HOUSING CHOICE VOUCHER PROGRAM

1. PROJECT-BASED ASSISTANCE HOUSING CHOICE VOUCHER PROGRAM

2. 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.

3. 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

4. Planned Rulemaking for PBA • HUD will issue a proposed rule for PBA this fall • Seek comment on implementation of law changes • Streamline part 983

5. 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 • However, certain of the part 983 regulations are superseded by the new law.

6. 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.

7. New! 20% Limit • A PHA may attach up to 20% of its voucher assistance to units • I.e., Up to 20% of baseline units

8. 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.

9. 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

10. 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.

11. 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

12. 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…

13. 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.

14. 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

15. New! Rent Limits • Gross rent may not exceed higher of: • 110% of FMR • HUD-approved exception payment standard amount • Except…

16. 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

17. 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

18. 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.

19. 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.

20. 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.

21. 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.

22. 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).

23. Family Share and HAP • HAP = Gross Rent - TTP • Family Share = Gross Rent - HAP • Family Share = TTP • Stays like PBC

24. 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.

25. 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.