IAHA News

HUD Reinstates Flexible Rent Policy for Units with Both Project-Based Vouchers and Tax Credits. HUD published a final rule revising the low income housing tax credit rent provisions of HUD’s project-based voucher program regulations (24 C.F.R. §983.304) to be effective December 19, 2007. This rule reinstates the former practice of allowing rents paid to owners of units assisted with both project-based vouchers and tax credits in qualified census tracts (QCTs) to be the higher of the fair market rent (FMR) or the tax credit rent. The regulation had been changed in 2005 to cap rents at tax-credit levels. The new rule also re-emphasizes the requirement that public housing authorities (PHAs) may not enter into assistance contracts until HUD or an independent entity approved by HUD has conducted the required subsidy layering review and determined that the assistance is in accordance with HUD requirements. The final rule can be found here.

HR 3074 is the appropriations bill for the Departments of Transportation, Housing and Urban Development and related agencies for the fiscal year ending September 30, 2008.

After passing both the Senate and House on November 14, 2007, a conference committee is created to work out differences between the Senate and House versions of the bill. A conference report resolving those differences passed in the House of Representatives, paving the way for enactment of the bill, by roll call vote.

Section 32 Homeownership Program HUD has provided PHAs with the tools and flexibility to develop programs that are tailored to meet the needs of local communities.  One avenue to pursue homeownership is through the Section 32 Homeownership program (also known as public housing homeownership).  The HUD regulations for this program are found in 24 CFR, Chapter 906 (replacing Section 5(h)).

Under Section 32, a PHA may:
(1) sell all or a portion of a public housing development to eligible public or non-public housing residents,
(2) provide Capital Fund assistance to public housing families to purchase homes, or
(3) provide Capital Fund assistance to acquire homes that will be sold to low-income families. 

• The PHA must submit a Section 32 program proposal to HUD’s Special Applications Center for approval BEFORE the HA can start the program.  The PHA must demonstrate its commitment and capability to successfully implement the Homeownership program.
  
• Eligible purchasers earn up to 80% of Area Median Family Income (AMI).
  
• The unit must be affordable for the purchaser.
  
• Sold unit must be used as principal residence of family.
  
• Purchasers must pay a minimum downpayment.

Waiting for Subsidized Housing in Illinois: New Study Highlights Increasing Backlog The demand in Illinois for public housing units is more than double the supply, and more than half of the state’s public housing authorities that offer Housing Choice Vouchers have closed their waiting lists to needy families, according to a recent study by the Heartland Alliance. The study, entitled Not Even a Place in Line: Public Housing & Housing Choice Voucher Capacity and Waiting Lists in Illinois, evaluated the Illinois housing authorities’ waiting lists for public housing and Housing Choice Vouchers and found that most are closed to new applicants. View the full article and study here.