Section 8 ProjectBased Rental
Assistance Program
Fort Worth Multifamily HUB
4/8/2015
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Basic Definitions
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HUD-subsidized project means a project
whose owners or tenants receive
payments for rent or operating expenses.
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Subsidy provides qualified tenants a way
to pay less rent for their units. The Major
program is called Section 8 and includes
Project Based and Tenant Based Rental
Assistance.
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Carries use and affordability restrictions.
Assistance contracts are common.
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Projects can be both HUD-subsidized
and HUD- insured. They also can be
one or the other.
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The Section 8 Program was
authorized by Congress in 1974.
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Provides Rental Subsidies for eligible tenant families
(including single persons) residing in newly constructed,
rehabilitated and existing rental apartments.
Code of Federal Regulations Under 24 CFR Provide
Guidance Relative Section 8 Program.
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880 Section 8 New Construction
881 Section 8 Substantial Rehabilitation
882 Section 8 Moderate Rehabilitation
883 Section 8 State Housing Agencies
884 Section 8 New Construction Set-Aside for Section 515
Rural Rental Housing Developments
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Code of Federal Regulations
(continued)
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886 Section 8 Special Allocations
888 Section 8 Fair Market Rents and Contract Rent Annual
Adjustment Factors
891 Supportive Housing for the Elderly and Persons with
Disabilities
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Multifamily Assisted Housing
Reform and Affordability Act of
1997 (MAHRA)
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Renewal rents based on market instead of Fair Market Rent
(FMR)
Multi-year contract subject to appropriations
Authority to renew project based contracts
With or without restructuring
Most rents set at market
Exception rents for certain projects
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Project (Asset)
Management Function
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Project (Asset) Management
administers both HUD-insured and
HUD-subsidized projects.
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Each project is assigned to a project
manager. Fort Worth Multifamily HUB
jurisdiction covers the State of Texas.
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Example of 9% HTC Leveraged Deal
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Gulf Coast Arms Apartments, Houston, TX; Section 221d3,
160 Units, 100% Section 8 Subsidized, 2012 9% HTC Award
with other Funding Sources, Total Reconstruction
Funding Sources: HTC $1,750,000, CDBG $6,750,000,
Conventional Financing $3,750,000
Relocation of Residents for 12-18 months
Project reconstructed Platinum LEED Green
Residents moved back in first building June 2014
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Project (Asset)
Management Function
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Region VI Web site can be found
at:http://www.hud.gov
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Other Funding
Considerations
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State (TDHCA) Low Income
Housing Tax Credits (LIHTC)
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State Bonds
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City/County HOME & CDBG Funds
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TDHCA HOME & CDBG Funds
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Housing Tax Credits
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Created by the TAX Reform Act of 1986.
Section 42 of the Internal Revenue Code
of 1986.
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Used to direct private capital towards
affordable housing
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To qualify development must be new
construction or substantial rehabilitation.
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A total of four or nine percent based on
rent restricted units offered.
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www.tdhca.state.tx.us
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State Bonds
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Multifamily Housing Revenue Bond
Rule, Title 10, Par 1, Chapter 35, Texas
Administrative Code.
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Used to construct, acquire, rehabilitate,
operate, manage, or maintain a
Development.
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Tenants must be low income, very low
income, or extremely low income..
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Issued in varying denominations.
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www.tdhca.state.tx.us/multifamily/bond/18
docs/07-BondRule.pdf
State of Texas HOME
Funds
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Funds are provided to States, City, and local
government on a formula allocation base.
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Funds can be used to acquire property,
construct new housing, moderate or rehabilitate
housing, site improvements, demolition of
dilapidated housing, pay for relocation, and
other reasonable expanses.
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Bricks and mortar program for affordable
housing.
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City or Local Government administered.
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www.tdhca.state.tx.us/home-division/mfhome/index.pdf
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Questions
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