HUD recently issued Notice PIH 2014-04 amending the eligibility criteria for certain types of properties applying to receive Tenant Protection Vouchers (TPVs), as defined in a previous HUD Notice PIH 2013-08. Under category 3 of Notice PIH 2013-08, HUD stipulated that TPVs may be made available to provide housing choice voucher rental assistance to residents residing in low-vacancy areas if tenants are paying rents greater than 30 percent of household income as a result of the expiration of affordability restrictions accompanying a mortgage or preservation program administered by HUD. However, the Notice stipulated that the project could not have a Section 202 Direct Loan, FHA-insured primary mortgage or HUD-held primary mortgage in place at the time of the Owner’s application for the funding.
This new Notice PIH 2014-04 expands eligibility criteria for these “category 3″ properties. To qualify, the FHA-insured primary mortgage, or HUD-held primary mortgage must have been prepaid on or after June 14, 2013, and prior to the date of publication of Notice PIH 2014-04.
All properties that were approved to be processed for funding under Notice PIH 2013-08 will continue to be processed according to the timeline and provisions in Notice PIH 2013-08. In order to fund properties eligible under the expanded criteria for category 3 properties, HUD will use the funding leftover after all eligible properties’ requests for assistance have been funded under the provisions of Notice 2013-08.
Notice PIH 2014-04 also amends deadlines and certain other provisions of Notice PIH 2013-08 for owners applying under the expanded criteria of category 3 properties.
Click here to read PIH Notice 2014-04