Since 2014, HUD has issued an annual Notice announcing the availability of funds for Project Based Vouchers (PBVs) for eligible units at properties located in low- vacancy areas that have experienced maturity of a HUD insured or held loan.
This notice offers project based vouchers for properties that meet the following criteria:
- Property must have experienced one of the following three events prior to September 30th of the subject fiscal year:
- Maturity of a HUD insured, HUD-held or Section 202 loan that requires the permission of the Secretary prior to prepayment (note: this category includes Section 236 and 221(d)(3)-(d)(5) below market interest rate mortgages);
- The expiration of a rental assistance contract for which the tenants are not eligible for enhanced voucher or tenant protection assistance under existing law; or
- The expiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary.
- Furthermore, the project must be located in a low-vacancy area as designated in Attachment A to each Notice.
Project vouchers can only be awarded to eligible units. Eligible units must meet all of the following qualifications in order to receive a project based voucher:
- Tenant must have resided at the property at the time of mortgage maturity
- Tenant’s income must be below 80% AMI
- Tenant must be determined to be “rent-burdened” beyond 30% of their income as per the Notice language.