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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

  • April 3, 2015
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    Last week, Representative Keith Ellison (D-MN) introduced H.R. 1662, the Common Sense Housing Investment Act, which would replace the mortgage interest deduction with a 15 percent flat rate tax credit on interest paid on mortgages up to $500,000. The tax credit would be available to all homeowners, regardless of whether they claim the standard deduction or itemize their tax deductions.

  • March 26, 2015
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    Earlier this week, HUD Secretary Julián Castro announced HUD's proposed regulation implementing the Violence Against Women Act (VAWA) Reauthorization of 2013 (VAWA 2013).

    News

    Project Based Section 8 - Resources

    • April 22, 2015

      HFAs Administer a wide range of affordable housing and community development programs, including HOME, Section 8, homelesness assistance, down payment assistance, state housing trust funds, tax-exempt Housing Bonds, and the Housing Credit. HFAs effectively employ these resources to advance the common public-purpose mission of providing affordable housing to the people of their jurisdictions who need it.

    • April 1, 2015

      On March 25, the U.S. Solicitor General submitted this brief in reply to the Respondents’ brief opposing Supreme Court review of last year’s Court of Appeals decision against HUD using a Notice of Funding Availability (NOFA) for the Performance-Based Contract Administration (PBCA) program.