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Catalog of Federal Domestic Assistance

Program Descriptions

CATALOG OF FEDERAL DOMESTIC ASSISTANCE

14.195: Section 8 Housing Assistance Payments Program: Special Allocations

Popular Name: Project-based Section 8

Objectives: To reduce claims on the Department's insurance fund by aiding projects with FHA-insured or Secretary-held mortgages that have immediate or potentially serious financial difficulties.

PROGRAM AND AWARD FINANCIAL AND INFORMATION CONTACTS

ELIGIBILITY REQUIREMENTS FINANCIAL AND ADMINISTRATIVE INFO.

APPLICATION AND AWARD PROCESS INFORMATION CONTACTS

RELATED PROGRAMS ASSISTANCE CONSIDERATIONS

PROGRAM ACCOMPLISHMENTS POST ASSISTANCE REQUIREMENTS

14.195 ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: No funding is available to new applicants. Funding is currently available only for the owners of record of projects with an existing expiring project-based Section 8 contract. The project must meet minimum decent, safe, and sanitary standards.

Beneficiary Eligibility: Families currently receiving assistance as long as their income does not exceed 80 percent of area median income adjusted for smaller or larger families.

Credentials/Documentation: Project must meet minimum decent, safe, and sanitary standards for HUD to renew the Section 8 contract.

14.195 APPLICATION AND AWARD PROCESS:

Preapplication Coordination: This program is excluded from coverage under E.O. 12372.

Application Procedure: Project owner must notify HUD within 180 days of contract expiration that it wishes to renew the Section 8 contract.

Award Procedure: Contract is renewed upon expiration.

Deadlines: Owner must notify HUD within 180 days of contract expiration that it intends to renew contract.

Range of Approval/Disapproval Time: Approval given by date of contract expiration.

Appeals: Not applicable.

Renewals: Subject to appropriations and owner's interest in renewing contract.

Criteria for Selecting Proposals: Not applicable.

Examples of Funded Projects: Projects with HUD-insured mortgages; projects with HUD-held mortgages; projects with non-insured mortgages; projects with Section 202 Direct Loans.

Range and Average of Financial Assistance: Eligible tenants pay no more than 30 percent of their monthly adjusted income for rent.

14.195 RELATED PROGRAMS:

14.126 Mortgage Insurance: Cooperative Projects;
14.132 Mortgage Insurance: Purchase of Sales-Type Cooperative Housing Units;
14.134 Mortgage Insurance: Rental Housing;
14.135 Mortgage Insurance: Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate;
14.138 Mortgage Insurance: Rental Housing for the Elderly;
14.139 Mortgage Insurance: Rental Housing in Urban Renewal Areas;
14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects;
14.157 Supportive Housing for the Elderly;
14.181 Supportive Housing for Persons with Disabilities.

14.195 PROGRAM ACCOMPLISHMENTS:

There were about 1.5 million families assisted in fiscal year 1999.

14.195 FINANCIAL AND ADMINISTRATIVE INFO:

Federal Agency: OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Type of Assistance: Direct Payments for Specified Use.

Obligations: FY 99 $7,552,062,000; FY 00 est $7,813,032,000; and FY 01 est $7,919,305,000.

Budget Account Number: 86-0319-0-1-604; 86-0164-0-1-604; 86-0311-0-1-604; 86-0316-0-1-604.

Authorization: United States Housing Act of 1937, Section 8(c)(9).

Regulations, Guidelines, and Literature: HUD Notice H98-34, "Contract Non-Renewal Notice"; CFR Part 886 - Section 8 Housing Assistance Payments Program_Special Allocations.

14.195 INFO CONTACTS:

Regional or Local Office: Persons may contact local field offices listed in Appendix IV of the Catalog.

Headquarters Office: Department of Housing and Urban Development, Office of Multifamily Asset Management and Disposition, Program Management Division, 451 7th Street, SW., Washington, DC 20410. Phone: (202) 708-3730.

(See Appendix IV for more contact info.)

14.195 ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.

Length and Time Phasing of Assistance: One year.

Uses and Use Restrictions: The assistance is paid by HUD to the owner of an assisted unit on behalf of an eligible family. The payment is the difference between the contract rent and the tenant rent. Assistance is currently available only on a renewal basis, i.e., projects currently assisted may receive a one-year renewal upon expiration of the Section 8 contract.

14.195 POST ASSISTANCE REQUIREMENTS:

Reports: The owner must submit to HUD within 60 days after the end of each fiscal year of the project, financial statements for the project audited by an Independent Public Accountant and other statements as to project operation, financial conditions and occupancy.

Audits: The owner must permit HUD to review and audit the management and maintenance of the project at any time to assure the owner is meeting its obligation to maintain the units and related facilities in decent, safe, and sanitary condition.

Records: The owner must reexamine the income and composition of all families at least once each year and prepare and furnish other information required under the Section 8 contract.