HUD’s Office of Multifamily Housing Programs published Housing Notice 2024-05 which implements HUD’s authority to make budget-based rent adjustments (BBRA) for Section 8 project-based rental assistance housing assistance payment contracts at properties subject to a M2M Use Agreement. This notice sets forth the eligibility requirements and HUD’s policies and procedures for reviewing BBRA applications.
Due to limited funding, HUD is prioritizing BBRAs where the need is determined to be the greatest. Accordingly, the notice identifies the 1st Priority Group invited to apply for a BBRA. Owners with a M2M property/properties that meet notice eligibility requirements and one (1) of the criteria defined as “Group A Properties” are invited to apply now. At this time, only properties that meet the requirements of the 1st Priority Group are eligible to apply.
If you have a M2M property that meets HUD’s definition of the 1st Priority Group, please submit the Initial Submission through the form available on HUD’s Post M2M website. Requests will be reviewed on a first-come-first served basis, but applications received within the next 28 days (before 11:59 PM EST on March 28, 2024,) will be deemed received simultaneously. HUD will invite owners that qualify to submit a Final Submission, pending funding availability. The Final Submission will contain all the necessary documentation to confirm eligibility and allows HUD to conduct a complete evaluation of the project to assess the needed BBRA.
BBRAs will increase contract rents; however, assisted residents will continue to pay only 30 percent of their income for rent and utilities. The monthly PBRA subsidy payment to owners covers the difference between the tenant contribution and the contract rent.
HUD is planning a training on the notice on March 12th at 1PM EST. Use this registration link to enroll. If you have any questions about the notice, please email bbra@hud.gov.
We hope you take advantage of this opportunity, and we look forward to working with you to preserve and improve the M2M affordable housing stock.