PROJECT BASED VOUCHER CHAPTER

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Chapter 17 
PROJECT-BASED VOUCHERS 
INTRODUCTION 
This chapter describes HUD regulations and PHA policies related to the project-based voucher 
(PBV) program in nine parts: 
Part I: General Requirements. This part describes general provisions of the PBV program 
including maximum budget authority requirements, relocation requirements, and equal 
opportunity requirements. 
Part II: PBV Owner Proposals. This part includes policies related to the submission and 
selection of owner proposals for PBV assistance. It describes the factors the PHA will 
consider when selecting proposals, the type of housing that is eligible to receive PBV 
assistance, the cap on assistance at projects receiving PBV assistance, subsidy layering 
requirements, site selection standards, and environmental review requirements. 
Part III: Dwelling Units. This part describes requirements related to housing quality 
standards, the type and frequency of inspections, and housing accessibility for persons 
with disabilities. 
Part IV: Rehabilitated and Newly Constructed Units. This part describes requirements 
and policies related to the development and completion of rehabilitated and newly 
constructed housing units that will be receiving PBV assistance. 
Part V: Housing Assistance Payments Contract. This part discusses HAP contract 
requirements and policies including the execution, term, and termination of the HAP 
contract. In addition, it describes how the HAP contract may be amended and identifies 
provisions that may be added to the HAP contract at the PHA’s discretion. 
Part VI:  Selection of PBV Program Participants. This part describes the requirements 
and policies governing how the PHA and the owner will select a family to receive PBV 
assistance. 
Part VII: Occupancy. This part discusses occupancy requirements related to the lease and 
describes under what conditions families are allowed or required to move. In addition, 
exceptions to the occupancy cap (which limits PBV assistance to 25 percent of the units 
in any project) are also discussed. 
Part VIII: Determining Rent to Owner. This part describes how the initial rent to owner is 
determined, and how rent will be redetermined throughout the life of the HAP contract. 
Rent reasonableness requirements are also discussed. 
Part IX: Payments to Owner. This part describes the types of payments owners may 
receive under this program.

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PART I: GENERAL REQUIREMENTS 
17-I.A. OVERVIEW [24 CFR 983.5; FR Notice 1/18/17; Notice PIH 2017-21] 
The project-based voucher (PBV) program allows PHAs that already administer a tenant-based 
voucher program under an annual contributions contract (ACC) with HUD to take up to 20 
percent of its authorized units and attach the funding to specific units rather than using it for 
tenant-based assistance [24 CFR 983.6]. PHAs may only operate a PBV program if doing so is 
consistent with the PHA’s Annual Plan, and the goal of deconcentrating poverty and expanding 
housing and economic opportunities [42 U.S.C. 1437f(o)(13)].  
PHA Policy 
The PHA will operate a project-based voucher program using up to 20 percent of its 
authorized units for project-based assistance. 
See Exhibit 17-1 for information on projects to which the PHA has attached 
PBV assistance. 
PBV assistance may be attached to existing housing or newly constructed or rehabilitated 
housing [24 CFR 983.52]. If PBV units are already selected for project-based assistance either 
under an agreement to enter into HAP Contract (Agreement) or a HAP contract, the PHA is not 
required to reduce the number of these units if the number of authorized units is subsequently 
reduced. However, the PHA is responsible for determining the amount of budget authority that is 
available for project-based vouchers and ensuring that the amount of assistance that is attached to 
units is within the amounts available under the ACC, regardless of whether the PHA has 
vouchers available for project-basing [FR Notice 1/18/17]. 
Additional Project-Based Units [FR Notice 1/18/17; Notice PIH 2017-21] 
The PHA may project-base an additional 10 percent of its units above the 20 percent program 
limit. The units may be distributed among one, all, or a combination of the categories as long as 
the total number of units does not exceed the 10 percent cap. Units qualify under this exception if 
the units: 
• Are specifically made available to house individuals and families that meet the definition of 
homeless under section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11302) and contained in the Continuum of Care Interim Rule at 24 CFR 578.3. 
• Are specifically made available to house families that are comprised of or include a veteran.  
- 
Veteran means an individual who has served in the United States Armed Forces.  
• Provide supportive housing to persons with disabilities or elderly persons as defined in 24 
CFR 5.403.  
• Are located in a census tract with a poverty rate of 20 percent or less, as determined in the 
most recent American Community Survey Five-Year Estimates. 
Only units that that are under a HAP contract that was first executed on or after April 18, 2017, 
are covered by the 10 percent exception.

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PHA Policy 
The PHA may project-base up to an additional 10 percent of its authorized units, up to 
30 percent, in accordance with HUD regulations and requirements. 
Units Not Subject to the PBV Program Limitation [FR Notice 1/18/17] 
PBV units under the RAD program and HUD-VASH PBV set-aside vouchers do not count 
toward the 20 percent limitation when PBV assistance is attached to them.  
In addition, units that were previously subject to certain federal rent restrictions or were 
receiving another type of long-term housing subsidy provided by HUD are not subject to the cap. 
The unit must be covered under a PBV HAP contract that first became effective on or after 
April 18, 2017. 
PHA Policy 
The PHA may project-base units not subject to the 20 percent cap in accordance with 
HUD regulations and requirements. 
17-I.B. TENANT-BASED VS. PROJECT-BASED VOUCHER ASSISTANCE  
[24 CFR 983.2] 
Much of the tenant-based voucher program regulations also apply to the PBV program. 
Consequently, many of the PHA policies related to tenant-based assistance also apply to PBV 
assistance. The provisions of the tenant-based voucher regulations that do not apply to the PBV 
program are listed at 24 CFR 983.2.  
PHA Policy 
Except as otherwise noted in this chapter, or unless specifically prohibited by PBV 
program regulations, the PHA policies for the tenant-based voucher program contained in 
this administrative plan also apply to the PBV program and its participants. 
17-I.C. RELOCATION REQUIREMENTS [24 CFR 983.7] 
Any persons displaced as a result of implementation of the PBV program must be provided 
relocation assistance in accordance with the requirements of the Uniform Relocation Assistance 
and Real Property Acquisition Policies Act of 1970 (URA)[42 U.S.C. 4201-4655] and 
implementing regulations at 49 CFR part 24. 
The cost of required relocation assistance may be paid with funds provided by the owner, local 
public funds, or funds available from other sources. PHAs may not use voucher program funds to 
cover relocation costs, except that PHAs may use their administrative fee reserve to pay for 
relocation expenses after all other program administrative expenses are satisfied, and provided 
that payment of the relocation benefits is consistent with state and local law. Use of the 
administrative fee for these purposes must also be consistent with other legal and regulatory 
requirements, including the requirement in 24 CFR 982.155 and other official HUD issuances. 
The acquisition of real property for a PBV project is subject to the URA and 49 CFR part 24, 
subpart B. It is the responsibility of the PHA to ensure the owner complies with these 
requirements.

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17-I.D. EQUAL OPPORTUNITY REQUIREMENTS [24 CFR 983.8] 
The PHA must comply with all equal opportunity requirements under federal law and regulations 
in its implementation of the PBV program. This includes the requirements and authorities cited 
at 24 CFR 5.105(a). In addition, the PHA must comply with the PHA Plan certification on civil 
rights and affirmatively furthering fair housing, submitted in accordance with 24 CFR 903.7(o). 
PART II: PBV OWNER PROPOSALS 
17-II.A. OVERVIEW 
With certain exceptions, the PHA must describe the procedures for owner submission of PBV 
proposals and for PHA selection of PBV proposals [24 CFR 983.51]. Before selecting a PBV 
proposal, the PHA must determine that the PBV proposal complies with HUD program 
regulations and requirements, including a determination that the property is eligible housing [24 
CFR 983.53 and 983.54], complies with the cap on the number of PBV units per project [24 CFR 
983.56], and meets the site selection standards [24 CFR 983.57]. The PHA may not commit 
PBVs until or unless it has followed the proposal selection requirements defined in 24 CFR 
983.51 [Notice PIH 2011-54]. 
17-II.B. OWNER PROPOSAL SELECTION PROCEDURES [24 CFR 983.51(b)] 
The PHA must select PBV proposals in accordance with the selection procedures in the PHA 
administrative plan. The PHA must select PBV proposals by either of the following two 
methods. 
• PHA request for PBV Proposals. The PHA may solicit proposals by using a request for 
proposals to select proposals on a competitive basis in response to the PHA request.  The 
PHA may not limit proposals to a single site or impose restrictions that explicitly or 
practically preclude owner submission of proposals for PBV housing on different sites. 
• The PHA may select proposal that were previously selected based on a competition. This 
may include selection of a proposal for housing assisted under a federal, state, or local 
government housing assistance program that was subject to a competition in accordance with 
the requirements of the applicable program, community development program, or supportive 
services program that requires competitive selection of proposals (e.g., HOME, and units for 
which competitively awarded LIHTCs have been provided), where the proposal has been 
selected in accordance with such program's competitive selection requirements within three 
years of the PBV proposal selection date, and the earlier competitive selection proposal did 
not involve any consideration that the project would receive PBV assistance. The PHA need 
not conduct another competition. 
Units Selected Non-Competitively [FR Notice 1/18/17; Notice PIH 2017-21; 
24 CFR 983.51(b)] 
For certain public housing projects where the PHA has an ownership interest or control, the PHA 
may attach PBV assistance non-competitively without following one of the two processes above.

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This exception applies when the PHA is engaged in an initiative to improve, develop, or replace 
a public housing property or site. The public housing units may either currently be in the public 
housing inventory or may have been removed from the public housing inventory within five 
years of the date on which the PHA entered into the AHAP or HAP.  
If the PHA is planning rehabilitation or new construction on the project, a minimum threshold of 
$25,000 per unit in hard costs must be expended. 
If the PHA plans to replace public housing by attaching PBV assistance to existing housing in 
which the PHA has an ownership interest or control, then the $25,000 per unit minimum 
threshold does not apply as long as the existing housing substantially complies with HQS. 
The PHA must include in the administrative plan what work it plans to do on the property or site 
and how many PBV units will be added to the site. 
PHA Policy 
The PHA may attach PBVs to projects owned by the PHA as described above. 
Solicitation and Selection of PBV Proposals [24 CFR 983.51(c)] 
PHA procedures for selecting PBV proposals must be designed and actually operated to provide 
broad public notice of the opportunity to offer PBV proposals for consideration by the PHA.  
The public notice procedures may include publication of the public notice in a local newspaper 
of general circulation and other means designed and actually operated to provide broad public 
notice. The public notice of the PHA request for PBV proposals must specify the submission 
deadline. Detailed application and selection information must be provided at the request of 
interested parties. 
PHA Policy 
PHA Request for Proposals for Rehabilitated and Newly Constructed Units 
The PHA will advertise its request for proposals (RFP) for rehabilitated and newly 
constructed housing in the following newspapers and trade journals. 
Glendale Star, Arizona Republic, La Voz 
The advertisement will state the number of vouchers available to be project-based, the 
type of units that will be considered, the submission deadline, and will note how to obtain 
the full RFP with information on the application and selection process. Advertisements 
will also contain a statement that participation in the PBV program requires compliance 
with Fair Housing and Equal Opportunity (FHEO) requirements. 
In addition, the PHA will post the RFP and proposal submission and rating and ranking 
procedures on its website. 
The PHA will publish its advertisement in the newspapers and trade journals mentioned 
above for at least one day per week for two consecutive weeks. The advertisement will 
specify the number of units the PHA estimates that it will be able to assist under the 
funding the PHA is making available. Proposals will be due in the PHA office by close of 
business between 5 and 25 calendar days (the notice will specify the number of days) 
from the date of the last publication.

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In order for the proposal to be considered, the owner must submit the proposal to the 
PHA by the published deadline date, and the proposal must respond to all requirements as 
outlined in the RFP. Incomplete proposals will not be reviewed.  
The PHA will rate and rank proposals for rehabilitated and newly constructed housing 
using the following criteria: 
Owner experience and capability to build or rehabilitate housing as identified in 
the RFP; 
Owner has site control of the property to be developed/redeveloped. 
Extent to which the project furthers the PHA goal of deconcentrating poverty and 
expanding housing and economic opportunities; 
Extent to which the project serves the individuals and families as identified in 
Local Preferences section of this plan. 
If applicable, the extent to which supportive services for special populations are 
provided on site or in the immediate area for occupants of the property; and 
In order to promote partially assisted projects, projects where less than 25 percent 
of the units will be assisted will be rated higher than projects where 25 percent or 
more of the units will be assisted. In the case of projects for occupancy by the 
elderly, persons with disabilities or families needing other services, the PHA will 
rate partially assisted projects on the percentage of units assisted. Projects with 
the lowest percentage of assisted units may receive the highest score. 
PHA Requests for Proposals for Existing Housing Units 
The PHA will advertise its request for proposals (RFP) for existing housing in the 
following newspapers and trade journals. 
Glendale Star, Arizona Republic, La Voz 
The advertisement will state the number of vouchers available to be project-based, the 
type of units that will be considered, the submission deadline, and will note how to obtain 
the full RFP with information on the application and selection process. Advertisements 
will also contain a statement that participation in the PBV program requires compliance 
with Fair Housing and Equal Opportunity (FHEO) requirements.  
In addition, the PHA will post the notice inviting such proposal submission and the rating 
and ranking procedures on its website. 
The PHA will periodically publish its advertisement in the newspapers and trade journals 
mentioned above for at least one day per week for two consecutive weeks.  The 
advertisement will specify the number of units the PHA estimates that it will be able to 
assist under the funding the PHA is making available. Owner proposals will be accepted 
on a first-come first-served basis and may be evaluated using the following criteria:   
Experience as an owner in the tenant-based voucher program and owner 
compliance with the owner’s obligations under the tenant-based program; 
Extent to which the project serves the individuals and families as identified in 
Local Preferences section of this plan.

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Extent to which the project furthers the PHA goal of deconcentrating poverty and 
expanding housing and economic opportunities; 
If applicable, extent to which supportive services for special populations are 
provided on site or in the immediate area for occupants of the property; and 
Extent to which units are occupied by families that are eligible to participate in 
the PBV program. 
PHA Selection of Proposals Subject to a Previous Competition under a Federal, State, or 
Local Housing Assistance Program 
The PHA will accept proposals for PBV assistance from owners that were competitively 
selected under another federal, state or local housing assistance program, including 
projects that were competitively awarded Low-Income Housing Tax Credits on an 
ongoing basis.  
The PHA may periodically advertise that it is accepting proposals, in the following 
newspapers and trade journals: 
Glendale Star, Arizona Republic, La Voz 
The advertisement will state the number of vouchers available to be project-based, the 
type of units that will be considered, the submission deadline, and will note how to obtain 
the full RFP with information on the application and selection process. Advertisements 
will also contain a statement that participation in the PBV program requires compliance 
with Fair Housing and Equal Opportunity (FHEO) requirements.  
In addition to, or in place of advertising, the PHA may also directly contact specific 
owners that have already been selected for Federal, state, or local housing assistance 
based on a previously held competition, to inform them of available PBV assistance. 
Proposals will be reviewed on a first-come first-served basis. The PHA may evaluate 
each proposal on its merits using the following factors: 
Extent to which the project furthers the PHA goal of deconcentrating poverty and 
expanding housing and economic opportunities; and 
Extent to which the proposal complements other local activities such as the 
redevelopment of a public housing site under the HOPE VI program, the HOME 
program, CDBG activities, other development activities in a HUD-designated 
Enterprise Zone, Economic Community, Choice Neighborhood, or Renewal 
Community.

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PHA-Owned Units [24 CFR 983.51(e), 983.59, FR Notice 1/18/17, and Notice PIH 2017-21] 
A PHA-owned unit may be assisted under the PBV program only if the HUD field office or 
HUD-approved independent entity reviews the selection process and determines that the PHA-
owned units were appropriately selected based on the selection procedures specified in the PHA 
administrative plan. This also applies to noncompetitive selections. If the PHA selects a proposal 
for housing that is owned or controlled by the PHA, the PHA must identify the entity that will 
review the PHA proposal selection process and perform specific functions with respect to rent 
determinations, the term of the HAP contract, and inspections.  
In the case of PHA-owned units, the term of the HAP contract and any HAP contract renewal 
must be agreed upon by the PHA and a HUD-approved independent entity. In addition, an 
independent entity must determine the initial rent to owner, the redetermined rent to owner, and 
reasonable rent. Housing quality standards inspections must also be conducted by an 
independent entity. 
The independent entity that performs these program services may be the unit of general local 
government for the PHA jurisdiction (unless the PHA is itself the unit of general local 
government or an agency of such government) or another HUD-approved public or private 
independent entity. 
PHA Policy 
The PHA may submit a proposal for project-based housing that is owned or controlled by 
the PHA.  If the proposal for PHA-owned housing is selected, the PHA will use a HUD 
approved third party entity to conduct rent reasonableness studies and housing quality 
standards inspections. 
The PHA may only compensate the independent entity from PHA ongoing administrative fee 
income (including amounts credited to the administrative fee reserve). The PHA may not use 
other program receipts to compensate the independent entity for its services. The PHA and 
independent entity may not charge the family any fee for the appraisal or the services provided 
by the independent entity.

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PHA Notice of Owner Selection [24 CFR 983.51(d)] 
The PHA must give prompt written notice to the party that submitted a selected proposal and 
must also give prompt public notice of such selection. Public notice procedures may include 
publication of public notice in a local newspaper of general circulation and other means designed 
and actually operated to provide broad public notice. 
PHA Policy 
Within 10 business days of the PHA making the selection, the PHA will notify the 
selected owner in writing of the owner’s selection for the PBV program.  The PHA will 
also notify in writing all owners that submitted proposals that were not selected and 
advise such owners of the name of the selected owner. 
In addition, the PHA will publish its notice for selection of PBV proposals for two 
consecutive days in the same newspapers and trade journals the PHA used to solicit the 
proposals. The announcement will include the name of the owner that was selected for 
the PBV program. The PHA will also post the notice of owner selection on its electronic 
web site. 
The PHA will make available to any interested party its rating and ranking sheets and 
documents that identify the PHA basis for selecting the proposal. These documents will 
be available for review by the public and other interested parties for one month after 
publication of the notice of owner selection. The PHA will not make available sensitive 
owner information that is privileged, such as financial statements and similar information 
about the owner. 
The PHA will make these documents available for review at the PHA during normal 
business hours. The cost for reproduction of allowable documents will be $.25 per page. 
17-II.C. HOUSING TYPE [24 CFR 983.52] 
The PHA may attach PBV assistance for units in existing housing or for newly constructed or 
rehabilitated housing developed under and in accordance with an agreement to enter into a 
housing assistance payments contract that was executed prior to the start of construction. A 
housing unit is considered an existing unit for purposes of the PBV program, if, at the time of 
notice of PHA selection, the units substantially comply with HQS. Units for which new 
construction or rehabilitation began after the owner's proposal submission but prior to the 
execution of the HAP do not subsequently qualify as existing housing. Units that were newly 
constructed or rehabilitated in violation of program requirements also do not qualify as existing 
housing. 
The PHA must decide what housing type, new construction, rehabilitation, or existing housing, 
will be used to develop project-based housing.  The PHA choice of housing type must be 
reflected in its solicitation for proposals.

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17-II.D. PROHIBITION OF ASSISTANCE FOR CERTAIN UNITS 
Ineligible Housing Types [24 CFR 983.53] 
The PHA may not attach or pay PBV assistance to shared housing units; units on the grounds of 
a penal reformatory, medical, mental, or similar public or private institution; nursing homes or 
facilities providing continuous psychiatric, medical, nursing services, board and care, or 
intermediate care (except that assistance may be provided in assisted living facilities); units that 
are owned or controlled by an educational institution or its affiliate and are designated for 
occupancy by students; manufactured homes; and transitional housing. In addition, the PHA may 
not attach or pay PBV assistance for a unit occupied by an owner and the PHA may not select or 
enter into an agreement to enter into a HAP contract or HAP contract for a unit occupied by a 
family ineligible for participation in the PBV program. A member of a cooperative who owns 
shares in the project assisted under the PBV program is not considered an owner for purposes of 
participation in the PBV program. Finally, PBV assistance may not be attached to units for 
which construction or rehabilitation has started after the proposal submission and prior to the 
execution of an AHAP. 
Subsidized Housing [24 CFR 983.54] 
A PHA may not attach or pay PBV assistance to units in any of the following types of subsidized 
housing: 
• A public housing unit; 
• A unit subsidized with any other form of Section 8 assistance; 
• A unit subsidized with any governmental rent subsidy; 
• A unit subsidized with any governmental subsidy that covers all or any part of the operating 
costs of the housing; 
• A unit subsidized with Section 236 rental assistance payments (except that a PHA may attach 
assistance to a unit subsidized with Section 236 interest reduction payments); 
• A Section 202 project for non-elderly with disabilities; 
• Section 811 project-based supportive housing for persons with disabilities; 
• Section 202 supportive housing for the elderly; 
• A Section 101 rent supplement project; 
• A unit subsidized with any form of tenant-based rental assistance; 
• A unit with any other duplicative federal, state, or local housing subsidy, as determined by 
HUD or the PHA in accordance with HUD requirements.

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17-II.E. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.55, Notice PIH 2013-11, 
and FR Notice 2/28/20] 
The subsidy layering review is intended to prevent excessive public assistance by combining 
(layering) housing assistance payment subsidy under the PBV program with other governmental 
housing assistance from federal, state, or local agencies, including assistance such as tax 
concessions or tax credits. 
HUD requires new construction and rehabilitation housing that will include forms of 
governmental assistance other than PBVs to undergo a subsidy layering review (SLR) prior to 
entering into an Agreement to Enter into Housing Assistance Payments Contract (AHAP). 
Subsidy layering requirements do not apply to existing housing, when PBV is the only 
governmental assistance, or for projects already subject to a PBV HAP contract, even if the 
project is recapitalized with outside sources of funding. 
When a PHA selects a new construction or rehabilitation project, the PHA must require 
information regarding all HUD and/or other federal, state, or local governmental assistance to be 
disclosed by the project owner using Form HUD-2880. Appendix A of FR Notice 2/28/20 
contains a list of all required documentation. 
Either HUD or a HUD-approved housing credit agency (HCA) in the PHA’s jurisdiction 
performs the subsidy layering review. The PHA must request an SLR through their local HUD 
Field Office or, if eligible, through a participating HCA. 
If the SLR request is submitted to an approved HCA, and the proposed project-based voucher 
assistance meets HUD subsidy layering requirements, the HCA must submit a certification to 
HUD and notify the PHA. The PHA may proceed to execute an AHAP at that time if the 
environmental approval is received. 
The HAP contract must contain the owner's certification that the project has not received and 
will not receive (before or during the term of the HAP contract) any public assistance for 
acquisition, development, or operation of the housing other than assistance disclosed in the 
subsidy layering review in accordance with HUD requirements.

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17-II.F. CAP ON NUMBER OF PBV UNITS IN EACH PROJECT  
25 Percent per Project Cap [24 CFR 983.56, FR Notice 1/18/17, and Notice PIH 2017-21] 
In general, the PHA may not select a proposal to provide PBV assistance for units in a project or 
enter into an agreement to enter into a HAP or a HAP contract to provide PBV assistance for 
units in a project, if the total number of dwelling units in the project that will receive PBV 
assistance during the term of the PBV HAP contract is more than the greater of 25 units or 25 
percent of the number of dwelling units (assisted or unassisted) in the project. 
Exceptions to 25 Percent per Project Cap [FR Notice 1/18/17; Notice PIH 2017-21] 
As of April 18, 2017, units are not counted against the 25 percent or 25-unit per project cap if: 
• The units are exclusively for elderly families 
• The units are for households eligible for supportive services available to all families 
receiving PBV assistance in the project 
− If the project is located in a census tract with a poverty rate of 20 percent or less, as 
determined in the most recent American Community Survey Five-Year estimates, the 
project cap is the greater of 25 units or 40 percent (instead of 25 percent) of the units in 
the project [FR Notice 7/14/17]. 
The Housing Opportunity Through Modernization Act of 2016 (HOTMA) eliminated the project 
cap exemption for projects that serve disabled families and modified the exception for supportive 
services. Projects where these caps were implemented prior to HOTMA (HAP contracts 
executed prior to April 18, 2017) may continue to use the former exceptions and may renew their 
HAP contracts under the old requirements, unless the PHA and owner agree to change the 
conditions of the HAP contract. However, this change may not be made if it would jeopardize an 
assisted family’s eligibility for continued assistance in the project. 
Supportive Services 
PHAs must include in the PHA administrative plan the type of services offered to families for a 
project to qualify for the exception and the extent to which such services will be provided. As of 
April 18, 2017, the project must make supportive services available to all families receiving PBV 
assistance in the project, but the family does not actually have to accept and receive supportive 
services for the exception to apply to the unit, although the family must be eligible to receive the 
supportive services. It is not necessary that the services be provided at or by the project, but must 
be reasonably available to families receiving PBV assistance at the project and designed to help 
families in the project achieve self-sufficiency or live in the community as independently as 
possible. A PHA may not require participation in the supportive service as a condition of living 
in the excepted unit, although such services may be offered.  
PHA Policy 
Excepted units will be limited to units for elderly or disabled families. 
Qualifying Supportive Services 
- 
Participation in any of GHAs HCV FSS programs;

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- 
Childcare- childcare of a type that provides sufficient hours of operation and serves an 
appropriate range of ages; 
- 
Transportation- transportation necessary to enable a participating family to receive 
available services, or to commute to their places of employment; 
- 
Education- remedial education, education for completion of secondary or post-secondary 
schooling, English as a Second Language (ESL) classes;  
- 
Employment- job training, preparation, and counseling; job development and placement; 
and follow-up assistance after job placement and completion of the contract of 
participation; 
- 
Personal welfare- substance/alcohol abuse treatment and counseling; 
- 
General health care and services- mental health services; HIV/AIDS related services, 
behavior assessments; 
- 
Household skills and management- training in homemaking and parenting skills, 
household management, money management, nutrition, obtaining and retaining 
government, financial and medical benefits, family counseling; 
- 
Legal Services 
- 
Other Services- any other services and resources, including case management or 
reasonable accommodations for individuals with disabilities, that GHA determines to be 
appropriate in assisting families to achieve economic independence and self-sufficiency.  
It is not necessary that the above services be provided by of at the project. However, to 
qualify as an “excepted unit” a family must have at least one member receiving at least 
one qualifying supportive service a minimum of at lease 52 hours a year. Proposals that 
include supportive services should identify the particular services that will be provided 
and the service provider(s). GHA will evaluate proposals including supportive housing 
units on the basis of the specific services provided, the intensity of the services and the 
target population to be served. GHA will also evaluate supportive housing proposals 
based on the history and track record of the proposed service providers and the need for 
the supportive housing at the proposed site.

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Projects not Subject to a Project Cap [FR Notice 1/18/17; Notice PIH 2017-21] 
PBV units that were previously subject to certain federal rent restrictions or receiving another 
type of long-term housing subsidy provided by HUD are exempt from the project cap. In other 
words, 100 percent of the units in these projects may receive PBV assistance.  
PHA Policy 
The PHA does not have any PBV units that are subject to the per project cap exception. 
Promoting Partially Assisted Projects [24 CFR 983.56(c)] 
A PHA may establish local requirements designed to promote PBV assistance in partially 
assisted projects. A partially assisted project is a project in which there are fewer units covered 
by a HAP contract than residential units [24 CFR 983.3].  
A PHA may establish a per-project cap on the number of units that will receive PBV assistance 
or other project-based assistance in a multifamily project containing excepted units or in a single-
family building. A PHA may also determine not to provide PBV assistance for excepted units, or 
the PHA may establish a per-project cap of less than 25 units or 25 percent of units. 
PHA Policy: 
Excepted units will be limited to units for elderly families. 
Beyond that, the PHA will not impose any further cap on the number of PBV units 
assisted per project.

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17-II.G. SITE SELECTION STANDARDS  
Compliance with PBV Goals, Civil Rights Requirements, and HQS Site Standards  
[24 CFR 983.57(b)] 
The PHA may not select a proposal for existing, newly constructed, or rehabilitated PBV 
housing on a site or enter into an agreement to enter into a HAP contract or HAP contract for 
units on the site, unless the PHA has determined that PBV assistance for housing at the selected 
site is consistent with the goal of deconcentrating poverty and expanding housing and economic 
opportunities. The standard for deconcentrating poverty and expanding housing and economic 
opportunities must be consistent with the PHA Plan under 24 CFR 903 and the PHA 
administrative plan.  
In addition, prior to selecting a proposal, the PHA must determine that the site is suitable from 
the standpoint of facilitating and furthering full compliance with the applicable Civil Rights 
Laws, regulations, and Executive Orders, and that the site meets the HQS site and neighborhood 
standards at 24 CFR 982.401(l). 
PHA Policy 
It is the PHA goal to select sites for PBV housing that provide for deconcentrating 
poverty and expanding housing and economic opportunities. In complying with this goal 
the PHA may limit approval of sites for PBV housing in census tracts that have poverty 
concentrations of 20 percent or less.   
However, the PHA will grant exceptions to the 20 percent standard where the PHA 
determines that the PBV assistance will complement other local redevelopment activities 
designed to deconcentrate poverty and expand housing and economic opportunities in 
census tracts with poverty concentrations greater than 20 percent, such as sites in: 
A census tract in which the proposed PBV development will be located in a HUD-
designated Enterprise Zone, Economic Community, Choice Neighborhood, or 
Renewal Community; 
A census tract where the concentration of assisted units will be or has decreased 
as a result of public housing demolition and HOPE VI redevelopment; 
A census tract in which the proposed PBV development will be located is 
undergoing significant revitalization as a result of state, local, or federal dollars 
invested in the area;  
A census tract where new market rate units are being developed where such 
market rate units will positively impact the poverty rate in the area; 
A census tract where there has been an overall decline in the poverty rate within 
the past five years; or 
A census tract where there are meaningful opportunities for educational and 
economic advancement.

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Existing and Rehabilitated Housing Site and Neighborhood Standards [24 CFR 983.57(d)] 
The PHA may not enter into an agreement to enter into a HAP contract nor enter into a HAP 
contract for existing or rehabilitated housing until it has determined that the site complies with 
the HUD required site and neighborhood standards. The site must: 
• Be adequate in size, exposure, and contour to accommodate the number and type of units 
proposed; 
• Have adequate utilities and streets available to service the site; 
• Promote a greater choice of housing opportunities and avoid undue concentration of assisted 
persons in areas containing a high proportion of low-income persons; 
• Be accessible to social, recreational, educational, commercial, and health facilities and 
services and other municipal facilities and services equivalent to those found in 
neighborhoods consisting largely of unassisted similar units; and  
• Be located so that travel time and cost via public transportation or private automobile from 
the neighborhood to places of employment is not excessive. 
New Construction Site and Neighborhood Standards [24 CFR 983.57(e)] 
In order to be selected for PBV assistance, a site for newly constructed housing must meet the 
following HUD required site and neighborhood standards: 
• The site must be adequate in size, exposure, and contour to accommodate the number and 
type of units proposed; 
• The site must have adequate utilities and streets available to service the site; 
• The site must not be located in an area of minority concentration unless the PHA determines 
that sufficient, comparable opportunities exist for housing for minority families in the income 
range to be served by the proposed project outside areas of minority concentration or that the 
project is necessary to meet overriding housing needs that cannot be met in that housing 
market area; 
• The site must not be located in a racially mixed area if the project will cause a significant 
increase in the proportion of minority to non-minority residents in the area. 
• The site must promote a greater choice of housing opportunities and avoid undue 
concentration of assisted persons in areas containing a high proportion of low-income 
persons; 
• The neighborhood must not be one that is seriously detrimental to family life or in which 
substandard dwellings or other undesirable conditions predominate; 
• The housing must be accessible to social, recreational, educational, commercial, and health 
facilities and services and other municipal facilities and services equivalent to those found in 
neighborhoods consisting largely of unassisted similar units; and 
• Except for housing designed for elderly persons, the housing must be located so that travel 
time and cost via public transportation or private automobile from the neighborhood to places 
of employment is not excessive.

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17-II.H. ENVIRONMENTAL REVIEW [24 CFR 983.58] 
The PHA activities under the PBV program are subject to HUD environmental regulations in 24 
CFR parts 50 and 58. The responsible entity is responsible for performing the federal 
environmental review under the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et 
seq.). The PHA may not enter into an agreement to enter into a HAP contract nor enter into a 
HAP contract until it has complied with the environmental review requirements.  
In the case of existing housing, the responsible entity that is responsible for the environmental 
review under 24 CFR part 58 must determine whether or not PBV assistance is categorically 
excluded from review under the National Environmental Policy Act and whether or not the 
assistance is subject to review under the laws and authorities listed in 24 CFR 58.5. 
The PHA may not enter into an agreement to enter into a HAP contract or a HAP contract with 
an owner, and the PHA, the owner, and its contractors may not acquire, rehabilitate, convert, 
lease, repair, dispose of, demolish, or construct real property or commit or expend program or 
local funds for PBV activities under this part, until the environmental review is completed. 
The PHA must supply all available, relevant information necessary for the responsible entity to 
perform any required environmental review for any site. The PHA must require the owner to 
carry out mitigating measures required by the responsible entity (or HUD, if applicable) as a 
result of the environmental review.  
 
PART III: DWELLING UNITS 
17-III.A. OVERVIEW 
This part identifies the special housing quality standards that apply to the PBV program, housing 
accessibility for persons with disabilities, and special procedures for conducting housing quality 
standards inspections. 
17-III.B. HOUSING QUALITY STANDARDS [24 CFR 983.101] 
The housing quality standards (HQS) for the tenant-based program, including those for special 
housing types, generally apply to the PBV program. HQS requirements for shared housing, 
manufactured home space rental, and the homeownership option do not apply because these 
housing types are not assisted under the PBV program.  
The physical condition standards at 24 CFR 5.703 do not apply to the PBV program. 
Lead-based Paint [24 CFR 983.101(c)] 
The lead-based paint requirements for the tenant-based voucher program do not apply to the 
PBV program.  Instead, The Lead-based Paint Poisoning Prevention Act (42 U.S.C. 4821-4846), 
the Residential Lead-based Paint Hazard Reduction Act of 1992 (42 U.S.C. 4851-4856), and 
implementing regulations at 24 CFR Part 35, Subparts A, B, H, and R, and 40 CFR 745.227, 
apply to the PBV program. 
17-III.C. HOUSING ACCESSIBILITY FOR PERSONS WITH DISABILITIES

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The housing must comply with program accessibility requirements of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794) and implementing regulations at 24 CFR part 8. The 
PHA must ensure that the percentage of accessible dwelling units complies with the 
requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), as implemented 
by HUD's regulations at 24 CFR 8, subpart C. 
Housing first occupied after March 13, 1991, must comply with design and construction 
requirements of the Fair Housing Amendments Act of 1988 and implementing regulations at 24 
CFR 100.205, as applicable. (24 CFR 983.102)

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17-III.D. INSPECTING UNITS 
Pre-selection Inspection [24 CFR 983.103(a)] 
The PHA must examine the proposed site before the proposal selection date. If the units to be 
assisted already exist, the PHA must inspect all the units before the proposal selection date, and 
must determine whether the units substantially comply with HQS. To qualify as existing 
housing, units must substantially comply with HQS on the proposal selection date.  However, the 
PHA may not execute the HAP contract until the units fully comply with HQS. 
Pre-HAP Contract Inspections [24 CFR 983.103(b), FR Notice 1/18/17, and 
Notice PIH 2017-20] 
The PHA must inspect each contract unit before execution of the HAP contract. The PHA may 
not provide assistance on behalf of the family until the unit fully complies with HQS, unless the 
PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS 
inspection as a result of only non-life-threatening conditions, or if the unit passed an alternative 
inspection. 
PHA Policy 
The PHA will not provide assistance on behalf of the family until the unit fully complies 
with HQS. 
Turnover Inspections [24 CFR 983.103(c)] 
Before providing assistance to a new family in a contract unit, the PHA must inspect the unit. 
The PHA may not provide assistance on behalf of the family until the unit fully complies with 
HQS. 
Annual/Biennial Inspections [24 CFR 983.103(d); FR Notice 6/25/14] 
At least once every 24 months during the term of the HAP contract, the PHA must inspect a 
random sample consisting of at least 20 percent of the contract units in each building to 
determine if the contract units and the premises are maintained in accordance with HQS. 
Turnover inspections are not counted toward meeting this inspection requirement. 
PHA Policy 
The PHA will inspect on an annual basis a random sample consisting of at least 20 
percent of the contract units in each building to determine if the contract units and the 
premises are maintained in accordance with HQS. 
If more than 20 percent of the sample of inspected contract units in a building fail the initial 
inspection, the PHA must reinspect 100 percent of the contract units in the building.

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Other Inspections [24 CFR 983.103(e)] 
The PHA must inspect contract units whenever needed to determine that the contract units 
comply with HQS and that the owner is providing maintenance, utilities, and other services in 
accordance with the HAP contract. The PHA must take into account complaints and any other 
information coming to its attention in scheduling inspections. 
The PHA must conduct follow-up inspections needed to determine if the owner (or, if applicable, 
the family) has corrected an HQS violation, and must conduct inspections to determine the basis 
for exercise of contractual and other remedies for owner or family violation of HQS.  
In conducting PHA supervisory quality control HQS inspections, the PHA should include a 
representative sample of both tenant-based and project-based units. 
Inspecting PHA-Owned Units [24 CFR 983.103(f)] 
In the case of PHA-owned units, the inspections must be performed by an independent entity 
designated by the PHA and approved by HUD. The independent entity must furnish a copy of 
each inspection report to the PHA and to the HUD field office where the project is located. The 
PHA must take all necessary actions in response to inspection reports from the independent 
entity, including exercise of contractual remedies for violation of the HAP contract by the 
PHA-owner.

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PART IV: REHABILITATED AND NEWLY CONSTRUCTED UNITS  
17-IV.A. OVERVIEW [24 CFR 983.151] 
There are specific requirements that apply to PBV assistance for newly constructed or 
rehabilitated housing that do not apply to PBV assistance in existing housing. This part describes 
the requirements unique to this type of assistance.  
Housing selected for this type of assistance may not at a later date be selected for PBV assistance 
as existing housing. 
17-IV.B. AGREEMENT TO ENTER INTO HAP CONTRACT  
In order to offer PBV assistance in rehabilitated or newly constructed units, the PHA must enter 
into an agreement to enter into HAP contract (Agreement) with the owner of the property. The 
Agreement must be in the form required by HUD [24 CFR 983.152(b)]. The PHA may not enter 
into an Agreement if commencement of construction or rehabilitation has commenced after 
proposal submission [24 CFR 983.152(c)]. Construction begins when excavation or site 
preparation (including clearing of the land) begins for the housing. Rehabilitation begins with the 
physical commencement of rehabilitation activity on the housing. 
In the Agreement the owner agrees to develop the PBV contract units to comply with HQS, and 
the PHA agrees that upon timely completion of such development in accordance with the terms 
of the Agreement, the PHA will enter into a HAP contract with the owner for the contract units 
[24 CFR 983.152(a)]. 
Content of the Agreement [24 CFR 983.152(d)] 
At a minimum, the Agreement must describe the following features of the housing to be 
developed and assisted under the PBV program: 
• Site and the location of the contract units; 
• Number of contract units by area (size) and number of bedrooms and bathrooms; 
• Services, maintenance, or equipment to be supplied by the owner without charges in addition 
to the rent; 
• Utilities available to the contract units, including a specification of utility services to be paid 
by the owner and utility services to be paid by the tenant; 
• An indication of whether or not the design and construction requirements of the Fair Housing 
Act and section 504 of the Rehabilitation Act of 1973 apply to units under the Agreement. If 
applicable, any required work item resulting from these requirements must be included in the 
description of work to be performed under the Agreement; 
• Estimated initial rents to owner for the contract units; 
• Description of the work to be performed under the Agreement. For rehabilitated units, the 
description must include the rehabilitation work write up and, where determined necessary 
by the PHA, specifications and plans. For new construction units, the description must 
include the working drawings and specifications.

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• Any additional requirements for quality, architecture, or design over and above HQS. 
Execution of the Agreement [24 CFR 983.153] 
The Agreement must be executed promptly after PHA notice of proposal selection to the selected 
owner. The PHA may not enter into the Agreement if construction or rehabilitation has started 
after proposal submission. Generally, the PHA may not enter into the Agreement with the owner 
until the subsidy layering review is completed. Likewise, the PHA may not enter into the 
Agreement until the environmental review is completed and the PHA has received environmental 
approval. However, the PHA does not need to conduct a subsidy layering review in the case of a 
HAP contract for existing housing or if the applicable state or local agency has conducted such a 
review. Similarly, environmental reviews are not required for existing structures unless 
otherwise required by law or regulation. 
PHA Policy 
The PHA will enter into the Agreement with the owner within 10 business days of 
receiving both environmental approval and notice that subsidy layering requirements 
have been met, and before construction or rehabilitation work is started.

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17-IV.C. CONDUCT OF DEVELOPMENT WORK  
Labor Standards [24 CFR 983.154(b)] 
If an Agreement covers the development of nine or more contract units (whether or not 
completed in stages), the owner and the owner’s contractors and subcontractors must pay Davis-
Bacon wages to laborers and mechanics employed in the development of housing. The HUD-
prescribed form of the Agreement will include the labor standards clauses required by HUD, 
such as those involving Davis-Bacon wage rates. 
The owner, contractors, and subcontractors must also comply with the Contract Work Hours and 
Safety Standards Act, Department of Labor regulations in 29 CFR part 5, and other applicable 
federal labor relations laws and regulations. The PHA must monitor compliance with labor 
standards. 
Owner Disclosure [24 CFR 983.154(d) and (e)] 
The Agreement and HAP contract must include a certification by the owner that the owner and 
other project principals are not on the U.S. General Services Administration list of parties 
excluded from federal procurement and non-procurement programs. 
The owner must also disclose any possible conflict of interest that would be a violation of the 
Agreement, the HAP contract, or HUD regulations.

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17-IV.D. COMPLETION OF HOUSING 
The Agreement must specify the deadlines for completion of the housing, and the owner must 
develop and complete the housing in accordance with these deadlines. The Agreement must also 
specify the deadline for submission by the owner of the required evidence of completion. 
Evidence of Completion [24 CFR 983.155(b)] 
At a minimum, the owner must submit the following evidence of completion to the PHA in the 
form and manner required by the PHA: 
• Owner certification that the work has been completed in accordance with HQS and all 
requirements of the Agreement; and 
• Owner certification that the owner has complied with labor standards and equal opportunity 
requirements in development of the housing. 
At the PHA’s discretion, the Agreement may specify additional documentation that must be 
submitted by the owner as evidence of housing completion.  
PHA Policy 
The PHA will determine the need for the owner to submit additional documentation as 
evidence of housing completion on a case-by-case basis depending on the nature of the 
PBV project. The PHA will specify any additional documentation requirements in the 
Agreement to enter into HAP contract. 
PHA Acceptance of Completed Units [24 CFR 983.156] 
Upon notice from the owner that the housing is completed, the PHA must inspect to determine if 
the housing has been completed in accordance with the Agreement, including compliance with 
HQS and any additional requirements imposed under the Agreement. The PHA must also 
determine if the owner has submitted all required evidence of completion. 
If the work has not been completed in accordance with the Agreement, the PHA must not enter 
into the HAP contract.  
If the PHA determines the work has been completed in accordance with the Agreement and that 
the owner has submitted all required evidence of completion, the PHA must submit the HAP 
contract for execution by the owner and must then execute the HAP contract.

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PART V: HOUSING ASSISTANCE PAYMENTS CONTRACT (HAP) 
17-V.A. OVERVIEW 
The PHA must enter into a HAP contract with an owner for units that are receiving PBV 
assistance. The purpose of the HAP contract is to provide housing assistance payments for 
eligible families. Housing assistance is paid for contract units leased and occupied by eligible 
families during the HAP contract term. With the exception of single-family scattered-site 
projects, a HAP contract shall cover a single project. If multiple projects exist, each project is 
covered by a separate HAP contract. The HAP contract must be in the form required by HUD 
[24 CFR 983.202(a)]. 
17-V.B. HAP CONTRACT REQUIREMENTS 
Contract Information [24 CFR 983.203] 
The HAP contract must specify the following information: 
• The total number of contract units by number of bedrooms; 
• The project’s name, street address, city or county, state and zip code, block and lot number 
(if known), and any other information necessary to clearly identify the site and the building; 
• The number of contract units in each building, the location of each contract unit, the area of 
each contract unit, and the number of bedrooms and bathrooms in each contract unit; 
• Services, maintenance, and equipment to be supplied by the owner and included in the rent 
to owner; 
• Utilities available to the contract units, including a specification of utility services to be paid 
by the owner (included in rent) and utility services to be paid by the tenant; 
• Features provided to comply with program accessibility requirements of Section 504 of the 
Rehabilitation Act of 1973 and implementing regulations at 24 CFR part 8; 
• The HAP contract term; 
• The number of units in any project that will exceed the 25 percent per project cap, which will 
be set aside for occupancy by qualifying families (elderly and/or disabled families and 
families receiving supportive services); and 
• The initial rent to owner for the first 12 months of the HAP contract term.

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Execution of the HAP Contract [24 CFR 983.204] 
The PHA may not enter into a HAP contract until each contract unit has been inspected and the 
PHA has determined that the unit complies with the Housing Quality Standards (HQS), unless 
the PHA has adopted a policy to enter into a HAP contract for units that fail the initial HQS 
inspection as a result of only non-life-threatening conditions. For existing housing, the HAP 
contract must be executed promptly after the PHA selects the owner proposal and inspects the 
housing units. For newly constructed or rehabilitated housing the HAP contract must be executed 
after the PHA has inspected the completed units and has determined that the units have been 
completed in accordance with the agreement to enter into HAP, and the owner furnishes all 
required evidence of completion. 
PHA Policy 
For existing housing, the HAP contract will be executed within 10 business days of the 
PHA determining that all units pass HQS. 
For rehabilitated or newly constructed housing, the HAP contract will be executed within 
10 business days of the PHA determining that the units have been completed in 
accordance with the agreement to enter into HAP, all units meet HQS, and the owner has 
submitted all required evidence of completion.  
Term of HAP Contract [24 CFR 983.205, FR Notice 1/18/17, and Notice PIH 2017-21] 
The PHA may enter into a HAP contract with an owner for an initial term of no less than one 
year and no more than 20 years for each contract unit. The length of the term of the HAP 
contract for any contract unit may not be less than one year, nor more than 20 years. In the case 
of PHA-owned units, the term of the HAP contract must be agreed upon by the PHA and the 
independent entity approved by HUD [24 CFR 983.59(b)(2)].  
PHA Policy 
The term of all PBV HAP contracts will be negotiated with the owner on a case-by-case 
basis. 
At the time of the initial HAP contract term or any time before expiration of the HAP contract, 
the PHA may extend the term of the contract for an additional term of up to 20 years if the PHA 
determines an extension is appropriate to continue providing affordable housing for low-income 
families. A HAP contract extension may not exceed 20 years. A PHA may provide for multiple 
extensions; however, in no circumstances may such extensions exceed 20 years, cumulatively. 
Extensions after the initial extension are allowed at the end of any extension term, provided that 
not more than 24 months prior to the expiration of the previous extension contract the PHA 
agrees to extend the term, and that such extension is appropriate to continue providing affordable 
housing for low-income families or to expand housing opportunities. Extensions after the initial 
extension term shall not begin prior to the expiration date of the previous extension term. 
Subsequent extensions are subject to the same limitations. All extensions must be on the form 
and subject to the conditions prescribed by HUD at the time of the extension. In the case of 
PHA-owned units, any extension of the term of the HAP contract must be agreed upon by the 
PHA and the independent entity approved by HUD [24 CFR 983.59(b)(2)].

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PHA Policy 
When determining whether or not to extend an expiring PBV contract, the PHA will 
consider several factors including, but not limited to: 
The cost of extending the contract and the amount of available budget authority; 
The condition of the contract units; 
The owner’s record of compliance with obligations under the HAP contract 
and lease(s); 
Whether the location of the units continues to support the goals of 
deconcentrating poverty and expanding housing opportunities; and 
Whether the funding could be used more appropriately for tenant-based 
assistance. 
Termination by PHA [24 CFR 983.205(c) and FR Notice 1/18/17] 
The HAP contract must provide that the term of the PHA’s contractual commitment is subject to 
the availability of sufficient appropriated funding as determined by HUD or by the PHA in 
accordance with HUD instructions. For these purposes, sufficient funding means the availability 
of appropriations, and of funding under the ACC from such appropriations, to make full payment 
of housing assistance payments payable to the owner for any contract year in accordance with 
the terms of the HAP contract. 
In times of insufficient funding, HUD requires that PHAs first take all cost-saving measures 
prior to failing to make payments under existing PBV HAP contracts.  
If it is determined that there may not be sufficient funding to continue housing assistance 
payments for all contract units and for the full term of the HAP contract, the PHA may terminate 
the HAP contract by notice to the owner. The termination must be implemented in accordance 
with HUD instructions. 
Termination by Owner [24 CFR 983.205(d)] 
If in accordance with program requirements the amount of rent to an owner for any contract unit 
is reduced below the amount of the rent to owner at the beginning of the HAP contract term, the 
owner may terminate the HAP contract by giving notice to the PHA. In this case, families living 
in the contract units must be offered tenant-based assistance.

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Statutory Notice Requirements: Contract Termination or Expiration [24 CFR 983.206, 
FR Notice 1/18/17, and Notice PIH 2017-21] 
Not less than one year before the HAP contract terminates, or if the owner refuses to renew the 
HAP contract, the owner must notify the PHA and assisted tenants of the termination. The notice 
must be provided in the form prescribed by HUD. If the owner does not give timely notice, the 
owner must permit the tenants in assisted units to remain in their units for the required notice 
period with no increase in the tenant portion of their rent, and with no eviction as a result of the 
owner's inability to collect an increased tenant portion of rent. An owner may renew the 
terminating contract for a period of time sufficient to give tenants one-year advance notice under 
such terms as HUD may require. 
Upon termination or expiration of the contract, a family living at the property is entitled to 
receive a tenant-based voucher. Tenant-based assistance would not begin until the owner’s 
required notice period ends. The PHA must provide the family with a voucher and the family 
must also be given the option by the PHA and owner to remain in their unit with HCV tenant-
based assistance as long as the unit complies with inspection and rent reasonableness 
requirements. The family must pay their total tenant payment (TTP) and any additional amount if 
the gross rent exceeds the applicable payment standard. The family has the right to remain in the 
project as long as the units are used for rental housing and are otherwise eligible for HCV 
assistance. The owner may not terminate the tenancy of a family that exercises its right to remain 
except for serious or repeated lease violations or other good cause. Families that receive a tenant-
based voucher at the expiration or termination of the PBV HAP contract are not new admissions 
to the PHA HCV tenant-based program and are not subject to income eligibility requirements or 
any other admission requirements. If the family chooses to remain in their unit with tenant-based 
assistance, the family may do so regardless of whether the family share would initially exceed 40 
percent of the family’s adjusted monthly income. 
Remedies for HQS Violations [24 CFR 983.208(b)] 
The PHA may not make any HAP payment to the owner for a contract unit during any period in 
which the unit does not comply with HQS. If the PHA determines that a contract does not 
comply with HQS, the PHA may exercise any of its remedies under the HAP contract, for any or 
all of the contract units. Available remedies include termination of housing assistance payments, 
abatement or reduction of housing assistance payments, reduction of contract units, and 
termination of the HAP contract. 
PHA Policy 
The PHA will abate and terminate PBV HAP contracts for non-compliance with HQS in 
accordance with the policies used in the tenant-based voucher program. These policies 
are contained in Section 8-II.G., Enforcing Owner Compliance.

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17-V.C. AMENDMENTS TO THE HAP CONTRACT 
Substitution of Contract Units [24 CFR 983.207(a)] 
At the PHA’s discretion and subject to all PBV requirements, the HAP contract may be amended 
to substitute a different unit with the same number of bedrooms in the same project for a 
previously covered contract unit. Before any such substitution can take place, the PHA must 
inspect the proposed unit and determine the reasonable rent for the unit. 
Addition of Contract Units [FR Notice 1/18/17 and Notice PIH 2017-21] 
The PHA and owner may amend the HAP contract to add additional PBV contract units in 
projects that already have a HAP contract without having to fulfill the selection requirements 
found at 24 CFR 983.51(b) for those additional PBV units, regardless of when the HAP contract 
was signed. The additional PBV units, however, are still subject to the PBV program cap and 
individual project caps.  Prior to attaching additional units without competition, the PHA must 
submit to the local field office information outlined in FR Notice 1/18/17. The PHA must also 
detail in the administrative plan their intent to add PBV units and the rationale for adding units to 
the specific PBV project. 
PHA Policy 
The PHA will add units to the contract on a case-by-case basis to ensure the availability 
of affordable housing as long as the addition of units does not exceed allowable 
project caps. 
The local housing inventory is reduced due to a disaster (either due to loss of 
housing units, or an influx of displaced families); and  
Voucher holders are having difficulty finding units that meet program 
requirements.  
17-V.D. HAP CONTRACT YEAR, ANNIVERSARY AND EXPIRATION DATES [24 
CFR 983.207(b) and 983.302(e)] 
The HAP contract year is the period of 12 calendar months preceding each annual anniversary of 
the HAP contract during the HAP contract term. The initial contract year is calculated from the 
first day of the first calendar month of the HAP contract term. 
The annual anniversary of the HAP contract is the first day of the first calendar month after the 
end of the preceding contract year. 
There is a single annual anniversary and expiration date for all units under a particular HAP 
contract, even in cases where contract units are placed under the HAP contract in stages (on 
different dates) or units are added by amendment. The anniversary and expiration dates for all 
units coincide with the dates for the contract units that were originally placed under contract.

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17-V.E. OWNER RESPONSIBILITIES UNDER THE HAP CONTRACT 
[24 CFR 983.210] 
When the owner executes the HAP contract s/he certifies that at such execution and at all times 
during the term of the HAP contract: 
• All contract units are in good condition and the owner is maintaining the premises and 
contract units in accordance with HQS; 
• The owner is providing all services, maintenance, equipment and utilities as agreed to under 
the HAP contract and the leases; 
• Each contract unit for which the owner is receiving HAP, is leased to an eligible family 
referred by the PHA, and the lease is in accordance with the HAP contract and HUD 
requirements; 
• To the best of the owner’s knowledge the family resides in the contract unit for which the 
owner is receiving HAP, and the unit is the family’s only residence; 
• The owner (including a principal or other interested party) is not the spouse, parent, child, 
grandparent, grandchild, sister, or brother of any member of a family residing in a contract 
unit; 
• The amount of the HAP the owner is receiving is correct under the HAP contract; 
• The rent for contract units does not exceed rents charged by the owner for comparable 
unassisted units; 
• Except for HAP and tenant rent, the owner has not received and will not receive any other 
payment or consideration for rental of the contract unit; 
• The family does not own or have any interest in the contract unit (does not apply to family's 
membership in a cooperative); and 
• Repair work on the project selected as an existing project that is performed after HAP 
execution within such post-execution period as specified by HUD may constitute 
development activity, and if determined to be development activity, the repair work 
undertaken shall be in compliance with Davis-Bacon wage requirements.

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17-V.F. ADDITIONAL HAP REQUIREMENTS 
Housing Quality and Design Requirements [24 CFR 983.101(e) and 983.208(a)] 
The owner is required to maintain and operate the contract units and premises in accordance with 
HQS, including performance of ordinary and extraordinary maintenance. The owner must 
provide all the services, maintenance, equipment, and utilities specified in the HAP contract with 
the PHA and in the lease with each assisted family. In addition, maintenance, replacement and 
redecoration must be in accordance with the standard practice for the building as established by 
the owner. 
The PHA may elect to establish additional requirements for quality, architecture, or design of 
PBV housing. Any such additional requirements must be specified in the Agreement to enter into 
a HAP contract and the HAP contract. These requirements must be in addition to, not in place of, 
compliance with HQS. 
PHA Policy 
The PHA will identify the need for any special features on a case-by-case basis 
depending on the intended occupancy of the PBV project. The PHA will specify any 
special design standards or additional requirements in the invitation for PBV proposals, 
the agreement to enter into HAP contract, and the HAP contract. 
Vacancy Payments [24 CFR 983.352(b)] 
At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner 
for a PHA-determined period of vacancy extending from the beginning of the first calendar 
month after the move-out month for a period not exceeding two full months following the move-
out month. The amount of the vacancy payment will be determined by the PHA and cannot 
exceed the monthly rent to owner under the assisted lease, minus any portion of the rental 
payment received by the owner (including amounts available from the tenant’s security deposit). 
PHA Policy 
The PHA will decide on a case-by-case basis if the PHA will provide vacancy payments 
to the owner. The HAP contract with the owner will contain any such agreement, 
including the amount of the vacancy payment and the period for which the owner will 
qualify for these payments.

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PART VI: SELECTION OF PBV PROGRAM PARTICIPANTS 
17-VI.A. OVERVIEW 
Many of the provisions of the tenant-based voucher regulations [24 CFR 982] also apply to the 
PBV program. This includes requirements related to determining eligibility and selecting 
applicants from the waiting list. Even with these similarities, there are requirements that are 
unique to the PBV program. This part describes the requirements and policies related to 
eligibility and admission to the PBV program. 
17-VI.B. ELIGIBILITY FOR PBV ASSISTANCE [24 CFR 983.251(a) and (b)] 
The PHA may select families for the PBV program from those who are participants in the PHA’s 
tenant-based voucher program and from those who have applied for admission to the voucher 
program. For voucher participants, eligibility was determined at original admission to the 
voucher program and does not need to be redetermined at the commencement of PBV assistance. 
For all others, eligibility for admission must be determined at the commencement of PBV 
assistance. 
Applicants for PBV assistance must meet the same eligibility requirements as applicants for the 
tenant-based voucher program. Applicants must qualify as a family as defined by HUD and the 
PHA, have income at or below HUD-specified income limits, and qualify on the basis of 
citizenship or the eligible immigration status of family members [24 CFR 982.201(a) and 24 
CFR 983.2(a)]. In addition, an applicant family must provide social security information for 
family members [24 CFR 5.216 and 5.218] and consent to the PHA’s collection and use of 
family information regarding income, expenses, and family composition [24 CFR 5.230]. The 
PHA may also not approve a tenancy if the owner (including a principal or other interested party) 
of the unit is the parent, child, grandparent, grandchild, sister, or brother of any member of the 
family, unless needed as a reasonable accommodation. An applicant family must also meet HUD 
requirements related to current or past criminal activity.  
PHA Policy 
The PHA will determine an applicant family’s eligibility for the PBV program in 
accordance with the policies in Chapter 3.

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In-Place Families [24 CFR 983.251(b)] 
An eligible family residing in a proposed PBV contract unit on the date the proposal is selected 
by the PHA is considered an “in-place family.” These families are afforded protection from 
displacement under the PBV rule. If a unit to be placed under contract (either an existing unit or 
a unit requiring rehabilitation) is occupied by an eligible family on the date the proposal is 
selected, the in-place family must be placed on the PHA’s waiting list. Once the family’s 
continued eligibility is determined (the PHA may deny assistance to an in-place family for the 
grounds specified in 24 CFR 982.552 and 982.553), the family must be given an absolute 
selection preference and the PHA must refer these families to the project owner for an 
appropriately sized PBV unit in the project. Admission of eligible in-place families is not subject 
to income targeting requirements.  
This regulatory protection from displacement does not apply to families that are not eligible to 
participate in the program on the proposal selection date.

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17-VI.C. ORGANIZATION OF THE WAITING LIST [24 CFR 983.251(c)] 
The PHA may establish a separate waiting list for PBV units or it may use the same waiting list 
for both tenant-based and project-based assistance. The PHA may also merge the PBV waiting 
list with a waiting list for other assisted housing programs offered by the PHA. If the PHA 
chooses to offer a separate waiting list for PBV assistance, the PHA must offer to place 
applicants who are listed on the tenant-based waiting list on the waiting list for PBV assistance.  
If a PHA decides to establish a separate PBV waiting list, the PHA may use a single waiting list 
for the PHA’s whole PBV program, or it may establish separate waiting lists for PBV units in 
particular projects or buildings or for sets of such units. 
PHA Policy 
The PHA will establish and manage separate waiting lists for individual projects or 
buildings that are receiving PBV assistance.  
17-VI.D. SELECTION FROM THE WAITING LIST [24 CFR 983.251(c)] 
Applicants who will occupy units with PBV assistance must be selected from the PHA’s waiting 
list. The PHA may establish selection criteria or preferences for occupancy of particular PBV 
units. The PHA may place families referred by the PBV owner on its PBV waiting list. 
Income Targeting [24 CFR 983.251(c)(6)] 
At least 75 percent of the families admitted to the PHA’s tenant-based and project-based voucher 
programs during the PHA fiscal year from the waiting list must be extremely low-income 
families. The income targeting requirement applies to the total of admissions to both programs. 
Units with Accessibility Features [24 CFR 983.251(c)(7)] 
When selecting families to occupy PBV units that have special accessibility features for persons 
with disabilities, the PHA must first refer families who require such features to the owner. 
Preferences [24 CFR 983.251(d), FR Notice 11/24/08] 
The PHA may use the same selection preferences that are used for the tenant-based voucher 
program, establish selection criteria or preferences for the PBV program as a whole, or for 
occupancy of particular PBV developments or units. The PHA must provide an absolute 
selection preference for eligible in-place families as described in Section 17-VI.B. above. 
The PHA may establish a selection preference for families who qualify for voluntary services, 
including disability-specific services, offered in conjunction with assisted units, provided that 
preference is consistent with the PHA plan. The PHA may not, however, grant a preference to a 
person with a specific disability [FR Notice 1/18/17]. 
In advertising such a project, the owner may advertise the project as offering services for a 
particular type of disability; however, the project must be open to all otherwise eligible disabled 
persons who may benefit from services provided in the project. In these projects, disabled 
residents may not be required to accept the particular services offered as a condition of 
occupancy.

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If the PHA has projects with “excepted units” for elderly families or supportive services, the 
PHA must give preference to such families when referring families to these units [24 CFR 
983.261(b); FR Notice 1/18/17]. 
PHA Policy 
The PHA will provide a selection preference when required by the regulation (e.g., 
eligible in-place families, elderly families or units with supportive services, or mobility 
impaired persons for accessible units). The PHA will not offer any additional preferences 
for the PBV program or for particular PBV projects or units. The project may utilize a 
limited referral-based preference in accordance with PIH 2013-15. 
The GHA may set additional 10 percent project-based voucher for homeless families, 
veterans, supportive housing for persons with disabilities or elderly persons, or in areas 
where vouchers are difficult to use.  
The GHA reserves the right to attach assistance to structures in which GHA has an 
ownership interest or control without following the competitive process should it be 
advantageous to do so.

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17-VI.E. OFFER OF PBV ASSISTANCE 
Refusal of Offer [24 CFR 983.251(e)(3)] 
The PHA is prohibited from taking any of the following actions against a family who has applied 
for, received, or refused an offer of PBV assistance: 
• Refuse to list the applicant on the waiting list for tenant-based voucher assistance; 
• Deny any admission preference for which the applicant qualifies; 
• Change the applicant’s place on the waiting list based on preference, date, and time of 
application, or other factors affecting selection under the PHA’s selection policy; 
• Remove the applicant from the tenant-based voucher waiting list. 
Disapproval by Landlord [24 CFR 983.251(e)(2)] 
If a PBV owner rejects a family for admission to the owner’s units, such rejection may not affect 
the family’s position on the tenant-based voucher waiting list. 
Acceptance of Offer [24 CFR 983.252] 
Family Briefing 
When a family accepts an offer for PBV assistance, the PHA must give the family an oral 
briefing. The briefing must include information on how the program works and the 
responsibilities of the family and owner. In addition to the oral briefing, the PHA must provide a 
briefing packet that explains how the PHA determines the total tenant payment for a family, the 
family obligations under the program, and applicable fair housing information. 
Persons with Disabilities 
If an applicant family’s head or spouse is disabled, the PHA must assure effective 
communication, in accordance with 24 CFR 8.6, in conducting the oral briefing and in providing 
the written information packet. This may include making alternative formats available (see 
Chapter 2). In addition, the PHA must have a mechanism for referring a family that includes a 
member with a mobility impairment to an appropriate accessible PBV unit. 
Persons with Limited English Proficiency 
The PHA should take reasonable steps to assure meaningful access by persons with limited 
English proficiency in accordance with Title VI of the Civil Rights Act of 1964 and Executive 
Order 13166 (see Chapter 2).

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17-VI.F. OWNER SELECTION OF TENANTS  
The owner is responsible for developing written tenant selection procedures that are consistent 
with the purpose of improving housing opportunities for very low-income families and 
reasonably related to program eligibility and an applicant’s ability to fulfill their obligations 
under the lease. An owner must promptly notify in writing any rejected applicant of the grounds 
for any rejection [24 CFR 983.253(a)(2) and (a)(3)]. 
Leasing [24 CFR 983.253(a)] 
During the term of the HAP contract, the owner must lease contract units to eligible families that 
are selected and referred by the PHA from the PHA’s waiting list. The contract unit leased to the 
family must be the appropriate size unit for the size of the family, based on the PHA’s subsidy 
standards. 
Filling Vacancies [24 CFR 983.254(a)] 
The owner must promptly notify the PHA of any vacancy or expected vacancy in a contract unit. 
After receiving such notice, the PHA must make every reasonable effort to promptly refer a 
sufficient number of families for the owner to fill such vacancies. The PHA and the owner must 
make reasonable efforts to minimize the likelihood and length of any vacancy. 
PHA Policy 
The owner must notify the PHA in writing (mail, fax, or email) within five business days 
of learning about any vacancy or expected vacancy.  
The PHA will make every reasonable effort to refer families to the owner within 10 
business days of receiving such notice from the owner. 
Reduction in HAP Contract Units Due to Vacancies [24 CFR 983.254(b)] 
If any contract units have been vacant for 120 or more days since owner notice of the vacancy, 
the PHA may give notice to the owner amending the HAP contract to reduce the number of 
contract units by subtracting the number of contract units (according to the bedroom size) that 
have been vacant for this period. 
PHA Policy 
If any contract units have been vacant for 120 days, the PHA will give notice to the 
owner that the HAP contract will be amended to reduce the number of contract units that 
have been vacant for this period. The PHA will provide the notice to the owner within 10 
business days of the 120th day of the vacancy. The amendment to the HAP contract will 
be effective the 1st day of the month following the date of the PHA’s notice.

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17-VI.G. TENANT SCREENING [24 CFR 983.255] 
PHA Responsibility 
The PHA is not responsible or liable to the owner or any other person for the family’s behavior 
or suitability for tenancy. However, the PHA may opt to screen applicants for family behavior or 
suitability for tenancy and may deny applicants based on such screening. 
PHA Policy 
The PHA will not conduct screening to determine a PBV applicant family’s suitability for 
tenancy. 
The PHA must provide the owner with an applicant family’s current and prior address (as shown 
in PHA records) and the name and address (if known by the PHA) of the family’s current 
landlord and any prior landlords. 
In addition, the PHA may offer the owner other information the PHA may have about a family, 
including information about the tenancy history of family members or about drug trafficking and 
criminal activity by family members. The PHA must provide applicant families a description of 
the PHA policy on providing information to owners, and the PHA must give the same types of 
information to all owners. 
The PHA may not disclose to the owner any confidential information provided in response to 
a request for documentation of domestic violence, dating violence, sexual assault, or stalking 
except at the written request or with the written consent of the individual providing the 
documentation [24 CFR 5.2007(a)(4)]. 
PHA Policy 
The PHA will inform owners of their responsibility to screen prospective tenants, and 
will provide owners with the required known name and address information, at the time 
of the turnover HQS inspection or before. The PHA will not provide any additional 
information to the owner, such as tenancy history, criminal history, etc. 
Owner Responsibility 
The owner is responsible for screening and selection of the family to occupy the owner’s unit. 
When screening families the owner may consider a family’s background with respect to the 
following factors: 
• Payment of rent and utility bills; 
• Caring for a unit and premises; 
• Respecting the rights of other residents to the peaceful enjoyment of their housing; 
• Drug-related criminal activity or other criminal activity that is a threat to the health, safety, or 
property of others; and 
• Compliance with other essential conditions of tenancy.

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PART VII: OCCUPANCY 
17-VII.A. OVERVIEW 
After an applicant has been selected from the waiting list, determined eligible by the PHA, 
referred to an owner and determined suitable by the owner, the family will sign the lease and 
occupancy of the unit will begin.   
17-VII.B. LEASE [24 CFR 983.256] 
The tenant must have legal capacity to enter a lease under state and local law. Legal capacity 
means that the tenant is bound by the terms of the lease and may enforce the terms of the lease 
against the owner. 
Form of Lease [24 CFR 983.256(b)] 
The tenant and the owner must enter into a written lease agreement that is signed by both parties. 
If an owner uses a standard lease form for rental units to unassisted tenants in the locality or 
premises, the same lease must be used for assisted tenants, except that the lease must include a 
HUD-required tenancy addendum. The tenancy addendum must include, word-for-word, all 
provisions required by HUD. 
If the owner does not use a standard lease form for rental to unassisted tenants, the owner may 
use another form of lease, such as a PHA model lease.   
The PHA may review the owner’s lease form to determine if the lease complies with state and 
local law. If the PHA determines that the lease does not comply with state or local law, the PHA 
may decline to approve the tenancy. 
PHA Policy 
The PHA will not review the owner’s lease for compliance with state or local law. 
Lease Requirements [24 CFR 983.256(c)] 
The lease for a PBV unit must specify all of the following information: 
• The names of the owner and the tenant; 
• The unit rented (address, apartment number, if any, and any other information needed to 
identify the leased contract unit); 
• The term of the lease (initial term and any provision for renewal); 
• The amount of the tenant rent to owner, which is subject to change during the term of the 
lease in accordance with HUD requirements; 
• A specification of the services, maintenance, equipment, and utilities that will be provide by 
the owner; and 
• The amount of any charges for food, furniture, or supportive services.

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Tenancy Addendum [24 CFR 983.256(d)] 
The tenancy addendum in the lease must state: 
• The program tenancy requirements; 
• The composition of the household as approved by the PHA (the names of family members 
and any PHA-approved live-in aide); 
• All provisions in the HUD-required tenancy addendum must be included in the lease. The 
terms of the tenancy addendum prevail over other provisions of the lease. 
Initial Term and Lease Renewal [24 CFR 983.256(f)] 
The initial lease term must be for at least one year. The lease must provide for automatic renewal 
after the initial term of the lease in either successive definitive terms (e.g. month-to-month or 
year-to-year) or an automatic indefinite extension of the lease term. For automatic indefinite 
extension of the lease term, the lease terminates if any of the following occur: 
• The owner terminates the lease for good cause 
• The tenant terminates the lease 
• The owner and tenant agree to terminate the lease 
• The PHA terminates the HAP contract 
• The PHA terminates assistance for the family 
Changes in the Lease [24 CFR 983.256(e)] 
If the tenant and owner agree to any change in the lease, the change must be in writing, and the 
owner must immediately give the PHA a copy of all changes. 
The owner must notify the PHA in advance of any proposed change in the lease regarding the 
allocation of tenant and owner responsibilities for utilities. Such changes may only be made if 
approved by the PHA and in accordance with the terms of the lease relating to its amendment. 
The PHA must redetermine reasonable rent, in accordance with program requirements, based on 
any change in the allocation of the responsibility for utilities between the owner and the tenant. 
The redetermined reasonable rent will be used in calculation of the rent to owner from the 
effective date of the change.

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Owner Termination of Tenancy [24 CFR 983.257] 
With two exceptions, the owner of a PBV unit may terminate tenancy for the same reasons an 
owner may in the tenant-based voucher program (see Section 12-III.B. and 24 CFR 982.310). In 
the PBV program, terminating tenancy for “good cause” does not include doing so for a business 
or economic reason, or a desire to use the unit for personal or family use or other non-residential 
purpose. 
Tenant Absence from the Unit [24 CFR 983.256(g) and 982.312(a)] 
The lease may specify a maximum period of family absence from the unit that may be shorter 
than the maximum period permitted by PHA policy. According to program requirements, the 
family’s assistance must be terminated if they are absent from the unit for more than 180 
consecutive days. PHA termination of assistance actions due to family absence from the unit are 
subject to 24 CFR 981.312, except that the unit is not terminated from the HAP contract if the 
family is absent for longer than the maximum period permitted. 
Continuation of Housing Assistance Payments [24 CFR 982.258] 
Housing assistance payments shall continue until the tenant rent equals the rent to owner. The 
cessation of housing assistance payments at such point will not affect the family's other rights 
under its lease, nor will such cessation preclude the resumption of payments as a result of later 
changes in income, rents, or other relevant circumstances if such changes occur within 180 days 
following the date of the last housing assistance payment by the PHA. After the 180-day period, 
the unit shall be removed from the HAP contract pursuant to 24 CFR 983.211. 
PHA Policy 
If a participating family receiving zero assistance experiences a change in circumstances 
that would result in a HAP payment to the owner, the family must notify the PHA of the 
change and request an interim reexamination before the expiration of the 180-day period.

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Security Deposits [24 CFR 983.259] 
The owner may collect a security deposit from the tenant. The PHA may prohibit security 
deposits in excess of private market practice, or in excess of amounts charged by the owner to 
unassisted tenants. 
PHA Policy 
The PHA will allow the owner to collect a security deposit amount the owner determines 
is appropriate. 
When the tenant moves out of a contract unit, the owner, subject to state and local law, may use 
the security deposit, including any interest on the deposit, in accordance with the lease, as 
reimbursement for any unpaid tenant rent, damages to the unit, or other amounts owed by the 
tenant under the lease. 
The owner must give the tenant a written list of all items charged against the security deposit and 
the amount of each item. After deducting the amount used to reimburse the owner, the owner 
must promptly refund the full amount of the balance to the tenant. 
If the security deposit does not cover the amount owed by the tenant under the lease, the owner 
may seek to collect the balance from the tenant. The PHA has no liability or responsibility for 
payment of any amount owed by the family to the owner.

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17-VII.C. MOVES 
Overcrowded, Under-Occupied, and Accessible Units [24 CFR 983.260] 
If the PHA determines that a family is occupying a wrong size unit, based on the PHA’s subsidy 
standards, or a unit with accessibility features that the family does not require, and the unit is 
needed by a family that does require the features, the PHA must promptly notify the family and 
the owner of this determination, and the PHA must offer the family the opportunity to receive 
continued housing assistance in another unit. 
PHA Policy 
The PHA will notify the family and the owner of the family’s need to move based on the 
occupancy of a wrong-size or accessible unit within 10 business days of the PHA’s 
determination. The PHA will offer the family the following types of continued assistance 
in the following order, based on the availability of assistance: 
PBV assistance in the same building or project; 
PBV assistance in another project; and 
Tenant-based voucher assistance. 
If the PHA offers the family a tenant-based voucher, the PHA must terminate the housing 
assistance payments for a wrong-sized or accessible unit at the earlier of the expiration of the 
term of the family’s voucher (including any extension granted by the PHA) or the date upon 
which the family vacates the unit. If the family does not move out of the wrong-sized unit or 
accessible unit by the expiration of the term of the family's voucher, the PHA must remove the 
unit from the HAP contract. 
If the PHA offers the family another form of assistance that is not a tenant-based voucher, and 
the family does not accept the offer, does not move out of the PBV unit within a reasonable time 
as determined by the PHA, or both, the PHA must terminate the housing assistance payments for 
the unit at the expiration of a reasonable period as determined by the PHA and remove the unit 
from the HAP contract. 
PHA Policy 
When the PHA offers a family another form of assistance that is not a tenant-based 
voucher, the family will be given 30 days from the date of the offer to accept the offer 
and move out of the PBV unit. If the family does not move out within this 30-day time 
frame, the PHA will terminate the housing assistance payments at the expiration of this 
30-day period. 
The PHA may make exceptions to this 30-day period if needed for reasons beyond the 
family’s control such as death, serious illness, or other medical emergency of a family 
member.

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Family Right to Move [24 CFR 983.261] 
The family may terminate the lease at any time after the first year of occupancy. The family must 
give advance written notice to the owner in accordance with the lease and provide a copy of such 
notice to the PHA. If the family wishes to move with continued tenant-based assistance, the 
family must contact the PHA to request the rental assistance prior to providing notice to 
terminate the lease. 
If the family terminates the lease in accordance with these requirements, the PHA is required to 
offer the family the opportunity for continued tenant-based assistance, in the form of a voucher 
or other comparable tenant-based rental assistance. If voucher or other comparable tenant-based 
assistance is not immediately available upon termination of the family’s lease in the PBV unit, 
the PHA must give the family priority to receive the next available opportunity for continued 
tenant-based assistance. 
If the family terminates the assisted lease before the end of the first year, the family relinquishes 
the opportunity for continued tenant-based assistance.

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Emergency Transfers under VAWA [Notice PIH 2017-08] 
Except where special consideration is needed for the project-based voucher program, the PHA 
will follow VAWA policies as outlined in Chapter 16 Part IX of this administrative plan, 
including using the Emergency Transfer Plan as the basis for PBV transfers under VAWA 
(Exhibit 16-4). 
HUD requires that the PHA include policies that address when a victim has been living in a unit 
for less than a year or when a victim seeks to move sooner than a tenant-based voucher is 
available. 
PHA Policy 
When the victim of domestic violence, dating violence, sexual assault, or stalking has 
lived in the unit for less than one year, the PHA will provide several options for 
continued assistance. 
The PHA will first try to transfer the participant to another PBV unit in the same 
development or transfer to a different development where the PHA has PBV units. The 
PHA will expedite the administrative processes in this case in an effort to conduct the 
transfer as quickly as possible. 
If no units are available for an internal transfer, or if there is reasonable cause to believe 
that such a transfer would put the victim in jeopardy, the participant may receive 
continued assistance through an external transfer to either tenant-based rental assistance 
(HCV) or assistance in the PHA’s public housing program. Such a decision will be made 
by the PHA based on the availability of tenant-based vouchers and/or vacancies in public 
housing units. Such families must be selected from the waiting list for the applicable 
program. The PHA has adopted a waiting list preference for victims of domestic 
violence, dating violence, sexual assault, and stalking in both its HCV and public housing 
programs in order to expedite this process. See Section 4-III.C. of this administrative 
plan. 
If a victim wishes to move after a year of occupancy in the unit, but no tenant-based 
vouchers are available, the PHA will offer the participant an internal transfer to another 
PBV unit in the same development or a transfer to a different development where the 
PHA has PBV units. The PHA will expedite the administrative processes in this case in 
an effort to conduct the transfer as quickly as possible. 
If no units are available for an internal transfer, or if there is reasonable cause to believe 
that such a transfer would put the victim in jeopardy, the participant may receive 
continued assistance through an external transfer to the PHA’s public housing program. 
The PHA has adopted a waiting list preference for victims of domestic violence, dating 
violence, sexual assault, and stalking as part of the public housing ACOP in order to 
expedite this process.

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17-VII.D. EXCEPTIONS TO THE OCCUPANCY CAP [24 CFR 983.262] 
As of April 17, 2018, the PHA may not pay housing assistance under a PBV HAP contract for 
more than the greater of 25 units or 25 percent of the number of dwelling units in a project 
unless: 
• The units are exclusively for elderly families 
• The units are for households eligible for supportive services available to all families 
receiving PBV assistance in the project 
If the project is located in a census tract with a poverty rate of 20 percent or less, as determined 
in the most recent American Community Survey Five-Year estimates, the project cap is the 
greater of 25 units or 40 percent (instead of 25 percent) of the units in the project [FR Notice 
7/14/17]. 
If a family at the time of initial tenancy is receiving and while the resident of an excepted unit 
has received Family Self-Sufficiency (FSS) supportive services or any other service as defined 
by the PHA and successfully completes the FSS contract of participation or the supportive 
services requirement, the unit continues to count as an excepted unit for as long as the family 
resides in the unit. However, if the FSS family fails to successfully complete the FSS contract of 
participation or supportive services objective and consequently is no longer eligible for the 
supportive services, the family must vacate the unit within a reasonable period of time 
established by the PHA, and the PHA shall cease paying HAP on behalf of the family.  
Further, when a family (or remaining members of a family) residing in an excepted unit no 
longer meets the criteria for a “qualifying family” because the family is no longer an elderly 
family due to a change in family composition, the PHA has the discretion to allow the family to 
remain in the excepted unit. If the PHA does not exercise this discretion, the family must vacate 
the unit within a reasonable period of time established by the PHA, and the PHA must cease 
paying housing assistance payments on behalf of the non-qualifying family. 
Individuals in units with supportive services who choose to no longer participate in a service or 
who no longer qualify for services they qualified for at the time of initial occupancy cannot 
subsequently be denied continued housing opportunity because of this changed circumstance. A 
PHA or owner cannot determine that a participant’s needs exceed the level of care offered by 
qualifying services or require that individuals be transitioned to different projects based on 
service needs. 
If the family fails to vacate the unit within the established time, the unit must be removed from 
the HAP contract unless the project is partially assisted, and it is possible for the HAP contract to 
be amended to substitute a different unit in the building in accordance with program 
requirements; or the owner terminates the lease and evicts the family. The housing assistance 
payments for a family residing in an excepted unit that is not in compliance with its family 
obligations to comply with supportive services requirements must be terminated by the PHA.

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The PHA may allow a family that initially qualified for occupancy of an excepted unit based on 
elderly family status to continue to reside in a unit, where through circumstances beyond the 
control of the family (e.g., death of the elderly family member or long-term or permanent 
hospitalization or nursing care), the elderly family member no longer resides in the unit. In this 
case, the unit may continue to be counted as an excepted unit for as long as the family resides in 
that unit. Once the family vacates the unit, in order to continue as an excepted unit under the 
HAP contract, the unit must be made available to and occupied by a qualified family. 
PHA Policy 
The PHA will allow families who initially qualified to live in an excepted unit to remain 
when circumstances change due to circumstances beyond the remaining family members’ 
control.  
In all other cases, the PHA will provide written notice to the family and owner within 10 
business days of making the determination. The family will be given 30 days from the 
date of the notice to move out of the PBV unit. If the family does not move out within 
this 30-day time frame, the PHA will terminate the housing assistance payments at the 
expiration of this 30-day period. 
The PHA may make exceptions to this 30-day period if needed for reasons beyond the 
family’s control such as death, serious illness, or other medical emergency of a family 
member.

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PART VIII: DETERMINING RENT TO OWNER 
17-VIII.A. OVERVIEW 
The amount of the initial rent to an owner of units receiving PBV assistance is established at the 
beginning of the HAP contract term. Although for rehabilitated or newly constructed housing, 
the agreement to enter into HAP Contract (Agreement) states the estimated amount of the initial 
rent to owner, the actual amount of the initial rent to owner is established at the beginning of the 
HAP contract term. 
During the tem of the HAP contract, the rent to owner is redetermined at the owner’s request in 
accordance with program requirements, and at such time that there is a five percent or greater 
decrease in the published FMR. 
17-VIII.B. RENT LIMITS [24 CFR 983.301] 
Except for certain tax credit units (discussed below), the rent to owner must not exceed the 
lowest of the following amounts: 
• An amount determined by the PHA, not to exceed 110 percent of the applicable fair market 
rent (or any HUD-approved exception payment standard) for the unit bedroom size minus 
any utility allowance; 
• The reasonable rent; or 
• The rent requested by the owner. 
Certain Tax Credit Units [24 CFR 983.301(c)] 
For certain tax credit units, the rent limits are determined differently than for other PBV units. 
Different limits apply to contract units that meet all of the following criteria: 
• The contract unit receives a low-income housing tax credit under the Internal Revenue Code 
of 1986; 
• The contract unit is not located in a qualified census tract; 
• There are comparable tax credit units of the same bedroom size as the contract unit in the 
same project, and the comparable tax credit units do not have any form of rental assistance 
other than the tax credit; and 
• The tax credit rent exceeds 110 percent of the fair market rent or any approved exception 
payment standard; 
For contract units that meet all of these criteria, the rent to owner must not exceed the lowest of: 
• The tax credit rent minus any utility allowance; 
• The reasonable rent; or 
• The rent requested by the owner.

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Definitions  
A qualified census tract is any census tract (or equivalent geographic area defined by the Bureau 
of the Census) in which at least 50 percent of households have an income of less than 60 percent 
of Area Median Gross Income (AMGI), or where the poverty rate is at least 25 percent and 
where the census tract is designated as a qualified census tract by HUD. 
Tax credit rent is the rent charged for comparable units of the same bedroom size in the project 
that also receive the low-income housing tax credit but do not have any additional rental 
assistance (e.g., tenant-based voucher assistance). 
Reasonable Rent [24 CFR 983.301(e) and 983.302(c)(2)] 
The PHA must determine reasonable rent in accordable with 24 CFR 983.303. The rent to owner 
for each contract unit may at no time exceed the reasonable rent, except in cases where the PHA 
has elected within the HAP contract not to reduce rents below the initial rent to owner and, upon 
redetermination of the rent to owner, the reasonable rent would result in a rent below the initial 
rent. However, the rent to owner must be reduced in the following cases: 
• To correct errors in calculations in accordable with HUD requirements 
• If additional housing assistance has been combined with PBV assistance after the execution 
of the initial HAP contract and a rent decrease is required pursuant to 24 CFR 983.55 
• If a decrease in rent to owner is required based on changes in the allocation of the 
responsibility for utilities between owner and tenant 
If the PHA has not elected within the HAP contract to establish the initial rent to owner as the 
rent floor, the rent to owner shall not at any time exceed the reasonable rent. 
PHA Policy 
The PHA will elect within the HAP contract not to reduce rents below the initial level, 
with the exception of circumstances listed in 24 CFR 983.302(c)(2). If, upon 
redetermination of the rent to owner, the reasonable rent would result in a rent below the 
initial rent, the PHA will use the higher initial rent to owner amount.

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Use of FMRs, Exception Payment Standards, and Utility Allowances [24 CFR 983.301(f)] 
When determining the initial rent to owner, the PHA must use the most recently published FMR 
in effect and the utility allowance schedule in effect at execution of the HAP contract. When 
redetermining the rent to owner, the PHA must use the most recently published FMR and the 
utility allowance schedule in effect at the time of redetermination. At its discretion, the PHA may 
for initial rent, use the amounts in effect at any time during the 30-day period immediately before 
the beginning date of the HAP contract, or for redeterminations of rent, the 30-day period 
immediately before the redetermination date. 
Any HUD-approved exception payment standard amount under the tenant-based voucher 
program also applies to the project-based voucher program. HUD will not approve a different 
exception payment stand amount for use in the PBV program. 
Likewise, the PHA may not establish or apply different utility allowance amounts for the PBV 
program. The same utility allowance schedule applies to both the tenant-based and project-based 
voucher programs. 
PHA Policy 
Upon written request by the owner, the PHA will consider using the FMR or utility 
allowances in effect during the 30-day period before the start date of the HAP, or 
redetermination of rent. The owner must explain the need to use the previous FMRs or 
utility allowances and include documentation in support of the request. The PHA will 
review and make a decision based on the circumstances and merit of each request.  
In addition to considering a written request from an owner, the PHA may decide to use 
the FMR or utility allowances in effect during the 30-day period before the start date of 
the HAP, or redetermination of rent, if the PHA determines it is necessary due to PHA 
budgetary constraints. 
Use of Small Area FMRs (SAFMRs) [24 CFR 888.113(h)] 
While small area FMRs (SAFMRs) do not apply to PBV projects, PHAs that operate a tenant-
based program under SAFMRs may apply SAFMRs to all future PBV HAP contracts. If the 
PHA adopts this policy, it must apply to all future PBV projects and the PHA’s entire 
jurisdiction. The PHA and owner may not subsequently choose to revert back to use of the FMRs 
once the SAFMRs have been adopted, even if the PHA subsequently changes its policy. 
Further, the PHA may apply SAFMRs to current PBV projects where the notice of owner 
selection was made on or before the effective date of PHA implementation, provided the owner 
is willing to mutually agree to doing so and the application is prospective. The PHA and owner 
may not subsequently choose to revert back to use of the FMRs once the SAFMRs have been 
adopted, even if the PHA subsequently changes its policy. If rents increase as a result of the use 
of SAFMRs, the rent increase may not be effective until the first anniversary of the HAP 
contract. 
PHA Policy 
The PHA will not apply SAFMRs to the PHA’s PBV program.

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Redetermination of Rent [24 CFR 983.302] 
The PHA must redetermine the rent to owner upon the owner’s request or when there is a 
10 percent or greater decrease in the published FMR.  
Rent Increase 
If an owner wishes to request an increase in the rent to owner from the PHA, it must be requested 
at the annual anniversary of the HAP contract (see Section 17-V.D.). The request must be in 
writing and in the form and manner required by the PHA. The PHA may only make rent 
increases in accordance with the rent limits described previously. There are no provisions in the 
PBV program for special adjustments (e.g., adjustments that reflect increases in the actual and 
necessary expenses of owning and maintaining the units which have resulted from substantial 
general increases in real property taxes, utility rates, or similar costs).  
PHA Policy 
An owner’s request for a rent increase must be submitted to the PHA 60 days prior to the 
anniversary date of the HAP contract and must include the new rent amount the owner is 
proposing. 
The PHA may not approve and the owner may not receive any increase of rent to owner until and 
unless the owner has complied with requirements of the HAP contract, including compliance 
with HQS. The owner may not receive any retroactive increase of rent for any period of 
noncompliance. 
Rent Decrease 
If there is a decrease in the rent to owner, as established in accordance with program 
requirements such as a change in the FMR or exception payment standard, or reasonable rent 
amount, the rent to owner must be decreased regardless of whether the owner requested a rent 
adjustment, except where the PHA has elected within the HAP contract to not reduce rents below 
the initial rent under the initial HAP contract. 
Notice of Rent Change 
The rent to owner is redetermined by written notice by the PHA to the owner specifying the 
amount of the redetermined rent. The PHA notice of rent adjustment constitutes an amendment 
of the rent to owner specified in the HAP contract. The adjusted amount of rent to owner applies 
for the period of 12 calendar months from the annual anniversary of the HAP contract. 
PHA Policy 
The PHA will provide the owner with at least 30 days written notice of any change in the 
amount of rent to owner. 
PHA-Owned Units [24 CFR 983.301(g)] 
For PHA-owned PBV units, the initial rent to owner and the annual redetermination of rent at the 
anniversary of the HAP contract are determined by the independent entity approved by HUD. 
The PHA must use the rent to owner established by the independent entity.

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17-VIII.C. REASONABLE RENT [24 CFR 983.303] 
At the time the initial rent is established and all times during the term of the HAP contract, the 
rent to owner for a contract unit may not exceed the reasonable rent for the unit as determined by 
the PHA, except where the PHA has elected within the HAP contract to not reduce rents below 
the initial rent under the initial HAP contract. 
When Rent Reasonable Determinations Are Required 
The PHA must redetermine the reasonable rent for a unit receiving PBV assistance whenever any 
of the following occur: 
• There is a 10 percent or greater decrease in the published FMR in effect 60 days before the 
contract anniversary (for the unit sizes specified in the HAP contract) as compared with the 
FMR that was in effect one year before the contract anniversary date; 
• The PHA approves a change in the allocation of responsibility for utilities between the owner 
and the tenant; 
• The HAP contract is amended to substitute a different contract unit in the same building or 
project; or 
• There is any other change that may substantially affect the reasonable rent. 
How to Determine Reasonable Rent 
The reasonable rent of a unit receiving PBV assistance must be determined by comparison to 
rent for other comparable unassisted units. When making this determination, the PHA must 
consider factors that affect market rent. Such factors include the location, quality, size, type and 
age of the unit, as well as the amenities, housing services maintenance, and utilities to be 
provided by the owner. 
Comparability Analysis 
For each unit, the comparability analysis must use at least three comparable units in the private 
unassisted market. This may include units in the premises or project that is receiving project-
based assistance. The analysis must show how the reasonable rent was determined, including 
major differences between the contract units and comparable unassisted units, and must be 
retained by the PHA. The comparability analysis may be performed by PHA staff or by another 
qualified person or entity. Those who conduct these analyses or are involved in determining the 
housing assistance payment based on the analyses may not have any direct or indirect interest in 
the property. 
PHA-Owned Units 
For PHA-owned units, the amount of the reasonable rent must be determined by an independent 
agency approved by HUD in accordance with PBV program requirements. The independent 
entity must provide a copy of the determination of reasonable rent for PHA-owned units to the 
PHA and to the HUD field office where the project is located.

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Owner Certification of Reasonable Rent 
By accepting each monthly housing assistance payment, the owner certifies that the rent to 
owner is not more than rent charged by the owner for other comparable unassisted units in the 
premises. At any time, the PHA may require the owner to submit information on rents charged 
by the owner for other units in the premises or elsewhere. 
17-VIII.D. EFFECT OF OTHER SUBSIDY AND RENT CONTROL 
In addition to the rent limits discussed in Section 17-VIII.B above, other restrictions may limit 
the amount of rent to owner in a PBV unit. In addition, certain types of subsidized housing are 
not even eligible to receive PBV assistance (see Section 17-II.D). 
Other Subsidy [24 CFR 983.304] 
To comply with HUD subsidy layering requirements, at the discretion of HUD or its designee, a 
PHA shall reduce the rent to owner because of other governmental subsidies, including tax 
credits or tax exemptions, grants, or other subsidized funding. 
For units receiving assistance under the HOME program, rents may not exceed rent limits as 
required by that program.  
For units in any of the following types of federally subsidized projects, the rent to owner may not 
exceed the subsidized rent (basic rent) or tax credit rent as determined in accordance with 
requirements for the applicable federal program: 
• An insured or non-insured Section 236 project; 
• A formerly insured or non-insured Section 236 project that continues to receive Interest 
Reduction Payment following a decoupling action; 
• A Section 221(d)(3) below market interest rate (BMIR) project; 
• A Section 515 project of the Rural Housing Service; 
• Any other type of federally subsidized project specified by HUD. 
Combining Subsidy 
Rent to owner may not exceed any limitation required to comply with HUD subsidy layering 
requirements. 
Rent Control [24 CFR 983.305] 
In addition to the rent limits set by PBV program regulations, the amount of rent to owner may 
also be subject to rent control or other limits under local, state, or federal law.

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PART IX: PAYMENTS TO OWNER 
17-IX.A. HOUSING ASSISTANCE PAYMENTS [24 CFR 983.351] 
During the term of the HAP contract, the PHA must make housing assistance payments to the 
owner in accordance with the terms of the HAP contract. During the term of the HAP contract, 
payments must be made for each month that a contract unit complies with HQS and is leased to 
and occupied by an eligible family. The housing assistance payment must be paid to the owner 
on or about the first day of the month for which payment is due, unless the owner and the PHA 
agree on a later date. 
Except for discretionary vacancy payments, the PHA may not make any housing assistance 
payment to the owner for any month after the month when the family moves out of the unit (even 
if household goods or property are left in the unit). 
The amount of the housing assistance payment by the PHA is the rent to owner minus the tenant 
rent (total tenant payment minus the utility allowance). 
In order to receive housing assistance payments, the owner must comply with all provisions of 
the HAP contract. Unless the owner complies with all provisions of the HAP contract, the owner 
does not have a right to receive housing assistance payments. 
17-IX.B. VACANCY PAYMENTS [24 CFR 983.352] 
If an assisted family moves out of the unit, the owner may keep the housing assistance payment 
for the calendar month when the family moves out. However, the owner may not keep the 
payment if the PHA determines that the vacancy is the owner’s fault. 
PHA Policy 
If the PHA determines that the owner is responsible for a vacancy and, as a result, is not 
entitled to the keep the housing assistance payment, the PHA will notify the landlord of 
the amount of housing assistance payment that the owner must repay. The PHA will 
require the owner to repay the amount owed in accordance with the policies in 
Section 16-IV.B.

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At the discretion of the PHA, the HAP contract may provide for vacancy payments to the owner. 
The PHA may only make vacancy payments if: 
• The owner gives the PHA prompt, written notice certifying that the family has vacated the 
unit and identifies the date when the family moved out (to the best of the owner’s 
knowledge); 
• The owner certifies that the vacancy is not the fault of the owner and that the unit was vacant 
during the period for which payment is claimed; 
• The owner certifies that it has taken every reasonable action to minimize the likelihood and 
length of vacancy; and 
• The owner provides any additional information required and requested by the PHA to verify 
that the owner is entitled to the vacancy payment. 
The owner must submit a request for vacancy payments in the form and manner required by the 
PHA and must provide any information or substantiation required by the PHA to determine the 
amount of any vacancy payment. 
PHA Policy 
If an owner’s HAP contract calls for vacancy payments to be made, and the owner wishes 
to receive vacancy payments, the owner must have properly notified the PHA of the 
vacancy in accordance with the policy in Section 17-VI.F. regarding filling vacancies.  
In order for a vacancy payment request to be considered, it must be made within 10 
business days of the end of the period for which the owner is requesting the vacancy 
payment. The request must include the required owner certifications and the PHA may 
require the owner to provide documentation to support the request. If the owner does not 
provide the information requested by the PHA within 10 business days of the PHA’s 
request, no vacancy payments will be made.

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17-IX.C. TENANT RENT TO OWNER [24 CFR 983.353] 
The tenant rent is the portion of the rent to owner paid by the family. The amount of tenant rent 
is determined by the PHA in accordance with HUD requirements. Any changes in the amount of 
tenant rent will be effective on the date stated in the PHA notice to the family and owner. 
The family is responsible for paying the tenant rent (total tenant payment minus the utility 
allowance). The amount of the tenant rent determined by the PHA is the maximum amount the 
owner may charge the family for rental of a contract unit. The tenant rent covers all housing 
services, maintenance, equipment, and utilities to be provided by the owner. The owner may not 
demand or accept any rent payment from the tenant in excess of the tenant rent as determined by 
the PHA. The owner must immediately return any excess payment to the tenant. 
Tenant and PHA Responsibilities 
The family is not responsible for the portion of rent to owner that is covered by the housing 
assistance payment and the owner may not terminate the tenancy of an assisted family for 
nonpayment by the PHA. 
Likewise, the PHA is responsible only for making the housing assistance payment to the owner 
in accordance with the HAP contract. The PHA is not responsible for paying tenant rent, or any 
other claim by the owner, including damage to the unit. The PHA may not use housing assistance 
payments or other program funds (including administrative fee reserves) to pay any part of the 
tenant rent or other claim by the owner.  
Utility Reimbursements 
If the amount of the utility allowance exceeds the total tenant payment, the PHA must pay the 
amount of such excess to the tenant as a reimbursement for tenant-paid utilities, and the tenant 
rent to the owner must be zero. 
The PHA may pay the utility reimbursement directly to the family or to the utility supplier on 
behalf of the family. If the PHA chooses to pay the utility supplier directly, the PHA must notify 
the family of the amount paid to the utility supplier. 
PHA Policy 
The PHA will make utility reimbursements to the family.

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17-IX.D. OTHER FEES AND CHARGES [24 CFR 983.354] 
Meals and Supportive Services 
With the exception of PBV assistance in assisted living developments, the owner may not require 
the tenant to pay charges for meals or supportive services. Non-payment of such charges is not 
grounds for termination of tenancy. 
In assisted living developments receiving PBV assistance, the owner may charge for meals or 
supportive services. These charges may not be included in the rent to owner, nor may the value 
of meals and supportive services be included in the calculation of the reasonable rent. However, 
non-payment of such charges is grounds for termination of the lease by the owner in an assisted 
living development. 
Other Charges by Owner 
The owner may not charge extra amounts for items customarily included in rent in the locality or 
provided at no additional cost to unsubsidized tenants in the premises.

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EXHIBIT 17-1: PBV DEVELOPMENT INFORMATION 
(Fill out one for each development) 
Date: [Enter the date on which this form was completed] 
DEVELOPMENT INFORMATION 
Development Name: [Insert name of PBV development] 
Address: [Insert full address of PBV development] 
Owner Information: [Insert PBV development owner name and contact information. If 
development is PHA-owned, enter “PHA-owned.”] 
Property Management Company: [Insert property management company name and contact 
information, or enter “None”] 
PHA-Owned: [Enter “Yes” or “No.” If yes, enter name of independent entity] 
Mixed Finance Development: [Enter “Yes” or “No.” If yes, list other types of funding and units 
to which other funding applies.] 
HAP CONTRACT 
Effective Date of Contract: [Enter start date of HAP contract] 
HOTMA Requirements: [If HAP contract was signed prior to April 18, 2017, enter “Pre-
HOTMA.” If HAP contract was signed on or after April 18, 2017, enter “Post-HOTMA.”] 
Term of HAP Contract: [Enter term from HAP contract] 
Expiration Date of Contract: [Enter expiration date from HAP contract] 
PBV UNITS 
 
0 BR 
1 BR 
2 BR 
3 BR 
4 BR 
5 BR 
Total  
# of 
Units 
 
 
 
 
 
 
 
Initial 
Contract 
Rent 
 
$ 
 
$ 
 
$ 
 
$ 
 
$ 
 
$ 
 
Accessible Units and Features: [Identify which units are accessible and describe accessibility 
features or enter “None”] 
Target Population: [Describe targeted population in accordance with HAP contract or enter 
“None”]

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Excepted Units: [Identify excepted unit types below or enter “None”] 
Supportive Services: [Enter “Yes, see Exhibit D of HAP Contract” or enter “No”] 
Elderly Units: [Enter “Yes” or “No.” If yes, identify which units are elderly units.] 
Disabled Units (only for HAP contracts executed prior to April 18, 2017) [Enter “Yes” or “No.” 
If yes, identify which units are for persons with disabilities.] 
Are units excepted because they are located in a low-poverty census tract area?: [Enter 
“Yes” or “No”] 
WAITING LIST AND SELECTION 
Waiting List Type: [ Enter “Site-based waiting list,” “Combined with HCV,” “Waiting list for 
entire PBV program,” or “Merged with another assisted housing program”]  
Preferences: [Enter “Same as HCV; see Chapter 4” or describe preferences offered. If different 
from HCV, also note in Section 17.1.B of this policy.] 
Preference Verification: [Enter “Same as HCV; see Chapter 7” or describe for each preference 
listed above. If different from HCV, note in Section 17.1.B of this policy.] 
For the PBV program, is the income limit the same as the HCV program? (Note: In mixed 
finance developments, other income limits may also apply.) [Enter “Same as HCV; see Chapter 
3” or clearly describe. If different from HCV, note in Section 17.1.B of this policy.] 
OCCUPANCY 
Subsidy Standards: [Enter “Same as HCV; see Chapter 5” or describe. If different from HCV, 
note in Section 17.1.B of this policy] 
Utilities: [Enter in accordance with HAP contract Exhibit C] 
Vacancy Payments: [Enter in accordance with HAP contract Part 1, e, 2 and Section 17-V.F. 
within this chapter]

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Page 17-64 
EXHIBIT 17-2: Special Provisions Applying to TPVs Awarded as Part of a Voluntary 
Conversion of Public Housing Units in Projects that Include RAD PBV Units 
[24 CFR Part 972.200; Notice PIH 2019-05; Notice PIH 2019-23] 
Under certain circumstances, HUD allows small PHAs to reposition a public housing project (or 
portion of a project) by voluntarily converting units to tenant-based housing choice voucher 
assistance. In order to preserve affordable housing for residents of the project, the PHA is given 
priority to receive replacement tenant protection vouchers (TPVs). As part of the voluntary 
conversion, the PHA has the option to continue to operate it as rental housing. If so, the PHA or 
subsequent owner must allow existing families to remain in their units using the TPV in the form 
of tenant-based assistance.  In this situation, however, the PHA may choose to project-base these 
TPVs in the former public housing project. Families must still be provided with the option to 
remain in their unit using tenant-based assistance. In order for the PHA to project-base the 
assistance and include these units on the PBV HAP contract, the family must voluntarily consent 
in writing to PBV assistance following the requirements in Appendix A of Notice PIH 2019-05. 
If the family fails to consent to PBV assistance and chooses to remain using tenant-based 
assistance, the family’s unit is excluded from the PBV HAP contract until the family moves out 
or consents to switching to PBV assistance. In general, all applicable program regulations and 
guidance for the standard PBV program apply to these units.  
The PHA may also convert units in the same former public housing project to the PBV program 
under the rental assistance demonstration (RAD) program. The RAD statute authorizes HUD to 
waive certain statutory and regulatory provisions governing the standard PBV program and 
specify alternative requirements. In order to facilitate the uniform treatment of residents and 
units at the project, Notice PIH 2019-23 extended some of the alternative requirements to non-
RAD PBV units in the converted project (i.e., the TPV units in the project). As such, while PBV 
TPV units in the converted project generally follow the requirements for the standard PBV 
program listed in this chapter, where HUD has specified alternative requirements for non-RAD 
PBV units in the project, PBV TPV units will instead follow the requirements outlined in 
Chapter 18 of this policy for the RAD PBV program.  
RAD Requirements Applicable to Non-RAD units in the Project 
Alternative Requirement 
under RAD as Listed in 
Notice PIH 2019-23 
Standard PBV Policy 
That Does Not Apply 
Applicable Policy in Chapter 18  
1.6.A.4. Site Selection – 
Compliance with PBV Goals 
17-II.G. SITE 
SELECTION 
STANDARDS applies 
with the exception of 
deconcentration of 
poverty and expanding 
housing and economic 
opportunity 
requirements.  
18-II.F. SITE SELECTION 
STANDARDS

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1.6.B.5.d. PBV Site-Specific 
Utility Allowances 
Alternative requirement 
under RAD. No 
corresponding policy in 
Chapter 17. 
18-VII.C. UTILITY 
ALLOWANCES 
1.6.C.1. No Rescreening of 
Tenants upon Conversion 
Policies contained in 
Chapter 3 relating to 
eligibility do not apply 
to existing tenants who 
receive TPVs. 
18-V.B. PROHIBITED 
RESCREENING OF EXISTING 
TENANTS UPON 
CONVERSION 
1.6.C.2. Right to Return 
Alternative requirement 
under RAD. No 
corresponding policy in 
Chapter 17. 
18-I.D. RELOCATION 
REQUIREMENTS 
1.6.C.3. Phase-in of Tenant 
Rent Increases 
Alternative requirements 
under RAD. No 
corresponding policy in 
Chapter 17. 
18-VIII.D. PHASE-IN OF 
TENANT RENT INCREASES 
1.6.C.4. Family Self 
Sufficiency (FSS) and 
Resident Opportunities and 
Self-Sufficiency Service 
Coordinator (ROSS-SC) 
Programs 
Not covered in 
administrative plan. 
18-VI.C. PUBLIC HOUSING 
FSS AND ROSS 
PARTICIPANTS 
1.6.C.5. Resident Participation 
and Funding 
Alternative requirement 
under RAD. No 
corresponding policy in 
Chapter 17. 
18-VI.D. RESIDENT 
PARTICIPATION AND 
FUNDING 
1.6.C.6. Resident Procedural 
Rights 
Policies related to 
hearings in Chapter 16 
apply, with added 
procedural rights and 
notice requirements as 
outlined in Chapter 18.  
18-VI.H. RESIDENTS’ 
PROCEDURAL RIGHTS 
1.6.C.7. Earned Income 
Disregard (EID) 
Alternative requirements 
under RAD for in-place 
residents.  
New admissions follow 
policies in Chapter 6. 
18-VI.G. EARNED INCOME 
DISALLOWANCE 
1.6.C.8. Jobs Plus 
Not covered in 
administrative plan.  
No corresponding policy. 
1.6.C.9. When Total Tenant 
Alternative requirements 18-VI.B. LEASE, Continuation

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Page 17-66 
Payment Exceeds Gross Rent 
under RAD for in-place 
residents.  
New admissions follow 
policies in 17-VII.B. 
LEASE, Continuation of 
Housing Assistance 
Payments. 
of Housing Assistance Payments 
1.6.C.10. Under-Occupied 
Unit 
Alternative requirements 
under RAD for in-place 
residents. 
New admissions follow 
17-VII.C. MOVES, 
Overcrowded, Under-
Occupied, and 
Accessible Units 
18-VI.E. MOVES, Overcrowded, 
Under-Occupied, and Accessible 
Units 
1.6.D.4. Establishment of 
Waiting List 
Alternative requirements 
under RAD for initial 
establishment of the 
waiting list. 
Once waiting list is 
established, follow 17-
VI.D. SELECTION 
FROM THE WAITING 
LIST 
18-V.D. ORGANIZATION OF 
THE WAITING LIST 
1.6.D.10. Initial Certifications 
and Tenant Rent Calculations 
Alternative requirements 
under RAD for in-place 
residents. No 
corresponding policy in 
Chapter 17. 
18-VIII.C. TENANT RENT TO 
OWNER, Initial Certifications 
Note, while Notice PIH 2019-05 states that the PHA must screen families for eligibility for a 
tenant protection voucher and that families must be below the low-income limit (80 percent of 
AMI), Notice PIH 2019-23 waives these requirements for residents in projects that include RAD 
PBV units.

© Copyright 2021 Nan McKay & Associates, Inc. 
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Page 17-67