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

  • 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.

  • July 29, 2014

    On July 24, House Budget Committee Chairman Paul Ryan (R-WI) released a discussion draft, Expanding Opportunity in America, proposing reforms to federal anti-poverty programs. One of the proposals is a pilot program called the Opportunity Grant. The pilot would begin in a limited number of states and would consolidate several federal means-tested programs, including Housing Choice Vouchers (vouchers), Section 8 project-based rental assistance, Pubic Housing, the Community Development Block Grant (CDBG), and Section 521 Rural Rental Assistance.



    • April 22, 2011
    • January 9, 2011

      The Institute's four program-specific conferences will strengthen your understanding of program fundamentals and explore advanced techniques for administering the Low Income Housing Tax Credit; the HOME Investment Partnerships program; Mortgage Revenue Bonds, Federal Housing Administration and rural housing mortgage insurance; and HUD's Performance-Based Section 8 Contract Administration initiative.