HUD PIH Notice § 2018-02
Funding Availability for Set-Aside Tenant-Protection Vouchers FY17 Funding (HUD PIH Notices)
HUD guidance — not codified law
In Force
Verified 10/14/2026 · Next check 10/21/2026
effective 10/6/2026FederalAffordable Housing ProgramsOperative Text
HUD PIH Notice § 2018-02
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
______________________________________________________________________________
SPECIAL ATTENTION OF: NOTICE PIH 2018–02
Regional and Field Office Directors of NOTICE H 2018–01
Public Housing; Multifamily Regional
Center/Satellite Office Directors; Public Issued: February 8, 2018
Housing Directors; and Owner/Agents
This notice remains in effect until
amended, superseded, or rescinded
CROSS REFERENCES
Consolidated Appropriations Act,
2017 (Public Law 115–31, enacted
May 5, 2017)
______________________________________________________________________________
Subject: Funding Availability for Set-Aside Tenant-Protection Vouchers – Fiscal Year 2017
Funding
Purpose. HUD is making up to $5,000,000 available for Tenant Protection Vouchers (TPVs) for
certain at-risk households in low-vacancy areas from Fiscal Year (FY) 2017 Appropriations.
The Consolidated Appropriations Act, 2017 (Public Law 115–31, enacted May 5, 2017) (referred
to hereafter as the FY 2017 Act), provides that up to $5,000,000 of the $110,000,000
appropriated for TPVs may be made available for this purpose.
TPVs provided under this set-aside are considered “replacement” TPVs and are not subject to the
re-issuance restrictions that apply to certain other TPVs under the FY 2017 Act. An owner is
eligible to request assistance under this Notice in the form of either enhanced voucher or project-
based voucher (PBV) assistance. See Attachment D for more information about these types of
voucher assistance. This Notice explains the eligibility and application requirements for TPV
set-aside funding, in addition to describing how applications will be processed.
Summary of Major Changes. This Notice differs from the Fiscal Year 2016 Funding
Availability for Tenant-Protection Vouchers for Certain At-Risk Households in Low-Vacancy
Areas Notice PIH 2016-12/H 2016-07 in the following major ways:
• Revises application submission timing in two ways:
o Owners may submit an application for a triggering event that occurred in the five
years prior to the issuance date of this Notice or is anticipated to occur no later
than 180 days of the Owner’s submission.
o Applications may be submitted and processed on a rolling basis until funding
under the FY 2017 set-aside has been exhausted or HUD issues a new Notice for
FY 2018 TPV set-aside assistance, whichever comes first, unless Congress enacts
language prohibiting the use of FY 2017 carryover funds or directing that such
funds be used in a manner that is inconsistent with this Notice.
• Removes a previous triggering event category; properties with Rental Assistance
Payments (RAP) contract expirations prior to FY2012 and properties with Rent
Supplement contract expirations prior to FY 2000.
• Requires that owners indicate a preferred form of assistance (enhanced vouchers or PBV
assistance) and whether the owner is willing to accept the other form of assistance where
the PIH Field Office is unable to find a public housing agency (PHA) willing to
administer the owner’s preferred assistance type.
• Adopts the Fair Market Rent (FMR) as a proxy for market rents (i.e., rents residents
would have to pay in the absence of assistance) for the initial determination of at-risk
residents where applicable. (The Small Area FMR (SAFMR) is used in metropolitan
areas. In nonmetropolitan areas, the area-wide FMR is used.)
• Revises owner calculation of household income requirements.
• Consolidates previous household list requirements.
• Allows PHAs to rely on an owner’s determination of households’ rent burden.
• Allows owners and PHAs to use an owner’s most recent family income examination
(form HUD-50059) if the effective date of the income verification is no more than 12
months old. The PHA may rely on the owner’s most recent family examination if the
PHA determines that the examination is acceptable through sampling (see Attachment D
for more information).
• Revises how low-vacancy areas are defined.
• Removes HUD internal standard operating procedures.
I. Timing of Application Submission. Subject to the following conditions, HUD will
accept owner requests for TPV assistance under this Notice on a rolling basis:
A. Funding under the TPV set-aside remains available;
B. HUD has not issued a Notice for FY 2018 TPV set-aside assistance; and
C. Congress has not enacted language prohibiting the use of carryover funds or
directing that such funds be used in a manner that is inconsistent with this
Notice.1
Any application that was submitted under a previous FY Notice, and not funded, may be
amended to comply with the requirements of this Notice and then resubmitted.
1
Owners may inquire to their HUD Account Executive as to the continued availability of TPV
set-aside funding prior to preparing the application material described in this Notice.
2
II. Eligibility Requirements. An owner who wishes to request assistance under this Notice
must meet all of the eligibility requirements described below. Applicants who fail to
meet any of the eligibility requirements will be deemed ineligible.
A. Low-vacancy areas. The list of low-vacancy areas in Attachment E must be used to
determine whether a project is eligible for funding under this notice. If the area
where the project is located is not listed in Attachment E, any application submitted
in connection with such project will be deemed ineligible for funding under this
notice. Attachment E also describes the methodology for determining low-vacancy
areas.
B. Triggering event.2 The occurrence of at least one of the events described below
triggers eligibility for assistance under this Notice: The triggering event must have
occurred in the 5 years prior to the issuance date of this Notice or must be anticipated
to occur no later than 180 days of the Owner’s submission described in Section III:
1. The maturity of a HUD-insured, HUD-held, or section 202 loan that would
have required the permission of the Secretary prior to loan prepayment. This
category includes only properties with the following types of matured
mortgages:
a. Section 202 direct loan;
b. Section 236 insured or HUD-held mortgage;
c. Sections 221(d)(3)–(d)(5) Below Market Interest Rate (BMIR)
insured or HUD-held mortgage.
A direct loan or FHA-insured mortgage note will specify if HUD approval is
required for prepayment. If the Section 202 direct loan note is silent on whether
HUD prepayment approval is required, then the maturity of the direct loan is
eligible under this category.
Maturity of any other type of mortgage, for example a mortgage made by a state
Housing Finance Agency, does not qualify under this category.
2
HUD has determined that implementation of a time limit on triggering events is necessary to
ensure that this discretionary set-aside funding is appropriately awarded to projects for the
authorized purpose on behalf of eligible families. In light of this, a previous category of
triggering events identified by HUD in the past as qualifying under the second prong detailed in
the appropriations act (that is, RAP contracts that expired prior to FY2012 and Rent Supplement
contracts that expired prior to FY200) is no longer offered as an eligible category under this set-
aside notice. Under the 2017 appropriations act (and prior appropriations acts that authorized a
similar, discretionary set-aside of TPV funding), set-aside funding for expiring rental assistance
contracts can only be provided in cases where families are not eligible for TPVs under existing
law. The expiration of a Rent Supplement or RAP contract triggers the provision of TPVs under
existing law. Moreover, this has been the case since FY 2000 for Rent Supplement contract
expirations and since FY 2012 for RAP contract expirations.
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2. The expiration of affordability restrictions accompanying a mortgage or
preservation program administered by the Secretary. This category includes
two groups of properties, as follows:
a. Properties with matured Section 202 direct loans, Section 236
insured or HUD-held mortgages, or Section 221(d)(3)-(d)(5)
BMIR insured or HUD-held mortgages where permission of the
Secretary would not have been required prior to mortgage
prepayment. To be eligible under this category, the underlying
affordability restrictions at the property must have expired with
maturity of the mortgage. Note, the distinction in this category is that
permission from the Secretary for mortgage prepayment is not
required.
b. Properties with expired “stand alone” affordability restrictions.
This group includes properties that had a HUD-imposed
affordability restriction that expired in FY 2018 or in the 5 years
prior to the publication date of this notice. To be eligible under
this category, the project with the expired affordability restriction
must not, at the time of the request for assistance, have an active
Section 202 direct loan, or an active Section 221(d)(3)-(d)(5)
BMIR insured or HUD-held mortgage or Section 236 FHA-insured
or HUD-held mortgage. This category includes projects that had a
HUD-imposed affordability restriction and may have been
financed with a state-insured mortgage. The expired/expiring
affordability restriction must be a HUD-imposed affordability
restriction that restricted the property to operate as affordable
housing to very low, low, and/or moderate income households.
This may include, but is not limited to, the Preservation programs
under the Title II Emergency Low Income Housing Preservation
Act (ELIHPA) and the Low-Income Housing Preservation and
Resident Homeownership Act (LIHPRHA), Section 236(e)(2)
Decoupling Use Agreement, Section 250 Prepayment Use
Agreement, or a Section 219 Prepayment Use Agreement. An
Interest Reduction Payments Agreement associated with a state
non-insured 236 mortgage also meets the criteria under this
category. The expiration of a project affordability restriction
imposed by another agency or funder does not meet the criteria
under this category.
C. At-risk residents. A resident is eligible to receive TPV assistance if the resident:
1. Resides at the project at the time of the owner’s request. If the triggering
event happened before the owner submits the request (note the timing
requirements described in Section II.A.2 above), the resident must have also
resided at the project at the time of the triggering event;
2. Is not currently assisted under any federal, state, or local rental assistance
program;
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3. Is eligible for Housing Choice Voucher (HCV) assistance (as determined by a
PHA); and
4. As the result of an eligible triggering event, either is paying or may have to
pay greater than 30 percent of adjusted monthly income toward rent.
Attachment A of this notice details how this provision is to be implemented.
A resident who meets the criteria listed above is considered to be “at-risk” for
purposes of this Notice. Attachment A to this Notice (Owner Checklist for
Determining At-Risk Households) provides further information on
identifying at-risk households.
D. Resolution of Civil Rights Matters. Outstanding civil rights matters must be
resolved to HUD’s satisfaction prior to award of TPVs, provided that all applicable
legal processes have been satisfied. If HUD determines an application fails to meet
this standard, HUD will notify the owner of its determination and any necessary
actions.
III. Application Requirements. Before applying, owners must ensure that all eligibility
requirements, as described in Section II of this notice, are met. An application that does
not meet any of the eligibility requirements will be deemed ineligible and will not
complete the application process. This Section must be read in conjunction with
Attachment A of this notice, to ensure that all requirements are met.
A. Content of the Application. An owner who wishes to request assistance under this
Notice must email a letter requesting assistance to the HUD Multifamily Regional
Center/Satellite Office Director, with a copy to the HUD Account Executive. A list
of HUD Multifamily Regional Center/Satellite Offices may be found at:
https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/mfh/hsgmfbus/a
bouthubspcs. The submission email must also include all of the following
information:
1. The property name and address, including the name of the county in which
the property is located.
2. The date of the triggering event.
3. A copy of all mortgage note documents, rental assistance contracts and
renewals, and affordability restriction documents related to the triggering
event.
4. A narrative explanation of the triggering event that makes the project
eligible under this Notice.
5. A statement indicating the owner’s preferred form of assistance (enhanced
vouchers or PBV assistance). The statement shall include whether the
owner is willing to accept the alternative form of assistance where the PIH
Field Office is unable to find a PHA willing to administer the owner’s
preferred assistance type. For example, if the owner’s preferred assistance
is PBV, the application will specify whether the owner consents to
enhanced vouchers if the PIH Field Office is unable to find a PHA to
administer PBV assistance.
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6. A statement certifying that the owner is in compliance with the civil rights laws
and requirements identified in 24 CFR 5.105.
7. A list of units (identified by unit number and household name) currently
occupied by at-risk households. The list must identify these units as “at-
risk” and include a calculation that demonstrates that the household would
have to pay more than 30% of monthly adjusted income in the absence of
voucher assistance. See Attachment A for further instructions on
completing these calculations.
8. A list of units (identified by unit number and household name) occupied
by households determined not to be at-risk. This list is intended for use by
the PHA (under Section IV.D below); it will not be used by HUD to
process the request. The list must identify these units as “not at risk” and
include a calculation that demonstrates that each household would not
have to pay more than 30% of monthly adjusted income in the absence of
voucher assistance. See Attachment A for further instructions on
completing these calculations.
9. For each household described in paragraphs 7. and 8. above, the
calculation must include the household size and annual income, the
household’s adjusted monthly income, the FMR for the unit (or the
SAFMR if the project is located in a metropolitan area), and the
percentage of monthly adjusted income the family would have to pay for
rent in the absence of voucher assistance.
10. Where the owner collects income documentation from each household (as
described in Attachment A), a list of units (identified by unit number and
household name) occupied by households who resided at the property at
the time of the triggering event but failed to provide income information to
the owner. This list is intended for use by the PHA (under Section IV.D
below); it will not be used by HUD to process the request. The list must
identify these households as “failed to provide.” These households will
not receive assistance under this Notice. For all such households, the
owner must maintain documentation showing that the household was
notified in writing that their failure to provide income information means
that they will not receive assistance under this Notice.
11. For properties where the triggering event happened before the owner
submits the request (note the timing requirements described in Section
II.A.2 above), documentation showing that the at-risk and the not at- risk
household resided at the property at the time of the triggering event. Such
documentation may include, but is not limited to, a lease, rent roll, or
rental payment receipt.
12. A statement certifying that the at-risk households are not currently assisted
under any federal, state, or local rental assistance program.
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13. A statement certifying that the calculations used to identify at-risk
residents are accurate consistent with the requirements spelled out in
Attachment A of this Notice.
IV. Processing of Applications. Before an owner’s request for assistance may be approved,
the following steps must occur.
A. Eligibility Review. The Multifamily Regional Center/Satellite Office Director or
designee will receive the owner’s request for assistance and review it to verify
that:
1. All of the required documents, as listed in Section III of this notice, are
included in the application.
2. The property is located in a low-vacancy area (low-vacancy areas are
listed in Attachment E).
3. The property has:
• Experienced a triggering event in the 5 years prior to the issuance
date of this Notice; or
• Will experience a triggering event within 180 days of the Owner’s
submission. See Section II.B of this notice for a list of triggering
events.
4. If the triggering event happened before the owner submits the request, that
all of the households identified by the owner (at-risk and not at risk), did
reside at the property at the time of the triggering event. Tenants not
residing at the property at the time of the triggering event are ineligible for
a TPV.
5. In the case of a mortgage maturity or affordability restriction expiration,
the number of households identified by the owner as at-risk households
does not exceed the total number of unassisted units at the property.
6. The owner has indicated its preferred form of assistance and whether the
owner consents to an alternative form of assistance, consistent with
Section III.A.5 of this notice.
The Multifamily Regional Center/Satellite Office Director or designee will not be
responsible for verifying the accuracy of the reported tenant income or the
calculations of at-risk households.
B. Eligibility Determination. After review of the application, and in coordination
with HUD Headquarters to verify eligibility, the Multifamily Regional
Center/Satellite Office Director or designee will:
1. Advise the owner to modify its request to meet the requirements of this
Notice;
2. Deny any request that fails to meet the above requirements and notify the
owner in writing of the denial; or
3. Determine that the request meets the above requirements
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4. Once the Multifamily Regional Center/Satellite Office determines that an
application is eligible, that Office’s Director or designee will request that
the PIH Field Office Director identify a PHA willing to administer the
assistance. The Multifamily Regional Center/Satellite Office Director or
designee must forward the owner’s request, along with all completed
worksheets, checklists, and requirement documentation, for further
processing.
C. Selecting the Administering PHA. Once the PIH Field Office Director receives
the appropriate information from the Multifamily Regional Center/Satellite Office
Director or designee, the PIH Field Office Director or designee will determine the
appropriate PHA to administer the enhanced vouchers or PBV assistance, in
accordance with the following:
1. PHA selection is made in accordance with established criteria for selection
of PHA administration of TPVs, including, but not limited to, jurisdiction
to administer the voucher program in the area where the project is located
and PHA administrative capacity.
2. Where the owner has selected PBV assistance, a PHA with no established
PBV program may be selected by the PIH Field Office; however, the PHA
must certify to the PH Field Office Director that the PHA is able to
comply with all regulatory and statutory requirements involved in
establishing a PBV program within the timeframe necessary to provide
assistance to eligible at-risk households.
3. The PIH Field Office Director will extend a written invitation to the
selected PHA. The selected PHA must inform the local HUD Public
Housing Field Office Director or designee within 30 calendar days of the
date of its selection whether the PHA consents or does not consent to
administer the enhanced vouchers or enter into the PBV contract.
4. The PIH Field Office will make a reasonable effort to find a PHA willing
to administer the owner’s preferred type of assistance (PBV or enhanced
vouchers). If the PIH Field Office is unable to find a PHA to administer
the preferred assistance and:
a. The owner did not consent in their application to the alternative
assistance: the PIH Field Office will notify the Multifamily
Regional Center/Satellite Office Director who will in turn notify the
owner that the request for assistance is denied; or
b. The owner consented in their application to the alternative
assistance: the PIH Field Office will make a reasonable effort to
find a PHA that will administer the alternative assistance. If the
PIH Field Office is unable to find a PHA to administer either type
of assistance, the PIH Field Office will notify the Multifamily
Regional Center/Satellite Office Director who will in turn notify the
owner that the request for assistance is denied.
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5. A PHA that consents to administer PBV assistance, must also consent to
administer enhanced vouchers. This is in case the PHA determines that it
will be unable to enter into a PBV HAP contract because the project does
not comply with PBV requirements.
6. Once a PHA has consented to administer the enhanced vouchers or PBV
HAP contract:
a. The PIH Field Office Director will inform the Multifamily
Regional Center/Satellite Office Director or designee, and
b. The PIH Field Office will also send a copy of the owner’s request
and all supporting documentation to the PHA so that the PHA can
prepare the tenant-based funding application as described in the
following section.
D. PHA Processing Responsibilities. The PHA receives the owner’s application
and all supporting documentation and performs the tasks described below. PHA’s
must refer to Attachment D for a full description of these steps.
1. Determines HCV eligibility of all at-risk households.
2. Ensures that its administrative plan allows for the provision of HCV
assistance to these at-risk households.
3. Notifies, in writing, all households determined by the owner not to be at
risk that they may request to have their income calculated by the PHA to
determine whether they are eligible for assistance, including whether the
household meets the rent burden requirement for at-risk households.
PHAs may adopt a time-limit for response to the requests of not less than
30 calendar days. The PHA is not required to send such notification to
households that did not provide income information to the owner.
4. Completes form HUD–52515, Section 8 Tenant-Based Assistance
Funding Application, and sends the completed form to the PIH Field
Office for further processing.
5. Once the PHA receives the ACC document and transmittal letter from the
Financial Management Center (FMC), the PHA issues the voucher to the
eligible family (if enhanced voucher assistance) or verifies that the project
complies with all PBV requirements (if PBV assistance) (See Attachments
C and D). If the PHA determines that it will be unable to enter into a PBV
HAP contract with the owner because the project does not comply with all
such requirements, then the funding provided to the PHA under this
Notice must be used to provide enhanced voucher assistance for all
eligible families.
E. Processing the Funding Request. The PH Field Office Director or designee
submits the PHA’s HUD–52515, the owner’s request for assistance, and any other
information, as needed, to the HUD Office of Housing Vouchers Financial
Management Division (FMD) at PIHConversionActions@hud.gov, with “2017
TPV Set-Aside [PHA number]” in the subject line). Once the funding request has
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been approved, HUD will amend the PHA’s ACC to provide tenant-protection
funding for the conversion.
F. Budget Authority Calculation and Assignment of Funds. The FMD calculates
the budget authority and assigns funds to the PHA, using the information from
Section B of form HUD–52515 to determine the amount of funding the PHA will
be assigned. The FMD also calculates the special fee for the extraordinary costs
associated with administering the enhanced voucher or PBV assistance under this
Notice. The fee will be $200 per unit for the higher number of units as determined
below:
1. The number of at-risk households at the property that were identified in
the owner’s request for assistance; or
2. The number of families that are eligible to receive assistance (as
determined by the PHA and identified in Section B of form HUD–52515).
The amount of the special fee is subject to the availability of funds for this
purpose. If necessary, HUD may amend the amount and method of calculation of
the special fee by subsequent notice.
G. Preparation of the ACC Documents. The FMC prepares the ACC documents
and ACC transmittal letter, and forwards these to the PHA with a copy of the
letter to the PH Field Office Director.
V. Paperwork Reduction Act. The information collection requirements contained in this
document have been approved by the Office of Management and Budget (OMB) under
the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control numbers
are 2577-0169, 2502-0204, and 2502-0086. In accordance with the Paperwork Reduction
Act, HUD may not conduct or sponsor, and a person is not required to respond to, a
collection of information unless the collection displays a currently valid OMB control
number.
VI. Further Information. Any questions concerning this Notice should be directed to the
Housing Voucher Management and Operations Division, Office of Public Housing and
Voucher Programs, at (202) 708–0477 (this is not a toll-free number). Persons with
hearing or speech impairments may access these numbers via TTY by calling the toll-free
Federal Information Relay Service at (800) 877–8339.
/s/ /s/
Dominique G. Blom Dana Wade
General Deputy Assistant Secretary General Deputy Assistant
Public and Indian Housing Secretary for Housing
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List of Attachments
Attachment A: Owner Requirements for Determining At-Risk Households
Attachment B: Sample Format for Owner Identification of Households (Optional)
Attachment C: Description of Project-Based Voucher Program and Enhanced Vouchers
Attachment D: PHA Process for Determining Eligibility
Attachment E: Low-Vacancy Areas
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U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
Attachment A: Owner Requirements for Determining At-Risk Households
This attachment explains family notification requirements and the steps an owner must follow in
determining whether the household is paying or will have to pay more than 30 percent of
adjusted monthly income toward rent as the result of a triggering event.
Owners must include a list of the specific households in each category (at-risk or not at-risk),
including the calculations explained below. See Section III of this notice for further details on
application submission requirements. Attachment B of this Notice provides a sample format that
an owner may use to submit this information. The use of the sample format is optional.
I. Notify households
Owners must notify the residents, as well as any legitimate resident organizations, in writing that
the owner will be applying for assistance under this Notice.
These activities must occur prior to the owner applying for assistance under this Notice.
The owner’s notification must state that:
• The owner will be identifying at-risk households according to the residents’ income;
• In cases where the triggering event happened in the 5 years prior to the date of publication of
this Notice, the residents are only eligible if they resided at the project at the time of the
triggering event;
• Residents are not required to share any income information requested by the owner, but that
failure to provide such information means the household will be ineligible for assistance
under this Notice;
• If any resident contests the income determination made by the owner (if the owner’s request
for assistance is selected for funding), such resident will have the opportunity to have their
income calculated for eligibility purposes by the administering PHA; and
• The owner’s application for assistance is not a guarantee that the property and residents will
receive assistance under this Notice.
• The PHA makes the final determination as to a resident’s eligibility for assistance under this
Notice.
Owners must ensure that all communications are provided in a manner that is effective for
persons with hearing, visual, and other communications-related disabilities consistent with
Section 504 of the Rehabilitation Act of 1973 (see 24 CFR § 8.6) and, as applicable, the
Americans with Disabilities Act. Owners must provide appropriate auxiliary aids and services
necessary to ensure effective communication, which includes ensuring that information is
provided in appropriate accessible formats as needed (e.g., Braille, audio, large type, assistive
listening devices, and sign language interpreters). Owners must also take reasonable steps to
ensure meaningful access for persons who have limited English proficiency. Owners may refer
to HUD’s published Final Guidance to Federal Financial Assistance Recipients: Title VI
Prohibition Against National Origin Discrimination Affecting Limited English Proficient
Persons (LEP Guidance) (72 FR 2732, published January 22, 2007) regarding LEP obligations.
II. Request household income information
An owner must request household income information from any household whose income the
owner has not verified within 12 months of the date the owner anticipates submitting a request
for assistance under this Notice. If the household’s income has been verified within 12 months
of the date the owner anticipates submitting a request for assistance under this Notice, the owner
may rely on this previously collected information.
A household may choose not to disclose income information. Any household that does so must
be identified in the owner’s request for assistance (as specified in Section III.A.10 of this Notice)
and the household will not receive assistance through this Notice. For households choosing not
to disclose income, the owner must maintain documentation showing that the household was
notified in writing that its failure to provide income information means that it will be ineligible to
receive rental assistance through this Notice.
III. Calculate household rent burden in the absence of voucher assistance
To calculate the household’s rent burden the owner must first determine the household’s adjusted
monthly income, following the steps below:
Step 1: Deduct $480 from the household’s annual income for each household dependent;
Step 2: Deduct $400 from the household’s annual income if the household’s head, spouse, or
sole member is a person with disabilities or is at least 62 years of age;
Step 3: Divide the annual income (after the deductions in steps 1 and 2 above) by 12 to
determine the household’s adjusted monthly income.
Step 4: To determine whether the household is at-risk of having to pay more than 30 percent of
its adjusted monthly income toward rent in the absence of voucher assistance, divide the 2018
FMR (the SAFMR if the project is located in a metropolitan area and the metropolitan-area FMR
if the project is located in a non-metropolitan area) by the household’s adjusted monthly income.
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U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
Attachment B: Sample Format for Owner Identification of Households (Optional)
Below is a sample list that may be used by owners to meet the submission requirements of Section III of this notice. Specifically, this
list includes all unassisted units occupied by at-risk and not at-risk households, accompanied by a calculation that demonstrates
whether or not the household would have to pay more than 30 percent of their adjusted monthly income for rent in the absence of this
voucher assistance. Owners would also identify in this list whether the household failed to provide income information. Examples of
how to fill out this form are also included below.
Name of Owner:
Project Name:
Project Address:
County Name:
Unit Household Household Household’s Household’s SAFMR or SAFMR At-
Number Name Size (e.g., Annual Adjusted FMR (as or FMR/ risk,
4- person Income Monthly applicable) Adjusted Not at
household) Income for unit of Monthly risk,
household size Income Failed
to
provide
1 104 Jones 3 $35,000 $2,876 $1,400 .48 At-risk
2 202 Smith 2 Failed
to
provide
3 105 Johnson 4 $56,500 $4,668 $1,400 .30 Not at
risk
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
Attachment C: Description of Project-Based Voucher Program and Enhanced Vouchers
With few exceptions, the requirements of the housing choice voucher (HCV) program apply to
the vouchers provided under this set-aside. For example, in the case of both project-based
vouchers (PBV) and enhanced vouchers, the PHA must determine that the rent to owner is a
reasonable rent (i.e., the rent to owner is not more than rent charged for comparable units in the
private unassisted market and for comparable unassisted units on the premises). Otherwise, there
are requirements particular to both the PBV program and enhanced vouchers. These
requirements are described below.
I. Project-Based Voucher Program
The PBV program is authorized under 42 U.S.C. 1437f(o)(13) of the U.S. Housing Act of 1937
(“the 1937 Act”). The implementing regulations are found at 24 CFR Part 983. The Housing
Opportunity Through Modernization Act of 2016 (HOTMA) amended the 1937 Act, making
several changes to the PBV program. HUD implemented the PBV HOTMA provisions via
Federal Register Notice (82 FR 5458) published on January 18, 2017. Until such time as the
Department revises Part 983 to reflect the changes made by HOTMA, the FR Notice and any
additional guidance published by HUD must be read in conjunction with Part 983 and reflect the
most recent program requirements.
Under the PBV program, a PHA enters into a Housing Assistance Payment (HAP) contract with
an owner for specified units, for a specified term. When families move from the assisted units,
the PHA refers families from its waiting list to the owner to fill vacancies.
PBV assistance provided under this Notice must follow all regulations at 24 CFR Part 983, with
two exceptions:
• Owner proposal selection procedures (24 CFR 983.51). These procedures do not apply to
assistance provided via this Notice, because the Appropriations Act defines the categories
of projects that are potentially eligible for PBV assistance. However, as explained below,
site selection standards under 24 CFR 983.57 must be met.
• HAP contract amendments (24 CFR 983.207(b)). Any PBV HAP contract that is put into
place pursuant to this notice (i.e., through the project-basing of TPV assistance) may not
be amended to add units. If a PHA wants to project-based additional voucher assistance
at a project where such a PBV HAP contract is in place, then the PHA must enter into a
separate PBV HAP contract for such units. Such a project would therefore have two PBV
HAP contracts in place, one funded with project-based TPV assistance and the other
funded out of the PHA’s HCV program.
If an owner requests PBV assistance under this Notice, such assistance may be awarded only
after the administering PHA confirms that the request complies with the requirements of the
PBV program, including the:
a. prohibition of assistance for ineligible units (24 CFR 983.53);
b. prohibition of assistance for units in subsidized housing (24 CFR 983.54), including any
units in a project that is otherwise eligible under this Notice (24 CFR 983.54(b));
c. prohibition of excess public assistance (24 CFR 983.55);
d. site selection standards (24 CFR § 983.57; 82 FR 5458, January 18, 2017); and
e. environmental review (82 FR 5458, January 18, 2017). Information and guidance on the
environmental review process and requirements is provided in Notice PIH 2016-22.
In addition, the PHA must confirm that the request complies with all other program
requirements, including all applicable fair housing and civil rights requirements.
Units covered by a PBV HAP contract under this Notice are excluded from the percentage
limitation and income-mixing requirements (82 FR 5458, published on January 18, 2017).
II. Enhanced Vouchers
Enhanced vouchers are tenant-based assistance authorized under Section 8(t) of the 1937 Act.
Households issued enhanced vouchers may elect to use the assistance in the same property (as
long as the property continues as rental housing and the tenancy can be approved in accordance
with the enhanced voucher policies), or may choose to move from the property. There is no
guarantee to the owner that any enhanced voucher assistance will be used at the property.
Enhanced vouchers are subject to HCV program rules, except as described below:
• Right to remain. A family that receives an enhanced voucher has the right to remain in
the project as long as the units are used for rental housing and are otherwise eligible for
HCV assistance (e.g., the rent is reasonable, unit meets HQS, etc.). The owner may not
terminate the tenancy of a family that exercises its right to remain except for a serious or
repeated lease violation or other good cause.
• Owner termination of tenancy. The owner may not terminate the tenancy of a family that
exercises its right to remain except for a serious or repeated lease violation or other good
cause. If an owner refuses to honor the family’s right to remain, the family may exercise
any judicial remedy that is available under State and/or local law.
• Special payment standard. Regardless of whether the owner’s new gross rent (after the
triggering event) exceeds or is less than the PHA payment standard, the housing
assistance payment for a family that stays in its unit (or moves from an oversized unit to
an appropriate-sized unit within the project) is the gross rent for the unit minus the
greatest of:
o 30 percent of the adjusted family monthly income;
o 10 percent of the family monthly income (gross monthly income);
o The welfare rent in as-paid states;
o The enhanced voucher minimum rent (see below); or
o Such other minimum rent established by the PHA as authorized by Federal law
(see 24 CFR §5.630.)
This special payment standard may never exceed the gross rent for the assisted family’s
unit.
As a result of this special payment standard, a PHA may sometimes find that it approves
a tenancy for a unit that would otherwise be ineligible or unaffordable to a family with
2
regular tenant-based assistance. As long as the rent is reasonable, there is nothing
improper or incorrect in approving the owner’s new rent. The PHA must document its
rent reasonableness determination in the family’s file by including the rents and addresses
of the comparable units used to make the determination. (Notice PIH 2011–46 provides
guidance on rent reasonableness determinations.)
The PHA must identify an eligible family as an enhanced voucher family even if the
gross rent of the family’s unit is less than or equal to the normally applicable PHA
payment standard. Since the special payment standard covers any subsequent rent
increases, it is possible that it may come into play later in the family’s tenancy.
If the owner raises the rent for a family assisted with an enhanced voucher in accordance
with the lease, state and local law, and HCV program regulations, the PHA will increase
the enhanced payment standard to equal the new gross rent (rent to owner and the
applicable PHA utility allowance for any tenant-supplied utilities) for the unit, provided
the PHA determines the rent is reasonable. The additional cost of the subsidy will be
covered through the regular renewal process for the PHA’s voucher program.
If an increase or decrease in the PHA utility allowance affects the gross rent for a family
assisted with an enhanced voucher, the PHA must adjust the enhanced payment standard
accordingly.
• Minimum rent. Families assisted with enhanced voucher assistance have a special
statutory minimum rent requirement. Specifically, if such a family remains in place, then
it must pay for rent no less than the rent it was paying on the date of the triggering event.
o The method for calculating the minimum rent changes if the family’s income
subsequently decreases by 15 percent or more from the family’s gross income on
the date of the triggering event. In this case, the enhanced voucher minimum rent
changes from an actual dollar amount to a specific percentage of income. The
family’s new minimum rent will be the greater of the percentage of the monthly
adjusted income the family paid for gross rent on the date of the triggering event
or 30 percent of the family’s new adjusted monthly income. Once this change in
the enhanced voucher minimum rent becomes effective for a family, the enhanced
voucher minimum rent for the family remains that specific percentage of income
(e.g., 32 percent) and will not revert to a specific dollar amount, even if the
family’s income subsequently increases or decreases.
o When a family reports a significant decrease in family income, the PHA conducts
an interim redetermination and verifies the change in income as soon as possible
to prevent hardship on the family, preferably by the first of the month following
the date the family reports the change and provides the necessary documentation.
The PHA may implement the reduction on a provisional basis before completing
the verification to prevent undue hardship to the family.
• Timing of assistance payments. A PHA may not make payments to an owner until after
execution of the HAP contract on behalf of an individual family, and the assistance may
not be paid to cover any period before the PHA inspection and determination that the unit
meets the housing quality standards of the program.
3
• Over-housed families. Notice PIH 2016–02 sets forth the enhanced voucher policies that
apply to families residing in units where the actual number of bedrooms exceeds the
family unit size for which the family qualifies under the PHA’s subsidy standards (i.e.,
“over-housed families”).
When a family moves from the project, the normally applicable PHA payment standard is used
to determine the family’s voucher subsidy, and regular HCV program rules apply. This includes
cases where the proposed new rent for the family’s current unit is not reasonable or the unit fails
HQS, requiring the family to move in order to receive tenant-based assistance.
4
U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
Attachment D: PHA Process
The following steps outline the steps of the TPV set-aside process that are the responsibility of
the PHA.
☐ Step 1: PHA receives a copy of the owner’s request and all other supporting
documentation from the PH Field Office Director.
☐ Step 2: Does the PHA’s administrative plan allow for
the provision of HCV assistance to these low-income INCOME-TARGETING AND
families?
WAITING LIST
☐ Yes.
REQUIREMENTS
☐ No, the PHA must amend its administrative plan to
administer the enhanced vouchers or PBV assistance. Families admitted to
This administrative plan requirement is consistent with the HCV program
24 CFR 982.201(b)(1)(iii). HUD will consider waivers with enhanced
of this regulation to allow provision of assistance to vouchers are special
these families without an amendment to the admissions under 24
administrative plan only when such waiver is warranted CFR 982.203, and
due to the timing of the conversion. therefore, do not
have to be selected
☐ Step 3: Determine HCV eligibility of all at-risk from the PHA’s
households identified by the owner. waiting list.
• The PHA will only make assistance available to If admitted with
households that have been determined eligible under PBV assistance, the
HCV program admissions rules. family must be
selected from the
• When determining income eligibility, the PHA uses the PHA’s waiting list
applicable low-income limits (not the very low-income in accordance with
limits). The PHA follows standard HCV program rules 24 CFR 983.251(b).
in calculating household income for purposes of Families admitted
determining income eligibility. with PBV
assistance or with
• The PHA does not re-determine whether the household enhanced vouchers
meets the rent burden threshold for at-risk families (the are not subject to
rent burden threshold for at-risk families is described in income-targeting
Attachment B of this notice). The PHA may rely on the requirements under
owner’s determination. 24 CFR
982.201(b)(2).
• To reduce processing time, the PHA may use the owner’s most recent family income
examination (form HUD-50059) if the effective date of the income verification is no
more than 12 months old and the PHA determines that the examination is acceptable after
reviewing a sample of 20%. The PHA is never required to use the owner certifications
and may choose to conduct its own income determination and verification. PHAs should
be aware that many owners will not have form HUD-50059 for the households being
assisted through this Notice.
☐ Step 4: Notify households
a. Families determined by owner not to be at-risk:
THE PHA DOES NOT
☐ PHA notifies these households, in writing, that PROVIDE NOTIFICATION TO
they may request that the PHA calculate their income
HOUSEHOLDS THAT DID
for eligibility purposes if they disagree with the
owner’s determination. The PHA may adopt a time- NOT PROVIDE INCOME
limit for response to the requests of not less than 30 INFORMATION TO THE
calendar days. OWNER (AS IDENTIFIED IN
THE OWNER’S REQUEST
b. All Families: FOR ASSISTANCE)
☐ PHA notifies all eligible households, in writing, of
the type of assistance they may be receiving,
including a brief description of the type of
assistance.
☐ PHA schedules a briefing with eligible residents to inform tenants of program
requirements, tenant rights and obligations.
☐ Step 5: Complete the Section 8 Tenant-Based Assistance Funding Application (form
HUD-52515)
☐ Include all of the following information at the top of the form:
• PHA name and mailing address
• PHA code number (for example, CT002)
• Email
• Telephone number
• Facsimile telephone number
☐ Complete the remainder of the form as follows:
• Do not complete Section A.
• Under Section B of the form, only complete the box for total dwelling units under
vouchers. Insert the number of eligible families as determined by the PHA’s
eligibility determinations.
• Do not complete Section C.
2
• Under Section D of this form, the PHA must identify whether the assistance will
be for enhanced vouchers or PBV assistance.
☐ Step 6: Submit the completed form HUD-52515 to PH Field Office Director
Processing PBV Assistance:
☐ Step 7: Verify whether the project meets PBV requirements.
a. After the PHA receives the ACC documents and transmittal letter from FMC, it must
verify whether the owner’s request for PBV assistance meets the statutory and regulatory
requirements of the PBV program, including:
• The prohibition of assistance for ineligible units (24 CFR 983.53)
• The prohibition of assistance for units in subsidized housing (24 CFR 983.54)
• The prohibition of excess public assistance (24 CFR 983.55)
• The site selection standards (24 CFR § 983.57; 82 FR 5458, January 18, 2017)
• The environmental review (82 FR 5458, January 18, 2017)3 and
• All other program requirements, including all applicable fair housing and civil rights
requirements.
b. If the PHA determines that it will be unable to enter into a PBV HAP contract with the
owner because the project does not comply with all such requirements, then the
funding provided to the PHA under this Notice must be used to provide enhanced
voucher assistance for all eligible families.
☐ Step 8: Verify that the unit continues to be occupied by the at-risk household
•
The PHA cannot enter into a PBV HAP contract for a unit that is no longer
occupied by the at-risk household.
☐ Step 9: Execute the PBV HAP contract
• Only unassisted units may be included in the PBV HAP contract. The project
may be partially assisted with pre-existing project based rental assistance
(PBRA) contracts, and units subsidized with such assistance may not be included
in the PBV HAP contract.
Processing Enhanced Voucher Assistance:
☐ Step 10: Issue vouchers to the eligible families
• After receiving the ACC documents and transmittal letter from HUD’s Section 8
Financial Management Center (FMC), the PHA must issue a voucher to the family.
• See Attachment C of this notice for more information on enhanced vouchers.
3
See Notice PIH 2016-22.
3
Attachment E: Low-Vacancy Areas
Low-vacancy areas are defined according to occupancy data at the project level (from the Picture
of Subsidized Households Report (2016)). This data is matched to Physical Inspection Scores
data (2016) for both public housing and multifamily assisted properties. Properties with
inspection scores below 60 are removed from the sample, as are properties that are missing
inspection scores or occupancy rates.
The resulting dataset includes roughly 25,000 projects, representing 2.2 million units, in 2,746
counties.
This data is then aggregated to the county level, and the occupancy rate for each county is
calculated. If a county within a Core-Based Statistical Area (CBSA) has less than ten units, the
CBSA-level occupancy rate is used. For counties outside of CBSAs with less than ten units,
state non-CBSA totals are used to calculate occupancy rates, while the national non-CBSA
occupancy rate is used for counties in states with only CBSA counties or a state non-CBSA unit
count below ten. Counties with occupancy rates greater than or equal to 90 percent are flagged
as low-vacancy.
The list of low-vacancy areas may be accessed at the following HUD webpage:
http://www.hud.gov/sites/dfiles/PIH/documents/tpv_setasidelowvacancylist.xlsx.
4
Source: Legislative text reproduced verbatim
Plain English
PIH Notice 2018-02 establishes a process through which HUD makes up to $5,000,000 in FY 2017 Tenant Protection Vouchers (TPVs) available for certain low-income households living in low-vacancy areas who face rent burdens following specific triggering events—such as the maturity of a HUD-insured loan or the expiration of affordability restrictions. Eligible residents must not already receive federal, state, or local rental assistance and must demonstrate that, without voucher help, they would pay more than 30 percent of adjusted monthly income toward rent. Assistance may take the form of enhanced vouchers or project-based vouchers, administered through a participating public housing agency (PHA).
Written by anthropic/claude-sonnet-4.6 · Reviewed on October 7, 2026
Plain English — not legal advice.
For Property Managers
Under PIH Notice 2018-02, property owners who believe their project qualifies must notify residents in writing before applying, collect or verify household income data, and submit a detailed application—including triggering event documentation and household rent-burden calculations—to the appropriate HUD Multifamily Regional Center or Satellite Office. Compliant owners indicate a preferred voucher type (enhanced or project-based) and whether they will accept an alternative if no PHA can administer the preferred type. Applications are accepted on a rolling basis until set-aside funds are exhausted or a new FY 2018 notice is issued.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For Tenants
PIH Notice 2018-02 gives certain residents of properties experiencing qualifying events—such as loan maturity or affordability restriction expiration in low-vacancy areas—the right to be considered for Tenant Protection Vouchers. Residents who disagree with an owner's income determination may request that the administering PHA recalculate their eligibility. Tenants can contact HUD's Housing Voucher Management and Operations Division at (202) 708-0477 or reach out to a local tenant-rights organization to learn more about this notice and available assistance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 7, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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