FAQs
Date Published: November 2015
No. The FY13 grant is a separate award and requires the submission of a new AFHMP. If it is the case, we would recommend indicating in the cover letter that the same plan was submitted for FY12 award and was approved by the Office of Fair Housing and Equal Opportunity (FHEO). Please note that some Grantees are serving different populations in FY13 ...
Date Published: November 2015
In regard to Fidelity Bond, PRA is going to mimic the Performance-Based Contract Administration (PBCA) program, thus the following coverage will be required:
The amount of the Fidelity Bond should be sufficient to cover the maximum possible monthly Rental Assistance Payments (RAPs) that can be received by the Grantee once the Grantee starts ...
Date Published: November 2015
Notice 2015-3 states that: “The Owner of the project to which the budget authority is transferred must agree to accept the budget authority.” Therefore, if an Owner commits units for the PRA Program, HUD cannot compel the Owner to accept the Section 8 Housing Assistance Payments (HAP) instead. Once the Owner commits units to the PRA ...
Date Published: November 2015
PRA Program Guidelines PRA.207 state:
§ PRA.207 Approved Rent and Rent Adjustments.
The initial RAC rent level may not exceed the applicable or Fair Market Rent (FMR) level as determined by HUD, unless such rent level is substantiated by a market study that has been prepared in accordance with the requirements of a state housing agency or ...
Date Published: November 2015
Administrative Costs can be incurred back to the date of the Grantee’s preliminary award letter.
Date Published: November 2015
No. Grantees that have already submitted paper vouchers to HUD and had these approved are not required to submit paper vouches for their FY13 awards.
Date Published: November 2015
No. Although OMB has issued a new regulation, HUD is still in the process of issuing HUD-specific guidance. At this time, the FY12 awards are subject to 24 CFR Part 84 and 85 but FY13 awards are subject to 2 Part 200. For additional guidance, please see Notice SD-2015-01, Transition to 2 CFR Part 200, Uniform Administrative Requirements, Cost ...
Date Published: November 2015
To amend a RAC, submit the following to the HUD PRA mailbox:
RAC page 1;
RAC page 4 with revisions and signatures; and
A new Rent Schedule HUD Form 92458.
A cover letter or e-mail justification for the amendment should also be included.
Date Published: November 2015
Yes. Units funded through Rural Development programs are eligible if they do not already have project-based rental assistance and are not already restricted to serving people with disabilities. HUD and the USDA expect to issue additional joint FAQs to address this question in more detail.
Date Published: November 2015
The FEMA Elevation Certificate web page and the NFIP Elevation Certificate and Instructions web page contain a Federal Emergency Management Agency (FEMA) form that can be used to have a professional engineer certify elevation which in turn can support a Letter of Map Revision (LOMR) application, as well as a FEMA form that can be used to certify ...
Date Published: November 2015
The RAC Part II Section 2.8 states:
An Eligible Family's eligibility for Rental Assistance Payments continues until the total Eligible Family contribution equals the total housing expense for the unit it occupies. The termination of availability at this point will not affect the Eligible Family's other rights under the lease nor preclude ...
Date Published: November 2015
No one type of back-up required. The particular back-up will depend on the types of costs being charged, e.g. staff salaries or the purchase of supplies, as well as Grantee’s preferred method of charging for Administrative Costs. For example, one Grantee submits the relevant sections of their general ledger with details of the costs incurred....
Date Published: November 2015
No. It does not need to be attached when the RAC is submitted to HUD.
Date Published: November 2015
HUD recommends the Grantee review the requirements outlined in Notice H2012-11 State Registered Lifetime Sex Offenders in Federally Assisted Housing as well as in HUD Handbook 4350.3 which states in Section 4-7E, “Regardless of standards established, the owner must screen for State lifetime sex offender registration in all states where the ...
Date Published: October 2015
Upon admission to the PRA program the applicant family’s annual income must not exceed the extremely low income limit published annually on www.huduser.org. Extremely low income family means a household whose annual income does not exceed 30 percent of the median income for the area.
Date Published: October 2015
HUD acknowledges that a Grantee may need to terminate a RAC due to lack of interest from a PRA eligible applicant in a particular location, insufficient unit sizes, or persistent lack of Owner compliance with Uniform Physical Condition Standards (UPCS)/occupancy related issues. Therefore, a Grantee may initiate the request to terminate the RAC and ...
Date Published: October 2015
Yes. Applicants and tenants – not Grantees or owners – are responsible for determining family composition.
Date Published: October 2015
If the RAC ceases to be funded and the tenant is unable to pay the full contract rent, the Owner is allowed to implement the lease’s eviction clause. The Owner will be required to secure a summary eviction from the state or local Court system.
If this occurs, it would be HUD’s intention to protect the tenants. HUD, for example, would...
Date Published: October 2015
Yes. The design and construction requirements of the Fair Housing Act apply to all “covered multifamily dwellings” built for first occupancy after March 13, 1991. This is true whether or not the unit is a PRA 811 unit or the building that it is in contains PRA 811 units. It is true whether or not the building has any federal financial ...
Date Published: October 2015
Only the live-in aide can live in the unit. No other member of the live-in aide’s family can live in the unit. As described in HUD Handbook, Paragraph 3-6 (E)(3)(a), a live-in aide is “a person who resides with one or more elderly persons, near-elderly persons, or persons with disabilities.” Also, refer to the definition for live-...
Date Published: October 2015
HUD is interested in ensuring long-term operating cost efficiency for the project and the low income tenants who will pay utility bills. HUD will not require major changes to systems if the PRA is awarded post construction start, but will require energy and water conservation standards to be followed in any part of the construction not complete or ...
Date Published: October 2015
Yes. The LOCCS is used across HUD programs. The LOCCS requirements outlined in the Cooperative Agreement Section XIII are standardized system requirements. For example, the requirement that form HUD-27054 must be recertified every 6 months by each LOCCS User’s Approving Official is a system requirement that cannot be modified for PRA.
Date Published: October 2015
All non-federal entities that expend $750,000 or more of federal awards in a year are required to obtain an annual audit in accordance with 2 CFR Part 200-Uniform Administrative Requirements, Cost Principles and Audit Requirements for federal Awards. Additional information can be found on the Office of Management and Budget (OMB) Policy Statements ...
Date Published: October 2015
No. There is no rent reasonableness requirement in the PRA Program. Grantee programs must set rents in accordance with program requirements. In no circumstance may the initial Rental Assistance Contract (RAC) rent level exceed the applicable Section 8 Small Area Fair Market Rent or Fair Market Rent (FMR) level as determined by HUD, unless such rent...
Date Published: October 2015
Yes. Persons with disabilities, who have tenant-based vouchers, are not included in the 25% limitation so long as the units they occupy are not designated for supportive housing or are use-restricted for persons with disabilities.
Date Published: October 2015
The Grantee will determine where the source documentation for income, assets, and expenses will be maintained. For example, in some programs, the state service agency may be making the determination of eligibility for the program and will hold source documentation in their file.
Date Published: October 2015
Section 504 of the Rehabilitation Act and HUD’s implementing regulations at 24 CFR part 8 are triggered by the receipt of federal financial assistance. Grantees and owners participating in the Section 811 PRA program are subject to Section 504; therefore the entire development is covered by Section 504 because of this receipt of federal ...
Date Published: October 2015
An Owner should analyze the applicable programs and go with the higher Davis Bacon threshold of the two (if there is a difference). For example, if a project has ten 811 PRA units and ten HOME-assisted units, Davis Bacon would not be triggered by the PRA assistance. However, if a project has thirteen 811 PRA units and ten HOME-assisted units, Davis...
Date Published: October 2015
Yes. The PRA Program can only fund properties with 5 or more units; there is no such requirement for leveraged units. For further information on requirements related to leveraged vouchers, please contact the public housing agency (PHA) that has made the commitment of leveraged vouchers.
Date Published: October 2015
Grantees may choose whether or not to offer vacancy payments in their program.
If Grantees choose to offer vacancy payments, a Rental Assistance Payment may be made to the Owner for a vacant Assisted Unit of up to 80% of the Contract Rent for up to 60 days of vacancy. Grantees may choose to offer the Owner less than 80% of the Contract Rent...
Date Published: October 2015
HUD is not able to allow an alternative to the TRACS system because this is the required system by which HUD Multifamily Programs track unit and subsidy data. TRACS collects certified tenant data and subsidy payment vouchers from owners and management agents of multifamily housing projects – either directly from the owners, from organizations...
Date Published: October 2015
See below for instructions to access the following HUD systems:
TRACS: Users may refer to the following:
Industry User Guide for TRACS Internet Applications
Multifamily (MF) Helpdesk Telephone: 1-800-767-7588
Email: tracs_hotline@hud.gov
eLOCCS: Users may refer to the following:
eLOCCS Getting ...
Date Published: October 2015
There is no model form for a live-in aide addendum. See the “NOTE” found in HUD Handbook 4350.3 Chapter 6-5 (A)(4)(g) for requirements for the live-in aide lease addendum. The live-in aide must not be included on the lease and does not qualify as a remaining family member. See 4350.3 Chapter 3-6 (E)(3)(a) or the Glossary for a ...
Date Published: October 2015
As indicated in the Guidance, Grantees will evaluate their affirmative fair housing outreach activities and make a determination as to whether these activities have been successful. HUD does not provide a threshold percentage for several reasons. First, a specific percentage change in a state where the “least likely to apply” population...
Date Published: October 2015
Yes. A Grantee may attach a RAC at any stage of the development process; however, funding under a RAC can only initiate as units are occupied.
Date Published: October 2015
No. Accessible units that have no other disability-related restrictions are eligible for the PRA program regardless of any income-based use restriction.
Date Published: October 2015
Despite these challenges, it remains the responsibility of the Grantee to formulate and submit an Affirmative Fair Housing Marketing Plan to HUD for approval. The Grantee must also monitor the outreach activities of the community based organizations or the Grantee’s state health and/or human services partners to ensure that the Affirmative ...
Date Published: October 2015
If the tax credit ceiling rents are above FMRs, then the tax credit rents must be substantiated by a market study prepared in accordance with the requirements of a Grantee, the Section 8 Renewal Guide, or as approved by HUD based upon market survey data.
Reference: RAC, Part II, Section 2.7 (a), “Grantee and Owner agrees that in no ...
Date Published: October 2015
Yes, if the issuing authority allows the vouchers to be used in a group home. The PRA Program Guidelines do not apply to the leveraged voucher program. For further information on requirements related to leveraged vouchers, please contact the public housing agency (PHA) that has made the commitment of leveraged vouchers.
Date Published: October 2015
Yes. HUD Handbook 4350.3 and the regulation (Figure 3-6, Definition D-Disability Definitions) define a disabled family as one or more persons with disabilities living with one or more live-in aides.
Date Published: October 2015
Except at initial occupancy when overcrowding or under-utilization cannot occur, Grantees may determine their own requirements on notification from owners when units are over-crowded or underutilized. For example, if a Grantee is managing the transfer waiting list, it will be critical that the Grantee is notified when over/under housing occurs, so ...
Date Published: October 2015
No. Duplexes are not eligible properties because “Eligible Multifamily Properties” means any new or existing property owned by a nonprofit, public, or a private entity with at least 5 housing units. This can include 5 or more units that are noncontiguous if under a single ownership entity. For example, a Low-Income Housing Tax Credit (...
Date Published: October 2015
No. Income eligibility is determined upon admission only.
Date Published: October 2015
“New” means any new construction or existing projects in which units are newly designated to serve the Grantee’s target population.
Date Published: October 2015
No. The goal of affirmative fair housing outreach is to achieve a condition in which individuals in the target population have a like range of housing choices available to them regardless of their race, color, national origin, religion, sex, familial status, or disability. For the purpose of PRA, HUD is asking grantees to evaluate outreach based on...
Date Published: October 2015
Accessible dwelling units must, to the maximum extent feasible, be distributed throughout a building or site so persons with disabilities are not segregated within a particular section of a building or site receiving Section 811 PRA assistance. Where Section 811 PRA is proposed to be used in an existing project where accessible units are located in...
Date Published: October 2015
Yes. Properties with PRA assisted units will have a recorded use restriction on the property for 30 years. Similar to other use agreements or regulatory agreements, these are intended to survive foreclosure or sale of the property but can be assumed by a purchaser of the property at sale.
Date Published: October 2015
Yes, Grantees can continue to make rental assistance payments when the HOH is hospitalized as long as the household continues to pay their portion of the rent and the tenant is expected to return to live in the unit. This would include but is not limited to hospitalization in a medical facility, a psychiatric facility, or nursing facility. Note ...
Date Published: October 2015
HUD understands that program modifications are highly likely. Changes in the Grantee Program Description (Exhibit 4) and the Grantee’s Interagency Partnership Agreement (Exhibit 3) must be reported in writing to HUD. Additionally, HUD approval is required for changes in sections III and IV of Exhibit 4 (Leveraging/NOFA Rating Factors).
In ...
Date Published: October 2015
HUD agrees with the principle of realignment and agrees to do so where possible.
Inspections: The PRA Guidelines PRA.406 provides that “a physical inspection pursuant to Uniform Physical Condition Standards (UPCS) must also be performed of the Assisted Units and related facilities at a frequency that conforms to the property’s ...
Date Published: October 2015
Unit numbers may float at a property. Owners are not required to identify unit numbers or specific locations of units when signing Part I or Part II of the RAC.
Date Published: October 2015
Grantees may use Exhibit 12 to identify any language in the Cooperative Agreement and/or other documents that specifically conflicts with state law. HUD will work with Grantees on a case by case basis to determine whether alternative language or an exemption is appropriate and include such in Exhibit 12.
Date Published: October 2015
Calculating the TTP and Tenant Rent for rental assisted units shall be in accordance with the requirements in HUD Handbook 4350.3 Chapters 5-25, 5-26, 5-27, and 5-30.
TTP is the amount a tenant is expected to contribute for rent and utilities. TTP for PRA is based on family’s income. Calculation of TTP is the greater of the following:
...
Date Published: October 2015
No. Income from a live-in aide is not counted as household income on the HUD- 50059. See HUD Handbook 4350.3 Chapter 5-6, Figure 5-2.
Date Published: October 2015
HUD Handbook 4350.3 Chapter 2-29 provides information on how to communicate effectively with people with disabilities. For example, a Grantee/owner may provide auxiliary aids to ensure effective communication with hearing- and speech-impaired individuals.
Date Published: October 2015
Yes. Affirmative fair housing outreach to persons with LEP is considered a special outreach effort. If a Grantee determines that there is a presence of LEP populations within their own unique target populations, then special outreach efforts need to be performed and these efforts can be described in the Affirmative Fair Housing Marketing Plan (...
Date Published: October 2015
HUD understands that real estate transactions have a number of parties and a high degree of complexity requiring flexibility in the application of HUD requirements. Grantees must balance objectives of a number of funding sources.
Furthermore, HUD understands Project Rental Assistance (PRA) provides operating assistance, not capital funding. HUD ...
Date Published: October 2015
OMB forms cannot be modified; however, HUD will approve addendums to forms under certain circumstances, including any inconsistencies between the form and state laws.
Date Published: October 2015
Flood insurance is required in areas within the 100-year floodplain as designated by the Flood Insurance Rate Maps of the Federal Emergency Management Agency (FEMA).
Date Published: October 2015
Yes. When expiring use projects are refinanced, 811 PRA can be included in the new deal.
Date Published: October 2015
The general formula to calculate the 25% cap at a project is as follows:
Total # of tenants admitted under the project’s occupancy preference for persons with disabilities, if any, plus Total # of 811 PRA units slotted for the project may not exceed 25% of the Total Units in the Building.
Please review Scenarios 1 through 4 below ...
Date Published: October 2015
In order to offer integrated housing opportunities for persons with disabilities, the maximum number of units receiving PRA assistance, used as supportive housing for persons with disabilities, or with any occupancy preference for persons with disabilities is limited to 25%. The 25% applies to any set-aside or preference for persons with ...
Date Published: October 2015
Within any of the Grantees’ specific target populations, there may be subpopulations of persons who are “least likely to apply” to the program such as persons who have limited English proficiency, persons who have difficulty communicating because of their disability, and others. This Guidance asks Grantees to consider their target...
Date Published: October 2015
The deadline for transmission of vouchers (form HUD-52670) and all related TRACS files supporting the voucher is the 10th day of the month directly preceding the voucher payment month. For example, the February voucher TRACS transmission would be due to the Grantee on January 10th.
Date Published: October 2015
No. Grantees must use UPCS as required in the Notice of Funding Availability (NOFA). Please note that HUD is engaged in an intergovernmental initiative with the Internal Revenue Service (IRS) and the Department of Agriculture to align regulations and requirements among federal housing assistance programs and this may result in some changes at a ...
Date Published: October 2015
No. The Project Rental Assistance (PRA) units in the property cannot be restricted to veterans; however, a property is allowed to have a preference for veterans within PRA units, as long as the preference is consistent with the Grantee's Interagency Partnership Agreement and does not violate fair housing laws.
Date Published: October 2015
In the Interagency Partnership Agreement and application for PRA funds, each Grantee outlined the specific methods they planned to use for outreach and referral. Generally, outreach will be conducted by the Grantee and/or one of its partners at the state and/or local level.
Each Grantee is expected to develop an AFHMP which affirmatively ...
Date Published: October 2015
The statute requires a use requirement of 30 years. The maximum length of a RAC is 20 years. The expectation is that the RAC will be renewed at the end of the first 20 years.
Date Published: October 2015
After 5 years the contract will continue, but funding will be subject to annual appropriations.
Date Published: October 2015
Yes, Lead-based Paint requirements will apply.
Date Published: October 2015
Yes. If units on a RAC are not occupied in a reasonable period of time, generally 6-9 months, due to the location of a property/lack of demand for PRA units, then the Grantee is encouraged to move the units from one property to another to make certain that PRA funds are appropriately utilized. Exhibit 1, Part I, of the RAC must be amended to ...
Date Published: October 2015
Some Settlement Agreements include a broad population for which outreach is required, e.g. homeless persons with disabilities living on the street. Some are more limited such as those covering only persons residing in one or more institutions. In either case, Grantees can still ensure their program includes special outreach efforts to affirmatively...
Date Published: October 2015
The 811 PRA program will follow guidance in HUD Handbook 4350.3 Chapter 3-16. If the eligible household member passes away, the remaining family members are eligible to remain in the unit and continue receiving rental assistance based on income. However, if the eligible household member leaves the unit for any other reason other than death, the ...
Date Published: October 2015
All state agencies receiving FY 2012 funds are subject to the requirements of 24 CFR part 85. All state agencies receiving FY 2013 funds are subject to the requirements of 2 CFR Part 200.
For additional guidance, please see Notice SD-2015-01: Transition to 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit ...
Date Published: October 2015
The RAC is a 20-year commitment on the owner’s behalf. Although a Grantee has discretion to terminate a RAC due to the unique circumstances described in the FAQ: Are Grantees allowed to terminate a Rental Assistance Contract (RAC)?, an Owner cannot be approved to opt-out of a RAC in the middle of their 20-year term.
Date Published: October 2015
No. For example, a Grantee can enter into a RAC with an Owner for 10 units, of which only 3 units are available and ready to be leased when the RAC is executed. While units can be placed under a RAC in anticipation of their availability (turnover/completed construction), the PRA units need to become available in a reasonable period of time, ...
Date Published: August 2015
No. PRA assistance can be provided for units in senior developments for persons with disabilities less than 62 years old at the time of admission as long as no more than 25% of the total units have PRA funds, or are used for supportive housing for persons with disabilities or have any occupancy preference for persons with disabilities. However, ...
Date Published: August 2015
Yes. The URA applies to the PRA Program.
Date Published: August 2015
Properties such as these may or may not be compliant with the Section 504 and/or Fair Housing Act requirements of the Cooperative Agreement. Properties receiving PRA funds should review the guidance provided in HUD Handbook 4350.3 Chapter 2; see especially Section 3.
Date Published: August 2015
LBP requirements apply only if the child lives in a PRA unit.
Date Published: August 2015
Yes. Eligible Multifamily Properties means any new or existing property owned by a nonprofit, public, or a private entity with at least 5 housing units. This can include 5 or more units that are noncontiguous if under a single ownership entity. For example, a Low-Income Housing Tax Credit (LIHTC)-financed development of 60 noncontiguous townhomes ...
Date Published: August 2015
Yes. Properties with HOME and/or project-based Section 8 are considered HUD-assisted. Existing properties that are currently HUD-assisted or HUD-insured and that will not engage in activities with physical impacts or changes beyond routine maintenance activities or minimal repairs are not required to comply with the environmental tenets. However, ...
Date Published: August 2015
No. As proof of age and/or social security number (SSN), Grantees and Owners may accept other forms of documentation including those listed in Appendix 3 of HUD Handbook 4350.3. In addition, see question #100 of the Final Multifamily Mailbox: 4350.3 REV-1 (August 2007).
Date Published: August 2015
HUD Assisted refers to properties with any of the following: FHA-mortgage insurance, a federal mortgage interest subsidy, project based rental assistance such as PRAC, HOME, CDBG, NSP, or other HUD funding including HUD funds allocated through state and local jurisdictions.
Date Published: August 2015
No. A state can expend and account for grant funds in accordance with its own State laws and procedures, as long as the procedures can permit the preparation of reports required by the 811 PRA Program and permit the tracing of funds to a level of expenditures that are appropriate. As the Grantee, you need to ensure Owners are not using the funds in...
Date Published: August 2015
No. PRA will not be using HEROS at this time.
Date Published: August 2015
HUD will not commit to unforeseen circumstances. HUD entered in a contract with the Grantee. If a reorganization process initiated by the Governor or State Legislature resulted in a transfer of the 811 PRA program to another state entity, HUD will follow standard protocol in approving such a request.
Date Published: August 2015
Yes. Grantees are required to track date/time of application or indication of interest. This may be accomplished by either using a date and time stamp or by writing and initialing the date and time received on the application. For an indication of interest, a note to the file or an application log would be appropriate.
Date Published: August 2015
Yes. Although the ELI definition in the FY 14 Appropriations Provisions changed, it will mostly affect applicable programs in the Federal Register that require income targeting. Since 811 PRA does not have income targeting (PRA applicants must be ELI in order to be eligible), states can use the 2014 ELI income limit when determining eligibility. ...
Date Published: August 2015
No. All PRA assisted units must meet UPCS. However, inspections need not be performed by Real Estate Assessment Center (REAC) certified inspectors or using REAC software.
Date Published: August 2015
If an applicant has received a reasonable accommodation to extend the housing search process and turned age 62 during that extended time, the PRA Program would consider that voucher to have been leveraged.
The PRA Program requires applicants to be under age 62 at move-in. The PRA Program cannot control the rules for a PHA's Housing Choice ...
Date Published: August 2015
As per 4350.3 Chapter 3-23 (H), the owner may require the family to move to a unit of appropriate size. If a unit of appropriate size is not available, the owner must not evict the family and must not increase the family’s rent to the market rent. See the following example:
Atta and Kumari Gupta live in a 3-bedroom unit at Elmwood ...
Date Published: August 2015
Yes. The FMR includes rent and utilities. If the tenant pays the utilities, then the calculation of the Tenant Rent must include a utility allowance.
Date Published: August 2015
No. PRA Program Guidelines do not require that Owners conduct an A-133 audit. Note however, that if the Owner is a nonprofit organization and has expenses of $750,000 or more per year, the entity may be subject to an A-133 audit. However, this would be as a result of Office of Management and Budget Requirements, not HUD PRA Program requirements. ...
Date Published: August 2015
No. The number of leveraged units or vouchers is expected to stay the same.
Date Published: August 2015
Yes. If the unit is not already under a use restriction and does not already have project based rental assistance, an RAC may be signed for that unit.
Date Published: August 2015
Grantees will want to consult Appendix 3 of HUD Handbook 4350.3. This appendix lists appropriate verification sources for a variety of variables including disability and income.
Date Published: August 2015
No. There is no standard PRA rental application. States can create PRA applications or can allow owners to use existing rental applications.
Date Published: August 2015
If the Phase I Environmental Site Assessment (ESA) complies with the most recent ASTM E 1527 standards, and was prepared within the Phase I continuing viability timeframe for the acquisition of the property or a real estate transaction for the property, the Phase I is acceptable.