The Department of Housing and Urban Development has proposed new guidelines for the allowable rent level in projects that combine Project Based Vouchers (PBV) with Low Income Housing Tax Credits (LIHTC). The change would make it easier to combine vouchers with tax credits in areas where the Fair Market Rent is higher than the LIHTC rent (generally, areas with high rental housing costs).
The proposed rule would allow Public Housing Authorities (PHAs) to set maximum rent levels for vouchers located in tax credit projects at 110 percent of the Fair Market Rent, even if that level is higher than the allowable LIHTC rent level. That policy was in place prior to November 14, 2005, when HUD issued a new rule for the Project Based Voucher program that limited the rent level to the maximum LIHTC rent. Because of comments from housing advocates, HUD is reconsidering, and has issued a new proposed rule to change back to the pre-November 2005 status. The proposed rule does not affect other parts of the November 2005 rule, which made many helpful changes to the Project Based Voucher program. Comments on the proposed rule are due July 2.
To read the proposed rule click here.
This article is from the NAEH newsletter.