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14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM_SPECIAL ALLOCATIONS

(Project-based Section 8)

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.

USES AND USE RESTRICTIONS
This program is inactive. No new projects are being approved; however, tenants may apply for admission to projects with existing Section 8 assistance contracts. 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.

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
Applications for new projects are no longer being accepted. Project must meet minimum decent, safe, and sanitary standards for HUD to renew the Section 8 contract.

Preapplication Coordination
This program is excluded from coverage under E.O. 12372. No applications for new projects are being accepted.

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. Owner must notify the residents one year in advance of contract expiration that it intends not to renew the 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.

Formula and Matching Requirements
Not applicable.

Length and Time Phasing of Assistance
1 year.

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.

Account Identification
86-0319-0-1-604; 86-0164-0-1-604; 86-0311-0-1-604; 86-0316-0-1-604; 86-0303-0-1-604.

Obligations
FY 07 $8,421,000; FY 08 est $8,549,000; and FY 09 est $8,529,000.

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

PROGRAM ACCOMPLISHMENTS
No new commitments for additional projects will be made under this program.

REGULATIONS, GUIDELINES, AND LITERATURE
HUD Section 8 Renewal Policy Guide (1/15/08); 24 CFR 886 Subpart A - Additional Assistance Program for Projects With HUD-Insured And HUD-Held Mortgages Payments Program_Special Allocations.

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

Headquarters Office
Department of Housing and Urban Development, Office of Housing Assistance and Grant Administration, 451 7th Street, S.W., Washington, DC 20410. Telephone: (202) 708-3000.

Web Site Address
http://www.hud.gov/offices/hsg/mfh/mfhsec8.cfm

RELATED PROGRAMS
14.126, Mortgage Insurance_Cooperative Projects; 14.132, Mortgage Insurance_Purchase of Sales-Type Cooperative Housing Units; 14.134, Mortgage Insurance_Rental Housing; 14.135, Mortgage Insurance_Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate; 14.138, Mortgage Insurance_Rental Housing for the Elderly; 14.139, Mortgage Insurance_Rental Housing in Urban Renewal Areas; 14.155, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; 14.157, Supportive Housing for the Elderly; 14.181, Supportive Housing for Persons with Disabilities.

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.


General Services Administration
Office of Chief Acquisition Officer
Regulatory and Federal Assistance Division (VIR)