HUD’s Office of Public and Indian Housing (PIH) issued Notice PIH 2014-04, amending the eligibility criteria to obtain tenant protection vouchers at certain properties, as described in Notice PIH 2013-08. The previous notice implemented an FY12 HUD appropriations act provision that set aside $10 million for tenant protection vouchers for low income households in low-vacancy areas who may have to pay more than 30% of their income for rent at three categories of HUD-assisted multifamily properties (see Memo, 4/19/13).
To be eligible for tenant protection vouchers under category 3 of Notice PIH 2013-08, a property’s HUD-imposed affordability use agreement had to have expired in or before FY12, and the owner had to request tenant protection vouchers by June 14, 2013. The new notice explains that after June 14, 2013, HUD realized that the eligibility criteria were more restrictive than HUD intended. Those criteria prohibited a project from having a Section 202 Direct Loan, FHA-insured primary mortgage, or HUD-held primary mortgage when an owner applied.
However, HUD learned that some owners were in the process of prepaying the FHA-insured primary mortgage at the time of application. Such projects would then no longer have an active FHA-insured primary mortgage or HUD-held primary mortgage. Therefore, under Notice PIH 2014-04, HUD will accept applications for projects that meet the requirements in a revised category 3. To qualify, the FHA-insured primary mortgage or HUD-held primary mortgage must have been prepaid on or after June 14, 2013, and prior to the date of publication of the new notice, February 4, 2014.
View Notice PIH 2014-08 at: http://1.usa.gov/MAWJo1