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May 2, 2013: NHLP Addresses Long-Awaited Release of HUD Policy on Tenant Protection Vouchers

At long last, HUD has issued a final version of its policy, HUD Notice PIH 2013-08, outlining the distribution of funds for tenant protection vouchers. The vouchers will provide rental assistance to unassisted tenants residing in HUD properties that face mortgage maturity or the expiration of use restrictions. The HUD Notice implements statutory language in the FY '12 Appropriations Act.

Highlighted in more detail in a memo, the important things to note in the final version of the policy:

1) Only $4 million of the authorized $10 million is being made available at this time.

2) Tenant protections are controlled by the owner's application to HUD, and the deadline for the owner's application is June 14, 2013. This is problematic because the many required tasks (identification, outreach to tenants and owners, project assessment, preliminary tenant eligibility determinations, and applications) must be completed in a very short period of time. An applicant owner must provide notices to tenants by May 15.

3) The property must have:

• expired or matured before or during FY '12 (before Sept. 30, 2012)
• be located in a low vacancy area (as defined by HUD and listed on Attachment A)

4) The tenants must have been in residence at the time of the event, be low-income and suffer a rent burden after conversion of 40% of adjusted income (or possibly 35% or even 30% if funds remain available after serving the 40%+ group).

5) The assistance may be used as either Enhanced Vouchers (with a minimum rent equal to the rent burden prior to the event) or Project-Based Vouchers.

Tenants in Chicago and Boston have fought for and been awaiting these protections for several years. It's important for other tenants and advocates to be aware of this Notice now because there is a time-sensitive window of opportunity to obtain protections for other less organized tenants threatened by the end of HUD rent restrictions.

Maturities or expirations during FYs 13 and '14 are yet to be addressed by HUD, although funding was authorized for this purpose via the FY 13 full-year Continuing Resolution.

View the list of potentially affected properties.

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