Housing Voucher Programs - Policy and Procedures Manual

Chapter XX Sections

1. HUD/MSHDA Responsibilities
2. Family Eligibility
   1. Preservation Prepayments
   2. Unassisted and Assisted Families
   3. Opt-Out
   4. Denial of Assistance
3. Issuance of Enhanced Voucher
4. Unit Size
5. Enhanced Voucher Payment Standard/Rent Reasonableness
6. Minimum Rent Requirement
7. Calculating HAP Payments
8. Re-examination Process
9. Rent Increases
10. Miscellaneous Program Requirements
11. Special Conditions after the First Year of Assistance
12. Elite and File Procedures
13. Special Administrative Fee Reporting
14. Definitions
15. Applicable Forms List

Chapter XX: Enhanced Subsidies For Housing Voucher Conversion Actions

Section B: Family Eligibility for Enhanced Vouchers

1. Preservation Prepayments

A family/individual is eligible to receive an enhanced voucher subsidy due to a preservation prepayment in a HUD Section 236 or Section 221(d)(3) development if the resident family is residing in the preservation development on the effective date of prepayment or voluntary termination of mortgage insurance and is income-eligible on that effective date:

• The family/individual is an elderly or disabled moderate-income family; (at least 80% but does not exceed 95 % of area median income); or
• The family/individual’s annual income is low (at or below 80% of area median income) or very low (at or below 50% of area median income); or
• A moderate-income family/individual residing in a low vacancy area (3% or less vacancy rate) as determined by the local HUD office; and
• The family resides in the development on the conversion date; and
• The unit is an appropriate size; and passes HQS.

A family not qualified in one of the categories on the effective date of the pre-payment/termination is not eligible, regardless of whether the family's income situation changes during the next 12 months.

2. Unassisted and Assisted Families

Both unassisted and assisted families may be eligible for the special enhanced voucher.

• Assisted Families are families residing in the development at the time of the prepayment/termination who currently receive tenant-based rental assistance from a local PHA. These participants must abide by the special provisions of the enhanced vouchers IF the family chooses to remain in the unit. Continued residency at the development invokes minimum rent requirements in accordance with Section F (Minimum Rent Requirement).
• Unassisted Families are families residing in the development at the time of the prepayment/termination and are not current tenant-based voucher recipients.

3. Opt-Out

A family is eligible to receive an enhanced voucher subsidy due to an owner electing not to renew an expiring Section 8 project-based contract (Opt-Out) if:

1. The family/individual has an annual income that is at or below 80% of area median income, and
2. The family/individual resides in a unit covered by the expiring contract on the date of the expiration, and
3. The amount the family/individual pays for gross rent exceeds 30 % of their adjusted monthly income as a result of the owner’s rent increase, and
4. The unit the family presently occupies or chooses to occupy is an appropriate sized unit and passes an HQS inspection.

4. Denial of Assistance

MSHDA must deny a family an enhanced voucher for the same reasons listed for denial of rental assistance in the regular HCV program, including income ineligibility, delinquencies, classification as a lifetime sex offender, or for other criminal activity.

MSHDA must provide a family that is denied assistance an opportunity for an informal review by forwarding the Application/Program Denial/Termination Form, MSHDA 1634b. See Chapter V on Denials in PPM.