HUD Notice H 2018-01: Funding Availability for Set-Aside Tenant-Protection Vouchers (including Project Based Vouchers (PBVs))
Since 2014, HUD has issued an annual Notice announcing the availability of funds for Tenant Protection Vouchers (TPVs), including Project Based Vouchers (PBVs) for eligible units at properties located in low- vacancy areas that have experienced maturity of a HUD insured or HUD held loan or affordability restriction.
This notice offers the option of project-based vouchers to properties that meet the following criteria:
- Low vacancy area: Property must be part of a low vacancy area, as identified in the Notice.
- Triggering Event: Property must have experienced a triggering event in the 5 years prior to February 8, 2018 or a triggering event must be anticipated to occur no later than 180 days following the Owner’s submission. Triggering events include:
- The maturity of a HUD Section 202 direct loan; Section 236 insured or HUD-held mortgage; or Sections 221(d)(3)–(d)(5) Below Market Interest Rate (BMIR) insured or HUD-held mortgage that would have required the permission of the Secretary prior to loan prepayment.
- The expiration of a HUD-imposed affordability restriction accompanying a mortgage or preservation program administered by the Secretary.
Project based vouchers can only be awarded to at risk residents at eligible properties. At risk residents are identified as individuals meeting all the following criteria:
- Resides at the project at the time of the owner’s request. If the triggering event happened before the owner submits the request, the resident must have also resided at the project at the time of the triggering event.
- Is not currently assisted under any federal, state, or local rental assistance program.
- As the result of an eligible triggering event, either is paying or may have to pay greater than 30 percent of adjusted monthly income toward rent.
Source: HUD Notice H 2018-01 issued February 8, 2018.