLARA)                                36

  LAWRENCE RODA (SANTA CLARA CO)                             1

  LAWYERS HILL (HOWARD CO HA)                                8

  LITTLE DIPPER (ALASKA HFA)                                 7

  LURLINE GARDENS (LOS ANGELES CITY)                         142

  LURLINE GARDENS (LOS ANGELES CITY)                         4

  MACLEAY PARK (PORTLAND)                                    29

  MADERA VILLAGE (SPARTANSBURG)                              85

  MANCHESTER APTS I (SAVANNAH)                               154

  MANCHESTER APTS II (SAVANNAH)                              72

  MAPLE TERRACE (WASHINGTON CO)                              8

  MEDALLION APTS (MONTEREY)                                  8

  MOUNTAIN VIEW (BEAR RIVER RHA)                             2

  MUNJOY SOUTH APTS (PORTLAND)                               27

  NORMAN MANOR (IDAHO HFA)                                   14

  NORTH CAMPUS HGTS II (SPOKANE)                             11

  NORTHWEST PARK APTS (ARLINGTON)                            74

  OAK GROVE TOWERS (MCDA)                                    206

  OAKDALE SQUARE (BLOOMINGTON)                               34

  ORANGE GARDENS (ORANGE CO)                                 88

  PARK LANE TERRACE (DALLAS)                                 73

  PARKVIEW APTS (URB REN & COM DEV)                          18

  PARKWEST TOWER (CHICAGO)                                   16

  PIN OAK MANOR (MISHAWAKA)                                  112

  PINEWOOD MANOR (LINCOLN CO)                                7

  PIONEER CITY I (ANNE ARUNDEL CO)                           7

  PIONEER CITY II (ANNE ARUNDEL CO)                          8

  PIONEER CITY III (ANNE ARUNDEL CO)                         12

  PLAZA APTS (TARRANT CO)                                    68

  PRINCE HALL HSG (CO SPRINGS)                               2

  RANCHO VISTA (SAN DIEGO CO)                                18

  RANCHO VISTA (SAN DIEGO CO)                                2

  ROCK HILL GARDENS (ROCK HILL)                              62

  ROCKINGHAM AVE (BOSTON)                                    142

  S. BERNARDINO VLG (S. BERNARDINO)                          54

  SEAWARD ARMS (SAN DIEGO HC)                                84

  SIGMA ACRES (TULARE CO)                                    7

  SKYLINE VIEW (SAN MATEO CO)                                5

  SPRINGBROOK PARK (RIVERSIDE)                               80

  SPRINGWATER (DENVER)                                       1

  ST. FRANCIS SQUARE (MESQUITE)                              91

  STEPHENS-WOODS (MARIETTA)                                  36

  STIVERS APTS (FRANKFORT)                                   12

  TIMES SQUARE APTS (ELGIN)                                  140

  TOWN & COUNTRY I (RICHMOND RHA)                            156

  TOWN & COUNTRY II (RICHOMND RHA)                           150

  TOWN VIEW PLAZA I (DENVER)                                 4

  TOWN VIEW PLAZA II (DENVER)                                49

  TRASK APTS (ORANGE CO)                                     5

  TRASK APTS (ORANGE CO)                                     6

  UNIVERSITY TERRACE (ST. LOUIS CO)                          21

  VALLE DEL NORTE (ALBUQUERQUE)                              2

  VILLAGE GREEN (SANTA CLARA)                                8

  VILLAGE GREEN (SANTA CLARA)                                70

  VILLAGE GROVE APTS (COOK CO)                               257

  VILLAGE MANOR (BOSTON)                                     8

  VILLAGE MANOR (BOSTON)                                     52

  VILLAGE MANOR (BOSTON)                                     1

  VINE VILLA (SALT LAKE CITY)                                22

  WALEPOLE POINT APTS (CHICAGO)                              31

  WALNUT HILL (DCHA)                                         10

  WARFIELD TWNHSES (A. ARUNDEL CO)                           2

  WARREN PARK (ALBUQUERQUE)                                  46

  WARREN PARK (MESA)                                         1

  WASHINGTON PLAZA (PORTLAND HA)                             66

  WEST PARK TERR (WASHINGTON CO)                             1

  WESTERN MANOR (SOUTH BEND)                                 81

  WESTMINISTER SQUARE (ADAMS CO)                             3

  WESTMINISTER SQUARE (ADAMS CO)                             3

  WESTMINSTER ARMS (GARDEN GROVE)                            14

  WESTMINSTER ARMS (GARDEN GROVE)                            12

  WESTPOINT APTS (DOUGLAS)                                   81

  WEXFORD MANOR (FAIRFAX)                                    38

  WIEBER MANOR (CLINTON)                                     20

  WILLIAMSBURG I (EAST PEORIA)                               20

  WILLIAMSBURG II (EAST PEORIA)                              23

  WINDSOR HOUSE (BALTIMORE CO)                               5

  WOODRIDGE E. PHASE I (ELDORADO CO)                         40

  WOODRIDGE E. PHASE II (ELDORADO CO)                        38

  YUKON APTS (HAWTHORNE)                                     6

                                                             
  ---------------------------------------------------------- ------------

**Attachment B**

The following is the public notice that is to be used by public housing
agencies (PHAs) that did [not]{.underline} receive preservation vouchers
in FY 1997, FY 1998, and FY 1999. The name of the PHA is to be inserted
in the blank spaces provided to clarify the PHA is not a
point-of-contact with respect to any adjustments related to the
calculation of preservation voucher housing assistance payments with
respect to this settlement.

**NOTICE TO PERSONS WHO RECEIVED**\
**SECTION 8 PRESERVATION VOUCHERS**\
**IN FY 1997 -1999**

The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ did not administer
preservation vouchers covered by the settlement and has no information
concerning this class action settlement and potential relief. **Do not
contact the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ regarding
this notice**. If you only received voucher assistance from
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, you are not eligible
for relief as a result of this settlement.\
\
**You may be eligible for retroactive relief pursuant to a class action
settlement in [Taylor v. Jackson]{.underline}, Civil Action No. 02-1120
(D. Oregon).** You may be eligible for relief if you meet all of the
following conditions:\
\
1. You received a preservation voucher from a public housing agency
(PHA) between October 1, 1996, and September 30, 1999. In order to have
received a preservation voucher:\
\
a. you must have resided in a section 236 or section 221(d)(3) project
where the owner prepaid the mortgage or voluntarily terminated the
mortgage insurance during this period; and\
\
b. the owner increased the rent no later than one year from the
effective date of the owner\'s prepayment of the mortgage or voluntary
termination of the mortgage insurance.\
\
2. Following the initial rent increase that established both your
eligibility and the preservation voucher payment standard, the owner of
the project subsequently increased the rent for the unit before your
preservation voucher assistance was converted to the enhanced voucher
rules established under 42 U.S.C. § 1437f(t) (current enhanced voucher
rules allows the subsidy to increase to cover all subsequent rent
increases); and\
\
3. As a result, you were required to pay for one or more subsequent rent
increases that the preservation voucher subsidy did not cover until such
time that you either left the project in question or your preservation
voucher was converted to an enhanced voucher. Your preservation voucher
would have been converted to enhanced voucher assistance by the PHA on
the effective date of your first annual income recertification on or
after October 20, 1999.

If you are currently assisted under the voucher program by the same PHA
that issued you the preservation voucher, the PHA will automatically
determine your eligibility and calculate the adjustment. You do not need
to do anything to receive the adjustment until your annual
re-certification of income.

If you believe that you may be eligible for relief under this
settlement, you should contact the PHA that provided you the
preservation voucher, or contact plaintiffs\' counsel, The Oregon Law
Center, 921 S.W. Washington, Suite 516, Portland, Oregon 97205,
(telephone 800-898-5594, x147), www.hud-enhanced-vouchers.org.

**Attachment C**

The following is the public notice to be used by public housing agencies
that received preservation vouchers in FY 1997, 1998, and 1999.

**NOTICE TO PERSONS WHO RECEIVED**\
**SECTION 8 PRESERVATION VOUCHERS**\
**IN FY 1997 -1999**

**You may be eligible for retroactive relief pursuant to a class action
settlement in [Taylor v. Jackson]{.underline}, Civil Action No. 02-1120
(D. Oregon).** You may be eligible for relief if you meet all of the
following conditions:\
\
1. You received a preservation voucher from the public housing agency
(PHA) between October 1, 1996, and September 30, 1999. In order to have
received a preservation voucher:\
\
a. you must have resided in a section 236 or section 221(d)(3) project
where the owner prepaid the mortgage or voluntarily terminated the
mortgage insurance during this period; and\
\
b. the owner increased the rent no later than one year from the
effective date of the owner\'s prepayment of the mortgage or voluntary
termination of the mortgage insurance.\
\
2. Following the initial rent increase that established both your
eligibility and the preservation voucher payment standard, the owner of
the project subsequently increased the rent for the unit before your
preservation voucher assistance was converted to the enhanced voucher
rules established under 42 U.S.C. § 1437f(t) (current enhanced voucher
rules allows the subsidy to increase to cover all subsequent rent
increases); and\
\
3. As a result, you were required to pay for subsequent rent increases
that the preservation voucher subsidy did not cover until such time that
you either left the project or your preservation voucher was converted
to an enhanced voucher. Your preservation voucher would have been
converted to enhanced voucher assistance by the public housing agency on
the effective date of your first annual income recertification on or
after October 20, 1999.

If you are currently assisted under the voucher program by the same PHA
that issued you the preservation voucher, the PHA will automatically
determine your eligibility and calculate the adjustment. You do not need
to do anything to receive the adjustment until your annual
re-certification of income.\
\
If you are no longer assisted by the same PHA that issued you the
preservation voucher and you believe that you may be eligible for relief
under this settlement, you should contact the PHA that provided you the
preservation voucher, or contact plaintiffs\' counsel, The Oregon Law
Center, 921 S.W. Washington, Suite 516, Portland, Oregon 97205,
(telephone 800-898-5594, x147), www.hud-enhanced-vouchers.org.

# Attachment D

The following are two examples of retroactive adjustment calculations in
connection with the [Taylor]{.underline} settlement. In all cases assume
that the rent to owner, both initially and as the result of any rent
increase, is reasonable and in accordance with program regulations, the
lease, and State and local law.

Case 1

The family resided in the preservation eligible property when the owner
prepaid the mortgage on April 13, 1998. The owner increased the rent
effective July 1, 1998, and as a result the family received for
preservation voucher assistance.

1\. On July 1, 1998 the voucher HAP contract commenced (initial
admission to voucher program).

> Normally applicable payment standard: \$750
>
> Gross rent of unit: \$840
>
> Preservation voucher payment standard used to calculate HAP: \$840

2\. Effective July 1, 1999 owner increased the rent to \$865

The PHA's normally applicable payment standard was still below \$840, so
PHA continued to use \$840 is used to calculate family's subsidy.

Family is responsible for paying the additional \$25 (\$865-\$840).

3\. Effective July 1, 2000, the family payment standard raised to the
current gross rent of the unit in accordance with HUD Notice PIH 2000-9.

> \$25 x 12 months = \$300 retroactive adjustment due to the family

Case 2

The family resided in a preservation eligible project when the owner
prepaid the mortgage on April 30, 1997. The owner increased the rent
effective on August 1, 1997, and as a result the family received
preservation voucher assistance.

1\. On August 1, 1997 the voucher HAP contract commenced (initial
admission to voucher program).

> Normally applicable payment standard: \$550
>
> Gross rent of unit: \$750
>
> Preservation voucher payment standard used to calculate HAP: \$750

2\. Effective August 1, 1998 owner increased the rent to \$765

The PHA's normally applicable payment standard was still below \$750, so
the PHA continued to use \$750 to calculate family's subsidy.

Family is responsible for paying the additional \$15 (\$765-\$750).

3\. Effective August 1, 1999, the owner increased the rent to \$795

The PHA's normally applicable payment standard was still below \$750, so
the PHA continued to use \$750 to calculate the family's subsidy.

The family is responsible for paying the additional \$45 (\$795-\$750)

4\. The family moved from the project and the HAP contract terminated on
October 31, 1999.

\$15 x 12 months = \$180

\$45 x 3 months = \$135

\$180 + \$135 = \$315 retroactive adjustment due to family

[^1]: This section concerning portability families applies only to
    families that received enhanced voucher assistance, but did not
    receive enhanced voucher assistance to cover any subsequent rent
    increases while still residing at the subject property where the
    owner prepaid the mortgageor terminated the mortgage insurance.