HUD has announced policy changes that will be implemented for the Section 8 Project-Based Rental Assistance (PBRA) program in order to achieve certain savings and slow the growth of PBRA expenditures. These changes are in part due to significant FY 2012 HUD budget cuts that will force the agency to more effectively manage the PBRA account within appropriated levels. Policy changes include:
- Funds currently held in project residual receipts accounts will be used to reduce assistance payments. HUD is currently formulating a process to apply these funds to PBRA expenditures and hopes to implement this policy in a way that is minimally disruptive to the current voucher and disbursement process;
- All Option 4 renewals and annual rent adjustments will be limited to OCAF increases if proposed rents exceed market;
- Third, all rent comparability studies will be required to justify proposed rents that exceed 110% of Small Area Fair Market Rents (SAFMR). HUD will issue new guidance that will contain instructions for the additional analysis that will be required to justify proposed market rents in excess of the SAFMR benchmark.
To view the notice issued by HUD regarding these PBRA policy changes, click here.
