Project Based Section 8

Project-based Section 8 rental assistance (PBRA) is a public-private partnership to maintain affordable rental homes for low-income persons. HUD provides private owners of multifamily housing either a long-term project-based rental assistance contract, a subsidized mortgage, or in some cases both, to make units affordable. PBRA makes up the difference between market rents and what low-income tenants can afford, based on paying 30 percent of household income for rent.

HFAs and Project-Based Section 8
PBRA contracts are administered by HUD and state and local housing authorities. Many contract administrators are Section 8 Performance-Based Contract Administrators (PBCAs) under a program HUD developed to assign some contract administration duties to state and local housing authorities, while maintaining HUD oversight. Currently, 33 state Housing Finance Agencies (HFAs) serve as PBCAs. PBCAs provide direct oversight and monitoring of the financial and physical condition of project-based Section 8 properties.

HUD is now developing plans to procure PBCA contracts, a large and complicated endeavor. Advocating for enough HUD funding to honor existing project-based assistance commitments is one of NCSHA’s Legislative Priorities. Another priority is to promote HFA interests in HUD’s PBCA program and ensure that HUD recognizes HFAs’ proven capacity and track record to serve as PBCAs.


Photo Credit:  Alaska Housing Finance Corporation