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PROJECT-BASED ASSISTANCE. HOUSING CHOICE VOUCHER PROGRAM. October 2000 Law Change . The HUD FY 2001 appropriations act made substantial revisions to PBA. H.R. 5482, section 232.

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housing choice voucher program

PROJECT-BASED ASSISTANCE

HOUSING CHOICE VOUCHER PROGRAM

october 2000 law change
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
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
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
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    • However, certain of the part 983 regulations are superseded by the new law.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
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
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
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
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
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
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
  • 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
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
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
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
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
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
slide18
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
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
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
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
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
Family Share and HAP
  • HAP = Gross Rent - TTP
  • Family Share = Gross Rent - HAP
  • Family Share = TTP
  • Stays like PBC
new optional vacancy payments
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
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.