Presentation on theme: "4/30/20151 Section 8 Project- Based Rental Assistance Program Fort Worth Multifamily HUB."— Presentation transcript:
4/30/20151 Section 8 Project- Based Rental Assistance Program Fort Worth Multifamily HUB
4/30/20152 Basic Definitions HUD-subsidized project means a project whose owners or tenants receive payments for rent or operating expenses. Subsidy provides qualified tenants a way to pay less rent for their units. The Major program is called Section 8 and includes Project Based and Tenant Based Rental Assistance. Carries use and affordability restrictions. Assistance contracts are common. Projects can be both HUD-subsidized and HUD- insured. They also can be one or the other.
The Section 8 Program was authorized by Congress in 1974. Provides Rental Subsidies for eligible tenant families (including single persons) residing in newly constructed, rehabilitated and existing rental apartments. Code of Federal Regulations Under 24 CFR Provide Guidance Relative Section 8 Program. 880 Section 8 New Construction 881 Section 8 Substantial Rehabilitation 882 Section 8 Moderate Rehabilitation 883 Section 8 State Housing Agencies 884 Section 8 New Construction Set-Aside for Section 515 Rural Rental Housing Developments 4/30/20153
Code of Federal Regulations (continued) 886 Section 8 Special Allocations 888 Section 8 Fair Market Rents and Contract Rent Annual Adjustment Factors 891 Supportive Housing for the Elderly and Persons with Disabilities 4/30/20154
Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) Renewal rents based on market instead of Fair Market Rent (FMR) Multi-year contract subject to appropriations Authority to renew project based contracts With or without restructuring Most rents set at market Exception rents for certain projects 4/30/20155
6 Project (Asset) Management Function Project (Asset) Management administers both HUD-insured and HUD-subsidized projects. Each project is assigned to a project manager. Fort Worth Multifamily HUB jurisdiction covers the State of Texas.
Example of 9% HTC Leveraged Deal Gulf Coast Arms Apartments, Houston, TX; Section 221d3, 160 Units, 100% Section 8 Subsidized, 2012 9% HTC Award with other Funding Sources, Total Reconstruction Funding Sources: HTC $1,750,000, CDBG $6,750,000, Conventional Financing $3,750,000 Relocation of Residents for 12-18 months Project reconstructed Platinum LEED Green Residents moved back in first building June 2014 4/30/20157
4/30/201515 Project (Asset) Management Function Region VI Web site can be found at: http://www.hud.gov
4/30/201516 Other Funding Considerations State (TDHCA) Low Income Housing Tax Credits (LIHTC) State Bonds City/County HOME & CDBG Funds TDHCA HOME & CDBG Funds
4/30/201517 Housing Tax Credits Created by the TAX Reform Act of 1986. Section 42 of the Internal Revenue Code of 1986. Used to direct private capital towards affordable housing To qualify development must be new construction or substantial rehabilitation. A total of four or nine percent based on rent restricted units offered. www.tdhca.state.tx.us
4/30/201518 State Bonds Multifamily Housing Revenue Bond Rule, Title 10, Par 1, Chapter 35, Texas Administrative Code. Used to construct, acquire, rehabilitate, operate, manage, or maintain a Development. Tenants must be low income, very low income, or extremely low income.. Issued in varying denominations. www.tdhca.state.tx.us/multifamily/bond/ docs/07-BondRule.pdf
4/30/201519 State of Texas HOME Funds Funds are provided to States, City, and local government on a formula allocation base. Funds can be used to acquire property, construct new housing, moderate or rehabilitate housing, site improvements, demolition of dilapidated housing, pay for relocation, and other reasonable expanses. Bricks and mortar program for affordable housing. City or Local Government administered. www.tdhca.state.tx.us/home-division/mf- home/index.pdf