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.

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 one-year renewal 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.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   This program is excluded from coverage under E.O. 12372.

Application Procedure:   Project owner must notify HUD within 180 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 180 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:   One 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 99 $7,552,062,000; FY 00 est $7,813,032,000; and FY 01 est $7,919,305,000.

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

PROGAM ACCOMPLISHMENTS:

There were approximately 1.5 million families assisted in fiscal year 1999.

REGULATIONS, GUIDELINES, AND LITERATURE:

HUD Notice H98-34, "Contract Non-Renewal Notice"; CFR Part 886 - Section 8 Housing Assistance Payments Program_Special Allocations.

INFORMATION CONTACTS: