FEDERAL AGENCY:

OFFICE OF HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

AUTHORIZATION:

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

OBJECTIVES:

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

TYPES OF ASSISTANCE:

Direct Payments for Specified Use. Place Cursor Here for Definition

USES AND USE RESTRICTIONS:

The assistance is paid by HUD to the owner of an assisted unit on behalf of an eligible family. The payment is the difference between the contract rent and the tenant rent. Assistance is currently available only on a renewal basis, i.e., projects currently assisted may receive a 1-year renewal, or multiple years, up to twenty years, upon expiration of the Section 8 contract.

ELIGIBILITY REQUIREMENTS:

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

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

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

Pre-application Coordination:   This program is excluded from coverage under E.O. 12372.

Application Procedure:   Project owner must notify HUD within 120 days of contract expiration that it wishes to renew the Section 8 contract.

Award Procedure:   Contract is renewed upon expiration.

Deadlines:   Owner must notify HUD within 120 days of contract expiration that it intends to renew contract.

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

Appeals:   Not applicable.

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

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Not applicable.

Length and Time Phasing of Assistance:   1 year.

POST ASSISTANCE REQUIREMENTS:

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

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

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

FINANCIAL INFORMATION:

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

Obligations:   FY 01 $4,307,746,946; FY 02 est $4,698,871,426; and FY 03 est $4,516,162,044.

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

There were approximately 1.5 million families assisted in fiscal year 2001.

REGULATIONS, GUIDELINES, AND LITERATURE:

HUD Section 8 Renewal Policy Guide (1/19/01); CFR Part 886 - Section 8 Housing Assistance Payments Program_Special Allocations.

INFORMATION CONTACTS:

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

Headquarters Office:   Catherine M. Brennan 451 7th Street SW, Washington, District of Columbia 20410 Email: Catherine.M.Brennan@hud.gov Phone: (202) 402-6732 Fax: (202) 708-3104.

Web Site Address:  
https://portal.hud.gov/hudportal/HUD

EXAMPLES OF FUNDED PROJECTS:

Projects with HUD-insured mortgages; projects with HUD-held mortgages; projects with non-insured mortgages; projects with Section 202 Direct Loans.

CRITERIA FOR SELECTING PROPOSALS:

Not applicable.