Project-Based Vouchers

Project-Based Vouchers

  • Year Started 1998
  • Administratering Agency Public Housing Authority
  • Total Units Count 3,435,161
  • Total Assisted Units Count 2,683,016
  • # Persons/Houshold Served 2,274,058
  • Funding Agency U.S. Department of Housing and Urban Development
  • Population Targeted Low Income Families below 50% of area median income pay 30% of their household's adjusted gross income
  • Client Group Type PBV
  • Housing Type Name Public Housing Buildings
  • Last Updated February 3, 2022

If the resource information above is incorrect, please notify your local HUD field office.

Overview of the Project-Based Voucher Program

The project-based vouchers program is a component of a public housing agency’s housing choice voucher program. The project-based vouchers do not receive any additional funding from public housing agencies. Instead, it makes use of the tenant-based voucher funding for allocating project-based units to the project.

The projects for the Project-based vouchers are selected through the competitive process which is managed by the public housing agencies. But in rare circumstances, the projects may be selected non-competitively.

If the owner agrees to rehabilitate or construct the units or set aside some portion for the development, then the public housing agency is allowed to use up to 20 percent of its authorized voucher units to project base units.

But there are some cases where PHA can use 10 percent of its authorized voucher units for offering PBV assistance. Enacted in 1998, major changes to the PBV program were made in 2000 by the housing and economic recovery act.

Nature of the PBV program

Back in time, there was a project-based certificate program in place but later on, it got replaced by the project-based voucher program. If a family has got one year of assistance from the project-based voucher program, then the family can move from the project-based voucher unit to PHA’s tenant-based voucher program whenever the next voucher is available.

But the units which are designated for the elderly, disabled, or getting supportive services, only 25 percent of units may have the project-based voucher assistance. The PHA also enters into the HAP contract for 15 years and can get it extended for some more years.

But the extension of the program has to be agreed upon before the expiration of the initial term of the program. The PHA will determine whether the extension is appropriate for providing affordable housing services or not for extending the initial contract. The contract extension depends upon the availability of the funds.

Frequently Asked Questions

Which organizations can apply for a Project-Based Voucher Program of HUD?

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As HUD does not give any funds for the project-based voucher assistance, instead the funds come from the already obligated funds from HUD under the annual contributions contract. The PHA is free to use 20 percent of the housing choice vouchers for offering housing assistance in project-based vouchers.

Which families have a higher chance of getting the Project-Based Vouchers?

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The family which has made it to the waiting list of the PHA and is interested in moving to the specific housing unit has a higher chance of getting the project-based vouchers. The owners will screen your family and then decide accordingly.

How much Rent is covered by the Project-Based Vouchers?

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The difference between the 30 percent of the family income and the gross rent for the unit is paid by the public housing agency to the owner on behalf of the family.

Is there any Difference between the Project-Based and Tenant-Based Vouchers?

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The answer is yes. As far as a tenant-based housing choice voucher program is concerned, the PHA issues a voucher to the family and asks them to select the housing unit. In case the family decides to move out of the housing unit, then the family can seek another assistance and move to another housing unit.

But things are quite different in the project-based vouchers program. Here, the PHA does a contract with the owner, and that too for the specified tenure. But later on, if the family decides to move from there, then it will not be entitled to receive any further housing assistance.

What Kind of Contract does PHA sign with the Property Owners?

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The housing assistance payment widely known as the HAP contract is signed between the PHA and the owner. As per the terms and conditions of the contract, the owner agrees to construct and PHA in turn agrees to subsidize the unit upon construction. The HAP contract is for a ten-year term and establishes the initial rents of the housing units.

How do PHA Select Housing Units for this Program?

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The PHA makes use of the written policy for selecting the housing units. As far as rents are concerned, these are fixed as per the market standards and should not exceed more than 110% of the fair market rents.