SRO Eligibility Requirements

The Section 8 Moderate Rehabilitation SRO Program component is no longer eligible under the CoC Program. No new SRO projects will be funded. Current SRO projects will continue to be renewed under the Multifamily Assisted Housing Reform and Affordability Act of 1997.

Beneficiaries

The SRO Program assists unaccompanied homeless persons.

Eligible Applicants

Public housing agencies (PHAs) and private nonprofit organizations are eligible for the SRO Program. Nonprofit organizations, however, must subcontract with a PHA to administer the rental assistance.

Terms of Grants

Grantees administer rental assistance — which compensates building owners for some rehabilitation-related costs — for a period of 10 years, with renewal terms to follow. A maximum of 100 units can be rehabilitated via any one SRO-funded project.

Eligible Activities

Eligible activities are restricted to rental assistance attached to the rehabilitated building.Certain properties are strictly ineligible for the SRO Program, including:

  1. Units receiving Federal funding for rental assistance or operating costs from other HUD programs
  2. Nursing homes
  3. Penal, reformatory, medical, or mental health institutions
  4. Owner-occupied units

Moreover, applicants may not amortize rehabilitation costs associated with luxury items (e.g., swimming pools), contingency fees, and owner labor (e.g., direct work or supervision).

Requirements and Responsibilities

Each unit must receive a minimum amount of rehabilitation, including the prorated share of materials and labor costs needed to bring the common areas or systems up to physical conditions standards.

After the Annual Contributions Contract is in place, the property owner has 12 months to complete the rehabilitation.

An owner may not terminate leases except for: serious and repeated violations of the terms and conditions of the lease; violations of applicable Federal, State, or local laws; or other just causes.