More Voucher Assistance Funding for Owners in Low-Vacancy Areas
On May 21, HUD issued guidance making $5 million in tenant protection voucher assistance available for certain at-risk households in low-vacancy areas. Notice HUD 2014-13 provides instructions, eligibility, and selection criteria for $5 million of the $130 million appropriated for tenant protection actions in the Consolidated Appropriations Act, 2014 (PL 113-76). HUD will accept requests for assistance on a rolling basis until the funding is exhausted. Owners may submit requests to the HUD Multifamily Hub/Program Center Director for either enhanced vouchers or project-based voucher (PBV) assistance, which will be administered by a public housing agency (PHA).
Under the notice, three categories of properties in low-vacancy areas are eligible for either enhanced vouchers or PBV assistance. Owners in compliance with civil rights threshold requirements may request assistance for unassisted at-risk households residing at the property if the property has experienced or will experience one of the following three categories of events in FY 2014 (Oct. 1, 2013, to Sept. 30, 2014):
- Category 1: Maturity of a HUD-insured, HUD-held, or Section 202 loan that requires prepayment approval. This category includes only Section 202 Direct Loans and matured Section 236 and 221(d)(3)-(d)(5) Below Market Interest Rate (BMIR) primary mortgages.
- Category 2: Expiration of a rental assistance contract for which tenants are not eligible for enhanced vouchers or tenant protection assistance under current law. This category includes only Rental Assistance Payments (RAP) contracts that expired prior to FY 2012 or Rent Supplement contract that expired prior to FY 2000. RAP contract expirations in FY 2012 or later and Rent Supplement contract expirations in FY2000 or later are not eligible for assistance because tenant in such properties were already eligible for enhanced vouchers or tenant protection assistance under current law.
- Category 3: Expiration of affordability restrictions accompanying a mortgage or preservation program administered by the secretary. This category includes matured Section 236, Section 221(d)(3)-(d)(5), or Section 202 Direct Loan mortgages where secretary permission is not required to prepay as long as the affordability restrictions expired with the maturity of the mortgage. It also includes properties with expired “stand alone” affordability restrictions.