HUD Notice 2019-02: 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 program prevents the displacement of unassisted, low‐income tenants in properties in low vacancy areas that have experienced or will experience a qualified Triggering Event that could threaten affordability.The Triggering Event must have occurred in the past 5 years, or be set to occur in the next 6 months in order to obtain Project Based Vouchers (PBVs) which would be administered by a HUD identified local housing authority.
Only residents considered to be “at risk” qualify for vouchers. 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% of adjusted monthly income toward rent (FMR/SAFMR rents are used for the initial determination of at‐risk residents).
Rental assistance under this notice can be pursued alone or in conjunction with a refinance. Once secured, this rental assistance could help to leverage new debt to make capital improvements to the building.
Source: HUD Notice H 2019-02