Program Descriptions
Program Number
14.149
Title
Rent Supplements-Rental Housing For Lower Income Families
Federal Agency
HOUSING, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Authorization
Housing and Urban Development Act of 1965, Public Law 89-117, 12 U.S.C. 1701(s).
Status
Active
Objectives
To make good quality rental housing available to low income families at a cost they can afford.
Types of Assistance
Direct Payments for Specified Use.
Uses and Use Restrictions
HUD makes payments to owners of approved HUD-insured and non-insured multifamily rental housing projects to supplement the partial rental payments of eligible tenants. Rental projects were required to be part of an approved workable program for community improvement or be approved by local government officials. Assistance covers the difference between the tenant's payment and the basic market rental, but may not exceed 70 percent of the market rental. The tenant's payment is between 25 and 30 percent of monthly adjusted income or 30 percent of market rental, whichever is greater. This program is inactive. No new projects are being approved; however, tenants may apply for admission to existing projects.
Eligibility Requirements
Applicant Eligibility
Eligible sponsors included nonprofit, cooperative, builder-seller, investorsponsor, and limited-distribution mortgagors.
Beneficiary Eligibility
Families incomes must be within the income limits prescribed for admission to Section 8 housing in order to qualify for benefits under this program. Families may continue in occupancy if 30 percent of monthly income exceeds the market rent.
Credentials/Documentation
Applications for new projects are no longer being accepted. This program is excluded from coverage under OMB Circular No. A-87.
Application and Award Process
Preapplication Coordination
Applications for new projects are no longer being accepted. The sponsor arranged a preapplication conference with the local HUD Multifamily Hub or Program Center to determine the need for rent supplement assistance to the project before a formal application is submitted. Applications for new projects and unit increases for existing projects are no longer being accepted. All existing FHA-insured projects are being converted to the Section 8 Housing Assistance Payments program. This program is excluded from coverage under OMB Circular No. A-102. This program is excluded from coverage under E.O. 12372. No applications for new projects are being accepted.
Application Procedure
No applications for new projects are being accepted. This program is excluded from coverage under OMB Circular No. A-110.
Award Procedure
None.
Deadlines
None.
Range of Approval/Disapproval Time
Not applicable.
Appeals
None.
Renewals
Assistance Considerations
Formula and Matching Requirements
HUD makes monthly payments to project owners to make up the difference between the partial rentals paid by assisted tenants and the market rentals.
Length and Time Phasing of Assistance
Assisted tenants must pay between 25 and 30 percent of their adjusted monthly income (after certain deductions) or 30 percent of the market rent, whichever is greater. This program has maintenance of effort (MOE) requirements, see funding agency for further details. Statistical factors used for fund allocation do not apply for this program. The statistical factor used for eligibility is 80 percent of the median family income by HUD field office region, the source calculated by HUD from P-25, Census; 1990 Census; County Business Patterns; P-60, Census; and the Annual Housing Survey.
Post Assistance Requirements
Reports
The rent supplement contract is limited to the term of the mortgage or 40 years from the date of the first payment made under the contract, whichever is less. Individual family's assistance ceases when 30 percent of income is equal to or exceeds the market rent.
Audits
Any change of the mortgagor during the period of mortgage insurance must be approved by HUD. Defaults in meeting the mortgage terms must be reported. All mortgagors of HUD-insured projects are required to submit an annual financial statement to HUD.
Records
The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor to determine their compliance and conformance with HUD regulations and standards.
Financial Information
Account Identification
Mortgagees are required to maintain records in accordance with acceptable mortgage practices of lending institutions and the HUD regulations. All tenants who benefit from supplements must have their incomes recertified annually.
Obligations
86-0129-0-1-604.
Range and Average of Financial Assistance
(Outlays) FY 07 not separately identifiable; FY 08 est not separately identifiable; and FY 09 est not separately identifiable.
Program Accomplishments
See USES AND USE RESTRICTIONS.
Regulations, Guidelines and Literature
No new commitments for additional projects will be made under this program. Fact Sheet: Rent Supplements, no charge; 24 CFR 215; HUD Handbook 4350.3.
Information Contacts
Regional or Local Office
Contact the appropriate HUD Field Office listed in Appendix IV.
Headquarters Office
For Management Information, Director, Office of Multifamily Asset Management, Department of Housing and Urban Development, Washington, DC 20410. Telephone: (202) 708-3730.
Web Site Address
http://www.hud.gov/offices/hsg/mfh/progdesc/progdesc.cfm
Related Programs
14.103, Interest Reduction Payments-Rental And Cooperative Housing For Lower Income Families
14.134, Mortgage Insurance-Rental Housing
14.138, Mortgage Insurance-Rental Housing For The Elderly
14.139, Mortgage Insurance-Rental Housing In Urban Renewal Areas
Examples of Funded Projects
Not applicable.
Criteria for Selecting Proposals
Not applicable.
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