HUD Updates Guidance for TPVs for At-Risk Households in Low-Vacancy Areas

On Feb. 4, HUD issued Notice PIH 2014-04, amending Notice PIH 2013-08, regarding Tenant Protection Vouchers (TPVs). Congress first made funds available for TPVs last fiscal year, and made an additional $5 million available for them this fiscal year.  

TPVs are meant to benefit currently unassisted residents residing in properties with expiring use restrictions who are not otherwise entitled to vouchers. The TPVs can be either enhanced tenant-based vouchers or project-based voucher contracts. With the previous notice, after June 14, 2013, HUD became aware of a problem with the criteria used to describe eligibility under Category 3; namely, Notice PIH 2013-08 used eligibility criteria for Category 3 that were more restrictive than HUD’s intent.

The eligibility criteria in Notice PIH 2013-08 stated that to be eligible for Category 3 due to a stand-alone use agreement, a project could not have a Section 202 Direct Loan, FHA-insured primary mortgage, or HUD-held primary mortgage in place at the time of the owner’s application for the funding under Notice PIH 2013-08. HUD learned that in some cases, at the time of their application, owners were in the process of prepaying the FHA-insured primary mortgage on properties with a qualifying use agreement meeting the eligibility requirements in Category 3. These projects no longer have an active FHA-insured primary mortgage or HUD-held primary mortgage.

The most recent notice expands eligibility for Category 3 properties to properties whose HUD affordability use agreements expired in or before FY 2012 and whose FHA-insured or HUD-held primary mortgage were prepaid between June 14, 2013, and Feb. 3, 2014. For owners applying under the expanded criteria of Category 3 properties, this notice also amends deadlines, and certain other provisions of Notice PIH 2013-08. Owners must request assistance by April 1, 2014. Resident notification must be provided by March 4, 2014.