Housing Choice Voucher (HCV) Project Based Voucher (PBV) Program

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.

IMPORTANT NOTES

Developments that receive a 4% award that has more than 35% of the units set-aside for PSH or 9% tax credit award through the Permanent Supportive Housing (PSH) set-aside will not be limited to 25% or less of the total units as Project-Based Vouchers. These proposals must submit an Addendum III and Memorandum of Understanding (MOU) for review and approval.

Developments that receive a 4% award without the minimum number of PSH units or 9% tax credit award, in any category other than the PSH set-aside, will be limited to 25% or less of the units as PBV. In these instances, an MOU is required.

Owner/Sponsor PBV Application Steps

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).

• List of conditions within the Preliminary Award Letter updated June 13, 2022

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.

Agreement To Enter Into Housing Assistance Payments Contract (AHAP)

• New Construction or Rehabilitation Part 1 (HUD 52531a)
• New Construction or Rehabilitation Part 2 (HUD 52531b)

Housing Assistance Payments Contract

• New Construction or Rehabilitation Part 1 (HUD 52530a-1)
• New Construction or Rehabilitation Part 2 (HUD 52530a-2)

Housing Assistance Payments Contract

• Existing Part 1 (HUD 52530b-1)
• Existing Part 2 (HUD 52530b-2)

Questions regarding this process should be directed to: Kathy French, MSHDA Senior Project Based Voucher Specialist at 517-241-0505 or frenchk@michigan.gov.  NOTE: Applicants with general HCV waiting list and eligibility questions should be directed to  517.241.0809 or hcvwl@michigan.gov.

URA REQUIREMENTS

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 links for more information:

• Overview of the Uniform Relocation Act (URA)
• URA the HUD Way - Web-based training course      

If you have questions regarding these requirements you may contact: Geoffrey Ehnis-Clark at 517-241-2996 or ehnisclarkg@michigan.gov

PBV Application Forms and Reference Material

• PBV Owner Letter of Intent (LOI) MSHDA/PBV 101
• Attachment to PBV LoI- MSHDA/PBV 101a
• PBV Project Proposal for Existing Housing MSHDA/PBV 102
• PBV Project Proposal for Rehabilitated Housing MSHDA/PBV 103
• PBV Project Proposal for Newly Constructed Housing MSHDA/PBV 104
• PBV Overview of Federal Regulations
• PBV Site Selection Standards
• PBV Process Flowchart
• Housing First In Permanent Supportive Housing - what is housing first?

PBV CONTRACT RENTS

• PBV Annual Contract Rent Adjustment Notice
• Procedures for Establishing Initial and Re-determined PBV Rents
• PBV 37 - Reasonable Rent Test - Initial Rent Determination
• Exhibit 8-10 Unit Definitions
• PBV 37a - Reasonable Rent Test - Subject Unit - Contract Rent Adjustment

RESOURCES

• HUD PIH Notice 2017-21 HOTMA Changes
• HERA Final Rule
• MSHDA Housing Choice Voucher Administration Plan: Refer to Chapter 17 - PBV Program
• HQS Specifications:(All contract units must be designed to meet these standards at a minimum)
• Payment Standards: Effective 1/1/21, Effective 1/1/22, Effective 3/1/22, Effective 1/1/23
• Fair Market Rent:  Effective 10/1/20, Effective 10/1/21, Effective 10/1/22
• Utility Schedules: Effective 1/1/21, Effective 1/1/22, Effective 1/1/23
• Income Limits: Effective 5/1/20, Effective 5/1/21, Effective 5/1/22
• PBV Specialist List
• Disability Advocates for Michigan - The Center for Independent Living Michigan
• Davis-Bacon and Labor Standards: Contractor Guide Addendum (PDF)

HUD AND MSHDA FORMS

• PBV Tenancy Addendum (HUD-52530-C): This document must be attached to the property lease for all PBV participants.
• PBV Statement of Family Responsibility (HUD-52578-B): This document must be signed by the family at briefing.
• PBV Vacancy Loss Worksheet (MSHDA/PBV-4)All requests must be sent by the property to the assigned PBV Specialist via the Lansing RAHS Fax line which is on the updated form.

MEMORADUM OF UNDERSTANDING (MOU)

• Roles and Responsibilities
• SAMPLE MOU Template
• Change to Property Management Agent or Lead Agency (Amendment to MOU)
• Change to Supportive Housing Targeted Population (Amendment to MOU)
• Housing First In Permanent Supportive Housing - what is housing first?

MSHDA Project Based Voucher Awards 

2019-2022 HCV PBV Awards

HUD VASH

Owners proposing developments that will assist Veterans should refer to this link for additional information: HUD VASH Vouchers

Developments with HCV/PBV rental assistance

A listing of current developments can be found on the Development Listing with HCV/PBV rental assistance