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HUD-Veterans Affairs Supportive Housing Program: HUD Authorizes PHAs to Project-base HUD-VASH Vouchers

By by D. Hara Sherman and Stacey L. Gordon
April 2009
People: D. Hara Perkins

Project-Based HUD-VASH:

Through Notice PIH 2009-11(HA), issued March 16, 2009, the Department of Housing and Urban Affairs (HUD) announced the authority for a public housing agency (PHA) to project-base up to fifty percent of the PHA’s allocation of HUD-Veterans Affairs Supportive Housing (HUD-VASH) vouchers. Eligibility for HUDVASH vouchers is limited to homeless veterans. (HUD has waived regulations limiting voucher eligibility only to those homeless veterans with chronic mental illness or chronic substance abuse disorders.)

Pursuant to the Notice, HUD will consider proposals from PHAs to use the project-based rental assistance for homeless veterans for existing housing, new construction and substantially rehabilitated housing. HUD requires that a Department of Veterans Affairs (VA) medical facility support the PHA’s proposal.

HUD will review the proposal to project-base HUD-VASH vouchers based on the following criteria (among other factors):

  • Rationale for project-based vouchers in lieu of tenant-based
  • Description of challenges HUD-VASH tenant-based voucher
    holders face in the local rental market;
  • For new construction/substantially rehabilitated units, the
    duration the vouchers will remain unused;
  • Any supportive services on or near the proposed site; and
  • Accessibility from the proposed site to the VA medical center.

Proposals should be submitted from the PHA and the VA medical center to: HUD Headquarters, Room 4210,Washington, DC, 20410-5000, Attention: Kathryn Greenspan. The allocation of vouchers to PHAs can be found here. Washington, DC received 140 vouchers. New York State received 1295 vouchers, with 385 vouchers allocated to the Bronx and 455 to Brooklyn. California also received 1295 vouchers.

Legislative and Regulatory Background

The HUD-VASH program combines rental assistance through HUD with VA clinical services. The Consolidated Appropriations Act of 2008, Public Law 110–161, appropriated $75,000,000 for rental assistance for supportive housing for homeless veterans through the Housing Choice Voucher (HCV) program, Section 8(o)(19) of the United States Housing Act of 1937, 42 U.S.C. § 1437f(o)(19). The Omnibus Appropriations Act of 2009, Public Law 111-8, appropriated another $75,000,000 for HUD-VASH vouchers. HUD issued its Notice setting forth the policies and procedures for the administration of HUD-VASH on May 6, 2008, 73 F.R. 25026. The HUD-VASH program follows the same regulations as the Housing Choice Voucher program tenant-based rental assistance regulations set forth at 24 C.F.R. § 982. VA medical centers refer homeless veterans to PHAs, which administer the HUD-VASH vouchers.

The authors are associates in the Real Estate Group and can be reached at sgordon@goulstonstorrs.com  and hsherman@goulstonstorrs.com.

Pursuant to IRS Circular 230, please be advised that, this communication is not intended to be, was not written to be and cannot be used by any taxpayer for the purpose of (i) avoiding penalties under U.S. federal tax law or (ii) promoting, marketing or recommending to another taxpayer any transaction or matter addressed herein.

This advisory should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer concerning your situation and any specific legal questions you may have.

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