HUD Handbook 4350.3 § 3-21

Owners may receive inquiries or applications from families wishing to use a Housing
          Choice Voucher in their property. The Housing Choice Voucher program is a form of
          rental subsidy administered by public housing agencies (PHAs) that allows families to

rent units in the marketplace and receive a subsidy from the PHA. The rules governing
          the use of vouchers in multifamily projects vary depending upon the type of subsidy
          operating at the project.

          *Owners must use the Existing Tenant Search in accordance with their screening policy
          to determine if an applicant or members of an applicant’s household are receiving
          assistance at another location. Owners must also use the Multiple Subsidy Report to
          determine if any of their tenants are receiving assistance at another location. These
          reports search both the Public and Indian Housing’s Inventory Management System
          (IMS (formerly known as the Public and Indian Housing Information Center (PIC)) and
          the Multifamily Housing’s TRACS databases. See Chapter 9, Enterprise Income
          Verification (EIV).*

          A.          100% of Units Receive Assistance under an Assistance Contract

                      Owners may not admit an applicant with a voucher, unless the applicant agrees
                      to give up the voucher prior to occupancy. Before admitting such applicants,
                      owners must inform voucher holders of the following:

                      1.     The family must be placed on the project waiting list and must give up the
                             voucher when the family moves into the project.

                      2.     If the family later moves out of the project, the project subsidy will not
                             move with the family as it does with a voucher; and

                      3.     The family will need to reapply to the PHA to receive another voucher.

           B.         Partially Assisted Properties

                      1.     Owners may accept applicants with the housing choice vouchers into
                             units that do not already have a form of rental assistance such as Section
                             8, RAP, Rent Supplement, Section 202 PAC, or Section 202 PRAC and
                             Section 811 PRAC. Owners may not admit an applicant with a voucher to
                             a unit with Section 8, RAP, or Rent Supplement, Section 202 PAC, or
                             Section 202 PRAC and Section 811 PRAC unless the applicant agrees to
                             give up the voucher prior to occupancy.

                      2.     The PHA and HUD may limit rents that may be charged and subsidies the
                             owners may collect in units where a voucher family is housed *(see the
                             Housing Choice Voucher regulations at 24 CFR 982.521 for the
                             requirements on the rent that can be paid to the owner in a subsidized
                             property).* Since these limits vary by locality, owners should discuss rent
                             and subsidy limitations with the local PHA. If the owner accepts a
                             voucher holder, the PHA will perform annual inspections to ensure that
                             the unit meets housing quality standards, recertify the family annually,
                             and make the assistance payments to the owner.

          C.          Section 236, Section 221(d)(3) BMIR, and Section 202 Units (without
                      Assistance Contracts)

Owners may accept applicants with the housing choice vouchers into their units.
                      As described in subparagraph B.2 above, the PHA and HUD may limit rents and
                      subsidies *(see the Housing Choice Voucher regulations at 24 CFR 982.521 for
                      the requirements on the rent that can be paid to the owner in a subsidized
                      property)*. Also, the PHA will conduct annual unit inspections and recertify family
                      income annually prior to making assistance payments.

          D.          Previously HUD-Owned Projects

                      1.     Previously HUD-owned projects must give a preference to families
                             holding vouchers. (This preference is required by the sales contract and
                             deed executed between HUD and the owner.)

                      2.     The PHA and HUD may limit rents that may be charged and subsidies the
                             owners may collect in units where a voucher family is housed. Because
                             these limits vary by locality, owners should discuss rent and subsidy
                             limitations with the local PHA. If the owner accepts a voucher holder,
                             PHA will perform annual inspections to ensure that the unit meets
                             housing quality standards, recertify the family annually, and make the
                             assistance payments to the owner.