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

  • March 11, 2016

    Earlier today, HUD published the draft Assessment of Fair Housing (AFH) Tool for States and Insular Areas and accompanying Federal Register Notice. The tool is intended to guide states through the AFH process required under HUD’s Affirmatively Furthering Fair Housing (AFFH) regulation. AFFH requires all entities that receive HUD funding from HOME, Community Development Block Grants, Emergency Solutions Grants, and Housing Opportunities for Persons with AIDS and public housing agencies (PHA) to take part in the AFH process.

  • February 19, 2016

    The National Housing Conference’s (NHC) Center for Housing Policy released its Housing Landscape 2016 Report February 18. The report uses the latest American Community Survey data to evaluate severe housing cost burdens of low and moderate income working households, defined as households in which members work at least 20 hours a week on average and total household income does not exceed 120 percent of area median income. The report finds extensive housing cost burdens among working households, especially renter households.


    Project Based Section 8 - Resources

    • February 26, 2016

      Key Congressional Committee Rosters for NCSHA in 2016

    • February 26, 2016

      The Senate Banking and House Financial Services Committees are the committees of jurisdiction over all HUD programs, including the Federal Housing Administration (FHA) and Section 8. The committees also oversee the housing Government-Sponsored Enterprises (GSEs), including Fannie Mae, Freddie Mac, Ginnie Mae, and the Federal Home Loan Banks (FHLBs).