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On Feb. 24, the U.S. Department of Housing and Urban Development (HUD) released Notice H 2012-03: Guidance on Eligibility for Tenant Protection Vouchers Following Certain Housing Conversion Actions, which provides information on accessing tenant protection vouchers following prepayments or opt outs of rental assistance (or, in HUD parlance, “certain housing conversion actions”).
Typically residents of nonprofit owned developments are not eligible for tenant protection vouchers although in HUD’s discretion they may be eligible if participating in RAP, Rent Supplement or a pre 1974 Section 202 property.
This notice describes the situations under which tenant protection vouchers would be made available to residents of non profit owned properties.
In 2011, HUD had the authority to extend expiring Rent Supplement (RS) and Rental Assistance Payment (RAP) contracts. Now, Notice H 2012-03 describes the situations under which tenant protection vouchers can be made available to residents of non profit owned properties where the existing RS or RAP contracts are due to expire this year.
And, under the new Rental Assistance Demonstration (RAD) program, authorized new this year, Rent Supp and RAP properties can seek to have tenant protection vouchers (which go or stay with the resident, at their choice) converted to project-based vouchers (which stay at the property, to help preserve affordability and access at that site for future residents).
The 2-fold goal of RAD is to ensure preservation and allow residents choice and some mobility on where to live.
AT this time, RS/RAP properties with contracts due to expire this year should contact their local HUD office to begin the process of working with the local Public Housing Authority to seek tenant protection vouchers and/or project-based voucher conversion. HUD conducted a webcast on what this means and how the process would work on March 16, which can be viewed in archive.
RS/RAP properties historically had no option for renewal. Their subsidy was originally issued as 30- to 40-year contracts, authorized when the contracts were first issued and no provisions for the years that would follow. Most RS and RAP contracts will reach expiration by 2016, and all will have expired by 2019.
However, under a newly released notice PIH 2012-18 Rental Assistance Demonstration -- Partial Implementation and Request for Comments Section III, both implements and solicits comments on the RS/RAP conversion/demonstration authority.
Under the RAD demonstration program for Rent Supp and RAP properties only, there is no cap on the total number of units and no competition, but participation IS subject to funding availability in any given year.
For 202s funded prior to 1975, the requirements for tenant protection vouchers are detailed in housing notice 2010-14.
However, under the legislation passed in 2010, pre 1974 202s which are refinanced will be eligible to receive project based assistance for unassisted residents. This will be known as Senior Preservation Rental Assistance Contracts or SPRAC.
HUD will be issuing guidance for SPRAC in the near future (we hope). As soon as that guidance is available we will let you know.