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Project-Based Voucher (PBV) Program

Project-Based Voucher (PBV) Program

IMPORTANT NOTICE

Due to limited resources, MSHDA will award Project-Based Vouchers (PBVs) only to developments that receive a 9% Low Income Housing Tax Credit (LIHTC) award under the Permanent Supportive Housing (PSH) category. This policy applies exclusively to LIHTC awards issued on or after September 11, 2026. Eligible developments must also commit to reserving 50 percent or more of the units as PSH.

This approach ensures that available voucher resources are targeted to developments that align with PSH goals and have secured the financing necessary to support long term housing stability. Applicants must submit an Addendum III and a Memorandum of Understanding (MOU) for review and approval. PSH target populations must include Homeless Category 1 – Literally Homeless, with the option to include additional target populations as appropriate.

 

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 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 supportive housing target populations.

Category 1 (Literally Homeless) must be a selected target population and any of the following target populations may also 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 NSPIRE-V Inspection. Project-Based contracts are awarded to owners and developers of properties through an owner proposal selection process.

Owner/Sponsor PBV Application Steps

In order for owners to participate in this program the following process must be followed:

Step One:

The owner must have received financing for the development via a competitive process through MSHDA such as LIHTC, HOME, MSHDA financing. This award must have been provided with no consideration that the project would receive project-based vouchers and must also commit to setting aside 50 percent or more of the units within the property as PSH..

Step Two:

The owner must submit the MSHDA PBV 101 (Letter of Intent) and MSHDA PBV 101a for PSH projects to the designated MSHDA Rental Assistance staff. A copy of the LIHTC Reservation and the MSHDA approved MOU and Addendum III must be submitted as well. PSH target populations must include Category 1 as a selected target population, and other target populations may also be added.

Step Three:

Designated MSHDA PBV staff will contact the owner to discuss the project and recommend the appropriate proposal to be submitted for the development. Proposal types include Existing Housing, and Rehabilitation or Newly Constructed Housing. (Forms required: MSHDA PBV 102, 103 or 104). Once reviewed and approved the PBV staff will prepare the Preliminary Award letter..

PBV Application Forms

Step Four:

Immediately following the issuance of the Preliminary Award letter and prior to the commencement of any construction work, MSHDA 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 that meet 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 MSHDA’s Project-Based Voucher Program at MSHDA-PBV@michigan.gov.

URA REQUIREMENTS

URA requirements apply to the HCV Project Based Voucher Program per 24 CFR 983.7.

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

2019-2025 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 Project-Based Development List

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