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04.30.15

Notice of Application Requirements for TPVs for Projects in Low-vacancy Areas

On Thursday, April 23, 2015, HUD issued Notice HUD 2015-07 which provides guidance for applications for Tenant Protection Vouchers  (“TPVs”) for projects in low-vacancy areas where certain actions have resulted in putting families at risk of paying rents in excess of 30% of household income.  Congress provided $130 million in HUD’s FY 2015 Appropriations Act for TPVs for tenants in HUD-assisted projects who are negatively impacted by certain actions such as demolition/disposition of public housing units and section 8 project-based contract owner opt-outs.  The 2015 Appropriations Act sets aside $5,000,000 of this amount for projects that might not otherwise be eligible for TPVs under current HUD requirements.  In addition,  there is another $2,000,000 that is being carried over from the FY 2014 HUD Appropriations Act that is also available for this purpose, for a total of $7 million for FY 2015.

These TPVs are available for maturing section 202 mortgages which required HUD approval to prepay, for expiration of rental assistance contracts for which tenants are not entitled to Enhanced Vouchers or other tenant protection assistance, or in connection with the expiration of affordability restrictions accompanying a mortgage or preservation program administered by HUD.  The TPV assistance may be made available either in the form of Enhanced Vouchers or in the form of project-based voucher assistance as may be requested by the owner for at-risk households. 

As indicated above, this assistance may be provided only for projects that are in low-vacancy areas and HUD has included a listing of such areas as an attachment to the Notice.  Owner requests will be reviewed on a rolling basis until the funding under the Notice has been exhausted.