# Presentation: 693792

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- However, certain of the part 983 regulations are superseded by the new law.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