HUD released Notice PIH 2012-19 “Implementation of Funding for Tenant-Protection Vouchers for Certain At- Risk Households in Low-Vacancy Areas.” The Notice provides information and instructions on the funding process for tenant protection vouchers for certain at-risk households in low-vacancy areas, as authorized and funded through the FY 2012 HUD appropriations.
The FY 2012 Appropriations provided funding for housing choice voucher rental assistance-either as enhanced vouchers or project-based voucher assistance-to residents residing in low-vacancy areas that may have to pay rents greater than 30 percent of household income, as the result of:
· The maturity of a HUD-insured, HUD-held or section 202 loan that requires the permission of the Secretary prior to loan prepayment;
· The expiration of a rental assistance contract for which the tenants are not eligible for enhanced voucher or tenant protection assistance under existing law; or· The expiration of affordability restrictions accompanying a mortgage or preservation program administered by the Secretary.
An owner is eligible to request assistance if:
· The owner’s property is included in Attachment A of the Notice;
This list includes properties in low-vacancy areas with maturing Section 202 Direct Loans, FHA-insured primary mortgages, or HUD-held primary mortgages in FY 2012 that HUD has determined are potentially eligible for assistance; and
· There are at-risk households residing at the property.
“At-risk households” refer to households residing at the property whose yearly income is equal to or less than HUD’s FY 2012 low income limit, and who may have to pay an increase in rent as a result of the property’s maturing mortgage or expiring use agreement, providing that resulting rent is greater than 30 percent of the household’s monthly income.
Owners who wish to request rental assistance under this Notice must request the assistance by May 4, 2012. The notice contains instructions for submitting this request to local HUD Multifamily Hubs and Program Center (PC) Directors, with a copy to the HUD Project Manager. If a property is deemed eligible, the request will be put in a lottery to determine the order of funding for the tenant-protection vouchers. Funding announcements will be made in July.
A copy of the notice is available here: http://portal.hud.gov/huddoc/pih2012-19.pdf