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Project Based Voucher (PBV) Program

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:

    Category 1 (Literally Homeless) must be a selected population and any of the following may be added:

  • Category 2 (At-Risk of Homelessness)
  • Category 4 (Domestic Violence Survivor)
  • Chronically Homeless
  • Special Needs

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. PSH target populations must include Homeless Category 1 – Literally Homeless. Other target populations may be chosen in addition to this category.

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. PSH target populations must include Homeless Category 1 – Literally Homeless. Other target populations may be chosen in addition to this category.

NOTE: 4% awards must also have one of the following MSHDA competitive funding sources within the project to qualify for PSH Project Based Vouchers: NOFAs: HOME, HOME-ARP, HCDF, CERA, Housing Trust Fund, Mortgage Resource Funds and Pass-Though Gap Financing.

Owner/Sponsor PBV Application Steps

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. PSH target populations must include Homeless Category 1 – Literally Homeless. Other target populations can be chosen in addition to this category.

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 Housing, Rehabilitation or Newly Constructed Housing. (MSHDA/PBV 102, 103 or 104). Once reviewed and approved the PBV Specialist will prepare the Preliminary Award letter for signature.

PBV Application Forms

Step Four:

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.

 

 List of conditions:

Agreement To Enter Into Housing Assistance Payments Contract (AHAP)

Housing Assistance Payments Contract - New Construction or Rehabilitation (HAP)

Housing Assistance Payments Contract - Existing Housing (HAP)

HAP Contract Terms Initial and Extension

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:

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

 

PBV CONTRACT RENTS

PBV VACANCY LOSS – Guidance for Property Management

RESOURCES

MEMORADUM OF UNDERSTANDING (MOU)

MSHDA Project Based Voucher Awards

2019-2023 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

Recent PBV waiting list openings can be found here: MSHDA Housing Choice Voucher (HCV) Waiting List Information