811 PRA FAQ
Q

Is a duplex an Eligible Multifamily Property?

Date Published: October 2015

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A

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 (LIHTC)-financed development of 60 noncontiguous townhomes spread over 5 acres would be an Eligible Multifamily Property if it met other program requirements. In another example, 20 HOME-funded condominiums either in or on the same property or spread across a city or town would also be considered an eligible property if under a single owner and other requirements are met.

Note that Program Guidelines PRA.305 (d) states that “units must be dispersed throughout the property and must not be segregated to one area of a building (such as on a particular floor or part of a floor in a building or in certain sections within a project).” This requirement must be met when units are noncontiguous or distributed across a large area, i.e., not all the PRA units should be segregated in a single part of the site. Grantees should consider the 25% requirement as guidance in determining when units are segregated. Consider, for example, a project with 33 units, 27 at one location and six at another location. The 8 PRA units (25%) will be floated across the two locations. In the spirit of the legislation, the location with 6 units should only have one PRA unit because two PRA units would be more than 25% at the single location.


Tags: 811 PRA Program Requirements - Eligible Units

FAQ ID:

2616