Tenant Protection Vouchers for Certain At Risk Households in Low Vacancy Areas

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.