Assisted Family: Family residing in the development at the time of the prepayment/ termination who currently receives tenant-based HCV rental assistance through a local housing agency.
Enhanced Voucher: Subject to the availability of appropriations, enhanced voucher assistance will be offered to eligible residents who remain in a development under the following categories of Housing Conversion actions: Project-Based Section 8 Owner Opt-Outs, Preservation Prepayments, HUD Enforcement Actions and HUD Property dispositions.
“Enhanced” vouchers differ from regular HCV in two ways. First, the family must contribute towards rent, at least the amount the family paid for rent as of the date of the prepayment (minimum rent requirement.) Secondly, a higher “enhanced” payment standard is substituted in cases where the family stays in the unit and the owner’s new gross rent after the prepayment exceeds the normally applicable payment standard.
Enhanced vouchers are tenant-based assistance. The family selects their unit. MSHDA approves the unit for leasing. The family and owner execute the lease agreement. The owner and MSHDA execute an individual HAP contract for each family.
Gross rent: The sum of the rent paid by the family to the owner plus any tenant paid utility allowance. (If the proposed contract rent does not include all the utilities, use the MSHDA utility allowance schedule to calculate the new gross rent.)
Minimum Rent: The amount of gross rent a family paid as of the date of the prepayment or date of the voluntary termination by the owners.
Movers: Section 8 families who move from their current unit during a Preservation/Opt Out conversion action.
Opt Out: A conversion action where an owner, after at least twenty (20) years of participation, chooses to no longer participate in (opt-out of) certain programs by not renewing an expiring Section 8 or Section 236 development-based contract with HUD.
PHA: Public Housing Agency
Preservation: A conversion action where an owner of a Section 236 or Section 221(d) (3) funded property voluntarily elects to prepay the mortgage or voluntarily terminates the mortgage insurance with HUD, after at least twenty (20) years of participation.
Preservation Prepayment Date: The first date the owner can increase the rent after the prepayment; usually 60 days after the effective date of the prepayment.
Rent Reasonableness: A PHA determines that based on the current conditions of the unit, the proposed rent requested by the new owners is a reasonable rent in comparison to rents charged at other comparable unassisted units. The PHA does not base the rent reasonableness determination on any pending or planned enhancements to the property. If the PHA determines the proposed rent is not reasonable, the owner must lower the rent or the family must move to receive/continue assistance.
Stayers: Section 8 families who remain in their same unit during and after a Preservation/Opt Out conversion action.
Target Date: The date all parties must complete the housing conversion action and have the families under HCV tenant-based HAP contracts.
Total Tenant Payment (TTP): The total payment or contribution made by the tenant (family) towards their monthly rent when receiving HCV rental assistance. The TTP plus the HCV HAP equals the contract rent paid to the landlord.
Unassisted Family: Family residing in the development at the time of the prepayment/termination who is not a current tenant-based voucher recipient.