HUD HCV Guidebook § 2.4.2

Units in converted properties (a property undergoing a conversion action that triggers eligibility for a TPV as
described below) are considered assisted if the owner chooses to continue charging below market rents by
offering lower rents or other rent concessions to impacted families who do not receive a voucher. To be
considered assisted, the owner must provide written notification to the PHA, including a list of the covered
families, by unit number; a description and duration of the lower rent or concession; and any additional
information that the PHA deems necessary to determine applicability of the policy to the property.
Upon verification of the information submitted by the owner, the PHA must exclude such units from rent
reasonableness determinations until notified by the owner that either a covered family has moved from the
unit or the rent paid by the family is no longer below market or subject to a rent concession, at which point the
unit is no longer excluded from the rent reasonableness determination.

9
  24 CFR § 982.507(b)(1)
10
   24 CFR § 982.507(b)
11 Notice PIH 2020-19: Rent Reasonableness – Defining Assisted Units for the Housing Choice Voucher and Project-

Based Voucher Programs

Rent Reasonableness                                                                                               4

Converted properties include properties undergoing any of the following conversion actions:
     Housing conversion actions that occur in the Multifamily Housing Portfolios and include an owner
        decision to opt-out of or not renew a Section 8 project-based contract (opt-out); a prepayment of the
        mortgage or voluntary termination of the mortgage insurance of a preservation eligible property
        (preservation prepayments); a HUD enforcement action against an owner that involves termination or
        non-renewal of a Section 8 project-based housing assistance payments; or a HUD property disposition
        activity;
     Any of the conversion actions covered by Notice PIH 2019-01/H 2019-02, or successor notices, for
        which the property has received an award of set-aside TPVs; and
     A public housing conversion action including demolitions and/or dispositions approved under Section
        18 of the 1937 Act (including demolitions authorized under de minimis authority of such Act); required
        conversions approved under Section 33 of the 1937 Act; voluntary conversions approved under
        Section 22 of the 1937 Act; and removals initiated under an awarded Choice Neighborhood Initiative
        and/or HOPE VI grant.
The unit must be occupied by a family who was residing in the unit on the following date (as applicable) and
did not receive a TPV as a result of the conversion action:
     The date of the eligibility event of the housing conversion action;
     The later of: (a) the date that the TPV funding application is submitted to HUD by the PHA or (b) the
        date of the triggering event, for set-aside TPV actions; or
     The date of PIH approval of the Public Housing Conversion or the Choice Neighborhood Initiative award
        date