Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation


The Moderate Rehabilitation (Mod Rehab) program was designed in 1978 to be an expansion of the rental certificate program. The rental certificate program was initially amended to permit moderate levels of rehabilitation to upgrade and preserve the nation's housing stock.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Office of Public and Indian Housing, Department of Housing and Urban Development
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Program Accomplishments
Fiscal Year 2016 The program projects to serve 20,500 families. The program served 19,300 families
Fiscal Year 2017 The program projects to serve 16600 families.
Fiscal Year 2018 The program projects to serve 18082 families.
Fiscal Year 2019 The program served 17686 families.
Fiscal Year 2021 The program plans to serve approximately 14,000 families.
Fiscal Year 2023 The program plans to serve approximately 12,721 families.
Fiscal Year 2024 The program plans to serve approximately 11,354 families.
Housing Act of 1937;, Public Law 116-94
Further Consolidated Appropriations Act 2020, Public Law 116-94
Further Consolidated Appropriations Act 2021, Public Law 116-260
Further Consolidated Appropriations Act 2022, Public Law 117-103
Consolidated Appropriation Act, 2023, Public Law 117-328
Regulations are found at 24 CFR Part 882 Subpart D and E. PIH Notice 2001-13 covers renewal of expiring moderate rehabilitation HAP contracts.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
An authorized Public Housing Agency (any State, county, municipality or other governmental entity or public body (or agency or instrumentality thereof).
Beneficiary Eligibility
Very low-income families (whose income does not exceed 50 percent of the median income for the area as determined by the Secretary with adjustments for smaller and larger families) and, on an exception basis, lower income families (whose income does not exceed 80 percent of the median income for the area adjusted for small and large families). A very low income or, on an exception basis, lower income single person who is elderly, disabled or handicapped, displaced, or the remaining member of an eligible tenant family is also eligible.
This program is no longer funded for new applications and awards. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is not applicable.
Application Procedure
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. No applications for new projects are being accepted.
Award Procedure
No applications for new projects are being accepted.
Not applicable.
Approval/Disapproval Decision Time
Not applicable.
Not applicable.
Eligible owners may request a one-year Housing Assistance Payments Contract renewal. Requests must be made at least 75 days prior to Contract expiration.
How are proposals selected?
Not applicable.
How may assistance be used?
Provides housing assistance payments to participating owners on behalf of eligible tenants to provide decent, safe and sanitary housing for very low-income families at rents they can afford. Housing assistance payments are used to make up the difference between the approved rent due to the owner for the dwelling unit and the occupant family's required contribution towards rent. Assisted families must pay the highest of 30 percent of their monthly adjusted family income, 10 percent of gross family income, or the portion of welfare assistance designated for housing toward rent. This program is inactive, i.e., no new projects are being approved.
What are the requirements after being awarded this opportunity?
Not applicable.
Periodic fiscal, occupancy, general management and maintenance audits.
Those necessary to indicate compliance with Annual Contributions Contract/Housing Assistance Payments Contract.
Other Assistance Considerations
Formula and Matching Requirements
Statutory Formula: Title 24 CFR

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
Under the Moderate Rehabilitation Program, payments may be made for 180 days. Assistance may be extended for 12 months at a time when an eligible owner requests a Housing Assistance Payments Contract renewal. Funds are disbursed monthly.
Who do I contact about this opportunity?
Regional or Local Office
The HUD Office listed in the Catalog Address Appendix IV has jurisdiction over the area in which the dwellings are to be located.
Headquarters Office
451 7th Street, S.W., Room 4222
Washington, DC 20410 US
Phone: (202) 402-4212
Website Address
Financial Information
Account Identification
(Direct Payments for Specified Use) FY 22$115,326,988.00; FY 23 est $78,900,000.00; FY 24 est $92,800,000.00; FY 21$122,000,000.00; FY 20$81,857,572.00; FY 19$94,201,228.00; FY 18$130,687,948.00; FY 17$148,539,213.00; FY 16$107,177,925.00; - PIH's obligations are part of a larger amount. PIH's portion of the Project-Based Rental Assistance is approximately .006 percent of the Contract Renewals/Amendments set-aside line in the account.
Range and Average of Financial Assistance
Mod-Rehab Annual Budget Authority (2022 YEST records): Lowest: $26,600 Highest: $20,151,054 Average: $993,997 Total: $126,237,572 Mod-Rehab Actual Disbursements: Lowest: $20,876 Highest: $20,284,291 Average: $862,213 Total: $121,572,091.
Regulations, Guidelines and Literature
24 CFR Part 882; Section 8 Housing Assistance Payments Program, Existing Housing and Moderate Rehabilitation Processing Handbook, 7420.3; PHA Administrative Practices Handbook for the Section 8 Existing Housing Program, 7420.7; Accounting Handbook 7420.6; Section 8 Rental Certificate, Rental Voucher, and Moderate Rehabilitation Programs Forms, Legal Contracts and Publications, Handbook 7420.7; PIH Notice 2001-13.
Examples of Funded Projects
Fiscal Year 2022 Example: An owner owns a property with five dwelling units that qualifies under the statutory definition of a multi-family housing project. The owner of the property has a Mod Rehab HAP contract which covers three of the 5 dwelling units on his property. The project is eligible (if all other requirements are met) for a one-year HAP contract renewal. In this example, the owner is eligible because the owner owns a multi-family housing project (a property consisting of more than 4 dwelling units) and the property is covered in part by a contract for project-based assistance under Section 8 of the USHA of 1937. Example: A property consists of four separate buildings that are all located on the same common site and part of a single apartment complex. There are four units in each building and some or all of the units are covered by an expiring Mod Rehab HAP contract. Any of the sixteen units covered by an expiring Mod Rehab HAP contract are eligible for a one-year Mod Rehab HAP contract renewal (if all other requirements are met). The apartment complex is considered one property and the property consists of more than four units.


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