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

  • July 15, 2015
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    July 14, the House of Representatives passed The Private Investment in Housing Act of 2015, H.R. 2997, by a vote of 395-28. The bill would authorize a pay-for-success demonstration program that leverages private funding to improve the water and energy efficiency of HUD multifamily developments.

  • July 9, 2015

    On July 8, HUD published its much-anticipated Affirmatively Furthering Fair Housing (AFFH) final rule, which replaces the current Analysis of Impediments (AI) requirement with a new Assessment of Fair Housing (AFH) requirement for HUD program participants. HUD originally issued the AFFH proposed rule in July, 2013 in response to criticism by the Government Accountability Office (GAO), program participants, and fair housing advocates who felt that the AI process was ineffective.


    Project Based Section 8 - Resources

    • September 28, 2015

      Learn about the evolving multifamily lending market and the products and strategies HFAs and their partners are using. Get the latest on the HUD Federal Financing Bank (FFB) HFA Multifamily Risk-Sharing Program. Explore new GSE products and consider innovative tax-exempt bond executions, including sustainable neighborhood bonds.

    • 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.