Michigan State Housing Development Authority
The Project Based Voucher (PBV) program is a component of the Michigan State Housing Development Authority's (MSHDA) Housing Choice Voucher (HCV) Program. The HCV program is federally funded by the United States Department of Housing and Urban Development (HUD) Public and Indian Housing (PIH) and is the primary resource for providing rental assistance to very low to moderate income families. MSHDA's PBV program targets extremely low income (30% AMI) supportive housing target populations to include: Homeless – 2 Categories (literally homeless, and/or domestic violence survivors), Chronically Homeless, and Special Needs as indicated within the most current LIHTC - Addendum III. Project based rental assistance is attached to specific housing units that are determined to be decent, safe and sanitary through the Housing Quality Standards Inspection. Project-Based contracts are awarded to owners and developers of properties through an owner proposal selection process.
Developments that have received a 9% tax credit award, but not through the Permanent Supportive Housing set-aside, will be limited to less than 25% of the total units as Project Based Vouchers. These proposals must submit a Memorandum Of Understanding (MOU) for review and approval.
Developments that have received a 4% tax credit award will not be limited to 25% of the total units as Project Based Vouchers. For proposal of 25% or less a MOU will be required. For proposals that exceed 25% an Addendum III and MOU will be required. If the LIHTC application was submitted in any category other than PSH the project will be limited to 25%.
In order for owners to participate in this program the following process must be followed:
Step One: The owner/sponsor must have received financing for the development via a competitive process through MSHDA such as LIHTC, HOME, MSHDA financing, within the last three years. This award must have been provided with no consideration that the project would receive project-based vouchers and have a minimum of five (5) PSH units.
Step Two: The owner/sponsor must submit the MSHDA/PBV 101 (Letter of Intent) to the designated MSHDA Rental Assistance and Homeless Solutions (RAHS) staff. Attach a copy of the LIHTC Reservation and the PBV MOU Attachment.
Step Three: Designated MSHDA RAHS staff will contact owner/sponsor to discuss the project and recommend the appropriate proposal to be submitted for the development. Proposal types include: Existing, Substantial Rehabilitation or Newly Constructed. (MSHDA/PBV 102, 103 or 104).
Step Four: Once the proposal is reviewed and approved, a PBV Preliminary Award Letter will be issued. The letter will outline the following conditions to be met prior to signing the Agreement to enter into a Housing Assistance Payment Contract (AHAP) or Housing Assistance Payment Contract (HAP).
URA REQUIREMENTS apply to the HCV Project Based Voucher Program per 24 CFR 983.7. The following HUD requirements and overview is provided on HUD’s website.
Overview of the Uniform Relocation Act (URA)
The Uniform Relocation Act, passed by Congress in 1970, is a federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The Uniform Relocation Act's protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects.
Please refer to the following link for more information: Overview of the Uniform Relocation Act (URA)
If you have questions regarding these requirements you may contact: Kara Hart-Negrich at 517-335-2273 or HartNegrichK@michigan.gov
Step Five: Immediately following the issuance of the Preliminary Award letter and prior to the commencement of any construction work; MSHDA/PHA must enter into an Agreement to Enter Into Housing Assistance Payments (AHAP) contract for new construction and rehabilitation projects; or the Housing Assistance Payment (HAP) contract for Existing Projects meeting HQS standards. It must be further noted that the HUD Subsidy Layering and Environmental Requirements at a minimum must be met prior to the execution of these documents.
Owners proposing developments that will assist Veterans should refer to this link for additional information: HUD VASH Vouchers
A listing of current developments can be found on the Project Based Developments Listing