[Federal Register: March 18, 2004 (Volume 69, Number 53)]
[Proposed Rules]
[Page 12949-12970]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr18mr04-24]
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Part VI
Department of Housing and Urban Development
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24 CFR Part 983
Project-Based Voucher Program; Proposed Rule
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
24 CFR Part 983
[Docket No. FR-4636-P-01]
RIN 2577-AC25
Project-Based Voucher Program
AGENCY: Office of the Assistant Secretary for Public and Indian
Housing, HUD.
ACTION: Proposed rule.
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SUMMARY: HUD proposes comprehensive regulations for the new project-
based voucher program. In this program, HUD pays rental assistance for
eligible families who live in specific housing developments or units. A
public housing agency (PHA) that runs the tenant-based housing choice
voucher program may ``project-base'' up to 20 percent of voucher units
funded by HUD. The project-based voucher program replaces the project-
based certificate program and these regulations would replace the
current regulations for the project-based certificate program.
DATES: Comments Due Date: May 17, 2004.
ADDRESSES: Interested persons are invited to submit written comments
regarding this rule to the Regulations Division, Office of General
Counsel, Room 10276, Department of Housing and Urban Development, 451
Seventh Street, SW., Washington, DC 20410-0500. Comments should refer
to the above docket number and title. A copy of each comment submitted
will be available for public inspection and copying between 8 a.m. and
5 p.m., weekdays, at the above address. Facsimile (FAX) comments will
not be accepted.
FOR FURTHER INFORMATION CONTACT: Gerald J. Benoit, Office of Public and
Indian Housing, Department of Housing and Urban Development, 451
Seventh Street, SW., Room 4210, Washington, DC 20410; telephone (202)
708-0477 (this is not a toll-free number). Persons with hearing or
speech impairments may access these numbers through TTY by calling the
toll-free Federal Information Relay Service at (800) 877-8339.
SUPPLEMENTARY INFORMATION:
I. Background
The new project-based voucher program was authorized by statute in
1998, as part of the statutory merger of the certificate and voucher
tenant-based assistance programs. (See Section 545 of the Quality
Housing and Work Responsibility Act of 1998 (Pub. L. 105-276, approved
October 21, 1998, amending 42 U.S.C. 1437f(o)).) The 1998 law provided
PHAs with the option to use a portion of its available tenant-based
voucher funds for project-based rental assistance. The 1998 law
replaced a similar authority for project-based rental assistance in the
former certificate program. In 2000, the Congress substantially revised
the requirements of the project-based voucher program. (Section
8(o)(13) of the United States Housing Act of 1937, 42 U.S.C.
1473f(o)(13), as amended by section 232 of the Fiscal Year 2001
Departments of Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act (Pub. L. 106-377, approved
October 27, 2000).)
Significant features of the project-based voucher program as
authorized in 1998, and amended in 2000 include:
A PHA may project-base up to 20 percent of the
PHA's voucher funding.
A PHA may provide project-based assistance for
existing housing that does not need rehabilitation, as well as for
newly constructed or rehabilitated housing.
Project-based assistance must be consistent with
the ``PHA Plan.''
Project-basing must be consistent with the
statutory goals of ``deconcentrating poverty and expanding economic
opportunities.''
After one year of assistance, the family may
move from a project-based voucher unit to the PHA's tenant-based
voucher program or another comparable program, when a slot is
available.
Except for units designated for the elderly,
disabled, or families receiving supportive services under a family
self-sufficiency (FSS) program, no more than 25 percent of units in a
building may have project-based voucher assistance.
A PHA may commit to pay project-based assistance
for a term of up to 10 years. However, the PHA's contractual commitment
is subject to availability of appropriated funds.
At the end of the contract term, the PHA may
extend the housing assistance payment (HAP) contract with an owner for
an additional term of up to one year, if appropriate, to continue
providing affordable housing for low-income families. One-year
extensions are subject to availability of appropriated funds.
Generally, project-based voucher rents (rent to
owner plus the allowance for tenant-paid utilities) must not exceed the
lowest of the payment standard amount (minus any utility allowance),
the reasonable rent, or the rent requested by the owner. This limit
applies both to the initial rent and rent adjustments over the term of
the HAP contract.
There are special provisions for establishing
the project-based voucher rent for a unit in a tax credit building
located outside a ``qualified census tract.''
Admission to project-based units is subject to
the overall voucher ``income-targeting'' requirement. At least 75
percent of the families admitted to the PHA tenant-based and project-
based voucher programs each year must be ``extremely low-income''
families with annual incomes below 30 percent of median income for the
area.
All units must be inspected for housing quality
standards (HQS) compliance before the PHA enters a HAP contract with an
owner. After the initial inspection, the PHA is not required to re-
inspect each unit annually. Instead, the PHA may inspect a
representative sample of units at the annual inspection.
If a family moves out, the PHA may continue
payments to the owner for up to 60 days. The PHA has discretion whether
to provide such vacancy payments.
On January 16, 2001 (66 FR 3605), HUD published a Federal Register
notice that provided guidance on implementation of the new project-
based program, as authorized in 1998 and amended in 2000. The HUD
notice described the law and provided guidance on how to implement the
law and existing program regulations before HUD issues new program
regulations. This notice remains applicable until HUD issues a final
rule following this proposed rule.
Requirements of this proposed rule would be applicable to all
project-based voucher units, except that this rule would not affect the
contractual rights of owners under project-based voucher agreements and
HAP contracts entered into by a PHA and owner (1) prior to the
effective date of the final rule, and (2) in accordance with the law
and HUD requirements and on the contractual forms prescribed by HUD.
This rulemaking will not apply to project-based certificate units.
Project-based certificate units will continue to be governed by the
regulations of 24 CFR part 983, codified as of April 1, 2003, after
this rule becomes effective.
II. This Proposed Rule
An overview of the regulations that this rule proposed to govern
the project-based voucher program follows.
[[Page 12951]]
A. A Project-Based Voucher Program Administered by PHAs Uses Tenant-
Based Voucher Funding. There Is No Separate Allocation of Project-Based
Funds. It is the PHA's Option Whether To Implement a Project-Based
Voucher Program
The project-based voucher program is administered by a PHA that
already administers the tenant-based voucher program under an annual
contributions contract (ACC) with HUD. There is no additional funding
for project-based vouchers.
If a PHA decides to operate a project-based voucher program, the
program is funded with a portion of the appropriated funding (budget
authority) available under the PHA's voucher ACC. This pool of funding
is used to pay rental assistance for both tenant-based and project-
based voucher units and to pay PHA administrative fees for
administration of tenant-based and project-based voucher assistance.
A PHA has discretion whether to implement a project-based voucher
program. HUD approval is not required.
B. Maximum Number of Project-Based Voucher Units
Prior to 1998, the law capped the number of project-based units at
the number supported by 15 percent of the total funding available to
the PHA under the PHA's ACC for tenant-based assistance. Under this
rule, the PHA would be able to project-base up to 20 percent of the
PHA's ``baseline'' number of units. This baseline number is established
pursuant to Sec. 982.102 and is the number of voucher units used by
HUD to determine the amount needed for renewal of the ACC. All
outstanding commitments for project-based assistance--project-based
certificate and project-based voucher units under agreement or HAP
contract plus project-based units selected by the PHA but not yet under
agreement or HAP contract--count against the 20 percent maximum.
C. Project-Based Vouchers May Be Used With Existing Housing.
In the past (under the project-based certificate program), a PHA
could only project-base newly constructed or rehabilitated units--using
a portion of its available tenant-based funding. In the project-based
voucher program, a PHA may also use tenant-based funding to attach
assistance to existing units not needing rehabilitation.
To qualify as ``existing housing'' as defined in the rule, the
units must already exist and substantially comply with the housing
quality standards (HQS) on the proposal selection date. This is the
date the PHA gives written notice of proposal selection to the owner
whose proposal is selected. The units must fully comply with the HQS
before execution of the HAP contract.
D. Project-Based Vouchers May Be Used With Newly Constructed and
Rehabilitated Housing
Under this proposed rule, the requirements for ``newly constructed
or rehabilitated housing'' would apply to any housing that does not
qualify as ``existing housing.'' These requirements would apply to any
housing that does not substantially comply with the HQS on the proposal
selection date and that therefore requires a process of development to
comply with the HQS.
``Development'' is defined as the construction or rehabilitation of
project-based voucher housing after the proposal selection date.
Construction includes any excavation or site preparation for the
housing.
In the construction or rehabilitation of the housing, the owner
must comply with federal development requirements such as compliance
with labor standards (including Davis-Bacon), environmental, and equal
opportunity (e.g., Section 3 of the Housing and Urban Development Act
of 1968, 12 U.S.C. 1701u, equal employment, and program accessibility)
requirements. Owners must comply with the requirements of Section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794) and regulations at 24
CFR 8.22, 8.23(a), or 8.23(b), as applicable, and the design and
construction requirements of the Fair Housing Act Amendments of 1988,
42 U.S.C. 3604(f)(3)(C), and the regulations at 24 CFR 100.205, as
appropriate.
An agreement is executed for units to be constructed or
rehabilitated before the beginning of construction or rehabilitation.
In the agreement, the owner agrees to develop the contract units to
comply with the HQS. The owner also agrees to comply with federal
development requirements, such as compliance with federal Davis-Bacon
prevailing wage requirements (40 U.S.C. 3141 et seq.) relative to the
development of nine or more project-based voucher units. The PHA
monitors compliance with labor standards (see HUD Handbook 1344.1,
Federal Labor Standards Compliance in Housing and Community Development
Programs).
The PHA agrees that upon timely completion of such development in
accordance with the terms of the agreement the PHA will enter into a
HAP contract with the owner for the contract units.
E. PHAs May Select Only Sites Meeting Certain Requirements, Including
Deconcentration Goals
All site selection must be consistent with the project-based
voucher statutory goals of deconcentrating poverty and expanding
housing and economic opportunities.
For the most part, there is no need to distinguish between ``newly
constructed'' and ``rehabilitated'' housing since the project-based
voucher program requirements are identical. As in the past, however,
the new rule would substantially continue the existing distinction
between the civil rights site selection standards for ``newly
constructed'' and ``rehabilitated'' housing.
At this time, HUD does not propose a substantive change in the
existing site selection standards for newly constructed or
rehabilitated housing. The site and neighborhood standards specified in
this proposed rule are HUD's ``institutional standards'' for evaluating
and considering the effect of site selection, in the light of HUD's
responsibility to affirmatively promote fair housing in its programs.
F. PHAs Must Select Units for the Project-Based Voucher Program in
Accordance With the PHA's Local Unit Selection Policies and Competitive
Procedures
Generally, HUD will require PHAs to select project-based voucher
proposals based on some kind of public competition. In cases where a
federal, state, or local housing assistance, community development, or
supportive services program that requires a competitive selection of
proposals has already competitively selected proposals, a second
competition for project-based vouchers is not required. In all other
cases, however, PHAs must select proposals based on public competition.
The notice of competition must be published by means that actually
operate to provide broad public notice, including publication in a
newspaper of general circulation and other means. The selection of
winning proposals shall also be made public. The PHA's unit selection
policies must be specified in the PHA's administrative plan, and the
PHA must select units in accordance with those policies.
G. Generally, No More Than 25 Percent of the Units in Each Multifamily
Building May Be Assisted
Generally, no more than 25 percent of the dwelling units in each
building may have project-based voucher or any other federal project-
based housing assistance.
[[Page 12952]]
The following types of housing units are exempt from the 25 percent per
building cap: (1) Project-based dwelling units in single family (one-to
four-unit) properties; (2) units in a multifamily building (5 or more
units) set aside for elderly or disabled families; and (3) units in a
multifamily building set aside for families participating in a voucher,
project-based certificate, or public housing FSS program who are in
compliance with or have completed their FSS contract of participation.
In addition, PHAs may establish additional local requirements to
promote income mixing.
The restrictions concerning the number of subsidized units in each
building apply to all types of housing selected for the project-based
voucher program--existing, newly constructed, and rehabilitated
housing.
H. Family Option To Move From Project-Based Voucher Unit After First
Year and Receive Tenant-Based Assistance Elsewhere
After living in the project-based unit one year, the tenant may
move out and receive tenant-based voucher subsidy or other comparable
tenant-based rental assistance. ``Comparable rental assistance'' is
defined as a subsidy or other means to enable a family to obtain decent
housing in the PHA jurisdiction renting at a gross rent that is not
more than forty percent of the family's monthly adjusted income.
The tenant must give the owner advance written notice of intent to
vacate the project-based voucher unit in accordance with the lease. If
a tenant-based voucher (or comparable assistance) is not immediately
available when the project-based voucher unit lease is terminated, the
PHA must give the family priority to receive the next available voucher
or comparable assistance.
Vouchers from funding allocations targeted by HUD for special
purposes (e.g., family unification, mainstream disabled) are not
available for this purpose.
I. Term of HAP Contract; Ten Year Maximum Initial HAP Contract Term
In all cases, units must comply with the HQS before the HAP
Contract is executed. For newly constructed or rehabilitated units, the
HAP Contract is executed after the construction work ends, and the PHA
accepts that the units have been completed in accordance with the
agreement, including full compliance with the HQS.
The HAP Contract term for each unit is between one year and ten
years, as determined by the PHA. However, continuation to the full term
is subject to the future availability of sufficient appropriated funds
under the PHA's consolidated ACC with HUD.
At the end of the term, the PHA may extend the initial HAP Contract
term for additional terms of up to one year if the PHA determines that
such extensions are appropriate to continue providing affordable
housing for low-income families. Such extensions are subject to the
continuing availability of appropriations.
J. Every Unit Must Comply With the Housing Quality Standards (HQS)
Before the HAP Contract Is Executed. Annual PHA HQS Inspections May Be
Limited to a Representative Sample of Units Under HAP Contract
Project-based voucher units must comply with the HQS before the HAP
contract is executed and during the term of the HAP contract. The PHA
may establish additional quality, architecture, and design requirements
for newly constructed or rehabilitated housing.
Before and during the term of assistance, project-based voucher
units are inspected for compliance with the HQS. Every project-based
voucher contract unit must be inspected and pass the HQS inspection
before housing assistance is provided under the HAP contract.
However, a PHA is not required to inspect each project-based
voucher unit in a project annually. Instead, at least annually during
the term of the HAP contract, the PHA must initially inspect a random
sample, consisting of at least 20 percent of the contract units in each
building, to determine if the contract units and the premises are
maintained in accordance with the HQS. If more than 20 percent of the
initially inspected contract units in a building fail the initial
annual inspection, the PHA must inspect 100 percent of the contract
units in the building. In addition, the PHA must inspect every turnover
unit before occupancy by a replacement assisted family.
K. Initial Rent to Owner; Special Rent Rules for Tax Credit Units Not
Located in a Qualified Census Tract; Rent Adjustments
Generally, project-based voucher rents (rent to owner plus the
allowance for tenant-paid utilities) must not exceed the lowest of the
payment standard amount, the reasonable rent, or the rent requested by
the owner for the PHA's tenant-based voucher program. This limit
applies both to the initial rent and rent adjustments over the term of
the HAP contract.
There are special provisions for establishing the project-based
voucher rent for a unit in a tax credit building which is located
outside a qualified census tract with tax credit rents exceeding the
PHA's payment standard, where there are comparable tax credit units of
the same unit bedroom size as the contract unit, and the comparable tax
credit units do not have any form of rental assistance other than the
tax credit. These provisions are found at Sec. 983.301(c) of this
proposed rule. A qualified census tract is any census tract (or
equivalent geographic area defined by the Bureau of the Census) in
which at least 50 percent of households have an income of less than 60
percent of area median gross income or where the poverty rate is at
least 25 percent and where the census tract is designated as a
qualified census tract by HUD (see proposed 24 CFR 983.301(c)(4)). The
provisions for special adjustments of contract rent pursuant to 42
U.S.C. 1437f(b)(2)(B) do not apply to the project-based voucher
program.
L. The Family Share of Rent Is Calculated Based on the ``Total Tenant
Payment;'' Housing Assistance Payment Amount
``Total tenant payment'' and ``tenant rent'' are calculated in
accordance with the regulations in 24 CFR part 5. Families pay as the
total tenant payment the higher of 30 percent of adjusted monthly
income, 10 percent of annual income, any welfare rent, or the PHA's
minimum rent. The housing assistance payment is the difference between
the rent to the owner and the tenant rent (total tenant payment minus
any utility allowance).
M. Income Targeting Requirements for Tenant-Based and Project-Based
Vouchers
Admission to the project-based voucher program is subject to the
same statutory income targeting requirement as the tenant-based program
(42 U.S.C. 1437n(b)), instead of the individual project income
targeting requirement that applies to other Section 8 project-based
assistance (42 U.S.C. 1437n(c)(3)). During the PHA fiscal year, 75
percent of the admissions to the voucher program (both tenant-based and
project-based units) must be ``extremely low-income families''--defined
as families with annual incomes not exceeding 30 percent of median
income for the area, as determined by HUD.
N. Family Selection From PHA Waiting List
The PHA refers waiting list applicants or current participants to
the owner for
[[Page 12953]]
selection. The owner screens and selects tenants from families referred
by the PHA.
The PHA may elect to establish a separate waiting list for project-
based voucher assistance, or to use a single common list for admission
to the PHA's tenant-based and project-based voucher programs. If a PHA
chooses to establish a separate waiting list for project-based
assistance, the PHA must give all applicants currently on its waiting
list for tenant-based assistance the opportunity to also have their
names placed on the waiting list for project-based assistance in
accordance with the PHA's established selection policies. The PHA may
use separate waiting lists for PBV units in individual projects or
buildings (or for sets of such units) or may use a single waiting list
for the PHA's whole PBV program. In either case, the waiting list may
establish criteria or preferences for occupancy of particular units.
The PHA may place on the PHA's waiting list applicants referred by
owners in accordance with the PHA's local waiting list policies and
admission preferences.
O. PHA Option To Provide Vacancy Payment to Owner
A PHA may opt to include a provision in the HAP contract to make
vacancy payments to the owner after an assisted family leaves the
project-based voucher unit. A vacancy payment is only permitted if: (1)
The owner gives prompt notice of the vacancy to the PHA; (2) the
vacancy is not the owner's fault; and (3) the owner takes all
reasonable actions to minimize the likelihood and length of the vacancy
period.
The maximum vacancy payment amount is 60 days rent to owner.
P. PHA-Owned Units
A PHA-owned unit may only be assisted under the PBV program if the
HUD field office or an independent entity approved by HUD reviews the
selection process and determines that the PHA-owned units were
appropriately selected based on the selection procedures specified in
the PHA administrative plan.
If PHA-owned housing is selected for the project-based voucher
program, an independent entity approved by HUD will conduct HQS
inspections. The independent entity will give copies of the inspection
report to the PHA and the HUD field office. In addition, an independent
entity approved by HUD will determine the initial and adjusted rent to
owner.
By law, public housing units may not be assisted in the project-
based voucher program.
Q. PHA Option To Amend HAP Contract To Add or Substitute Contract Units
At the discretion of the PHA and subject to all PBV requirements,
the HAP contract may be amended to substitute a different unit with the
same number of bedrooms in the same building for a previously covered
contract unit. Prior to such substitution, the PHA must inspect the
proposed substitute unit and must determine the reasonable rent for
such unit.
In addition, at the discretion of the PHA, the HAP contract may be
amended during the three-year period immediately following the
execution date of the HAP contract to add additional PBV contract units
in a building as long as the total number of project-based voucher and
other assisted units stays at or below 25 percent of the total number
of units, with or without assistance, in the building. Additional PBV
contract units are subject to all PBV requirements (e.g., compliance
with Davis-Bacon wage rates during construction and compliance with
applicable environmental review requirements), except that a new PBV
proposal competition is not required. The anniversary and expiration
dates of the HAP contract for the additional units must be the same as
the anniversary and expiration dates of the HAP contract term for the
PBV units originally placed under HAP contract.
R. Termination of tenancy
The regulations in 24 CFR part 247 (concerning evictions from
certain subsidized and HUD-owned projects) do not apply to owner
termination of tenancy and eviction of a family receiving PBV
assistance.
III. Specific Issues for Comment
HUD seeks comments on all of the PBV program policies contained in
this proposed rule, and specifically seeks comments on the following
two issues:
(a) Competitive selection of owner proposals. HUD acknowledges that
it is desirable to permit PHA flexibility to devise local selection
policy strategies and invites recommendations on how best to regulate
PHA selection of PBV units. At the same time, HUD recognizes that it is
in the public interest to avoid any hint of the ``influence peddling''
scandals experienced under the Section 8 moderate rehabilitation
program. This proposed rule would require public advertisement for and
competitive selection of owner proposals unless the units previously
were competitively awarded assistance under a federal, state, or local
government housing assistance, community development, or supportive
services program. This policy will permit PHAs to select HOME, HOPE VI,
tax credit, and similar units for the PBV program without conducting a
second PBV competition. HUD solicits comment on whether the owner
selection policies proposed in Sec. 983.51 would be appropriate and
would permit PHA flexibility to select desirable units, target
desirable neighborhoods, and target key ``turning point'' buildings in
revitalizing areas while avoiding any hint of owner favoritism or
corrupt funding distribution practices.
(b) Minimizing displacement. It has been longstanding HUD policy
for both the project-based certificate and moderate rehabilitation
programs to minimize displacement of current income-eligible tenants in
buildings to be rehabilitated. If a unit in a building selected for one
of these programs were occupied by an eligible low-income family, the
family could remain in the unit and receive housing assistance. While
preventing displacement of families and facilitating housing
rehabilitation efforts, this policy results in eligible families in
occupied units receiving a preference over families on the PHA's
waiting list (at least in instances where a PHA does not already
provide a waiting list selection preference for families about to be
displaced). This rule applies the policy of minimizing displacement to
existing housing, a category of housing that previously was not
eligible to receive project-based vouchers. HUD requests comments on
whether the policy described in Sec. 983.251(b) is appropriate public
policy, or whether PHAs should be prohibited from selecting occupied
units for the project-based voucher program.
IV. Findings and Certifications
Executive Order 12866, Regulatory Planning and Review
The Office of Management and Budget (OMB) reviewed this rule under
Executive Order 12866 (entitled ``Regulatory Planning and Review'').
OMB determined that this rule is a ``significant regulatory action,''
as defined in section 3(f) of the Order (although not economically
significant, as provided in section 3(f)(1) of the Order). Any changes
made to the rule subsequent to its submission to OMB are identified in
the docket file, which is available for public inspection in the office
of the Rules Docket Clerk, Room
[[Page 12954]]
10276, Department of Housing and Urban Development, 451 Seventh Street,
SW., Washington, DC, 20410-0500.
Regulatory Flexibility Act
The Secretary, in accordance with the Regulatory Flexibility Act (5
U.S.C. 601-605) (RFA), has reviewed and approved this rule, and in so
doing certifies that this rule will not have a significant economic
impact on a substantial number of small entities. The proposed rule is
exclusively concerned with PHAs that administer tenant-based housing
assistance under section 8 of the United States Housing Act of 1937.
Specifically, the proposed rule would give PHAs the option of project-
basing up to 20 percent of their annual budget authority under the
tenant-based program. Under the definition of ``small governmental
jurisdiction'' in section 601(5) of the RFA, the provisions of the RFA
are applicable only to those few PHAs that are part of a political
jurisdiction with a population of under 50,000 persons. The number of
entities potentially affected by this rule is therefore not
substantial.
Notwithstanding HUD's determination that this rule does not have a
significant economic impact on a substantial number of small entities,
HUD specifically invites comment regarding less burdensome alternatives
to this rule that will meet HUD's objectives as described in the
preamble.
Environmental Impact
A Finding of No Significant Impact with respect to the environment
has been made in accordance with HUD regulations at 24 CFR part 50,
which implement section 102(2)(C) of the National Environmental Policy
Act of 1969 (42 U.S.C. 4332(2)(C)). The Finding of No Significant
Impact is available for public inspection between the hours of 8 a.m.
and 5 p.m. weekdays in the Office of the Rules Docket Clerk, Office of
General Counsel, Room 10276, Department of Housing and Urban
Development, 451 Seventh Street, SW., Washington, DC 20410-0500.
Executive Order 13132, Federalism
Executive Order 13132 (entitled ``Federalism'') prohibits, to the
extent practicable and permitted by law, an agency from promulgating a
regulation that has federalism implications and either imposes
substantial direct compliance costs on state and local governments and
is not required by statute, or preempts state law, unless the relevant
requirements of section 6 of the Executive Order are met. This rule
does not have federalism implications and does not impose substantial
direct compliance costs on state and local governments or preempt state
law within the meaning of the Executive Order.
Unfunded Mandates Reform Act
Title II of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.
1531-1538) (UMRA) establishes requirements for federal agencies to
assess the effects of their regulatory actions on state, local, and
tribal governments, and on the private sector. This proposed rule would
not impose any federal mandate on any state, local, or tribal
government, or on the private sector, within the meaning of the UMRA.
Catalog of Federal Domestic Assistance.
The Catalog of Federal Domestic Assistance number applicable to the
program affected by this rule is 14.871.
List of Subjects in 24 CFR Part 983
Grant programs--housing and community development, Housing, Low-
and moderate-income housing, Rent subsidies, Reporting and record
keeping requirements.
For the reasons stated in the preamble, HUD proposes to amend 24
CFR part 983 as follows:
1. Revise 24 CFR part 983 to read as follows:
PART 983--PROJECT-BASED VOUCHER (PBV) PROGRAM
Subpart A--General
Sec.
983.1 When PBV rule (this part 983) applies.
983.2 When tenant-based voucher rule (24 CFR part 982) applies.
983.3 PBV definitions.
983.4 Cross-reference to other Federal requirements.
983.5 Description of the project-based voucher program.
983.6 Maximum number of PBV units.
983.7 Uniform Relocation Act.
983.8 Equal opportunity requirements.
983.9 Special housing types.
983.10 Project-based certificate program.
Subpart B--Selection of PBV Owner Proposals
983.51 Owner proposal selection procedures.
983.52 Housing type.
983.53 Prohibition of assistance for ineligible units.
983.54 Prohibition of assistance for units in subsidized housing.
983.55 Prohibition of excess public assistance.
983.56 Cap on number of PBV units in each building.
983.57 Site selection standards.
983.58 Environmental review.
983.59 PHA-owned units.
Subpart C--Dwelling Units
983.101 Housing quality standards.
983.102 Housing accessibility for persons with disabilities.
983.103 Inspecting units.
Subpart D--Requirements for Rehabilitated and Newly Constructed Units
983.151 Applicability.
983.152 Purpose and content of the Agreement to enter into HAP
contract.
983.153 When Agreement is executed.
983.154 Conduct of development work.
983.155 Completion of housing.
983.156 PHA acceptance of completed units.
Subpart E--Housing Assistance Payments Contract
983.201 Applicability.
983.202 Purpose of HAP contract.
983.203 HAP contract information.
983.204 When HAP contract is executed.
983.205 Term of HAP contract.
983.206 HAP contract amendments (to add or substitute contract
units).
983.207 Condition of contract units.
983.208 Owner responsibilities.
983.209 Owner certification.
Subpart F--Occupancy
983.251 How participants are selected.
982.252 PHA information for accepted family.
983.253 Leasing of contract units.
983.254 Vacancies.
983.255 Tenant screening.
983.256 Lease.
983.257 Owner termination of tenancy and eviction for criminal
activity or alcohol abuse.
983.258 Security deposit: amounts owed by tenant.
983.259 Overcrowded, under-occupied, and accessible units.
983.260 Family right to move.
983.261 When occupancy may exceed 25 percent cap on the number of
PBV units in each building.
Subpart G--Rent to Owner
983.301 Determining the rent to owner.
983.302 Annual redetermination of rent to owner.
983.303 Reasonable rent.
983.304 Other subsidy: effect on rent to owner.
983.305 Rent to owner: effect of rent control and other rent limits.
Subpart H--Payment to Owner
983.351 PHA payment to owner for occupied unit.
983.352 Vacancy payment.
983.353 Tenant rent; payment to owner.
983.354 Other fees and charges.
Authority: 42 U.S.C. 1437f and 3535(d).
Subpart A--General
Sec. 983.1 When PBV rule (this part 983) applies.
Part 983 applies to the project-based voucher (PBV) program. The
PBV program is authorized by section
[[Page 12955]]
8(o)(13) of the U.S. Housing Act of 1937 (42 U.S.C. 1437f(o)(13)).
Sec. 983.2 When tenant-based voucher rule (24 CFR part 982) applies.
(a) 24 CFR part 982. Part 982 is the basic regulation for the
tenant-based voucher program. Paragraphs (b) and (c) of this section
describe the provisions of part 982 that do not apply to the PBV
program. The rest of part 982 applies to the PBV program. For use and
applicability of voucher program definitions at Sec. 982.4, see Sec.
983.3 of this part.
(b) Types of 24 CFR part 982 provisions that do not apply to PBV.
The following types of provisions in 24 CFR part 982 do not apply to
PBV assistance under part 983.
(1) Provisions on issuance or use of a voucher;
(2) Provisions on portability;
(3) Provisions on the following special housing types: shared
housing, cooperative housing, manufactured home space rental, and the
homeownership option.
(c) Specific 24 CFR part 982 provisions that do not apply to PBV
assistance. Except as specified below, the following specific
provisions in 24 CFR part 982 do not apply to PBV assistance under part
983.
(1) In subpart E of part 982: paragraph (b)(2) of Sec. 982.202,
and paragraph (d) of Sec. 982.204;
(2) Subpart G of part 982: subpart G does not apply, except that
Sec. 982.310 (owner termination of tenancy) as modified by Sec.
983.257, Sec. 982.312 (absence from unit) as modified by Sec.
983.256(g), and Sec. 982.316 (live-in aide) apply to the PBV Program;
(3) Subpart H of part 982;
(4) In subpart I of part 982: Sec. 982.401(j); paragraphs (a)(3),
(c), and (d) of Sec. 982.402; Sec. 982.403; Sec. 982.405(a); and
Sec. 982.406;
(5) In subpart J of part 982: Sec. 982.455;
(6) Subpart K of part 982: subpart K does not apply, except that
the following provisions of subpart K apply to the PBV Program:
(i) Section 982.503 (for determination of the payment standard
amount and schedule for a Fair Market Rent (FMR) area or for a
designated part of an FMR area). However, provisions authorizing
approval of a higher payment standard as a reasonable accommodation for
a particular family that includes a person with disabilities do not
apply (since the payment standard amount does not affect availability
of a PBV unit for occupancy by a family or the amount paid by the
family);
(ii) Section 982.516 (family income and composition; regular and
interim examinations);
(iii) Section 982.517 (utility allowance schedule); and
(iv) Sections 982.551 through 982.555.
(7) In Subpart M of part 982:
(i) Sections 982.603, 982.607, 982.611, 982.613(c)(2); and
(ii) Provisions concerning shared housing (Sec. Sec. 982.615
through 982.618), cooperative housing (Sec. 982.619), manufactured
home space rental (Sec. Sec. 982.622 through 982.624), and the
homeownership option (Sec. Sec. 982.625 through 982.641).
Sec. 983.3 PBV definitions.
(a) Use of PBV definitions. (1) PBV terms (defined in this
section). This section defines PBV terms that are used in 24 CFR part
983. For PBV assistance, the definitions in this section apply to use
of the defined terms in part 983 and in applicable provisions of part
982. (Section 983.2 specifies which provisions in part 982 apply to PBV
assistance under part 983.)
(2) Other voucher terms (terms defined in 24 CFR 982.4). (i) The
definitions in this section apply instead of definitions of the same
terms in 24 CFR 982.4.
(ii) Other voucher terms are defined in Sec. 982.4, but are not
defined in this section. These Sec. 982.4 definitions apply to use of
the defined terms in part 983 and in provisions of part 982 that apply
to part 983.
(b) PBV definitions.
1937 Act. The United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.).
Activities of daily living. Eating, bathing, grooming, dressing,
and home management activities.
Admission. The point when the family becomes a participant in the
PHA's tenant-based or project-based voucher program (initial receipt of
tenant-based or project-based assistance). After admission, and so long
as the family is continuously assisted with tenant-based or project-
based voucher assistance from the PHA, a shift from tenant-based or
project-based assistance to the other form of voucher assistance is not
a new admission.
Agreement to enter into HAP contract (Agreement). The Agreement is
a written contract between the PHA and the owner in the form prescribed
by HUD. The Agreement defines requirements for development of housing
to be assisted under this section. When development is completed by the
owner in accordance with the Agreement, the PHA enters into a HAP
contract with the owner. The Agreement is not used for existing housing
assisted under this section.
Assisted living facility. A residence facility (including a
facility located in a larger multifamily property) that meets all the
following criteria:
(1) The facility is licensed and regulated as an assisted living
facility by the state, municipality, or other political subdivision;
(2) The facility makes available supportive services to assist
residents in carrying out activities of daily living; and
(3) The facility provides separate dwelling units for residents and
includes common rooms and other facilities appropriate and actually
available to provide supportive services for the residents.
Baseline units. The number of units reserved by HUD for the PHA's
program as calculated under 24 CFR 982.102(d)(i) and as adjusted under
24 CFR 982.102(d)(ii).
Comparable rental assistance. A subsidy or other means to enable a
family to obtain decent housing in the PHA jurisdiction renting at a
gross rent that is not more than forty percent of the family's monthly
adjusted income.
Contract units. The housing units covered by a HAP contract.
Development. Construction or rehabilitation of PBV housing after
the proposal selection date.
Excepted units (units in a multifamily building not counted against
the 25 percent per-building cap). See Sec. 983.56(b)(2)(i).
Existing housing. Housing units that already exist on the proposal
selection date and that substantially comply with the HQS on that date.
(The units must fully comply with the HQS before execution of the HAP
contract.)
Fair market rent (FMR). The rent, including the cost of utilities
(except telephone), as established by HUD for units of varying sizes
(by number of bedrooms), that must be paid in the housing market area
to rent privately owned, existing, decent, safe, and sanitary rental
housing of a modest (non-luxury) nature with suitable amenities. See
periodic FMR publications in the Federal Register in accordance with 24
CFR part 888.
Family. The person or persons approved by the PHA to reside in a
contract unit with assistance under the program.
Gross rent. The sum of the rent to owner plus any utility
allowance.
Group home. A dwelling unit that is licensed by a state as a group
home for the exclusive residential use of two to twelve persons who are
elderly or persons with disabilities (including any live-in aide).
Group home is a special housing type. See 24 CFR 982.610.
HAP contract. The written housing assistance payments contract
between
[[Page 12956]]
the PHA and the owner in the form prescribed by HUD.
Household. The family and any PHA-approved live-in aide.
Housing assistance payment. The monthly assistance payment for a
PBV unit by a PHA, which includes:
(1) A payment to the owner for rent to owner under the family's
lease minus the tenant rent; and
(2) An additional payment to or on behalf of the family, if the
utility allowance exceeds the total tenant payment, in the amount of
such excess.
Housing quality standards (HQS). The HUD minimum quality standards
for housing assisted under the program. See 24 CFR 982.401.
HUD. The United States Department of Housing and Urban Development.
Lease. A written agreement between an owner and a tenant for the
leasing of a PBV dwelling unit by the owner to the tenant. The lease
establishes the conditions for occupancy of the dwelling unit by a
family with housing assistance payments under a HAP contract between
the owner and the PHA.
Multifamily building. A building with five or more dwelling units
(assisted or unassisted).
Newly constructed housing. Housing units that do not exist on the
proposal selection date and are developed after the date of selection
pursuant to an Agreement between the PHA and owner for use under the
PBV program.
Owner. A person or entity with the legal right to lease or sublease
a unit to a participant.
Partially-assisted building. A building where the number of
contract units is less than the number of residential units in the
building.
Participant. A family that is receiving tenant-based or project-
based assistance in a PHA's voucher program.
PHA-owned unit. A PHA-owned or controlled housing unit, as defined
in 24 CFR 982.352(b).
Premises. The building or complex in which the contract unit is
located, including common areas and grounds.
Program. The voucher program under section 8 of the 1937 Act,
including tenant-based or project-based assistance.
Proposal selection date. The date the PHA gives written notice of
PBV proposal selection to an owner whose proposal is selected (in a
competitive or non competitive selection).
Qualifying families (for purpose of exception to 25 percent per-
building cap). See Sec. 983.56(b)(2)(ii).
Reasonable rent. A rent determined pursuant to Sec. 983.303 that
is not more than rent charged:
(1) For comparable units in the private unassisted market; and
(2) For comparable unassisted units in the premises.
Rehabilitated housing. Housing units that exist on the proposal
selection date, but do not substantially comply with the HQS at that
date, and are developed, pursuant to an Agreement between the PHA and
owner, for use under the PBV program.
Rent to owner. The total monthly reasonable rent payable to the
owner under the lease for a contract unit. Rent to owner includes
payment for any housing services, including any maintenance and
utilities to be provided by the owner in accordance with the lease.
(Rent to owner must not include charges for non-housing services.) In
the PBV program, the rent to owner is the sum of the tenant rent and
the PHA housing assistance payment to the owner.
Responsible entity (RE) (for environmental review). The unit of
general local government within which the project is located that
exercises land use responsibility or, if HUD determines this
infeasible, the county or, if HUD determines that infeasible, the
state.
Single family building. A building with no more than four dwelling
units (assisted or unassisted).
Site. The grounds where the contract units are located, or will be
located after development pursuant to the Agreement.
Special housing type. Subpart M of 24 CFR part 982 states the
special regulatory requirements for single room occupancy (SRO)
housing, congregate housing, group home, and manufactured home. Subpart
M provisions on shared housing, cooperative housing, manufactured home
space rental, and the homeownership option do not apply to PBV
assistance under this part.
State-certified appraiser. Any individual who satisfies the
requirements for certification as a certified general appraiser in a
state that has adopted criteria that currently meet or exceed the
minimum certification criteria issued by the Appraiser Qualifications
Board of the Appraisal Foundation. The state's criteria must include a
requirement that the individual has achieved a satisfactory grade upon
a state-administered examination consistent with and equivalent to the
Uniform State Certification Examination issued or endorsed by the
Appraiser Qualifications Board of the Appraisal Foundation.
Furthermore, if the Appraisal Foundation has issued a finding that the
policies, practices, or procedures of the state are inconsistent with
Title XI of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989 (12 U.S.C. 3331-3352), the individual must
comply with any additional standards for state-certified appraisers
imposed by HUD.
Tenant. The person or persons (other than a live-in aide) who
executes the lease as lessee of the dwelling unit.
Tenant-paid utilities. Utility service that is not included in the
tenant rent, and which is the responsibility of the assisted family.
Tenant rent. The amount payable monthly by the tenant as rent to
the owner. The amount of the tenant rent equals the total tenant
payment minus the applicable utility allowance for tenant-paid
utilities for the unit occupied by the family.
Total tenant payment. The amount described in 24 CFR 5.628.
Utility allowance. The PHA allowance for the cost of tenant-paid
utilities (except telephone) for a unit. The utility allowance is the
PHA's estimate of the monthly cost of a reasonable consumption of
utilities by an energy-conservative household, consistent with the
requirements of the HQS.
Utility reimbursement. The amount, if any, by which the utility
allowance for the cost of tenant-paid utilities exceeds the total
tenant payment for the assisted family occupying the unit.
Wrong-size unit. A contract unit that is:
(1) Overcrowded because of an increase in the household size; or
(2) Larger than appropriate (``under-occupied'') because of a
change in the household size or composition. See Sec. 983.259.
Sec. 983.4 Cross-reference to other Federal requirements.
The following provisions apply to assistance under the PBV program.
Civil money penalty. Penalty for owner breach of HAP contract. See
24 CFR 30.68.
Debarment. Prohibition on use of debarred, suspended, or ineligible
contractors. See 24 CFR 5.105(c) and 24 CFR part 24.
Definitions. See 24 CFR part 5, subpart D.
Disclosure and verification of income information. See 24 CFR part
5, subpart B.
Environmental review. See 24 CFR parts 50 and 58 (see also
provisions on PBV environmental review at Sec. 983.58).
Fair housing. Nondiscrimination and equal opportunity. See 24 CFR
5.105(a).
Fair market rents. See 24 CFR part 888, subpart A.
Fraud. PHA retention of recovered funds. See 24 CFR part 792.
Funds. HUD allocation of voucher funds. See 24 CFR part 791.
[[Page 12957]]
Income and family payment. See 24 CFR part 5, subpart F (especially
Sec. 5.603 (definitions), Sec. 5.609 (annual income), Sec. 5.611
(adjusted income), Sec. 5.628 (total tenant payment), Sec. 5.630
(minimum rent), Sec. 5.632 (utility reimbursements), Sec. 5.634(a)
(tenant rent), and Sec. 5.661 (section 8 project-based assistance
programs: approval for police or other security personnel to live in
project)).
Labor standards. Regulations implementing the Davis-Bacon Act,
Contract Work Hours and Safety Standards Act (40 U.S.C. 3701-3708), 29
CFR part 5, and other Federal laws and regulations pertaining to labor
standards applicable to an Agreement covering nine or more assisted
units.
Lead-based paint. Regulations implementing the Lead-based Paint
Poisoning Prevention Act (42 U.S.C. 4821-4846) and the Residential
Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856).
See 24 CFR part 35, subparts A, B, H, and R.
Lobbying restriction. Restrictions on use of funds for lobbying.
See 24 CFR 5.105(b).
Noncitizens. Restrictions on assistance. See 24 CFR part 5, subpart
E.
Program accessibility. Regulations implementing Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794). See 24 CFR parts 8 and 9.
Relocation assistance. Regulations implementing the Uniform
Relocation Assistance and Real Property Acquisition Policies Act of
1970 (URA) (42 U.S.C. 4201-4655). See 49 CFR part 24.
Section 3--Training, employment, and contracting opportunities in
development. Regulations implementing Section 3 of the Housing and
Urban Development Act of 1968 (12 U.S.C. 1701u). See 24 CFR part 135.
Uniform financial reporting standards. See 24 CFR part 5, subpart
H.
Waiver of HUD rules. See 24 CFR 5.110.
Sec. 983.5 Description of the project-based voucher program.
(a) How PBV works. (1) The PBV program is administered by a PHA
that already administers the tenant-based voucher program under an
annual contributions contract (ACC) with HUD. In the PBV program, the
assistance is ``attached to the structure.'' (See description of the
difference between ``project-based'' and ``tenant-based'' rental
assistance at Sec. 982.1(b) of this chapter).
(2) The PHA enters into a HAP contract with an owner for units in
existing housing or in newly constructed or rehabilitated housing.
(3) In the case of newly constructed or rehabilitated housing, the
housing is developed under an Agreement between the owner and the PHA.
In the Agreement, the PHA agrees to execute a HAP contract after the
owner completes the construction or rehabilitation of the units.
(4) During the term of the HAP contract, the PHA makes rental
assistance payments to the owner for units leased and occupied by
eligible families.
(b) How PBV is funded. (1) If a PHA decides to operate a PBV
program, the PHA's PBV program is funded with a portion of appropriated
funding (budget authority) available under the PHA's voucher ACC. This
pool of funding is used to pay rental assistance for both tenant-based
and project-based voucher units and to pay PHA administrative fees for
administration of tenant-based and project-based voucher assistance.
(2) There is no special or additional funding for project-based
vouchers. HUD does not reserve additional units for project-basing and
does not provide any additional funding for this purpose.
(c) PHA discretion to operate PBV program. A PHA has discretion
whether to operate a project-based voucher program. HUD approval is not
required.
Sec. 983.6 Maximum number of PBV units.
(a) The PHA may select owner proposals to provide project-based
assistance for up to 20 percent of the baseline units in the PHA
voucher program. PHAs are not required to reduce the number of PBV
units selected under an Agreement or HAP contract if the number of
baseline units are subsequently reduced.
(b) All project-based certificate and project-based voucher units
for which the PHA has issued a notice of proposal selection or which
are under an Agreement or HAP contract for project-based certificate or
project-based voucher assistance count against the 20 percent maximum.
(c) The PHA is responsible for determining the number of baseline
units that are available for project-basing and for ensuring that the
amount of assistance that is attached to units is within the amounts
available under the ACC.
Sec. 983.7 Uniform Relocation Act.
(a) Relocation assistance for displaced person. (1) A displaced
person must be provided relocation assistance at the levels described
in and in accordance with the requirements of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42
U.S.C. 4201-4655) and implementing regulations at 49 CFR part 24.
(2) The cost of required relocation assistance may be paid for with
funds provided by the owner, or with local public funds, or with funds
available from other sources. Relocation costs may not be paid from
voucher program funds.
(b) Real property acquisition requirements. The acquisition of real
property for a PBV project is subject to the URA and 49 CFR part 24,
subpart B.
(c) Responsibility of PHA. The PHA must require the owner to comply
with the URA and 49 CFR part 24.
(d) Definition of initiation of negotiations. In computing a
replacement housing payment to a residential tenant displaced as a
direct result of privately undertaken rehabilitation or demolition of
the real property, the term ``initiation of negotiations'' means the
execution of the Agreement between the owner and the PHA.
Sec. 983.8 Equal opportunity requirements.
(a) The PBV program requires compliance with all equal opportunity
requirements under federal law and regulation, including the
authorities cited at 24 CFR 5.105(a).
(b) The PHA must comply with PHA Plan civil rights certification
submitted by the PHA in accordance with 24 CFR 903.70.
Sec. 983.9 Special housing types.
(a) Applicability. (1) For applicability of rules on special
housing types at 24 CFR part 982, subpart M, see Sec. 983.2.
(2) In the PBV program, the PHA may not provide assistance for
shared housing, cooperative housing, manufactured home space rental, or
the homeownership option.
(b) Group homes. A group home may include one or more group home
units. A separate lease is executed for each elderly person or person
with disabilities who resides in a group home.
Sec. 983.10 Project-based certificate program.
(a) What is it? ``Project-based certificate program'' means
project-based assistance attached to units pursuant to an Agreement
executed by a PHA and owner before January 16, 2001, and in accordance
with:
(1) The regulations for the project-based certificate program at 24
CFR part 983, codified as of May 1, 2001; and
(2) Section 8(d)(2) of the 1937 Act, as in effect before October
21, 1998 (the date of enactment of Title V of Public Law 105-276, the
Quality Housing and Work Responsibility Act of 1998, codified at 42
U.S.C. 1437 et seq.).
(b) What rules apply? Units under the project-based certificate
program are
[[Page 12958]]
subject to the provisions of 24 CFR part 983 codified as of May 1, 2001
(notwithstanding repeal of such provisions).
Subpart B--Selection of PBV Owner Proposals
Sec. 983.51 Owner proposal selection procedures.
(a) Procedures for selecting PBV proposals. The PHA administrative
plan must describe the procedures for owner submission of PBV proposals
and for PHA selection of PBV proposals. Before selecting a PBV
proposal, the PHA must determine that the PBV proposal complies with
HUD program regulations and requirements, including a determination
that the property is eligible housing (Sec. Sec. 983.53 and 983.54),
complies with the cap on the number of PBV units per building (Sec.
983.56), and meets the site selection standards (Sec. 983.57).
(b) Selection of PBV proposals. The PHA must select PBV proposals
in accordance with the selection procedures in the PHA administrative
plan. The PHA must select PBV proposals by either of the following two
methods.
(1) Competitive selection of a proposal. The PHA may not limit
proposals to a single site or impose restrictions that explicitly or
practically preclude competition between or among owner proposals for
PBV housing on different sites.
(2) Selection of a proposal for housing assisted under a federal,
state, or local government housing assistance, community development,
or supportive services program that requires competitive selection of
proposals (e.g., HOPE VI, HOME, and tax credit units), where the
proposal has been selected in accordance with such program's
competitive selection requirements.
(c) Public notice of PBV competition. If the PHA will be selecting
proposals by competitive selection under paragraph (b)(1) of this
section, PHA procedures for selecting PBV proposals must be designed
and actually operated to provide broad public notice of the opportunity
to offer PBV proposals for competitive selection. The public notice
procedures may include publication of the public notice in a local
newspaper of general circulation and other means designed and actually
operated to provide broad public notice. The public notice of the
competitive selection must specify the submission deadline. Detailed
application and selection information must be provided at the request
of interested parties.
(d) PHA notice of owner selection. The PHA must give prompt written
notice to the party that submitted a selected proposal and must also
give prompt public notice of such selection. Public notice procedures
may include publication of public notice in a local newspaper of
general circulation and other means designed and actually operated to
provide broad public notice.
(e) PHA-owned units. A PHA-owned unit may only be assisted under
the PBV program if the HUD field office or an independent entity
approved by HUD reviews the selection process and determines that the
PHA-owned units were appropriately selected based on the selection
procedures specified in the PHA administrative plan. Under no
circumstances may PBV assistance be used with a public housing unit.
(f) Public review of PHA selection decision documentation. The PHA
must make available for public inspection documentation regarding the
basis for the PHA selection of a PBV proposal.
Sec. 983.52 Housing type.
The PHA may attach PBV assistance for units in existing housing or
for newly constructed or rehabilitated housing developed under and in
accordance with an Agreement.
Sec. 983.53 Prohibition of assistance for ineligible units
(a) Ineligible unit. The PHA may not attach or pay PBV assistance
for units in the following types of housing:
(1) Shared housing;
(2) Units on the grounds of a medical, mental, or similar
institution;
(3) Nursing homes or facilities providing continuous psychiatric,
medical, nursing services, board and care, or intermediate care.
However, the PHA may attach PBV assistance for a dwelling unit in an
assisted living facility that provides home health care services such
as nursing and therapy for residents of the housing;
(4) Units on the grounds of a penal, reformatory, or similar
institution;
(5) Units that are owned or controlled by an educational
institution or its affiliate and are designated for occupancy by
students of the institution;
(6) Manufactured homes;
(7) Cooperative housing.
(b) High rise elevator project for families with children. The PHA
may not attach or pay PBV assistance to a high rise elevator project
that may be occupied by families with children unless HUD determines
there is no practical alternative. HUD may make this determination for
a PHA's project-based voucher program, in whole or in part, and need
not review each project on a case-by-case basis.
(c) Prohibition against assistance for owner-occupied unit. The PHA
may not attach or pay PBV assistance for a unit occupied by an owner of
the housing.
(d) Prohibition against selecting unit occupied by an ineligible
family. Before a PHA selects a specific unit to which assistance is to
be attached, the PHA must determine whether the unit is occupied, and
if occupied, whether the unit's occupants are eligible for assistance.
The PHA must not select or enter into an Agreement or HAP contract for
a unit occupied by a family ineligible for participation in the PBV
program.
Sec. 983.54 Prohibition of assistance for units in subsidized
housing.
A PHA may not attach or pay PBV assistance to units in any of the
following types of subsidized housing:
(a) Public housing;
(b) A unit subsidized with any other form of Section 8 assistance
(tenant-based or project-based);
(c) A unit subsidized with any governmental rent subsidy (a subsidy
that pays all or any part of the rent);
(d) A unit subsidized with any governmental subsidy that covers all
or any part of the operating costs of the housing;
(e) A unit subsidized with Section 236 rental assistance payments
(12 U.S.C. 1715z-1). However, the PHA may attach assistance to a unit
subsidized with Section 236 interest reduction payments;
(f) A unit subsidized with rental assistance payments under Section
521 of the Housing Act of 1949, 42 U.S.C. 1490a (a Rural Housing
Service Program). However, the PHA may attach assistance for a unit
subsidized with Section 515 interest reduction payments (42 U.S.C.
1485);
(g) A Section 202 project for non-elderly persons with disabilities
(assistance under Section 162 of the Housing and Community Development
Act of 1987, 12 U.S.C. 1701q note);
(h) Section 811 project-based supportive housing for persons with
disabilities (42 U.S.C. 8013);
(i) Section 202 supportive housing for the elderly (12 U.S.C.
1701q);
(j) A Section 101 rent supplement project (12 U.S.C. 1701s);
(k) A unit subsidized with any form of tenant-based rental
assistance (as defined at Sec. 982.1(b)(2)) (e.g., a unit subsidized
with tenant-based rental assistance under the HOME program, 42 U.S.C.
12701 et seq.);
(l) A unit with any other duplicative Federal, state, or local
housing subsidy,
[[Page 12959]]
as determined by HUD or by the PHA in accordance with HUD requirements.
For this purpose, ``housing subsidy'' does not include the housing
component of a welfare payment; a social security payment; a Federal,
state, or local tax concession (such as relief from local real property
taxes); or a tax credit.
Sec. 983.55 Prohibition of excess public assistance.
(a) Subsidy layering requirements. The PHA may only provide PBV
assistance in accordance with HUD subsidy layering regulations (24 CFR
part 4.13) and other requirements. The subsidy layering review is
intended to prevent excessive public assistance for the housing by
combining (layering) housing assistance payment subsidy under the PBV
program with other governmental housing assistance from Federal, state,
or local agencies, including assistance such as tax concessions or tax
credits.
(b) When subsidy layering review is conducted. The PHA may not
enter an Agreement or HAP contract until HUD or an independent entity
approved by HUD has conducted any required subsidy layering review and
determined that the PBV assistance is in accordance with HUD subsidy
layering requirements.
(c) Owner certification. The HAP contract must contain the owner's
certification that the project has not received and will not receive
(before or during the term of the HAP contract) any public assistance
for acquisition, development, or operation of the housing other than
assistance disclosed in the subsidy layering review in accordance with
HUD requirements.
Sec. 983.56 Cap on number of PBV units in each building.
(a) 25 percent per building cap. (1) Except as provided in
paragraph (b) of this section, the PHA may not select a proposal to
provide PBV assistance for units in a building or enter into an
Agreement or HAP contract to provide PBV assistance for units in a
building, if the total number of dwelling units in the building that
will receive PBV assistance or other federal project-based housing
assistance during the term of the PBV HAP is more than 25 percent of
the number of dwelling units (assisted or unassisted) in the building.
(2) In calculating application of this cap, any units in the
building receiving federal project-based assistance count against the
cap--including units assisted or to be assisted under other HAP
contracts or project-based assistance programs (e.g., section 8 loan
management or property disposition units or other PBV units).
(b) Exception to 25 percent per building cap. (1) When PBV units
are not counted against cap. In the following cases, PBV units are not
counted against the 25 percent per building cap:
(i) Units in a single family building;
(ii) Excepted units in a multifamily building.
(2) Terms. (i) ``Excepted units'' means units in a multifamily
building set aside for occupancy and occupied by qualifying families.
(ii) ``Qualifying families'' means:
(A) Elderly or disabled families; or
(B) Families receiving supportive services under a voucher,
project-based certificate, or public housing family self-sufficiency
(FSS) program or families who are in compliance with their FSS contract
of participation at the beginning of the assisted unit lease term. If a
family has received FSS supportive services as a resident of an
excepted unit and then completes its FSS contract of participation, the
unit continues to count as an excepted unit for as long as the family
resides in the unit.
(3) Set-aside for qualifying families. (i) In rental of units in a
multifamily building pursuant to the PBV HAP, the owner must set aside
the number of excepted units for occupancy by qualifying families.
(ii) The PHA may refer only qualifying families for occupancy of
excepted units.
(c) Additional, local requirements promoting partially assisted
buildings. A PHA may establish local requirements designed to promote
PBV assistance in partially assisted buildings. For example, a PHA may:
(1) Establish a per-building cap on the number of units that will
receive PBV assistance or other project-based assistance in a
multifamily building containing excepted units or in a single family
building,
(2) Determine not to provide PBV assistance for excepted units, or
(3) Establish a per building cap of less than 25 percent.
Sec. 983.57 Site selection standards.
(a) Applicability. The site selection requirements in paragraph (d)
of this section only apply to site selection for existing housing and
rehabilitated PBV housing. The site selection requirements in paragraph
(e) of this section only apply to site selection for newly constructed
PBV housing. Other provisions of this section apply to selection of a
site for any form of PBV housing, including existing housing, newly
constructed housing, and rehabilitated housing.
(b) Compliance with PBV goals, civil rights requirements, and HQS.
The PHA may not select a proposal for existing, newly constructed, or
rehabilitated PBV housing on a site or enter into an Agreement or HAP
contract for units on the site, unless the PHA has determined that:
(1) Project-based assistance for housing at the selected site is
consistent with the goal of deconcentrating poverty and expanding
housing and economic opportunities.
(2) The site is suitable from the standpoint of facilitating and
furthering full compliance with the applicable provisions of Title VI
of the Civil Rights Act of 1964 (42 U.S.C. 2000d-2000d(4)) and HUD's
implementing regulations at 24 CFR part 1; Title VIII of the Civil
Rights Act of 1968 (42 U.S.C. 3601-3629) and HUD's implementing
regulations at 24 CFR part 100 et seq.; Executive Order 11063 (27 FR
11527; 3 CFR, 1959-1963 Comp., p. 652) and HUD's implementing
regulations at 24 CFR part 107.
(3) The site meets the HQS site standards at 24 CFR 982.401(l).
(c) PHA PBV site selection policy. (1) The PHA administrative plan
must establish the PHA's policy for selection of PBV sites in
accordance with this section.
(2) The site selection policy must explain how the PHA's site
selection procedures promote the PBV goals.
(3) The PHA must select PBV sites in accordance with the PHA's site
selection policy in the PHA administrative plan.
(d) Existing and rehabilitated housing site and neighborhood
standards. A site for existing or rehabilitated housing must meet the
following site and neighborhood standards. The site must:
(1) Be adequate in size, exposure, and contour to accommodate the
number and type of units proposed; adequate utilities and streets must
be available to service the site. (The existence of a private disposal
system and private sanitary water supply for the site, approved in
accordance with law, may be considered adequate utilities.)
(2) Promote greater choice of housing opportunities and avoid undue
concentration of assisted persons in areas containing a high proportion
of low-income persons.
(3) Be accessible to social, recreational, educational, commercial,
and health facilities and services and other municipal facilities and
services that are at least equivalent to those typically found in
neighborhoods consisting largely of unassisted,
[[Page 12960]]
standard housing of similar market rents.
(4) Be so located that travel time and cost via public
transportation or private automobile from the neighborhood to places of
employment providing a range of jobs for lower-income workers is not
excessive. While it is important that housing for the elderly not be
totally isolated from employment opportunities, this requirement need
not be adhered to rigidly for such projects.
(e) New construction site and neighborhood standards. A site for
newly constructed housing must meet the following site and neighborhood
standards:
(1) The site must be adequate in size, exposure, and contour to
accommodate the number and type of units proposed, and adequate
utilities (water, sewer, gas, and electricity) and streets must be
available to service the site.
(2) The site must not be located in an area of minority
concentration, except as permitted under paragraph (e)(3) of this
section, and must not be located in a racially mixed area if the
project will cause a significant increase in the proportion of minority
to non-minority residents in the area.
(3) A project may be located in an area of minority concentration
only if:
(A) Sufficient, comparable opportunities exist for housing for
minority families in the income range to be served by the proposed
project outside areas of minority concentration (see paragraph
(e)(3)(C), (D), and (E) of this section for further guidance on this
criterion); or
(B) The project is necessary to meet overriding housing needs that
cannot be met in that housing market area (see paragraph (e) (3)(F) of
this section for further guidance on this criterion).
(C) ``Sufficient'' does not require that in every locality there be
an equal number of assisted units within and outside of areas of
minority concentration. Rather, application of this standard should
produce a reasonable distribution of assisted units each year, that,
over a period of several years, will approach an appropriate balance of
housing choices within and outside areas of minority concentration. An
appropriate balance in any jurisdiction must be determined in light of
local conditions affecting the range of housing choices available for
low-income minority families and in relation to the racial mix of the
locality's population.
(D) Units may be considered ``comparable opportunities'' if they
have the same household type (elderly, disabled, family, large family)
and tenure type (owner/renter); require approximately the same tenant
contribution towards rent; serve the same income group; are located in
the same housing market; and are in standard condition.
(E) Application of this sufficient, comparable opportunities
standard involves assessing the overall impact of HUD-assisted housing
on the availability of housing choices for low-income minority families
in and outside areas of minority concentration, and must take into
account the extent to which the following factors are present, along
with other factors relevant to housing choice:
(i) A significant number of assisted housing units are available
outside areas of minority concentration.
(ii) There is significant integration of assisted housing projects
constructed or rehabilitated in the past 10 years, relative to the
racial mix of the eligible population.
(iii) There are racially integrated neighborhoods in the locality.
(iv) Programs are operated by the locality to assist minority
families that wish to find housing outside areas of minority
concentration.
(v) Minority families have benefited from local activities (e.g.,
acquisition and write-down of sites, tax relief programs for
homeowners, acquisitions of units for use as assisted housing units)
undertaken to expand choice for minority families outside of areas of
minority concentration.
(vi) A significant proportion of minority households has been
successful in finding units in non-minority areas under the tenant-
based assistance programs.
(vii) Comparable housing opportunities have been made available
outside areas of minority concentration through other programs.
(F) Application of the ``overriding housing needs'' criterion, for
example, permits approval of sites that are an integral part of an
overall local strategy for the preservation or restoration of the
immediate neighborhood and of sites in a neighborhood experiencing
significant private investment that is demonstrably improving the
economic character of the area (a ``revitalizing area''). An
``overriding housing need,'' however, may not serve as the basis for
determining that a site is acceptable, if the only reason the need
cannot otherwise be feasibly met is that discrimination on the basis of
race, color, religion, sex, national origin, age, familial status, or
disability renders sites outside areas of minority concentration
unavailable or if the use of this standard in recent years has had the
effect of circumventing the obligation to provide housing choice.
(4) The site must promote greater choice of housing opportunities
and avoid undue concentration of assisted persons in areas containing a
high proportion of low-income persons.
(5) The neighborhood must not be one which is seriously detrimental
to family life or in which substandard dwellings or other undesirable
conditions predominate, unless there is actively in progress a
concerted program to remedy the undesirable conditions.
(6) The housing must be accessible to social, recreational,
educational, commercial, and health facilities and services and other
municipal facilities and services that are at least equivalent to those
typically found in neighborhoods consisting largely of unassisted,
standard housing of similar market rents.
(7) Except for new construction housing designed for elderly
persons, travel time and cost via public transportation or private
automobile, from the neighborhood to places of employment providing a
range of jobs for lower-income workers, must not be excessive.
Sec. 983.58 Environmental review.
(a) HUD environmental regulations. Activities under the PBV program
are subject to HUD environmental regulations in 24 CFR parts 50 and 58.
(b) Who performs the environmental review? (1) Under 24 CFR part
58, a unit of general local government, a county or a state (the
``responsible entity'' or ``RE'') is responsible for the federal
environmental review under the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.) and related applicable Federal laws and
authorities in accordance with 24 CFR 58.5 and 58.6.
(2) If a PHA objects in writing to the RE's performing the federal
environmental review, or if the RE declines to perform the review,
then, HUD may perform the environmental review itself (24 CFR 58.11).
24 CFR part 50 governs HUD performance of the environmental review.
(c) Limitations on actions before completion of the environmental
review. (1) The PHA may not enter an Agreement or HAP contract with an
owner, and the PHA, the owner, and its contractors may not acquire,
rehabilitate, convert, lease, repair, dispose of, demolish, or
construct real property for a project under this part or commit or
expend program or local funds for PBV activities under this part, until
one of the following occurs:
[[Page 12961]]
(i) The responsible entity has completed the environmental review
procedures required by 24 CFR part 58, and HUD has approved the
environmental certification and request for release of funds; or
(ii) HUD has performed an environmental review under 24 CFR part 50
and has notified the PHA in writing of environmental approval of the
site.
(2) HUD will not release funds for PBV assistance under this part
if the PHA, the owner, or any other party commits funds under this part
(i.e., enters an Agreement or HAP contract or otherwise incurs any
costs or expenditures to be paid or reimbursed with such funds) before
the PHA submits and HUD approves its request for release of funds
(where such submission is required).
(d) PHA duty to supply information. The PHA must supply all
available, relevant information necessary for the RE (or HUD, if
applicable) to perform any required environmental review for any site.
(e) Mitigating measures. The PHA must require the owner to carry
out mitigating measures required by the RE (or HUD, if applicable) as a
result of the environmental review.
Sec. 983.59 PHA-owned units.
(a) Selection of PHA-owned units. The selection of PHA-owned units
must be done in accordance with Sec. 983.51(e).
(b) Inspection and determination of reasonable rent by independent
entity. In the case of PHA-owned units, the following program services
may not be performed by the PHA, but must be performed instead by an
independent entity approved by HUD.
(1) Determination of rent to owner for the PHA-owned units. Rent to
owner for PHA-owned units is determined pursuant to Sec. Sec. 983.301
through 983.305 in accordance with the same requirements as for other
units, except that the independent entity approved by HUD must
establish the initial contract rents based on an appraisal by a
licensed, state-certified appraiser; and
(2) Inspection of PHA-owned units as required by Sec. 983.103(f).
(c) Nature of independent entity. The independent entity that
performs these program services may be the unit of general local
government for the PHA jurisdiction (unless the PHA is itself the unit
of general local government or an agency of such government) or another
HUD-approved public or private independent entity.
(d) Payment to independent entity and appraiser. (1) The PHA may
only compensate the independent entity and appraiser from PHA ongoing
administrative fee income (including amounts credited to the
administrative fee reserve). The PHA may not use other program receipts
to compensate the independent entity and appraiser for their services.
(2) The PHA, independent entity, and appraiser may not charge the
family any fee for the appraisal or the services provided by the
independent entity.
Subpart C--Dwelling Units
Sec. 983.101 Housing quality standards.
(a) HQS applicability. Except as otherwise provided in this
section, 24 CFR 982.401 (housing quality standards) applies to the PBV
program. 24 CFR 5.703 (physical condition standards) does not apply to
the PBV program.
(b) HQS for special housing types. For special housing types
assisted under the PBV program, housing quality standards in 24 CFR
part 982, subpart M, apply to the PBV program. (Shared housing,
cooperative housing, manufactured home space rental and the
homeownership option are not assisted under the PBV program.)
(c) Lead-based paint requirements. (1) The lead-based paint
requirements at Sec. 982.401(j) of this chapter do not apply to the
PBV program.
(2) The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-
4846), the Residential Lead-based Paint Hazard Reduction Act of 1992
(42 U.S.C. 4851-4856), and implementing regulations at 24 CFR part 35,
subparts A, B, H, and R, apply to the PBV program.
(d) HQS enforcement. Parts 982 and 983 of this chapter, do not
create any right of the family or any party, other than HUD or the PHA,
to require enforcement of the HQS requirements or to assert any claim
against HUD or the PHA for damages, injunction, or other relief for
alleged failure to enforce the HQS.
(e) Additional PHA quality and design requirements. This section
establishes the minimum federal housing quality standards for PBV
housing. However, the PHA may elect to establish additional
requirements for quality, architecture, or design of PBV housing, and
any such additional requirements must be specified in the Agreement.
Sec. 983.102 Housing accessibility for persons with disabilities.
(a) Program accessibility. The housing must comply with program
accessibility requirements of section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The
PHA shall ensure that the percentage of accessible dwelling units
complies with the requirements of section 504 of the Rehabilitation Act
of 1973 (29 U.S.C. 794), as implemented by HUD's regulations at 24 CFR
part 8, subpart C.
(b) Design and construction. Housing first occupied after March 13,
1991, must comply with design and construction requirements of the Fair
Housing Amendments Act of 1988 and implementing regulations at 24 CFR
100.205, as applicable.
Sec. 983.103 Inspecting units.
(a) Pre-selection inspection. (1) Inspection of site. The PHA must
examine the proposed site before the proposal selection date.
(2) Inspection of existing units. If the units to be assisted
already exist, the PHA must inspect all the units before the proposal
selection date, and must determine whether the units substantially
comply with the HQS. To qualify as existing housing, units must
substantially comply with the HQS on the proposal selection date.
However, the PHA may not execute the HAP contract until the units fully
comply with the HQS.
(b) Pre-HAP contract inspections. The PHA must inspect each
contract unit before execution of the HAP contract. The PHA may not
enter into a HAP contract covering a unit until the unit fully complies
with the HQS.
(c) Turnover inspections. Before providing assistance to a new
family in a contract unit, the PHA must inspect the unit. The PHA may
not provide assistance on behalf of the family until the unit fully
complies with the HQS.
(d) Annual inspections. (1) At least annually during the term of
the HAP contract, the PHA must initially inspect a random sample,
consisting of at least 20 percent of the contract units in each
building to determine if the contract units and the premises are
maintained in accordance with the HQS. Turnover inspections pursuant to
paragraph (c) of this section are not counted towards meeting this
annual inspection requirement.
(2) If more than 20 percent of the initially inspected contract
units in a building fail the initial annual inspection, the PHA must
reinspect 100 percent of the contract units in the building.
(e) Other inspections. (1) The PHA must inspect contract units
whenever needed to determine that the contract units comply with the
HQS and that the owner is providing maintenance, utilities, and other
services in accordance with the HAP contract. The PHA must take into
account complaints
[[Page 12962]]
and any other information coming to its attention in scheduling
inspections.
(2) The PHA must conduct follow-up inspections needed to determine
if the owner (or, if applicable, the family) has corrected an HQS
violation and must conduct inspections to determine the basis for
exercise of contractual and other remedies for owner or family
violation of the HQS. (Family HQS obligations are specified in Sec.
982.404(b) of this chapter.)
(3) The PHA supervisory quality control HQS inspections pursuant to
Sec. 982.405(b) of this chapter must include a representative sample
of both tenant-based and project-based units.
(f) Inspecting PHA-owned units. (1) In the case of PHA-owned units,
the inspections required under this section must be performed by an
independent agency designated in accordance with Sec. 983.59, rather
than by the PHA.
(2) The independent entity must furnish a copy of each inspection
report to the PHA, and to the HUD field office where the project is
located.
(3) The PHA must take all necessary actions in response to
inspection reports from the independent agency, including exercise of
contractual remedies for violation of the HAP contract by the PHA-
owner.
Subpart D--Requirements for Rehabilitated and Newly Constructed
Units
Sec. 983.151 Applicability.
This subpart D applies to PBV assistance for newly constructed or
rehabilitated housing. This subpart D does not apply to PBV assistance
for existing housing.
Sec. 983.152 Purpose and content of the Agreement to enter into HAP
contract.
(a) Requirement. The PHA must enter into an Agreement with the
owner. The Agreement must be in the form required by HUD headquarters
(see Sec. 982.162 of this chapter).
(b) Purpose of Agreement. In the Agreement the owner agrees to
develop the contract units to comply with the HQS, and the PHA agrees
that, upon timely completion of such development in accordance with the
terms of the Agreement, the PHA will enter into a HAP contract with the
owner for the contract units.
(c) Description of housing. (1) At a minimum, the Agreement must
describe the following features of the housing to be developed (newly
constructed or rehabilitated) and assisted under the PBV program:
(i) Site;
(ii) Location of contract units on site;
(iii) Number of contract units by area (size) and number of
bedrooms and bathrooms;
(iv) Services, maintenance, or equipment to be supplied by the
owner without charges in addition to the rent to owner;
(v) Utilities available to the contract units, including a
specification of utility services to be paid by owner (without charges
in addition to rent) and utility services to be paid by the tenant;
(vi) Indication of whether or not the design and construction
requirements of the Fair Housing Act and implementing regulations at 24
CFR 100.205 and the accessibility requirements of section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations
at 24 CFR 8.22 and 8.23 apply to units under the Agreement. If these
requirements are applicable, any required work item resulting from
these requirements must be included in the description of work to be
performed under the Agreement, as specified in paragraph (c)(1)(viii)
of this section.
(vii) Estimated initial rents to owner for the contract units;
(viii) Description of the work to be performed under the Agreement.
If the Agreement is for rehabilitation of units, the work description
must include the rehabilitation work write up and, where determined
necessary by the PHA, specifications and plans. If the Agreement is for
new construction, the work description must include the working
drawings and specifications.
(2) At a minimum, the housing must comply with the HQS. The PHA may
elect to establish additional requirements for quality, architecture,
or design of PBV housing, over and above the HQS, and any such
additional requirement must be specified in the Agreement.
Sec. 983.153 When Agreement is executed.
(a) Prohibition of excess subsidy. The PHA may not enter the
Agreement with the owner until the subsidy layering review is completed
(see Sec. 983.55).
(b) Environmental approval. The PHA may not enter the Agreement
with the owner until the environmental review is completed and the PHA
has received the environmental approval (see Sec. 983.58).
(c) Prompt execution of Agreement. The Agreement must be executed
promptly after PHA notice of proposal selection to the selected owner.
Sec. 983.154 Conduct of development work.
(a) Development requirements. The owner must carry out development
work in accordance with the Agreement, and the requirements of this
section.
(b) Labor standards. (1) In the case of an Agreement for
development of nine or more contract units (whether or not completed in
stages), the owner and the owner's contractors and subcontractors must
pay Davis-Bacon wages to laborers and mechanics employed in development
of the housing.
(2) The HUD prescribed form of Agreement shall include the labor
standards clauses required by HUD.
(3) The owner and the owner's contractors and subcontractors must
comply with the Contract Work Hours and Safety Standards Act,
Department of Labor regulations in 29 CFR part 5, and other applicable
federal labor relations laws and regulations. The PHA must monitor
compliance with labor standards.
(c) Equal opportunity. (1) Section 3--Training, employment, and
contracting opportunities. The owner must comply with Section 3 of the
Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) and the
implementing regulations at 24 CFR part 135.
(2) Equal employment opportunity. The owner must comply with
Federal equal employment opportunity requirements of Executive Orders
11246 as amended (3 CFR, 1964-1965 Comp., p. 339), 11625 (3 CFR, 1971-
1975 Comp., p. 616), 12432 (3 CFR, 1983 Comp., p. 198) and 12138 (3 CFR
1977 Comp., p. 393).
(d) Eligibility to participate in Federal programs and activities.
The Agreement and HAP contract shall include a certification by the
owner that the owner and other project principals (including the
officers and principal members, shareholders, investors, and other
parties having a substantial interest in the project) are not on the
U.S. General Services Administration list of parties excluded from
federal procurement and nonprocurement programs.
(e) Disclosure of conflict of interest. The owner must disclose any
possible conflict of interest that would be a violation of the
Agreement, the HAP contract, or HUD regulations.
Sec. 983.155 Completion of housing.
(a) Completion deadline. The owner must develop and complete the
housing in accordance with the Agreement. The Agreement must specify
the deadlines for completion of the housing, and for the owner to
submit required evidence of completion.
(b) Required evidence of completion. (1) Minimum submission. At a
minimum, the owner must submit the following evidence of completion to
the PHA in the form and manner required by the PHA and HUD:
[[Page 12963]]
(i) Owner certification that the work has been completed in
accordance with the HQS and all requirements of the Agreement; and
(ii) Owner certification that the owner has complied with labor
standards and equal opportunity requirements in development of the
housing.
(2) Additional documentation. At the discretion of the PHA or as
required by HUD, the Agreement may specify additional documentation
that must be submitted by the owner to evidence completion of the
housing. For example, such documentation may include:
(i) A certificate of occupancy or other evidence that the units
comply with local requirements (such as code and zoning requirements);
and
(ii) An architect's certification that the housing complies with:
(A) HUD housing quality standards;
(B) State, local, or other building codes;
(C) Zoning;
(D) The rehabilitation work write-up (for rehabilitated housing) or
the work description (for newly constructed housing); or
(E) Any additional design or quality requirements pursuant to the
Agreement.
Sec. 983.156 PHA acceptance of completed units.
(a) PHA determination of completion. When the PHA has received
owner notice that the housing is completed:
(1) The PHA must inspect to determine if the housing has been
completed in accordance with the Agreement, including compliance with
the HQS and any additional requirement imposed by the PHA under the
Agreement.
(2) The PHA must determine if the owner has submitted all required
evidence of completion.
(3) If the work has not been completed in accordance with the
Agreement, the PHA must not enter into the HAP contract.
(b) Execution of HAP contract. If the PHA determines that the
housing has been completed in accordance with the Agreement and that
the owner has submitted all required evidence of completion, the PHA
must submit the HAP contract for execution by the owner, and must then
execute the HAP contract.
Subpart E--Housing Assistance Payments Contract
Sec. 983.201 Applicability.
Subpart E applies to all PBV assistance under this part 983
(including assistance for existing, newly constructed, or rehabilitated
housing).
Sec. 983.202 Purpose of HAP contract.
(a) Requirement. The PHA must enter into a HAP contract with the
owner. The HAP contract must be in the form required by HUD
headquarters (see Sec. 982.162 of this chapter).
(b) Purpose of HAP contract. (1) The purpose of the HAP contract is
to provide housing assistance payments for eligible families.
(2) The PHA makes housing assistance payments to the owner in
accordance with the HAP contract. Housing assistance is paid for
contract units leased and occupied by eligible families during the HAP
contract term. HUD provides funds to the PHA to make housing assistance
payments to owners for eligible families.
Sec. 983.203 HAP contract information.
The HAP contract must specify:
(a) The total number of contract units by number of bedrooms;
(b) Information needed to identify the site and the building or
buildings where the contract units are located. The information must
include the project's name, street address, city or county, state and
zip code, block and lot number (if known), and any other information
necessary to clearly identify the site and the building;
(c) Information needed to identify the specific contract units in
each building. The information must include the number of contract
units in the building, the location of each contract unit, the area of
each contract unit, and the number of bedrooms and bathrooms in each
contract unit;
(d) Services, maintenance, and equipment to be supplied by the
owner without charges in addition to the rent to owner;
(e) Utilities available to the contract units, including a
specification of utility services to be paid by the owner (without
charges in addition to rent) and utility services to be paid by the
tenant;
(f) Features provided to comply with program accessibility
requirements of Section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 794) and implementing regulations at 24 CFR part 8;
(g) The HAP contract term;
(h) The number of units in any building that will exceed the 25
percent per building cap (as described in Sec. 983.56), which will be
set-aside for occupancy by qualifying families (elderly or disabled
families and FSS families); and
(i) The initial rent to owner (for the first 12 months of the HAP
contract term).
Sec. 983.204 When HAP contract is executed.
(a) PHA inspection of housing. (1) Before execution of the HAP
contract, the PHA must inspect each contract unit in accordance with
Sec. 983.103(b).
(2) The PHA may not enter into a HAP contract for any contract unit
until the PHA has determined that the unit complies with the HQS.
(b) Existing housing. In the case of existing housing, the HAP
contract must be executed promptly after PHA selection of the owner
proposal and PHA inspection of the housing.
(c) Newly constructed or rehabilitated housing. (1) In the case of
newly constructed or rehabilitated housing the HAP contract must be
executed after the PHA has inspected the completed units and has
determined that the units have been completed in accordance with the
Agreement and the owner has furnished all required evidence of
completion (see Sec. Sec. 983.155 and 983.156).
(2) In the HAP contract, the owner certifies that the units have
been completed in accordance with the Agreement. Completion of the
units by the owner, and acceptance of units by the PHA is subject to
the provisions of the Agreement.
Sec. 983.205 Term of HAP contract.
(a) Ten year initial term. The PHA may enter into a HAP contract
with an owner for an initial term of up to ten years for each contract
unit. The length of the term of the HAP contract for any contract unit
may not be less than one year, nor more than ten years.
(b) Extension of term. Within one year before expiration, the PHA
may agree to extend the term of the HAP contract for an additional term
of up to one year if the PHA determines an extension is appropriate to
continue providing affordable housing for low-income families.
Subsequent extensions are subject to the same limitations. Any
extension of the term must be on the form and subject to the conditions
prescribed by HUD at the time of the extension.
(c) Termination by PHA--insufficient funding. (1) The HAP contract
must provide that the term of the PHA's contractual commitment is
subject to the availability of sufficient appropriated funding (budget
authority) as determined by HUD or by the PHA in accordance with HUD
instructions. For purposes of this section, ``sufficient funding''
means the availability of appropriations, and of funding under the ACC
from such appropriations, to make full payment of housing assistance
payments payable to the owner for any contract year in accordance with
the terms of the HAP contract.
(2) The availability of sufficient funding must be determined by
HUD or by the PHA in accordance with HUD
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instructions. If it is determined that there may not be sufficient
funding to continue housing assistance payments for all contract units
and for the full term of the HAP contract, the PHA has the right to
terminate the HAP contract by notice to the owner for all or any of the
contract units. Such action by the PHA shall be implemented in
accordance with HUD instructions.
(d) Termination by owner--reduction below initial rent. The owner
may terminate the HAP contract, upon notice to the PHA, if the amount
of the rent to owner for any contract unit, as adjusted on any
anniversary date in accordance with Sec. 983.302, is reduced below the
amount of the initial rent to owner (rent to owner at the beginning of
the HAP contract term). In this case, the assisted families residing in
the contract units will be offered tenant-based voucher assistance.
Sec. 983.206 HAP contract amendments (to add or substitute contract
units).
(a) Amendment to substitute contract units. At the discretion of
the PHA and subject to all PBV requirements, the HAP contract may be
amended to substitute a different unit with the same number of bedrooms
in the same building for a previously covered contract unit. Prior to
such substitution, the PHA must inspect the proposed substitute unit,
and must determine the reasonable rent for such unit.
(b) Amendment to add contract units. At the discretion of the PHA,
and provided that the total number of units in a building that will
receive PBV assistance or other project-based assistance will not
exceed 25 percent of the number of dwelling units (assisted or
unassisted) in the building or the 20 percent of baseline units as
provided in 24 CFR 983.6, a HAP contract may be amended during the
three year period immediately following the execution date of the HAP
contract to add additional PBV contract units in the same building. An
amendment to the HAP contract is subject to all PBV requirements (e.g.,
compliance with Davis-Bacon wage rates during construction), except
that a new PBV proposal competition is not required. The anniversary
and expiration dates of the HAP contract for the additional units must
be the same as the anniversary and expiration dates of the HAP contract
term for the PBV units originally placed under HAP contract.
(c) Staged completion of contract units. Even if contract units are
placed under the HAP contract in stages commencing on different dates,
there is a single annual anniversary for all contract units under the
HAP contract. The annual anniversary for all contract units is the
annual anniversary date for the first contract units placed under the
HAP contract. The expiration of the HAP contract for all the contract
units completed in stages must be concurrent with the end of the HAP
contract term for the units originally placed under HAP contract.
Sec. 983.207 Condition of contract units.
(a) Owner maintenance and operation. (1) The owner must maintain
and operate the contract units and premises in accordance with the HQS,
including performance of ordinary and extraordinary maintenance.
(2) The owner must provide all the services, maintenance,
equipment, and utilities specified in the HAP contract with the PHA and
in the lease with each assisted family.
(3) At the discretion of the PHA, the HAP contract may also require
continuing owner compliance during the HAP term with additional housing
quality requirements specified by the PHA (in addition to, but not in
place of, compliance with the HUD-prescribed HQS). Such additional
requirements may be designed to assure continued compliance with any
design, architecture, or quality requirement specified in the
Agreement.
(b) Remedies for HQS violation. (1) The PHA must vigorously enforce
the owner's obligation to maintain contract units in accordance with
the HQS. The PHA may not make any HAP payment to the owner for a
contract unit covering any period during which the contract unit does
not comply with the HQS.
(2) If the PHA determines that a contract unit is not in accordance
with the housing quality standards (or other HAP contract requirement),
the PHA may exercise any of its remedies under the HAP contract for all
or any contract units. Such remedies include termination of housing
assistance payments, abatement or reduction of housing assistance
payments, reduction of contract units, and termination of the HAP
contract.
(c) Maintenance and replacement--Owner's standard practice.
Maintenance and replacement (including redecoration) must be in
accordance with the standard practice for the building concerned as
established by the owner.
Sec. 983.208 Owner responsibilities.
The owner is responsible for performing all of the owner
responsibilities under the Agreement and the HAP contract. Section
982.452 of this chapter (Owner responsibilities) applies.
Sec. 983.209 Owner certification.
By execution of the HAP contract, the owner certifies that at such
execution and at all times during the term of the HAP contract:
(a) All contract units are in good and tenantable condition. The
owner is maintaining the premises and all contract units in accordance
with the HQS.
(b) The owner is providing all the services, maintenance,
equipment, and utilities as agreed to under the HAP contract and the
leases with assisted families.
(c) Each contract unit for which the owner is receiving housing
assistance payments is leased to an eligible family referred by the
PHA, and the lease is in accordance with the HAP contract and HUD
requirements.
(d) To the best of the owner's knowledge, the members of the family
reside in each contract unit for which the owner is receiving housing
assistance payments, and the unit is the family's only residence.
(e) The owner (including a principal or other interested party) is
not the parent, child, grandparent, grandchild, sister, or brother of
any member of a family residing in a contract unit.
(f) The amount of the housing assistance payment is the correct
amount due under the HAP contract.
(g) The rent to owner for each contract unit does not exceed rents
charged by the owner for other comparable unassisted units.
(h) Except for the housing assistance payment and the tenant rent
as provided under the HAP contract, the owner has not received and will
not receive any payment or other consideration (from the family, the
PHA, HUD, or any other public or private source) for rental of the
contract unit.
(i) The family does not own or have any interest in the contract
unit.
Subpart F--Occupancy
Sec. 983.251 How participants are selected.
(a) Who may receive PBV assistance? (1) The PHA may select families
who are participants in the PHA's tenant-based voucher program and
families who have applied for admission to the voucher program.
(2) Except for voucher participants (determined eligible at
original admission to the voucher program), the PHA may only select
families determined eligible for admission at commencement of PBV
assistance.
(b) Protection of in-place families. (1) The term ``in-place
family'' means an eligible family residing in a proposed contract unit
on the proposal selection date.
[[Page 12965]]
(2) In order to minimize displacement of in-place families, if a
unit to be placed under contract that is either an existing unit or one
requiring rehabilitation is occupied by an eligible family on the
proposal selection date, the in-place family must be offered the
opportunity to lease an appropriately sized project-based assisted unit
in the project. (However, the PHA may deny assistance for the grounds
specified in Sec. Sec. 982.552 and 982.553 of this chapter.) Admission
of such families is not subject to income-targeting under Sec.
982.201(b)(2)(i). The PHA shall give such families priority for
admission to the PBV program.
(c) Selection from PHA waiting list. (1) Applicants who will occupy
PBV units must be selected by the PHA from the PHA waiting list. The
PHA must select applicants from the waiting list in accordance with the
policies in the PHA administrative plan.
(2) The PHA may use a separate waiting list for admission to PBV
units or may use the same waiting list for both tenant-based assistance
and PBV assistance. If the PHA chooses to use a separate waiting list
for admission to PBV units, the PHA must offer to place applicants who
are listed on the waiting list for tenant-based assistance on the
waiting list for PBV assistance.
(3) The PHA may use separate waiting lists for PBV units in
individual projects or buildings (or for sets of such units) or may use
a single waiting list for the PHA's whole PBV program. In either case,
the waiting list may establish criteria or preferences for occupancy of
particular units.
(4) The PHA may merge the waiting list for PBV assistance with the
PHA waiting list for admission to another assisted housing program.
(5) The PHA may place families referred by the PBV owner on its PBV
waiting list.
(6) Not less than 75 percent of the families admitted to a PHA's
tenant-based and project-based voucher programs during the PHA fiscal
year from the PHA waiting list shall be extremely low-income families.
The income-targeting requirements at Sec. 982.201(b)(2) of this
chapter apply to the total of admissions to the PHA's project-based
voucher program and tenant-based voucher program during the PHA fiscal
year from the PHA waiting list for such programs.
(7) In selecting families to occupy PBV units with special
accessibility features for persons with disabilities, the PHA must
first refer families who require such accessibility features to the
owner (see 24 CFR 8.26 and 100.202).
(d) Offer of PBV assistance. (1) If a family refuses the PHA's
offer of PBV assistance, such refusal does not affect the family's
position on the PHA waiting list for tenant-based assistance.
(2) If a PBV owner rejects a family for admission to the owner's
PBV units, such rejection by the owner does not affect the family's
position on the PHA waiting list for tenant-based assistance.
(3) The PHA may not take any of the following actions because an
applicant has applied for, received or refused an offer of PBV
assistance:
(i) Refuse to list the applicant on the PHA waiting list for
tenant-based assistance;
(ii) Deny any admission preference for which the applicant is
currently qualified;
(iii) Change the applicant's place on the waiting list based on
preference, date and time of application, or other factors affecting
selection under the PHA selection policy; or
(iv) Remove the applicant from the waiting list for tenant-based
voucher assistance.
Sec. 983.252 PHA information for accepted family.
(a) Oral briefing. When a family accepts an offer of PBV
assistance, the PHA must give the family an oral briefing. The briefing
must include information on the following subjects:
(1) A description of how the program works; and
(2) Family and owner responsibilities.
(b) Information packet. The PHA must give the family a packet that
includes information on the following subjects:
(1) How the PHA determines the total tenant payment for a family;
and
(2) Family obligations under the program.
(c) Providing information for persons with disabilities. (1) If the
family head or spouse is a disabled person, the PHA must take
appropriate steps to assure effective communication, in accordance with
24 CFR 8.6, in conducting the oral briefing.
(2) The PHA shall have some mechanism for referring to accessible
PBV units a family that includes a person with mobility impairment.
Sec. 983.253 Leasing of contract units.
(a) Owner selection of tenants. (1) During the term of the HAP
contract, the owner must lease contract units only to eligible families
selected and referred by the PHA from the PHA waiting list.
(2) The owner may apply its own admission standards in determining
whether to lease a unit to a family referred by the PHA.
(b) Size of unit. The contract unit leased to each family must be
appropriate for the size of the family under the PHA's subsidy
standards.
Sec. 983.254 Vacancies.
(a) Filling vacant units. (1) The owner must promptly notify the
PHA of any vacancy or anticipated vacancy in a contract unit. After
receiving the owner notice, the PHA must make every reasonable effort
to refer promptly a sufficient number of families for the owner to fill
such vacancies.
(2) The owner must lease vacant contract units only to eligible
families on the PHA waiting list referred by the PHA.
(3) The PHA and the owner must make reasonable good faith efforts
to minimize the likelihood and length of any vacancy.
(b) Reducing number of contract units. If any contract units have
been vacant for a period of 120 or more days since owner notice of
vacancy (and notwithstanding the reasonable good faith efforts of the
PHA to fill such vacancies), the PHA may give notice to the owner
amending the HAP contract to reduce the number of contract units by
subtracting the number of contract units (by number of bedrooms) that
that have been vacant for such period.
Sec. 983.255 Tenant screening.
(a) PHA option. (1) The PHA has no responsibility or liability to
the owner or any other person for the family's behavior or suitability
for tenancy. However, the PHA may opt to screen applicants for family
behavior or suitability for tenancy.
(2) The PHA must conduct any such screening of applicants in
accordance with policies stated in the PHA administrative plan.
(b) Owner responsibility. (1) The owner is responsible for
screening and selection of the family to occupy the owner's unit.
(2) The owner is responsible for screening of families on the basis
of their tenancy histories. An owner may consider a family's background
with respect to such factors as:
(i) Payment of rent and utility bills;
(ii) Caring for a unit and premises;
(iii) Respecting the rights of other residents to the peaceful
enjoyment of their housing;
(iv) Drug-related criminal activity or other criminal activity that
is a threat to the health, safety, or property of others;
(v) Compliance with other essential conditions of tenancy; and
(vi) Other factors determined by the owner.
(c) Providing tenant information to owner. (1) The PHA must give
the owner:
[[Page 12966]]
(i) The family's current and prior address (as shown in the PHA
records); and
(ii) The name and address (if known to the PHA) of the landlord at
the family's current and any immediately prior address.
(2) When a family wants to lease a dwelling unit, the PHA may offer
the owner other information in the PHA possession about the family,
including information about the tenancy history of family members or
about criminal activity by family members.
(3) The PHA must give the family a statement of the PHA policy on
providing information to owners. The statement must be included in the
information package that is given to a family that is selected to
received PBV assistance.
(4) The PHA policy must provide that the PHA will give the same
types of information to all PBV families and owners.
Sec. 983.256 Lease.
(a) Tenant's legal capacity. The tenant must have legal capacity to
enter a lease under state and local law. ``Legal capacity'' means that
the tenant is bound by the terms of the lease and may enforce the terms
of the lease against the owner.
(b) Form of lease. (1) The tenant and the owner must enter a
written lease for the unit. The lease must be executed by the owner and
the tenant.
(2) If the owner uses a standard lease form for rental to
unassisted tenants in the locality or the premises, the lease must be
in such standard form, except as provided in paragraph (b)(4) of this
section. If the owner does not use a standard lease form for rental to
unassisted tenants, the owner may use another form of lease, such as a
PHA model lease.
(3) In all cases, the lease must include a HUD-required tenancy
addendum. The tenancy addendum must include word-for-word all
provisions required by HUD.
(4) The PHA may review the owner's lease form to determine if the
lease complies with state and local law, and if not, may require the
owner to revise the form to comply with state and local law.
(c) Required information. The lease must specify all of the
following:
(1) The names of the owner and the tenant;
(2) The unit rented (address, apartment number, if any, and any
other information needed to identify the leased unit);
(3) The term of the lease (initial term and any provision for
renewal);
(4) The amount of the tenant rent. The tenant rent is subject to
change during the term of the lease in accordance with HUD
requirements.
(5) A specification of what services, maintenance, equipment, and
utilities are to be provided by the owner.
(d) Tenancy addendum. (1) The tenancy addendum in the lease shall
state:
(i) The program tenancy requirements (as specified in this part);
(ii) The composition of the household as approved by the PHA (names
of family members and any PHA-approved live-in aide).
(2) All provisions in the HUD-required tenancy addendum must be
included in the lease. The terms of the tenancy addendum shall prevail
over other provisions of the lease.
(e) Changes in lease. (1) If the tenant and the owner agree to any
change in the lease, such change must be in writing, and the owner must
immediately give the PHA a copy of such change.
(2) The owner must notify the PHA in advance of any proposed change
in lease requirements governing the allocation of tenant and owner
responsibilities for utilities. Such change may only be made if
approved by the PHA and in accordance with the terms of the lease
relating to its amendment. The PHA must redetermine reasonable rent
based on any change in the allocation of responsibility for utilities
between the owner and the tenant, and the redetermined reasonable rent
shall be used in calculation of rent to owner from the effective date
of the change.
(f) Initial term of lease. (1) Except as provided in paragraph
(f)(2) of this section, the initial lease term must be for at least one
year.
(2) The PHA may approve a shorter initial lease term if the PHA
determines that:
(i) Such shorter term would improve housing opportunities for the
tenant: and
(ii) Such shorter term is the prevailing local market practice.
(g) Lease provisions governing tenant absence from the unit. The
lease may specify a maximum period of tenant absence from the unit that
may be shorter than the maximum period permitted by PHA policy. (PHA
termination of assistance actions due to family absence from the unit
is subject to Sec. 982.312 of this chapter, except that the HAP
contract is not terminated if the family is absent for longer than the
maximum period permitted.)
Sec. 983.257 Owner termination of tenancy and eviction for criminal
activity or alcohol abuse.
Section 982.310 of this chapter applies with the exception that
Sec. 982.310(d)(1)(iii) and (iv) does not apply to the PBV program.
(In the PBV program, ``good cause'' does not include a business or
economic reason or desire to use the unit for personal, family, or a
non-residential rental purpose.)
Sec. 983.258 Security deposit: amounts owed by tenant.
(a) The owner may collect a security deposit from the tenant.
(b) The PHA may prohibit security deposits in excess of private
market practice, or in excess of amounts charged by the owner to
unassisted tenants.
(c) When the tenant moves out of the contract unit, the owner,
subject to state and local law, may use the security deposit, including
any interest on the deposit, in accordance with the lease, as payment
or reimbursement for any unpaid tenant rent, damages to the unit or
other amounts which the tenant owes under the lease.
(d) The owner must give the tenant a written list of all items
charged against the security deposit and the amount of each item. After
deducting the amount used as payment or reimbursement to the owner, the
owner must promptly refund the full amount of the balance to the
tenant.
(e) If the security deposit is not sufficient to cover amounts the
tenant owes under the lease, the owner may seek to collect the balance
from the tenant. However, the PHA has no liability or responsibility
for payment of any amount owed by the family to the owner.
Sec. 983.259 Overcrowded, under-occupied, and accessible units.
(a) Family occupancy of wrong-size or accessible unit. The PHA
subsidy standards determine the appropriate unit size for the family
size and composition. If the PHA determines that a family is occupying
a:
(1) Wrong-size unit, or
(2) Unit with accessibility features that the family does not
require, and the unit is needed by a family that requires the
accessibility features, the PHA must promptly notify the family and the
owner of this determination, and of the PHA's offer of continued
assistance in another unit pursuant to paragraph (b) of this section.
(b) PHA offer of continued assistance. (1) If a family is occupying
a:
(i) Wrong-size unit, or
(ii) Unit with accessibility features that the family does not
require, and the
[[Page 12967]]
unit is needed by a family that requires the accessibility features,
the PHA must offer the family the opportunity to receive continued
housing assistance in another unit.
(2) Such continued housing assistance may be in the form of:
(i) Project-based voucher assistance in an appropriate-size unit
(in the same building or in another building);
(ii) Other project-based housing assistance (e.g., by occupancy of
a public housing unit),
(iii) Tenant-based rental assistance under the voucher program; or
(iv) Other comparable public or private tenant-based assistance
(e.g., under the HOME program).
(c) PHA termination of housing assistance payments. (1) If the PHA
offers the family the opportunity to receive tenant-based rental
assistance under the voucher program, the PHA must terminate the
housing assistance payments for a wrong-sized or accessible unit at
expiration of the term of the family's voucher (including any extension
granted by the PHA).
(2) If the PHA offers the family the opportunity for another form
of continued housing assistance in accordance with paragraph (b)(2) of
this section (not in the tenant based voucher program), the PHA must
terminate the housing assistance payments for a wrong-sized or
accessible unit at the expiration of a reasonable period as determined
by the PHA.
Sec. 983.260 Family right to move.
(a) The family may terminate the assisted lease at any time after
the first year of occupancy. If the family terminates the assisted
lease before the end of one year, the family relinquishes the
opportunity for continued tenant-based assistance. The family must give
the owner advance written notice of intent to vacate (with a copy to
the PHA) in accordance with the lease.
(b) If the family has elected to terminate the lease in this
manner, the PHA must offer the family the opportunity for continued
tenant-based rental assistance, in the form of either assistance under
the voucher program or other comparable tenant-based rental assistance.
(c) Before providing notice to terminate the lease, the family must
contact the PHA to request comparable tenant-based rental assistance if
the family wishes to move with continued assistance. If voucher or
comparable tenant-based rental assistance is not immediately available
upon termination of the family's lease of a PBV unit, the PHA must give
the family priority to receive the next available opportunity for
continued tenant-based rental assistance.
Sec. 983.261 When occupancy may exceed 25 percent cap on the number
of PBV units in each building.
(a) Except as provided in Sec. 983.56(b), the PHA may not pay
housing assistance under the HAP contract for contract units in excess
of the 25 percent cap pursuant to Sec. 983.56(a).
(b) In referring families to the owner for admission to excepted
units, the PHA must give preference to elderly or disabled families; or
to families receiving supportive services under a voucher, project-
based certificate, or public housing family self-sufficiency (FSS)
program; or to families who are in compliance with their FSS contract
of participation at the beginning of the assisted unit lease term, for
occupancy of the number of contract units set aside for occupancy by
such families.
(c) A family (or the remaining members of the family) residing in
an excepted unit that no longer meets the criteria for a ``qualifying
family'' in connection with the 25 percent per building cap exception
(e.g., a family violating its contract of participation or the
remaining members of a family that no longer qualifies for elderly or
disabled family status) must vacate the unit within a reasonable period
of time established by the PHA. A family otherwise in compliance with
its family obligations will be provided a tenant-based voucher or
comparable rental assistance in accordance with Sec. 983.260 to move
from the excepted unit. Alternatively, if the project is partially
assisted, the family need not move if it is possible for the HAP
contract to be amended to substitute a different unit in the building
in accordance with Sec. 983.206(a). The assistance for a family
residing in an excepted unit that is not in compliance with its family
obligations (e.g., a family violating its FSS contract of
participation) may be terminated by the PHA.
Subpart G--Rent to Owner
Sec. 983.301 Determining the rent to owner.
(a) Initial and redetermined rent. (1) The amount of the initial
and redetermined rent to owner is determined in accordance with this
section and Sec. 983.302.
(2) The amount of the initial rent to owner is established at the
beginning of the HAP contract term. For rehabilitated or newly
constructed housing, the Agreement states the estimated amount of the
initial rent to owner, but the actual amount of the initial rent to
owner is established at the beginning of the HAP contract term.
(3) The rent to owner is redetermined annually on each contract
anniversary in accordance with this section and Sec. 983.302.
(b) Amount of rent to owner. Except for certain tax credit units as
provided in