24 C.F.R. § 983.5
§ 983.5 Description of the PBV program. (24 CFR Part 983)
Operative Text
(a) How PBV works. (1) The PBV program is administered by a PHA that already administers the tenant-based voucher program under the consolidated annual contributions contract (ACC) in 24 CFR 982.151. In the PBV program, the assistance is “attached to the structure,” which may be a multifamily building or single-family building. (See description of the difference between “project-based” and “tenant-based” rental assistance at 24 CFR 982.1(b)). (2) The PHA enters into a HAP contract with an owner for units in existing housing or in newly constructed or rehabilitated housing. (3) In the case of new construction or rehabilitation, the owner may develop the housing pursuant to an Agreement (§ 983.154) between the owner and the PHA. In the Agreement, the PHA agrees to execute a HAP contract after the owner completes the construction or rehabilitation of the units. Alternatively: (i) The owner may develop the housing without an Agreement, before execution of a HAP contract, in accordance with § 983.154(f); or (ii) In the case of rehabilitation, the owner may develop the housing or complete development activity after execution of the HAP contract, in accordance with § 983.157. (4) During the term of the HAP contract, the PHA makes housing assistance payments to the owner for units leased and occupied by eligible families. (b) How PBV is funded. If a PHA decides to operate a PBV program, the PHA's PBV program is funded with a portion of appropriated funding (budget authority) available under the PHA's voucher ACC. This funding is used to pay housing assistance for both tenant-based and project-based voucher units. Likewise, the administrative fee funding made available to a PHA is used for the administration of both tenant-based and project-based voucher assistance. (c) PHA discretion to operate PBV program. A PHA has discretion whether to operate a PBV program. HUD approval is not required, except that the PHA must notify HUD of its intent to project-base its vouchers and when the PHA executes, amends, or extends a HAP contract. The PHA must also state in its Administrative Plan that it will engage in project-basing and must amend its Administrative Plan to include all PBV-related matters over which the PHA is exercising its policymaking discretion, including the subjects listed in § 983.10, as applicable.
Under 24 CFR Part 983 § 983.5, the Project-Based Voucher (PBV) program ties rental assistance to specific housing units rather than to individual tenants, meaning the subsidy stays with the property rather than moving with the household. A Public Housing Authority (PHA) that already runs a tenant-based voucher program may choose to operate a PBV program by directing a portion of its existing voucher funding toward housing assistance payments made directly to owners under a Housing Assistance Payments (HAP) contract. The PHA is not required to obtain HUD approval to launch a PBV program, but it must notify HUD at key milestones and formally document its PBV policies in its Administrative Plan.
Plain English — not legal advice.
Under § 983.5, owners who participate in the PBV program enter into a HAP contract with the local PHA, which then makes housing assistance payments for eligible families occupying covered units. For new construction or rehabilitation projects, compliant operators typically either execute a formal Agreement with the PHA before development begins or, in certain circumstances, proceed under the alternative pathways outlined in § 983.154(f) or § 983.157. Owners generally maintain awareness of the HAP contract's terms and the PHA's Administrative Plan, since that document governs the PHA's exercise of discretion over PBV-related policies that directly affect the owner relationship.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 983.5 establishes that PBV assistance is attached to the unit itself, so a household living in a PBV-assisted unit receives a subsidy tied to that specific address rather than one they can carry to a new home. Tenants in PBV units may want to familiarize themselves with their PHA's Administrative Plan, which under § 983.5(c) must describe all PBV policies the PHA has adopted, as that document can clarify rights and procedures applicable to their housing. Tenants who have questions about how PBV assistance affects their tenancy can reach out to their local PHA, a HUD-approved housing counseling agency, or a tenant-rights organization for general information.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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