Rent Supplements Rental Housing for Lower Income Families
To make quality rental housing available to low income families at a cost they can afford.
General information about this opportunity
Last Known Status
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
C - Direct Payments For Specified Use
Housing and Urban Development Act of 1965, Public Law 89-117, 12 U.S.C. 1701(s).
Who is eligible to apply/benefit from this assistance?
Eligible sponsors included nonprofit, cooperative, builder-seller, investor-sponsor, and limited-distribution mortgagors.
Families incomes must be within the income limits prescribed for admission to Section 8 housing in order to qualify for benefits under this program. Families may continue in occupancy if 30 percent of monthly income exceeds the market rent.
Applications for new projects are no longer being accepted.
What is the process for applying and being award this assistance?
Preapplication coordination is not applicable.
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.
Approval/Disapproval Decision Time
How are proposals selected?
How may assistance be used?
HUD makes payments to owners of approved HUD-insured and non-insured multifamily rental housing projects to supplement the partial rental payments of eligible tenants. Rental projects were required to be part of an approved workable program for community improvement or be approved by local government officials. Assistance covers the difference between the tenant's payment and the basic market rental, but may not exceed 70 percent of the market rental. The tenant's payment is between 25 and 30 percent of monthly adjusted income or 30 percent of market rental, whichever is greater. This program is inactive. No new projects are being approved; however, tenants may apply for admission to existing projects.
What are the requirements after being awarded this opportunity?
The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor to determine their compliance and conformance with HUD regulations and standards. Program is subject to IG Handbook 2000.4 "Consolidated Audit Guide for Audits of HUD Programs" .
Mortgagees are required to maintain records in accordance with acceptable mortgage practices of lending institutions and the HUD regulations. All tenants who benefit from supplements must have their incomes recertified annually.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The rent supplement contract is limited to the term of the mortgage or 40 years from the date of the first payment made under the contract, whichever is less. Individual family's assistance ceases when 30 percent of income is equal to or exceeds the market rent. Monthly
Who do I contact about this opportunity?
Regional or Local Office
Contact the appropriate HUD Field Office listed in Appendix IV.
Brandt T. Witte
451 7th Street, SW
Washington, DC 201410 US
(Direct Payments for Specified Use) FY 15$11,000,000.00; FY 16 est $12,000,000.00; FY 17 est $4,000,000.00; - Salaries and Expenses not separately identifiable.
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
Fact Sheet: Rent Supplements, no charge; 24 CFR 215; HUD Handbook 4350.3.
Examples of Funded Projects