Summary: The purpose of HUD’s Notice (PIH Notice 2012-24) is to provide guidance to Public Housing Authorities (PHAs) when determining the rent to owner for an HCV tenancy when the participant family chooses to lease a unit under the HCV program in any of the following types of federally subsidized projects:
- An insured or non-insured Section 236 project
- A Section 202 project2
- A Section 221(d)(3)3 below market interest rate (BMIR) project; or
- A Section 515 project of USDA’s Rural Development Program
This Notice supersedes PIH Notice 2011-1.
Rent to Owner in Subsidized Projects: As stated in 24 CFR §982.521, when a family leases a unit under the HCV program in an insured or non-insured Section 236 project, Section 202 project, Section 221(d)(3) BMIR project, or a Section 515 project of the Rural Development Program, the rent to owner must equal the rent set by the respective subsidy programs and be reasonable in comparison to rent for other unassisted units, as determined by the HCV administering agency, in accordance with 24 CFR §982.507.
In order to confirm the subsidized rental rate for Sections 236, 202, 221(d)(3) BMIR or Section 515 projects, contact your local Multifamily Hub or Program Center.
Prohibition Against Other Housing Subsidy: The federally subsidized projects discussed above may, in some circumstances, contain units that also receive the benefit of a State, local, or federal, housing subsidy (e.g., Section 8 project-based housing assistance payments contract). Such units are ineligible units under the HCV program. In accordance with program regulations at 24 CFR §982.352 (c), a HCV family may not receive the benefit of tenant-based assistance under the HCV program for a unit in which there is any other duplicative federal, State or local housing subsidy.
Date of Publication: May 22, 2012
View the document here.