Housing Voucher Programs - Policy and Procedures Manual

Chapter XXII Sections

1. Selection of Properties
   1. 25% Cap
   2. Site Selection
   3. Serving Homeless
   4. Neighborhood criteria for existing and rehabilitated sites
   5. Neighborhood criteria for new construction PBV sites
   6. Environmental Review Requirements
   7. Supportive Services
2. Ineligible Properties
3. Public Notification Methods
4. Housing Assistance Payments (HAP) Contract Term
5. Selection of Agents to Administer PBV
6. Administering Project Based Vouchers
7. Waiting List Procedures
8. Family Eligibility Requirements
9. Tenant Moves
10. Termination of Assistance
11. Annual Rent Increases
12. One Year Notice of HAP Contract Expiration
13. Elite Data System
14. Applicable Forms List

Chapter XXII: Project Based Voucher Program

Effective: November 2009

Introduction

The U.S. Department of Housing and Urban Development (HUD) allows a Public Housing Authority (PHA) to allocate up to 20% of the Housing Choice Vouchers (HCV) to a Project Based Voucher (PBV) program provided it does not contribute to additional concentrations of extremely low income families in certain properties or neighborhoods. The Michigan State Housing Development Authority (MSHDA) may allocate up to 20% of its HCVs to this initiative. Project-based units are defined as units where the rental subsidy assistance is assigned to a specified unit, not a tenant.

After the publishing of HUD’s final rule for the PBV program (24 CFR Part 983) in October 2005, MSHDA implemented changes to the administration of its PBV Program. New awards for PBV will follow this policy. All regulations at 24 CFR Part 983 are followed for PBV site selection and project selection.

After a tenant-based PBV is awarded to a family, all regulations cited in 24 CFR Part 982 for Section 8 Tenant-Based Assistance: Housing Choice Voucher and other appropriate sections of the Code of Federal Regulations (i.e., Part 5) related to tenant-based assistance apply to the administration of these vouchers.

Section A: Selection of Properties (24 CFR 983.51)

Beginning in FY 2006, MSHDA selects proposals for PBV that have successfully competed for housing assistance under a federal, state, or local government housing assistance, community development, and supportive services program, provided the proposal has been selected in accordance with such program’s competitive selection requirements within three years of the PBV proposal selection date, and the earlier competitive selection proposal did not involve any consideration that the project would receive PBV assistance.

MSHDA additionally set the requirement that all proposals must have been competitively awarded on or after January 1, 2006 and have successfully met all Supportive Housing underwriting criteria as established by MSHDA’s Office of Rental Development & Homeless Initiatives, been part of a commitment for supportive housing within the MSHDA’s Low Income Housing Tax Credit (LIHTC) Program and/or MSHDA HOME Program. All MSHDA PBV awards must be for new units (acquisition/rehabilitation, substantial rehabilitation, or new construction) and at minimum meet HUD HQS standards at time of occupancy and have satisfied HUD Environmental Review Requirements.

1. 25% Cap (24 CFR 983.56)

The PHA will not allow more than 25% of the units in a building to receive PBV unless they are units in a single-family building (1-4 units); units that house elderly or disabled households for the term of the Housing Assistance Payment (HAP) Contract; or units that receive supportive services for the term of the HAP.

2. Site Selection (24 CFR 983.57)

For existing and rehabilitated PBV housing, applications will be selected that demonstrate that the proposed site is in compliance with PBV goals, fair housing requirements and HQS requirements and will be in a census tract showing expanded housing opportunities. Consideration of all the following factors will be given at the time of project selection. The census tract area must:

1. Be located in or adjacent to a HUD designated Enterprise Zone, Economic Community, or Renewal Community;
2. Be undergoing significant revitalization;
3. Be receiving or has received significant investment of state, local, or federal dollars;
4. Have new market rate units being developed in the area and those market rate units will positively impact the poverty rate in the area;
5. Have seen a decline in the overall poverty rate in the last 5 years if the poverty rate is more than 20%; or,
6. The local government will provide PILOT/tax abatement; or
7. Has a homeless population that exceeds shelter bed capacity; or
8. Have meaningful opportunities for educational or economic advancement.

MSHDA will grant exceptions to the 20 percent proverty concentration standard where MSHDA determines that the PBV assistance will complement other local redevelopment activities designed to deconcentrate proverty and expand housing and economic opportunities in census tracts with poverty concentrations greater than 20 percent. However, under no circumstances will MSHDA approve PBV assistance in a census tract with a concentration factor of more than 40% of the census tract poverty rate or 75% of the community wide poverty rate, whichever is lower.

3. Serving Homeless

Applications will be selected that have a focus for serving the special needs and homeless population in Michigan and meet one or all of the following:

1. The proposed site is located in a county that has no homeless shelter; or,
2. The homeless population exceeds shelter bed capacity; or
3. A Memorandum of Understanding exists between the developer, property management company and local service agency(ies) assuring that homeless, special need tenants, have access to a wide array of supportive services including eviction prevention.
4. The lack of shelter beds results in unstable housing/living conditions.

4. Neighborhood criteria for existing and rehabilitated sites

The following additional neighborhood standards must be met:

1. The site must be adequate in size to the number of units proposed to meet appropriate infrastructure and utility needs.
2. The site must offer a greater choice of housing opportunities and avoid a larger concentration of assisted persons in an area already containing a high concentration of low-income persons.
3. The site must offer a wide variety of social, commercial and health facilities that are similar to those found in a neighborhood of primarily unassisted housing of a similar nature.
4. The site must offer forms of transportation that are not cost prohibitive to lower-income workers to places of employment, enjoyment, educational, or health services.

5. Neighborhood criteria for new construction PBV sites

The following additional neighborhood standards must be met:

1. The site must be adequate in size to the number of units proposed to meet appropriate infrastructure and utility needs.
2. The site must offer a wide variety of social, commercial and health facilities that are similar to those found in a neighborhood of primarily unassisted housing of a similar nature.
3. The site must offer forms of transportation that are not cost prohibitive to lower-income workers to places of employment, enjoyment, educational, or health services.
4. The site must not be located in an area of minority concentration unless there are a sufficient number of comparable units for the same household type (i.e. family, elderly, disabled) located outside the area of minority concentration that will over time result in a balance of housing choices within and outside the areas of minority concentration.
5. The overall impact of HUD-assisted housing on the proposed site will benefit the families because it will lead to greater housing choices for families within and outside the area of minority concentration because
   • there are neighborhoods that are racially integrated;
   • there are programs available to families that will assist them find housing outside the area of minority concentration;
   • local activities have been undertaken to expand choices for minority families outside of areas of minority concentration.

6. Environmental Review Requirements (24 CFR 983.58)

Every PBV project is subject to HUD environmental review requirements. Prior to execution of a HAP Contract, the owner must present evidence that the environmental review has been performed by a HUD designated “responsible entity” and approved by HUD; or where applicable, categorically excluded from review. 

7. Supportive Services

Units that require supportive services may include any or all the following types of training and services; however, this list is not all inclusive:

1. Job training, development, and/or placement;
2. Money management skills and services;
3. Providing resources to assist families achieve economic self-sufficiency;
4. Parenting skill training;
5. Individual and/or family counseling services;
6. Educational services;
7. Substance abuse training, counseling, and/or treatment;
8. Mental health treatment and/or counseling