1. Slide #1 Teri Robertson Project Based Vouchers

2. Slide #2 Project-Based Vouchers  Handouts: Project-Based Voucher Program; Final Rule  Includes 24 CFR Part 983 – PBV Program  Issued October 13, 2005  Effective November 14, 2005 PBV Decision point chart

3. Slide #3 Project-Based Vouchers  Overview: Initially enacted in 1998  Part of QHWRA  FY 2001 Appropriations Act amended laws  Effective November 14, 2005, the new final rule supersedes the 2001 notice

4. Slide #4 Project-Based Vouchers  Overview: PBV subject to 24 CFR 982 except for PBV specific regulations found at 24 CFR 983 24 CFR 983.2 lists which 24 CFR 982 provisions do not apply to PBV, such as  Voucher issuance,  Portability

5. Slide #5 Project-Based Vouchers  Overview: 24 CFR 983.4 lists other regulations that apply, such as  Disclosure and verification of income 24 CFR part 5, subpart 5  Lead Based Paint 24 CFR part 35

6. Slide #6 Project-Based Vouchers  PHA may use up to 20% of HCV budget authority to provide project-based assistance If PHA provides PB assistance, must remain within authorized funding

7. Slide #7 Project-Based Vouchers  PHA enters into HAP contract with owner Existing, rehabbed, or newly constructed units Term must be at least one year PHA policy  May require initial term up to ten years  May extend up to five years

8. Slide #8 Project-Based Vouchers  Under PB HAP contract with owner PHA pays HAP to owner for units leased and occupied by eligible families  Lease is between owner and family  Term of lease is not tied to HAPC

9. Slide #9 Project-Based Vouchers  Owner selection: Admin Plan must describe procedures for  Owner submission of PBV proposals  PHA selection of PBV proposals Detailed requirements laid out in 24 CFR 983 regulations

10. Slide #10 Project-Based Vouchers  Cap: Cannot select/enter into HAP contract to provide PB assistance for more than 25% of dwelling units in the building  Exceptions….

11. Slide #11 Project-Based Vouchers  Exceptions to 25% per building cap: Single-family building units ‘excepted units’ – units made available for ‘qualifying families’  Elderly or disabled families, or  Families receiving supportive services PHA may define supportive services

12. Slide #12 Project-Based Vouchers  Site must pass environmental review, unless exempt from requirements  Review may be performed by Local, county, or state government HUD

13. Slide #13 Project-Based Vouchers  Site must comply with HQS Before proposal selection date Before execution of HAPC Before providing assistance to a new family in a contract unit (turnover) And…

14. Slide #14 Project-Based Vouchers  At least annually, PHA must inspect a random sample Must be at least 20% of contract units in building  ‘Turnover’ inspections do not count If more than 20% of inspected sample fail HQS, PHA must reinspect all other contract units in building

15. Slide #15 Project-Based Vouchers  Rent to Owner: May not exceed the lowest of  PHA determined amount up to 110% of FMR for bedroom size Or HUD approved exception PS  Reasonable unit rent  Owner’s requested rent

16. Slide #16 Project-Based Vouchers  Rent to Owner: Established with beginning of HAPC term Owner may request rent increases annually, on HAPC anniversary date  Anniversary date applies to HAPC effective date, not family move-in

17. Slide #17 Project-Based Vouchers  Vacancy Payment PHA may provide for vacancy payments for a PHA-determined vacancy period  Cannot exceed two full months following move out month

18. Slide #18 Project-Based Vouchers  Occupancy PHA may refer HCV Tenant-based program applicants and participants to owner Must protect ‘in-place’ families...

19. Slide #19 Project-Based Vouchers  Occupancy ‘In-place’ families:  Eligible family residing in contract unit on proposal selection date Date PHA gives notice of selection to owner  PHA must place in-place family on waiting list  Will receive priority for PBV admission

20. Slide #20 Project-Based Vouchers  Occupancy At least 75% of new admissions must be extremely low-income families  Total admissions: includes both tenant-based and project-based Admission of in-place families is not included in income targeting

21. Slide #21 Project-Based Vouchers  Occupancy Family may terminate lease after the first year of occupancy PHA must offer the family tenant-based assistance  If not immediately available, PHA must give the family priority to receive TBA at the next opportunity If the family terminates the lease before one year, the relinquish tenant-based assistance opportunity

22. Slide #22 Project-Based Vouchers  Why decide to offer project based assistance? PHA is having difficulty utilizing existing funding Provides additional opportunities to meet local housing needs, particularly for the  Elderly  Disabled

23. Slide #23 Project-Based Vouchers  Why decide to offer project based assistance? Reduce annual inspections Program flexibility  Long-term HAP Contracts  Vacancy payments

24. Slide #24 Project-Based Vouchers  Why NOT decide to offer project based assistance? Increased demand on internal resources Must revise administrative plan Must meet environmental review requirements Complicates managing funding

25. Slide #25 Project-Based Vouchers  Before deciding Review Final Rule carefully Outline program requirements Analyze funding

26. Slide #26 Project-Based Vouchers: A Closer Look

27. Slide #27 PBV Decision Point 2  Maximum amount of PBV assistance Refer to handout

28. Slide #28 PBV Decision Point 2  What percent of the budget authority? ‘will use up to 20% of budget authority’ If PHA’s administrative plan states a specific percentage, and the PHA decides to change the percentage later, the administrative plan will then need revision

29. Slide #29 PBV Decision Point 2  Will the PHA reduce the number of PBV units if there is a subsequent reduction in budget authority? Leave options in the administrative plan  “The PHA may reduce…”

30. Slide #30 PBV Decision Point 3  Item 3: No real decision point. However, the PHA should determine/identify where relocation assistance costs will come from

31. Slide #31 PBV Decision Point 4  Item 4: Owner proposal selection A lot to talk about…..Let’s look at decision point 5

32. Slide #32 PBV Decision Point 5  PBV proposal selection – two options 1.May request PBV proposals 2.May select housing already assisted Let’s look more closely at the requirements tied to each of these two options….

33. Slide #33 PBV Decision Point 5  PBV proposal selection Option 1. May request proposals  Procedures for selection must provide broad public notice of the opportunity to submit proposals to the PHA

34. Slide #34 PBV Decision Point 5  PBV proposal selection Option 1. May request proposals  PHA may not Limit proposals to a single site Impose restrictions that explicitly or practically preclude owner proposal submissions

35. Slide #35 PBV Decision Point 5  Option 1: Owner proposal selection procedures PBV selection procedures must provide broad public notice of the opportunity to submit PBV proposals to the PHA

36. Slide #36 PBV Decision Point 5  Option 1: Owner proposal selection procedures Public notice may include publication in a local newspapers of general circulation  Must include submission deadline Detailed application and selection information must be provided upon request

37. Slide #37 PBV Decision Point 6  Point 6: If selecting proposals under Option 1, what will be the procedures?

38. Slide #38 PBV Decision Point 5  PBV proposal selection – Option 2. May select proposal for housing assisted under  Federal, state, local housing assistance  Community development  Supportive services program that requires competitive selection of proposals, IF….

39. Slide #39 PBV Decision Point 5  PBV proposal selection – Option 2  …IF that proposal was selected in accordance with that program’s selection requirements  Within 3 years of PBV proposal selection date  Earlier selection proposal cannot have considered that the project would receive PBV assistance

40. Slide #40 PBV Decision Point 5  PBV proposal selection – two options 2. Note that low income housing tax credits (LIHTCs) do not satisfy the requirement of a prior competition  LIHTC selection is non-competitive

41. Slide #41 PBV Decision Point 7  Notice of owner selection PHA must give written notice of selection to  Party that submitted proposal  Public Can be public notice in newspaper  Point 7: what will be the procedures to provide broad public notice?

42. Slide #42 PBV Decision Point 8  PHA owned units may be assisted under PBV if HUD field office (or HUD-approved entity) reviews the selection process and determines these units were appropriately selected in accordance with PHA’s selection procedures  Point 8: Will the PHA provide PBV in PHA- owned units?

43. Slide #43 PBV Decision Point 9  Other Eligible Housing Types Existing housing (units comply with HQS at the time of notice of PHA selection) Newly constructed units or rehabilitated housing developed under and in accordance with an Agreement

44. Slide #44 PBV Decision Point 9  Other Eligible Housing Types Existing housing (units comply with HQS at the time of notice of PHA selection) Newly constructed units or rehabilitated housing developed under and in accordance with an Agreement

45. Slide #45 PBV Decision Point 9  Ineligible Housing Types Shared housing Units on grounds of:  Penal, Reformatory,  Medical, Mental, or  Similar public or private institution

46. Slide #46 PBV Decision Point 9  Ineligible Housing Types Nursing homes, or facilities providing continuous care  Psychiatric, medical, nursing,  Board and care, or intermediate care However, facility providing home health care services is acceptable (nursing, therapy)

47. Slide #47 PBV Decision Point 9  Ineligible Housing Types Units owned/controlled by an educational institution  Designated for student occupancy Manufactured homes Cooperative housing Transitional housing

48. Slide #48 PBV Decision Point 9  Ineligible Housing Types High-rise elevator project occupied by families with children, unless  PHA determines there is no practical alternative, and  HUD approves

49. Slide #49 PBV Decision Point 9  Ineligible Housing Types Owner-occupied units Units occupied by families ineligible for PBV participation

50. Slide #50 PBV Decision Point 9  Ineligible Units Public housing units Units subsidized with any S8 assistance (tenant based or project based) Any unit subsidized with government subsidy paying any operating costs

51. Slide #51 PBV Decision Point 9  Ineligible Units Units subsidized with Section 236 or Section 521 rental assistance payments  Section 236 and Section 515 interest reduction payment subsidy properties are ok Section 202 projects for the elderly and for non-elderly persons with disabilities

52. Slide #52 PBV Decision Point 9  Ineligible Units Section 811 project-based supportive housing for persons with disabilities Section 101 rent supplement projects Units subsidized with any form of tenant- based rental assistance

53. Slide #53 PBV Decision Point 9  Ineligible Units A unit with any other duplicative federal, state, or local housing subsidy ‘housing subsidy’ does not include  Housing component of welfare payment  Social security payment  Federal, state or local tax concession

54. Slide #54 PBV Decision Point 9  The PHA may attach assistance to units subsidized with Section 236 and Section 515 interest reduction payments  Not actually a decision point  Just list subsidy types that are allowable in Administrative Plan

55. Slide #55 HUD Review  HUD (or independent HUD-approved entity) must conduct any required subsidy layering review determine PBV assistance is in accordance with subsidy layering requirements prior to the PHA entering into any PBV Agreement or HAP contract

56. Slide #56 Cap on PBV Units  Cap on PBV units per building: PHA cannot select/enter into HAP contract to provide PB assistance for more than 25% of dwelling units in the building  Exceptions….

57. Slide #57 Cap on PBV Units  Exceptions to 25% per building cap: Single-family building units

58. Slide #58 Cap on PBV Units  Exceptions to 25% per building cap: ‘excepted units’ – units made available for qualifying families  ‘qualifying families’ Elderly or disabled families, or Families receiving supportive services

59. Slide #59 Decision Point 10  Exceptions to 25% per building cap:  Decision point 10: PHA must include in administration plan the type of services offered to families for the project to qualify for the exception  Services do not have to be provided at or by the project

60. Slide #60 Decision Point 10  Exceptions to 25% per building cap: To qualify, at least one family member must be receiving at least one qualifying supportive service PHA cannot require participation in medical or disability-relate services as a condition of living in an excepted unit  Other than drug or alcohol treatment

61. Slide #61 Decision Point 10  Requirement to vacate unit A family not completing supportive services requirements as defined in the PHA administrative plan, or Family consisting of remaining members who no longer qualify for elderly or disabled family status…

62. Slide #62 Decision Point 10  Requirement to vacate unit Must vacate the unit within a reasonable time frame as established in the Administrative Plan  PHA must cease paying HAP on behalf of family If family fails to vacate, unit must be removed from contract  Unless it can be replaced with another unit in the building, or owner terminates the lease and evicts

63. Slide #63 Decision Point 10  Note that if a family is receiving defined supportive services at the time of initial tenancy, and successfully completes a supportive services requirement, the unit continues to count as an excepted unit for as long as the family resides in the unit

64. Slide #64 Decision Point 11  How often and in what manner will the PHA monitor the excepted family’s continued participation in their supportive services requirement?

65. Slide #65 Decision Point 12  Local requirements in partially assisted buildings: Will the PHA establish a per building cap on assisted units in partially assisted buildings? Or determine not to provide PBV assistance for excepted buildings? Or establish a per-building cap of less than 25%?

66. Slide #66 Decision Point 13  Site selection standards What is the PHA’s policy for site selection for existing and rehabilitated housing and new construction? How does this methodology promote PBV goals? PHA goals?

67. Slide #67 Decision Point 13  PHAs operating a PBV program must do so in accordance with their annual plan  PBV must support goals of deconcentrating poverty expanding housing and economic opportunities  If PBV won’t meet these requirements, law prohibits you from operating PBV

68. Slide #68 Decision Point 13  Notice PIH 2001-4 requires PHAs to state why project-basing is appropriate  ie: supply of tenant-based units is very limited  Project basing is strategically needed to assure unit availability for a number of years identify the number of PBV units and their general location

69. Slide #69 Decision Point 13  Annual Plan (form HUD 50075)

70. Slide #70 Decision Point 13  PHA Plan Templates (form HUD 50075-SA and form HUD 50075-SF) require PHAs with PBV to indicate the circumstances that make project-basing an appropriate option

71. Slide #71 Decision Point 13

72. Slide #72 Decision Point 14  PHA may elect to establish additional requirements for quality, architecture, or design of PBV housing Will the PHA establish such additional req’ts?  Such requirement must be in agreement  Be aware of any local requirements

73. Slide #73 Decision Point 15  PHA may specify add’l documentation to be submitted by the owner as evidence of housing readiness What will the documentation be, if so required?

74. Slide #74 Decision Points 16 & 17 16: What will be the initial HAP contract term? May not be less than one year, not more than ten years 17: What is PHA policy on extending the contract? May extend up to an additional five year term

75. Slide #75 Decision Point 18  PHA may require additional housing quality requirements  Must be in HAP Contract Decision Point 18: Will the PHA have additional requirements?  If yes, what will they be?

76. Slide #76 Decision Point 19  Will PHA use a separate waiting list for PBV units, or use a combined PBV/HCV waiting list?

77. Slide #77 Decision Point 20  Decision Point 20: If there are multiple PBV locations, will the PHA use A single PBV waiting list for the PBV program, or Separate PBV waiting lists for individual projects/buildings/sets of units?

78. Slide #78 Decision Point 21  In either case, PHA may establish criteria and/or preferences for occupancy of particular units Will the PHA establish such criteria? If yes, what will the criteria be?

79. Slide #79 Decision Point 22  Will the PHA merge the PBV waiting list with other waiting lists?

80. Slide #80 Decision Point 23  Preferences If PBV units have accessibility features for persons with disabilities, will the PHA provide preferences to families needing services offered at a particular project?

81. Slide #81 Decision Point 24  Tenant Screening Will the PHA screen applicants for family behavior or suitability? Will the PHA deny admission based on the suitability screening?  PHA may want to follow existing PH policies

82. Slide #82 Decision Point 25  PHA must decide what tenant information to provide to the owner Tenancy history Drug trafficking Criminal activity by family members  May want to use existing policies

83. Slide #83 Decision Point 26  The PHA may review the owner’s lease for compliance with state and local law, and decline if it does not comply Will the PHA review? Will the PHA decline if the lease does not comply?  What are current HCV policies?

84. Slide #84 Decision Point 27  The PHA may prohibit security deposits in excess of Private market practice Amounts charged to unassisted tenants  What are current HCV policies?

85. Slide #85 Decision Point 28  Overcrowded, under-occupied, accessible units If a family is occupying a ‘wrong-size’ unit, or a unit with unneeded accessibility features  What form of continued assistance will the PHA offer the family?

86. Slide #86 Decision Point 28  ‘Wrong-size/type’ units Policy must in administrative plan. May offer  PBV in appropriate unit size and/or type  Other PB assistance  HCV assistance  Other comparable public/private assistance ie: HOME

87. Slide #87 Decision Point 29  ‘Wrong-size/type’ units: If family does not  Accept the offer of alternative housing  Move out of PBV unit within a reasonable time then PHA must terminate payments at the expiration of a reasonable period  Decision point 29: What is reasonable time? Reasonable period?

88. Slide #88 Decision Point 30  When excepted unit family (or remaining members) no longer meet criteria for ‘qualifying family’ Rules require them to vacate the unit within a reasonable time  Decision Point 30: What is reasonable time?

89. Slide #89 Decision Points 31 thru 37  Decision points 31 through 37 deal with Rent to Owner  Some basics: Established at the beginning of the HAP Contract Term  Separate rules for Low Income Housing Tax Credits (LIHTC) vs non-LIHTC

90. Slide #90 Rent To Owner  Non-LIHTC Cannot exceed lowest of  Amount determined by PHA Not to exceed 110% of FMR (or HUD-approve exception ps) minus utility allowance  Reasonable rent  Rent requested by owner

91. Slide #91 Rent To Owner  LIHTC (PIH 2006-16) If selected through written notice to the owner on or after 11/14/2005  Same as non-LIHTC, but adds that rents may also not exceed the tax credit rent

92. Slide #92 Rent To Owner  LIHTC (PIH 2006-16) If PHA issued written notice of owner selection before 11/14/2005  ‘old’ rules under Notice PIH 2002-22 still apply (PIH 2002-22 extended by PIH 2005-20)  Information is also in PBV FR

93. Slide #93 Decision Point 31  In determining initial rent to owner, PHA uses the most recent FMR and utility allowance schedule in effect at HAP contract execution PHA may use the FMR/utility allowance in effect 30 days prior to HAP contract execution

94. Slide #94 Decision Point 32  In redetermining rent to owner, PHA also uses the most recent FMR/UA and may also use the FMR/utility allowance in effect 30 days prior to HAP contract execution  Decision points 31/32: Under what circumstances will the PHA use said FMR and/or UA?

95. Slide #95 Rent To Owner  Redetermination of rent to owner PHA must redetermine rent to owner  Upon owner’s request  When there is a 5% or more decrease in published FMRs

96. Slide #96 Decision Point 33  Redetermination of rent – Owner’s request Must be in writing Must be at annual anniversary of the HAPC  PHA determines notice period, form and manner for request of increase Decision point 33 Owner must comply with HAPC to receive

97. Slide #97 Decision Point 34  Redetermination of rent to owner PHA may reduce rent to owner because of other governmental subsidies Tax credit/tax exemption Grants Other subsidized financing Decision point 34

98. Slide #98 Rent To Owner  Redetermination of rent to owner Rent decrease  PHA must redetermine rent (is it reasonable?) when FMR has decreased by 5% or more  The owner must be provided written notice of any decrease

99. Slide #99 Rent To Owner  PHA must also redetermine rent reasonableness when Responsibility for utilities changes HAP contract amended to substitute a different contract unit Any change occurs that may substantially affect reasonable rent

100. Slide #100 Rent To Owner  Rent reasonableness PHA must compare to rent for comparable unassisted units PHA must use at least 3 comparable unit in private, unassisted market  May include comparable unassisted units in the project

101. Slide #101 Rent To Owner  Rent reasonableness – PHA must consider factors affecting market rent, such as  Location  Quality  Size  Unit type  Age  Amenities  Housing services  Maintenance  Utilities

102. Slide #102 Rent To Owner  Rent reasonableness – By accepting the monthly housing assistance payment, the owner certifies that the rent to owner is not more than rent charged for comparable unassisted units in the premises

103. Slide #103 Rent To Owner  Rent to owner may not exceed program rental limits for the specific program, for  HOME program units  Section 236 projects  Section 221 (d)(3)  LIHTC  Other federal subsidized projects

104. Slide #104 Rent To Owner  Rent to owner may also be subject to rent control Other limits under federal, state, local law

105. Slide #105 Rent To Owner  In assisted living developments, owners may charge families for Meals Supportive services  These charges may not be included in rent to owner Used in rent reasonableness determination

106. Slide #106 Rent To Owner  In such an assisted living development, family non-payment of meals and/or supportive services is grounds for termination of the lease

107. Slide #107 Rent To Owner  If not an assisted living development, owners may not require the family to pay charges for meals or supportive services Non-payment is not grounds for lease termination

108. Slide #108 Payment to Owner  Payments are made for each month, during the term of the HAP contract, that the contract unit is Leased to Actually occupied by An eligible family

109. Slide #109 Payment to Owner  Payments are made on or about the first day of each month payment is due, unless the owner and PHA agree on a later date

110. Slide #110 Payment to Owner  Move-out month Payment Owner may keep HAP for the calendar month the family moves out  Unless the PHA determines the vacancy is the owner’s fault

111. Slide #111 Decision Points 35 & 36  Decision point 35: Vacancy Payment HAP contract may provide for vacancy payment  Decision point 36: Payment period Payment may include period from beginning of 1st calendar month after move-out up to 2 full months following the move-out month

112. Slide #112 Payment to Owner  PHA Option: Vacancy Payment Cannot exceed rent to owner under the lease minus any portion of rental payment received by the owner  Including amounts from tenant’s security deposit Unit must remain vacant for owner to receive

113. Slide #113 Vacancy Payment  Owner must give prompt, written notice to PHA that family has left the unit  Include date, as best can  Certify unit was vacant for claimed period  Owner certifies vacancy is not owner’s fault  Owner certifies took reasonable action to minimize likelihood and length of vacancy

114. Slide #114 Decision Point 37  Decision Point 37: What procedures will an owner use to request a vacancy payment? What information/verification will the PHA require?

115. Slide #115 Tenant Rent to Owner  PHA is only responsible for HAP payments  PHA is not responsible for Tenant rent Damages Any other amounts owed by the family

116. Slide #116 Decision Point 38  Decision point 38: Will any utility reimbursement be paid to the family or to the utility provider What are current PHA UAP policies?

117. Slide #117 Decision Making: A closer look  Which of the PHA’s tenant based voucher policies will apply to PBV? HAP abatement Denial of admission Reexaminations Fair housing Reviews and hearings

118. Slide #118 Decision Making: A closer look  What additional policies are needed? Annual inspection requirements  May inspect up to 20% of units annually  What percent will you inspect?

119. Slide #119 Decision Making: A closer look  Consider carefully before making your decision  Talk to PHAs with PBV What do they like What do they not like?

120. Slide #120 Upcoming Lunch ‘n’ Learns  May 5 th – Occupancy (PH & Sec 8):  Reasonable Accommodation for Front-Line Staff  May 17 th – Inspections (Sec 8):  Lead-Based Paint and the HQS Inspection  May 19 th – Management (Sec 8):  Assets and Asset Income  May 26 th – Management (PH):  Supervision in the Project-Based Environment

121. Slide #121 Section 8 Model Administrative Plan  Includes a Project-Based Voucher chapter contributed to by Jerry Benoit!  If you currently own our Admin Plan, and would like the revision service or if you would like to purchase the new plan, more information is located on our website at: http://www.nanmckay.com/shoppingcart/ProductsList.aspx?CategoryID=58&Categ oryText=Section%208%20Policies%20and%20Plans http://www.nanmckay.com/shoppingcart/ProductsList.aspx?CategoryID=58&Categ oryText=Section%208%20Policies%20and%20Plans  A registration form is located at: http://www.nanmckay.com/collateral/perftools/orderforms/generic/product_order_F X1001.pdf http://www.nanmckay.com/collateral/perftools/orderforms/generic/product_order_F X1001.pdf

122. Slide #122 Thank you for attending! Lunch ‘n’ Learns for HCV Management:  Feb 8 th – Managing Non-Discrimination  Mar 20 th – Financial Management for Non- Financial Managers