The Office of Multifamily Housing and the Office of Public and Indian Housing published a joint Tenant Protection Voucher (TPV) Set-Aside Notice explaining the eligibility and application requirements for TPV set-aside funding as well as how applications will be processed.
The 2017 Consolidated Appropriations Act enacted May 5, 2017 provides that up to $5 million of the $110 million appropriated for TPVs may be made available for certain at-risk households in low-vacancy areas. The purpose of the vouchers is to protect the residents of certain properties with expiring affordability restrictions. An owner is eligible to request assistance under this notice in the form of either an enhanced voucher or project-based voucher (PBV) assistance.
In prior TPV notices, the guidance became ineffective at the end of the fiscal year, creating a black-out period until a new notice was issued. To avoid this, the FY 17 notice is applicable to triggering events that occurred in FY 17 and will remain in effect until HUD issues a new notice. This notice also addresses the definition of “low vacancy” areas, which is one of the statutory limitations determining which properties are eligible. Finally, the notice presents new ways to make the process less onerous on the owner, HUD, and the PHA administering the vouchers to protect residents with voucher assistance.
Summary of Major Changes
This notice makes the following enhancements:
- Allows owners to submit a request for vouchers up to 180 days before the expiration of a property’s affordability restriction. Previously, owners had to wait until after the triggering event.
- Clearly states that the notice remains in effect until HUD issues a new notice. Previous versions of this notice expired at the end of the Fiscal Year, creating a “black-out” period when owners could not request vouchers to protect residents.
- Revises how “low-vacancy areas” are defined, which expands property eligibility to ensure that residents are protected if they will have to pay higher rents when the affordability restriction expires. Previously, only vacancy was considered, but this now looks at both vacancy and affordability.
- Simplifies the processing requirements on owners and on HUD, ensuring residents receive voucher protection in time. This streamlining makes the process less onerous on the owner, HUD, and the PHA administering the vouchers so as to reduce barriers to participation.
Please view the Notice here.