![](media/image1.emf){width="0.5659722222222222in"
height="0.5493055555555556in"} **U.S. Department of Housing and Urban
Development**

Public and Indian Housing

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Special Attention of: **Notice PIH 99-9 (HA)**

Office Directors of Public Housing; Issued: February 11, 1999

Secretary's Representatives; Public Housing

Agencies Administering Section 8 Programs Expires: February 28, 2000

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Cross References:

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**Subject: Transfer of Section 8 Certificate Program Funding to the
Voucher**

**Program Annual Contributions Contract Funding** **Exhibit**

[**PURPOSE**:]{.underline} This Notice is to advise housing agencies
(HAs), Office of Public Housing HUBs, and Office of Public Housing
Program Centers, that the Department is combining certain funding for
the rental certificate and rental voucher programs under the
consolidated annual contributions contract (CACC).

**[BACKGROUND:]{.underline}** Section 545 of the Quality Housing and
Work Responsibility Act of 1998 (P.L. 105-276, approved October 21,
1998) authorized the merger of the rental certificate and rental voucher
programs. The merger of the certificate and voucher programs will be
implemented by issuance of a regulation. In anticipation of the merger
and to reduce the number of required budgets and financial statements
from administering HAs, the Department intends to fund all increments of
the Section 8 tenant-based programs upon renewal under a joint
instrument (Exhibit B).

Beginning in April 1999, as certificate funding increments on Exhibit A
of the CACC expire they will be renewed as tenant-based funding
increments on Exhibit B of the CACC. This will enable the Department to
transfer expiring funding increments from the CACC Exhibit A (funding
for the certificate program) to Exhibit B (funding for the tenant-based
certificate and voucher programs) and is an important first step in the
transition to the new single tenant-based voucher program. The majority
of the certificate funding increments will expire during the next 12
months.

**[APPLICABILITY]{.underline}**. This Notice is applicable to HA
certificate funding increments that expire from April 1999 through
December 2000.

**[IMPACT ON HA BUDGETS]{.underline}**. Since the conversion will occur
as funding increments expire, HAs will be required to submit revised
budgets and requisitions. A separate notice will provide specific
instructions on budget preparation for this conversion.

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:Distribution: HUD 21B(3-80)

Previous Editions Are Obsolete GPO 871 902

**[REVISED CONSOLIDATED ANNUAL CONTRIBUTIONS CONTRACT FOR THE SECTION 8
TENANT-BASED PROGRAMS]{.underline}**. The Department will be issuing a
notice transmitting a revision of Form HUD-52520, the Consolidated
Annual Contributions Contract for the Section 8 tenant-based programs
soon. Instructions on executing the revised CACC will be included in the
notice.

**[IMPACT ON CURRENT CERTIFICATE HOUSING ASSISTANCE PAYMENTS (HAP)
CONTRACTS]{.underline}**. This action does not terminate current
certificate program HAP contracts or provide HAs with authority to
terminate a current certificate HAP contract with an owner solely to
switch the family's form of assistance. The terms and conditions of
currently executed HAP contracts remain in effect.

**[IMPACT ON HA TENANT-BASED PROGRAM]{.underline}**. HAs have the option
to issue certificates or vouchers with available Exhibit A or Exhibit B
funding (and available amounts in the unified ACC reserve account) until
the regulations implementing the merger of the certificate and voucher
program go into effect. As Exhibit A certificate funding increments
expire and are renewed as Exhibit B funding increments, HAs will have
authority to choose to administer available Exhibit A or Exhibit B
budget authority under either the certificate or voucher rules.

HAs will continue to report the actual form of the subsidy used by each
individual family on Form HUD-50058, Family Report.

HAs should keep in mind that eventually all certificates will be
converted to the new voucher program authorized by the Quality Housing
and Work Responsibility Act of 1998 which the Department plans to
implement by regulation in the Spring of 1999. The new rule will explain
the rules for conversion from the certificate program.

**[OVER-FMR CERTIFICATE PROGRAM TENANCIES]{.underline}**. HAs are
reminded that implementation of the certificate program over-FMR tenancy
option is not mandatory unless needed as a reasonable accommodation for
a person with disabilities. An HA may wish to minimize use of this new
option or issue the family a voucher since the over-FMR tenancy option
will cease to exist when the certificate and voucher programs are
merged.

**[HA ACTIONS]{.underline}**. An HA may elect to begin using currently
available certificate funding as voucher funding after the transfer of
funds to the joint instrument (Exhibit B) voucher exhibit and to reissue
turnover certificates as vouchers. In such instances, the HA must notify
families on the waiting list who declined accepting a certificate and
re-offer the family a voucher before removing the family's name from the
waiting list. The HA must also make the appropriate revisions in its
Section 8 Administrative Plan.

/s/ Deborah Vincent for

Harold Lucas, Assistant Secretary

for Public and Indian Housing