Project-Based Vouchers
Housing Choice Vouchers are generally intended to be tenant-based, meaning that the assisted household can use the voucher to lease a rental unit on the private market. However, some vouchers are project-based, meaning that the voucher is tied to a unit within a specific development. PHAs can choose to project-base up to 100% of their HUD-VASH vouchers although they must make sure that no more than 20% of their overall voucher allocation, which includes HUD-VASH, is project-based. In most cases, issuing tenant-based vouchers is the preferred approach for achieving rapid lease-up. Project-basing can be an effective part of a community’s HUD-VASH strategy if the following conditions are met:
- The lack of available rental units within the PHA’s payment standard impedes Veterans’ ability to use tenant-based vouchers;
- Project-based vouchers are used for existing units and not to finance new developments; or
- Project-basing is necessary to preserve existing affordable housing stock.
If a community opts to project base some portion of its HUD-VASH allocation, HUD approval with VA support is required. It is also essential that this approach targets chronic and vulnerable homeless Veterans as recommended with a tenant-based approach.
Want more guidance on HUD-VASH? Learn about these topics:
