HUD Extends HUD-VASH Program

HUD has issued Notice PIH 2010-23 (HA), which extends the Implementation of HUD-Veterans Affairs Supportive Housing (HUD-VASH) Program operating requirements through June 30, 2011. HUD says it will continue to consider, on a case-by-case basis, requests from public housing agencies (PHAs) for project-based HUD-VASH vouchers.

HUD and the Department of Veterans Affairs warn PHAs that they cannot allocate more than 50 percent of HUD-VASH vouchers for project-based units. Allocations must be within the 20 percent maximum budget authority that may be allocated to project-based voucher (PBV) assistance in accordance with 24 CFR Section 983.5(a). HUD will consider all types of PBV proposals, including: existing units, newly constructed units, and substantially rehabilitated units.

A request will not be considered unless the Veteran’s Affairs Medical Center supports the project and it is consigned by an official at the center or a Veteran’s integrated service network’s director.

Changes on Continued Assistance for Families
The 2010 notice also includes some revisions to Section 3, which focuses on continued assistance for families that move from project-based units. According to 24 CFR Section 983.260(a) and the lease, a family may terminate the assisted lease any time after the first year of occupancy. If the family chooses to do so, the PHA must offer the family the opportunity for continued tenant-based rental assistance at a gross rent that is not more than 40 percent of the family’s adjusted monthly income. However, before a family provides the site owner with notice about its intention to terminate the lease (and sends a copy to the PHA), the family must contact the PHA to request comparable tenant-based rental assistance if it wishes to move with continued assistance. If a voucher or other comparable tenant-based rental assistance is not immediately available, the PHA must give the family priority to receive the next available opportunity for continued tenant-based rental assistance.

The updated notice also says that to ensure all PBV units under a housing assistance payment (HAP) contract remain funded, the following should occur when a HUD-VASH household is eligible to move from a project-based unit and there is not comparable tenant-based rental assistance to offer the family:

• If a HUD-VASH tenant-based voucher is not available at the time the household wants and is eligible to move, a PHA could require the family to wait for a HUD-VASH tenant-based voucher for no more than 180 days.
• If a HUD-VASH tenant-based voucher is still not available after 180 days, the household must be allowed to move with its HUD-VASH voucher. The PHA would be required to replace the assistance forn the PBV unit with one of its regular vouchers unless the PHA and owner agreed to remove the unit from the HAP contract; and
• If after 180 days, a HUD-VASH tenant-based voucher does not become available and the PHA does not have sufficient available funding in its housing choice voucher program to attach assistance to the PBV unit, the household may be required to remain in its PBV unit until such funding becomes available. When determining if funding is insufficient, the PHA must consider its available budget authority, including unspent prior-year HAP funds in its net restricted assets account.