Virginia Administrative Code › Title 13 - HOUSING › Agency 10 - VIRGINIA HOUSING DEVELOPMENT AUTHORITY › Chapter 80 - RULES AND REGULATIONS FOR SECTION 8 MODERATE REHABILITATION AND PROJECT-BASED CERTIFICATE ASSISTANCE PROGRAMS › Section 13VAC10-80-10 - General description of programs

Current through Register Vol. 40, No. 24, July 15, 2024
The following rules and regulations will be applicable to the
				  moderate rehabilitation and project-based certificate assistance of rental
				  housing units subsidized under Section 8 of the U.S. Housing Act of 1937 ( 42
				  USC § 1437 et seq.), as amended ("section 8") and the applicable rules and
				  regulations promulgated pursuant thereto ("section 8 rules and regulations"),
				  24 CFR 882. These rules and regulations are intended to provide a general
				  description of the authority's processing requirements and are not intended to
				  include all actions involved or required in the processing of applications.
				  Notwithstanding anything to the contrary herein, the executive director is
				  authorized with respect to any application to waive or modify any provision
				  herein where deemed appropriate by him for good cause. These rules and
				  regulations are subject to change at any time by the authority. Unless stated
				  otherwise, the rules and regulations shall apply to both the moderate
				  rehabilitation and project-based certificate programs.
The section 8 moderate rehabilitation and project-based
				  certificate assistance programs (the "programs") are designed to:
1. Rehabilitate rental units which are now
				substandard or have major building components which need repair or replacement
				and, in the case of the project-based certificate program, construct new rental
				units;
2. Provide a rental income
				to an owner that will repay rehabilitation or construction costs, meet monthly
				operating expenses, and allow a reasonable profit (not to exceed 8.0% in the
				case of moderate rehabilitation) on the owner's equity investment in the
				property; and
3. Provide rental
				subsidies under section 8 to low and very low income families and single
				individuals living in the rehabilitated or newly constructed units.
Section 8 funding is received from time to time by the
				  authority from the U.S. Department of Housing and Urban Development ("HUD").
				  The authority then solicits and receives requests from local governmental
				  entities for allocations of such section 8 funds to their localities. After
				  approval of such requests, persons in such localities may submit applications
				  for section 8 funds under the programs. The executive director may take such
				  action as he deems necessary or appropriate in order to solicit such requests
				  from local governmental entities and applications from persons in the
				  applicable localities.
Persons interested in participating in the programs must
				  first submit applications to the authority meeting program requirements
				  described herein. The application shall be in such form and shall contain such
				  relevant information as the executive director may require. Applications will
				  be reviewed and approved on a first-come, first-serve basis or, in the case of
				  project-based certificate assistance program, on the basis of such selection
				  criteria as may be determined by the authority to best serve the needs of the
				  locality in which the project is to be located.
In the case of rehabilitation, selection of an owner's
				  application is contingent upon the authority's determination that the tenant
				  then occupying the unit to be rehabilitated is eligible to receive section 8
				  rental assistance under the applicable program. The authority will not permit
				  ineligible families to be displaced by rehabilitation. Therefore, the authority
				  will not provide subsidy under the program for the rehabilitation of units
				  occupied by ineligible families at the time of submission of the application.
				  However, the owner may rehabilitate these units as part of a general upgrading
				  of the property.
In the moderate rehabilitation program, the authority will
				  assist the owner in preparing rehabilitation work write-ups (detailed
				  description of the proposed rehabilitation and estimates of the costs thereof),
				  selecting a contractor, and obtaining financing for the work to be completed.
				  No such assistance is provided under the project-based certificate assistance
				  program.
Prior to the beginning of rehabilitation or new construction
				  the authority will execute an agreement to enter into housing assistance
				  payments contract (the "agreement") which provides that, upon satisfactory
				  completion of all specified improvements in accordance therewith, the unit(s)
				  will be subject to a housing assistance payments contract (the "HAP contract")
				  at a specified rent.
Upon completion of all required improvements to the unit(s),
				  the authority and the owner will execute a HAP contract which establishes the
				  rent ("contract rent") for the unit(s) and describes the rights and
				  responsibilities of the owner and the authority throughout the term. In the
				  case of the moderate rehabilitation program, the term of the HAP contract shall
				  be 15 years. In the case of the project-based certificate assistance program,
				  the HAP contract term may not be less than two years and no longer than 15
				  years or the period of funding for its funding source.
Subsequent to completion of the required improvements, the
				  authority and its administrative agent ("administrative agent") shall perform
				  their respective administrative functions and responsibilities with respect to
				  the section 8 subsidy and HAP contract as set forth in the authority's rules
				  and regulations for section 8 certificate and voucher existing housing
				  assistance payments program (13VAC10-70-10 et
				  seq.).
The initial occupant of a rehabilitated unit may be either
				  the owner's current tenant or a family selected by the owner from the waiting
				  list maintained by the administrative agent. The initial occupant of a newly
				  constructed project-based certificate assistance unit shall be a family
				  selected by the owner from such waiting list. Vacancies occurring after initial
				  occupancy are to be filled by the owner first from among families on such
				  waiting list. If this waiting list is not sufficient, the owner may solicit his
				  own tenants.
Tenants occupy the units and receive assistance by signing a
				  lease in the form required by the authority and other documentation required by
				  HUD. The tenants must comply with all applicable requirements imposed by HUD
				  under the section 8 rules and regulations and the applicable program. The
				  tenant pays no more than 30% of his adjusted income (as determined in
				  accordance with the section 8 rules and regulations) for rent and utilities, to
				  the extent of the allowance therefor. The difference between the rent (plus any
				  utility allowance) and the tenant's contribution is paid as housing assistance
				  payments to the owner by the authority with section 8 subsidy funds received
				  from HUD. The housing assistance payments are applied by the owner toward the
				  rent on the rental housing unit. The tenant pays directly to the owner the
				  portion of the rent not paid by the authority. In certain instances, the amount
				  of the housing assistance payments may exceed the rent, and the balance is paid
				  by the authority to the tenant as a utility reimbursement.
Housing assistance payments may be made available to eligible
				  persons and families pursuant to these rules and regulations only if and to the
				  extent that the authority has received from HUD section 8 subsidy funds
				  therefor.
The programs shall in all respects be governed by, and
				  administered in accordance with, the section 8 rules and regulations and all
				  other applicable procedures and requirements imposed by HUD with respect to the
				  programs. The section 8 rules and regulations and such other procedures and
				  requirements imposed by HUD shall control over any inconsistent provision
				  herein.
The executive director or any authorized officer of the
				  authority acting under his supervision is authorized to act on behalf of the
				  authority with respect to all matters hereunder. The executive director or such
				  authorized officer may delegate all or part of his authority to any employee
				  who is acting under his control and supervision.
Statutory Authority
§ 36-55.30:3 of the Code of Virginia.