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
- September 21, 2016
Earlier today, the Senate Appropriations Subcommittee on Transportation, Housing and Urban Development (THUD) held a hearing titled “Housing Vulnerable Families and Individuals: Is There A Better Way?” to explore the efficacy of place-based rental assistance, including public housing and project-based rental assistance (PBRA), and whether Congress should replace these programs with tenant-based Section 8 Housing Choice Vouchers (vouchers).
- August 29, 2016
On August 26, HUD published a notice in the Federal Register announcing the Fiscal Year (FY) 2017 Fair Market Rents (FMRs). FMRs are used to determine payment standards for a number of housing assistance programs, including the Housing Choice Voucher and the Project-Based Section 8 programs.
- Affordable Housing Finance
- House Appropriations Committee
- The Washington Post
- 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.
Project Based Section 8 - Resources
- May 16, 2016
At last measure in 2013, over one in four renters, or 11.2 million renter households, were
severely burdened by rents that took up over half their incomes. This total represented
a slight reduction from the record level of 11.3 million set in 2011, but remains
dramatically higher than the start of the last decade, having risen by more than 3 million since
2000. With substantial growth in renter households expected over the next decade and little sign
of a turnaround in the income and rent trends that produced these record levels of cost burdens,
there is little prospect for substantial improvement in these conditions over the coming decade.
- May 16, 2016
One telling indicator of the state of the nation’s housing is the drop in the homeownership rate to just 64.5 percent last year, erasing nearly all of the increase in the previous two decades. The number of homeowners fell for the eighth straight year, signaling persistently weak demand in this key market segment. And the trend does not appear to be abating, with the national homeownership rate down to 63.7 percent in the first quarter of 2015.