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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

  • December 18, 2015
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    Today, the Senate passed combined FY 2016 omnibus spending and tax extender legislation, following House passage of the tax extender bill yesterday and the omnibus spending bill earlier this morning. After passing the two bills separately, the House combined them into one bill for Senate consideration. The combined bill now goes to the White House for the President’s signature to become law.

  • December 16, 2015
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    In the early hours of the morning on December 16, Speaker of the House Paul Ryan (R-WI) unveiled the Fiscal Year (FY) 2016 omnibus spending bill, providing $1.1 trillion in funding for government operations, including funding for U.S. Department of Housing and Urban Development (HUD) and U.S. Department of Agriculture (USDA) Rural Housing Service programs.

    News

    Project Based Section 8 - Resources

    • February 1, 2016

      The undersigned organizations, which include a broad cross-section of stakeholders in the housing affordability realm, urge House passage of “The Housing Opportunities through Modernization Act” (H.R. 3700), without addition of divisive measures that would undermine the broad consensus behind these commonsense reforms. Our nation faces tremendous housing needs. This legislation is an important step forward to address a number of important items which have enjoyed broad consensus over the years. There is more to be done to address housing and community development needs, but H.R. 3700 represents solid progress in the right direction. If enacted, this bipartisan bill would build on the effectiveness of federal rental assistance while achieving some modest savings.

    • January 20, 2016

      Federal officials and real estate finance experts survey deal structuring with various multifamily finance tools, including tax-exempt bonds, RAD and other HUD financing programs, and debt products from Fannie Mae and Freddie Mac.