slide #1 teri robertson project based vouchers. slide #2 project-based vouchers handouts:...

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Teri Robertson

Project Based Vouchers

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Project-Based Vouchers

Handouts:• Project-Based Voucher Program; Final Rule

Includes 24 CFR Part 983 – PBV Program Issued October 13, 2005Effective November 14, 2005

• PBV Decision point chart

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Overview:• Initially enacted in 1998

Part of QHWRAFY 2001 Appropriations Act amended lawsEffective November 14, 2005, the new final

rule supersedes the 2001 notice

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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 asVoucher issuance,Portability

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Overview:• 24 CFR 983.4 lists other regulations that apply,

such asDisclosure and verification of income

• 24 CFR part 5, subpart 5Lead Based Paint

• 24 CFR part 35

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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

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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

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Under PB HAP contract with owner• PHA pays HAP to owner for units leased and

occupied by eligible familiesLease is between owner and familyTerm of lease is not tied to HAPC

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Owner selection:• Admin Plan must describe procedures for

Owner submission of PBV proposalsPHA selection of PBV proposals

• Detailed requirements laid out in 24 CFR 983 regulations

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Cap:• Cannot select/enter into HAP contract to

provide PB assistance for more than 25% of dwelling units in the buildingExceptions….

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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

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Site must pass environmental review, unless exempt from requirements

Review may be performed by • Local, county, or state government• HUD

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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…

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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

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Rent to Owner:• May not exceed the lowest of

PHA determined amount up to 110% of FMR for bedroom size

• Or HUD approved exception PSReasonable unit rentOwner’s requested rent

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Rent to Owner:• Established with beginning of HAPC term• Owner may request rent increases annually,

on HAPC anniversary dateAnniversary date applies to HAPC effective

date, not family move-in

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Vacancy Payment• PHA may provide for vacancy payments for a

PHA-determined vacancy period Cannot exceed two full months following move

out month

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Occupancy• PHA may refer HCV Tenant-based program

applicants and participants to owner• Must protect ‘in-place’ families . . .

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Occupancy• ‘In-place’ families:

Eligible family residing in contract unit on proposal selection date

• Date PHA gives notice of selection to ownerPHA must place in-place family on waiting listWill receive priority for PBV admission

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Occupancy• At least 75% of new admissions must be

extremely low-income familiesTotal admissions: includes both tenant-based

and project-based• Admission of in-place families is not included

in income targeting

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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

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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 ElderlyDisabled

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Why decide to offer project based assistance?• Reduce annual inspections• Program flexibility

Long-term HAP ContractsVacancy payments

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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

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Before deciding• Review Final Rule carefully• Outline program requirements• Analyze funding

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Project-Based Vouchers: A Closer Look

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PBV Decision Point 2

Maximum amount of PBV assistance• Refer to handout

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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

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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…”

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Item 3: No real decision point. However, the PHA should determine/identify where relocation assistance costs will come from

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Item 4: Owner proposal selection• A lot to talk about…..Let’s look at decision

point 5

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PBV proposal selection – two options1. May request PBV proposals2. May select housing already assisted

• Let’s look more closely at the requirements tied to each of these two options….

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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

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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

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Option 1: Owner proposal selection procedures• PBV selection procedures must provide broad

public notice of the opportunity to submit PBV proposals to the PHA

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Option 1: Owner proposal selection procedures• Public notice may include publication in a local

newspapers of general circulationMust include submission deadline

• Detailed application and selection information must be provided upon request

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Point 6: If selecting proposals under Option 1, what will be the procedures?

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PBV proposal selection – Option 2. May select proposal for housing assisted under

Federal, state, local housing assistanceCommunity developmentSupportive services program

that requires competitive selection of proposals, IF….

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PBV proposal selection – Option 2 …IF that proposal was selected in accordance with

that program’s selection requirementsWithin 3 years of PBV proposal selection date

Earlier selection proposal cannot have considered that the project would receive PBV assistance

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PBV proposal selection – two options2. Note that low income housing tax credits

(LIHTCs) do not satisfy the requirement of a prior competition LIHTC selection is non-competitive

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Notice of owner selection• PHA must give written notice of selection to

Party that submitted proposalPublic

• Can be public notice in newspaper Point 7: what will be the procedures to provide

broad public notice?

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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?

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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

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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

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Ineligible Housing Types• Shared housing• Units on grounds of:

Penal, Reformatory,Medical, Mental, or Similar public or private institution

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Ineligible Housing Types• Nursing homes, or facilities providing

continuous carePsychiatric, medical, nursing,Board and care, or intermediate care

• However, facility providing home health care services is acceptable (nursing, therapy)

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Ineligible Housing Types• Units owned/controlled by an educational

institutionDesignated for student occupancy

• Manufactured homes• Cooperative housing• Transitional housing

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Ineligible Housing Types• High-rise elevator project occupied by families

with children, unlessPHA determines there is no practical

alternative, andHUD approves

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Ineligible Housing Types• Owner-occupied units• Units occupied by families ineligible for PBV

participation

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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

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Ineligible Units• Units subsidized with Section 236 or Section

521 rental assistance paymentsSection 236 and Section 515 interest

reduction payment subsidy properties are ok• Section 202 projects for the elderly and for

non-elderly persons with disabilities

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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

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Ineligible Units• A unit with any other duplicative federal, state,

or local housing subsidy• ‘housing subsidy’ does not include

Housing component of welfare paymentSocial security paymentFederal, state or local tax concession

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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

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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

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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 buildingExceptions….

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Cap on PBV Units

Exceptions to 25% per building cap:• Single-family building units

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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

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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

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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

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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…

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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

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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

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Decision Point 11

How often and in what manner will the PHA monitor the excepted family’s continued participation in their supportive services requirement?

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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%?

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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?

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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

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Decision Point 13

Notice PIH 2001-4 requires PHAs to• state why project-basing is appropriate

ie: supply of tenant-based units is very limitedProject basing is strategically needed to

assure unit availability for a number of years• identify the number of PBV units and their

general location

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Decision Point 13

Annual Plan (form HUD 50075)

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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

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Decision Point 13

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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 agreementBe aware of any local requirements

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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?

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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

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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?

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Decision Point 19

Will PHA use a separate waiting list for PBV units, or use a combined PBV/HCV waiting list?

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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?

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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?

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Decision Point 22

Will the PHA merge the PBV waiting list with other waiting lists?

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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?

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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

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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

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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?

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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?

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Decision Point 28

Overcrowded, under-occupied, accessible units• If a family is occupying a ‘wrong-size’ unit, or a

unit with unneeded accessibility featuresWhat form of continued assistance will the

PHA offer the family?

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Decision Point 28

‘Wrong-size/type’ units• Policy must in administrative plan. May offer

PBV in appropriate unit size and/or typeOther PB assistanceHCV assistanceOther comparable public/private assistance

• ie: HOME

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Decision Point 29

‘Wrong-size/type’ units: If family does not Accept the offer of alternative housingMove 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?

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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?

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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 TermSeparate rules for Low Income Housing Tax

Credits (LIHTC) vs non-LIHTC

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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 allowanceReasonable rentRent requested by owner

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Rent To Owner

LIHTC (PIH 2006-16)• If selected through written notice to the owner

on or after 11/14/2005Same as non-LIHTC, but adds that rents may

also not exceed the tax credit rent

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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

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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

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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?

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Rent To Owner

Redetermination of rent to owner• PHA must redetermine rent to owner

Upon owner’s requestWhen there is a 5% or more decrease in

published FMRs

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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

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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

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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

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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

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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 marketMay include comparable unassisted units in

the project

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Rent To Owner

Rent reasonableness – PHA must consider factors affecting market rent, such as

LocationQualitySizeUnit typeAge

AmenitiesHousing servicesMaintenanceUtilities

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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

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Rent To Owner

Rent to owner may not exceed program rental limits for the specific program, for

HOME program unitsSection 236 projectsSection 221 (d)(3)LIHTCOther federal subsidized projects

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Rent To Owner

Rent to owner may also be subject to • rent control• Other limits under federal, state, local law

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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

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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

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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

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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

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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

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Payment to Owner

Move-out month Payment• Owner may keep HAP for the calendar month

the family moves outUnless the PHA determines the vacancy is the

owner’s fault

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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

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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

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Vacancy Payment

Owner must give prompt, written notice to PHA that family has left the unit

Include date, as best canCertify 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

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Decision Point 37

Decision Point 37: • What procedures will an owner use to request

a vacancy payment? • What information/verification will the PHA

require?

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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

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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?

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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

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What additional policies are needed?• Annual inspection requirements

May inspect up to 20% of units annuallyWhat percent will you inspect?

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Consider carefully before making your decision

Talk to PHAs with PBV• What do they like• What do they not like?

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Upcoming Lunch ‘n’ Learns

May 5th – Occupancy (PH & Sec 8): Reasonable Accommodation for Front-Line Staff

May 17th – Inspections (Sec 8): Lead-Based Paint and the HQS Inspection

May 19th – Management (Sec 8): Assets and Asset Income

May 26th – Management (PH): Supervision in the Project-Based Environment

Slide #121

Section 8 ModelAdministrative 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&CategoryText=Section%208%20Policies%20and%20Plans

A registration form is located at:

http://www.nanmckay.com/collateral/perftools/orderforms/generic/product_order_FX1001.pdf

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Thank you for attending!

Lunch ‘n’ Learns for HCV Management: Feb 8th – Managing Non-Discrimination Mar 20th – Financial Management for Non-

Financial Managers

slide #1 teri robertson project based vouchers. slide #2 project-based vouchers handouts:...

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