Section 8 Project-Based Assistance
Project-based vouchers are a component of a
public housing agencies (PHAs) housing choice voucher program. A
PHA can attach up to 20 percent of its voucher assistance to
specific housing units if the owner agrees to either
rehabilitate or construct the units, or the owner agrees to
set-aside a portion of the units in an existing development.
Rehabilitated units must require at least $1,000 of
rehabilitation per unit to be subsidized, and all units must
meet HUD housing quality standards.
Any eligible family on a PHA's
housing choice voucher waiting list that is interested in moving
into the specific project. Owners select families for occupancy
of a particular unit after screening each family.
PHAs refer families, who
have already applied to a PHA for housing choice vouchers and
are on the PHA's waiting list, to properties that have
project-based voucher assistance when units become vacant.
The PHA pays the owner the
difference between 30 percent of family income and the gross
rent for the unit.
Under the tenant-based housing choice
voucher program, the PHA issues an eligible family a voucher and
the family selects a unit of its choice. If the family moves out
of the unit, the contract with the owner ends and the family can
move with continued assistance to another unit. Under the
project-based voucher program, a PHA enters into an assistance
contract with the owner for specified units and for a specified
term. The PHA refers families from its waiting list to the
project owner to fill vacancies. Because the assistance is tied
to the unit, a family who moves from the project-based unit does
not have any right to continued housing assistance. However,
they may be eligible for a tenant based voucher when one becomes
The PHA and the owner execute an
agreement to enter into housing assistance payments (HAP)
contract. Under this contract the owner agrees to construct or
rehabilitate the units, and the PHA agrees to subsidize the
units upon satisfactory completion of the rehabilitation or
construction. Upon satisfactory completion of the rehabilitation
or construction and for existing development, the PHA and the
owner execute a HAP contract for a ten-year term that is
dependent on availability of funding under the PHA's ACC with
HUD. The HAP contract establishes the initial rents for the
units and the contract term, and describes the responsibilities
of the PHA and the owner. HAP contracts can be renewed subject
to availability of funding.
The PHA must adopt a written policy
for selection of units to which assistance will be attached and
must publicly advertise that it will accept owner proposals for
the project-based voucher program. Generally, rents are set
based upon market comparables and may not exceed 110% of the
published existing housing fair market rents. Substandard rental
housing is eligible if rehabilitation costs are at least $1,000
per unit. New construction of rental units is also eligible as
well as standard existing housing. Rental units assisted under
certain other Federal housing programs (e.g., rental
rehabilitation, public housing) cannot be assisted with
project-based voucher assistance.
local PHA to determine whether the PHA administers a project-based
voucher program and to obtain information.
No specific funding is provided by HUD. PHAs
may use up to 20% of the funds in its housing choice voucher program to
provide project-based assistance. What regulations cover this program?
Regulations are found at
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