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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

  • November 17, 2016
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    On November 16, HUD published in the Federal Register the final rule implementing housing provisions under the Violence Against Women Reauthorization Act of 2013 (VAWA) as it applies to HUD programs. The rule codifies VAWA core protections across covered HUD programs to ensure individuals are not denied assistance, evicted, or have their assistance terminated because of their status as victims of domestic violence, dating violence, sexual assault and stalking, or for being affiliated with a victim.

  • November 7, 2016
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    On October 24, HUD published in the Federal Register the initial implementation guidance for the Housing Opportunity through Modernization Act (HOTMA). HUD’s guidance clarifies which statutory provisions went into effect immediately upon the President signing HOTMA into law and which provisions will be phased in as HUD promulgates further regulations.

    News

    Project Based Section 8 - Resources

    • December 12, 2016
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      The National Council of State Housing Agencies (NCSHA) is a national nonprofit, nonpartisan organization created by the nation’s state Housing Finance Agencies (HFAs) to advance through advocacy and education their efforts to provide affordable housing to those who need it. NCSHA’s priorities, adopted annually by its Board of Directors after consultation with all state HFAs, set the agenda for NCSHA’s advocacy before Congress, the Administration, and the federal agencies concerned with housing, including HUD, USDA, and the Treasury, as well as its business activities.

    • November 29, 2016

      While we strongly support the goals articulated in the SAFMR proposed rule, including expanding housing choice and access to high-opportunity neighborhoods for voucher holders, we are concerned that implementation of SAFMRs as envisioned in the proposed rule may have unintended consequences that could negatively impact some voucher holders, particularly those in high-cost metropolitan areas with low vacancy rates, and create problems for developments that rely on rental assistance from Project-Based Vouchers (PBV). We also are concerned that HUD may be underestimating the administrative burden public housing authorities (PHA), including state HFAs, will incur if required to implement SAFMRs.