What Is the Project-Based Voucher Program?

The Project-Based Voucher (PBV) program provides housing assistance to individuals and families with low incomes. This program is part of the larger Housing Choice Voucher (HCV) initiative, often referred to as Section 8. Unlike other rental assistance, PBVs are tied to a specific housing unit rather than to an individual tenant. This structure expands the availability of affordable housing by ensuring subsidies remain with the property to benefit future eligible residents.

Understanding Project-Based Vouchers

Project-Based Vouchers are a form of rental assistance where the subsidy is attached to a specific housing unit. The financial assistance remains with the property, not the family or individual. When a tenant moves out, the voucher stays with that unit for the next eligible tenant. This structure differs from tenant-based vouchers, such as traditional Housing Choice Vouchers. Tenant-based vouchers allow families to choose any eligible private apartment and the subsidy moves with them if they relocate. In contrast, PBVs limit a family’s housing choice to the specific unit. PBVs expand the overall supply of affordable housing, particularly for populations with very low incomes, including the elderly, people with disabilities, and veterans. Public Housing Agencies (PHAs) administer both the Housing Choice Voucher program and the PBV component, using existing tenant-based voucher funding to allocate project-based units.

How Properties Receive Project-Based Vouchers

A housing development receives Project-Based Vouchers through a competitive application process with a Public Housing Agency (PHA). Property owners or developers submit proposals outlining their project and its suitability for PBV assistance. PHAs consider criteria like demand for affordable housing, property quality, and financial feasibility. Once selected, the PHA enters a Housing Assistance Payment (HAP) contract with the owner. This contract specifies the subsidy terms for a defined number of units and a period, usually 15 to 20 years, with renewal options. The HAP contract ensures a stable income stream for the property owner, aiding financing for development or rehabilitation. PBVs can be applied to newly constructed, rehabilitated, or existing housing. PHAs can attach PBVs to no more than 25% of units in a property, or 25 units, with exceptions for low-poverty areas or supportive housing residents.

Tenant Access to Project-Based Voucher Units

Individuals and families seeking Project-Based Voucher units apply directly to the building’s management. This differs from applying to a PHA for a tenant-based voucher. The application process involves joining a property-managed waiting list, followed by income verification and background checks. Many PHAs also maintain PBV waiting lists and may refer eligible tenants to properties with available units. Eligibility requires meeting income limits set by the U.S. Department of Housing and Urban Development (HUD), based on the Area Median Income (AMI). Households must have incomes at or below 80% of the AMI, with a portion of new admissions reserved for those below 30% of the AMI. Other factors like family composition, citizenship or eligible immigration status, and a criminal background check are part of eligibility determination. Once approved, the subsidy applies directly to the unit’s rent.

Tenant Responsibilities and Rent Contributions

Tenants in Project-Based Voucher units contribute approximately 30% of their adjusted gross income towards rent and utilities. The PBV covers the remaining rent up to a limit. Adjusted gross income refers to the household’s gross income after allowable deductions, such as for dependents or medical expenses. Beyond financial contribution, tenants have ongoing responsibilities to maintain eligibility and tenancy terms. These include adhering to the lease, maintaining the unit in good condition, and promptly reporting changes in income or household composition. To ensure continued eligibility and accurate rent calculations, tenants must participate in annual income recertifications by the PHA or property management. After residing in a PBV unit for at least one year, tenants may request a tenant-based voucher if one becomes available, allowing them to move to a different location while retaining assistance.