The Housing and Community Development Act of 1974 created the project-based Section 8 rental assistance program. Under the program, HUD enters into contracts with property owners to provide rental assistance for a fixed period of time for low-income families. Project-based Section 8 assistance may be provided only for tenants with incomes no greater than 80 percent of the area median income (AMI) and tenants generally pay rent equal to 30 percent of adjusted household income.
HFAs and Project Based Section 8
In 1999, HUD began an initiative to contract out the oversight and administration of most of its project-based contracts; some were contracted out to State Housing Finance Agencies. These HFAs are now responsible for conducting on-site management reviews of assisted projects; adjusting contract rents; reviewing, processing, and paying monthly vouchers submitted by owners; renewing contracts with property owners; and responding to health and safety issues at the property. These performance-based contract administrators (PBCAs) now administer the majority of project-based Section 8 contracts.
HFAs administer Section 8 project-based contracts subsidizing more than 650,000 apartments, including 250,000 apartments in properties they have financed and more than 400,000 apartments formerly administered by HUD. Advocating for enough HUD funding to honor existing project-based assistance commitments is one of NCSHA’s Legislative Priorities. Another priority is to aggressively represent the interests of HFAs in HUD’s PBCA program and ensure that HUD recognizes HFAs’ proven capacity and track record to serve as PBCAs.
Useful Links: U.S. Department of Housing and Urban Development, HUD Section 8 Contract Administration Web Page, HUD Rental Housing Integrity Improvement Project (RHIIP)
NCSHA Blog Posts
- December 10, 2014
Last night, House appropriators unveiled the FY 2015 omnibus, a package of 11 new FY 2015 spending bills, including bills funding HUD and the U.S. Department of Agriculture (USDA) for the remainder of the fiscal year. We expect the House to vote on the legislation December 11, and Senate leaders indicate the Senate will vote on the House-passed bill soon thereafter.
- October 13, 2014
On October 9, HUD issued a notice outlining policies and procedures for transferring remaining budget authority of a project-based Section 8 Housing Assistance Payments (HAP) Contract under Section 8 (bb)(1) of the U.S. Housing Act of 1937.
- House Appropriations Committee
- The Washington Post
- Washington Post
- Fannie Mae
- August 1, 2011
On February 28, 2011, the U.S. Department for Housing and Urban Development (HUD) issued an Invitation for Submission of Application for Contract Administrators to bid for the Project-Based (Section 8) Housing Assistance Payments (HAP) contracts for the state of Kentucky.