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Virginia Administrative Code
Title 13. Housing
Agency 10. Virginia Housing Development Authority
Chapter 80. Rules and Regulations for Section 8 Moderate Rehabilitation and Project-Based Certificate Assistance Programs
9/24/2020

13VAC10-80-10. General Description of Programs.

The following rules and regulations will be applicable to the moderate rehabilitation and project-based certificate assistance of rental housing units subsidized under Section 8 of the U.S. Housing Act of 1937 (42 USC § 1437 et seq.), as amended ("section 8") and the applicable rules and regulations promulgated pursuant thereto ("section 8 rules and regulations"), 24 CFR 882. These rules and regulations are intended to provide a general description of the authority's processing requirements and are not intended to include all actions involved or required in the processing of applications. Notwithstanding anything to the contrary herein, the executive director is authorized with respect to any application to waive or modify any provision herein where deemed appropriate by him for good cause. These rules and regulations are subject to change at any time by the authority. Unless stated otherwise, the rules and regulations shall apply to both the moderate rehabilitation and project-based certificate programs.

The section 8 moderate rehabilitation and project-based certificate assistance programs (the "programs") are designed to:

1. Rehabilitate rental units which are now substandard or have major building components which need repair or replacement and, in the case of the project-based certificate program, construct new rental units;

2. Provide a rental income to an owner that will repay rehabilitation or construction costs, meet monthly operating expenses, and allow a reasonable profit (not to exceed 8.0% in the case of moderate rehabilitation) on the owner's equity investment in the property; and

3. Provide rental subsidies under section 8 to low and very low income families and single individuals living in the rehabilitated or newly constructed units.

Section 8 funding is received from time to time by the authority from the U.S. Department of Housing and Urban Development ("HUD"). The authority then solicits and receives requests from local governmental entities for allocations of such section 8 funds to their localities. After approval of such requests, persons in such localities may submit applications for section 8 funds under the programs. The executive director may take such action as he deems necessary or appropriate in order to solicit such requests from local governmental entities and applications from persons in the applicable localities.

Persons interested in participating in the programs must first submit applications to the authority meeting program requirements described herein. The application shall be in such form and shall contain such relevant information as the executive director may require. Applications will be reviewed and approved on a first-come, first-serve basis or, in the case of project-based certificate assistance program, on the basis of such selection criteria as may be determined by the authority to best serve the needs of the locality in which the project is to be located.

In the case of rehabilitation, selection of an owner's application is contingent upon the authority's determination that the tenant then occupying the unit to be rehabilitated is eligible to receive section 8 rental assistance under the applicable program. The authority will not permit ineligible families to be displaced by rehabilitation. Therefore, the authority will not provide subsidy under the program for the rehabilitation of units occupied by ineligible families at the time of submission of the application. However, the owner may rehabilitate these units as part of a general upgrading of the property.

In the moderate rehabilitation program, the authority will assist the owner in preparing rehabilitation work write-ups (detailed description of the proposed rehabilitation and estimates of the costs thereof), selecting a contractor, and obtaining financing for the work to be completed. No such assistance is provided under the project-based certificate assistance program.

Prior to the beginning of rehabilitation or new construction the authority will execute an agreement to enter into housing assistance payments contract (the "agreement") which provides that, upon satisfactory completion of all specified improvements in accordance therewith, the unit(s) will be subject to a housing assistance payments contract (the "HAP contract") at a specified rent.

Upon completion of all required improvements to the unit(s), the authority and the owner will execute a HAP contract which establishes the rent ("contract rent") for the unit(s) and describes the rights and responsibilities of the owner and the authority throughout the term. In the case of the moderate rehabilitation program, the term of the HAP contract shall be 15 years. In the case of the project-based certificate assistance program, the HAP contract term may not be less than two years and no longer than 15 years or the period of funding for its funding source.

Subsequent to completion of the required improvements, the authority and its administrative agent ("administrative agent") shall perform their respective administrative functions and responsibilities with respect to the section 8 subsidy and HAP contract as set forth in the authority's rules and regulations for section 8 certificate and voucher existing housing assistance payments program (13VAC10-70-10 et seq.).

The initial occupant of a rehabilitated unit may be either the owner's current tenant or a family selected by the owner from the waiting list maintained by the administrative agent. The initial occupant of a newly constructed project-based certificate assistance unit shall be a family selected by the owner from such waiting list. Vacancies occurring after initial occupancy are to be filled by the owner first from among families on such waiting list. If this waiting list is not sufficient, the owner may solicit his own tenants.

Tenants occupy the units and receive assistance by signing a lease in the form required by the authority and other documentation required by HUD. The tenants must comply with all applicable requirements imposed by HUD under the section 8 rules and regulations and the applicable program. The tenant pays no more than 30% of his adjusted income (as determined in accordance with the section 8 rules and regulations) for rent and utilities, to the extent of the allowance therefor. The difference between the rent (plus any utility allowance) and the tenant's contribution is paid as housing assistance payments to the owner by the authority with section 8 subsidy funds received from HUD. The housing assistance payments are applied by the owner toward the rent on the rental housing unit. The tenant pays directly to the owner the portion of the rent not paid by the authority. In certain instances, the amount of the housing assistance payments may exceed the rent, and the balance is paid by the authority to the tenant as a utility reimbursement.

Housing assistance payments may be made available to eligible persons and families pursuant to these rules and regulations only if and to the extent that the authority has received from HUD section 8 subsidy funds therefor.

The programs shall in all respects be governed by, and administered in accordance with, the section 8 rules and regulations and all other applicable procedures and requirements imposed by HUD with respect to the programs. The section 8 rules and regulations and such other procedures and requirements imposed by HUD shall control over any inconsistent provision herein.

The executive director or any authorized officer of the authority acting under his supervision is authorized to act on behalf of the authority with respect to all matters hereunder. The executive director or such authorized officer may delegate all or part of his authority to any employee who is acting under his control and supervision.

Statutory Authority

§ 36-55.30:3 of the Code of Virginia.

Historical Notes

Derived from VR400-02-0007 § 1, eff. July 1, 1989; amended, Volume 11, Issue 17, eff. May 1, 1995.

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