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  However, certain of the part 983 regulations are superseded by the new law.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 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 (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.