Note: This article was originally written in 2013 and updated in 2017 to reflect changes mandated under the Housing Opportunity Through Modernization Act (.
The applicability of Davis-Bacon to specific projects depends on a range of factors, including the federal program and types of units being constructed.
Industry comments urged HUD to grant discretion american express cash rebate card review to PHAs to define what constitutes supportive services for the purposes of the exception to the twenty-five percent limitation for projects with families receiving supportive services.United States Code,.S.Further, certain units do not count toward the 20 percent limitation such as units that convert to PBV under RAD and HUD-vash PBV set-aside units.However, where a project is outside of a QCT and the lihtc rents are higher than 110 percent of the fair market rent (or any HUD-approved exception payment standard the notice provided that section 8 PBV level shall not exceed the lower of the lihtc.On October 13, 2005, the Nixon Peabody Affordable Housing group issued an alert advising that HUD had published the final section 8 project-based voucher (PBV) rule on October 13, 2005.A PHA may provide project-based assistance for existing housing that does not need rehabilitation, as well as for newly constructed or rehabilitated housing.For example, sometimes existing housing requires routine or minimal rehabilitation, and it was unclear whether Davis-Bacon applied to those situations.A number of section 8 PBV projects have been underwritten and financed based upon the HUD policies in place prior to the final rule and this new policy could have a negative impact on rent adjustments in these projects.#6: Housing Quality Standards (HQS) inspections.
For example, the proposed rule had suggested that PBV contacts could not exceed 30 years: an initial 15-year contract plus extensions totaling no more than 15 years.
Remember, while PBV and HCV follow some of the same regulations, and PBV is funded through the HCV program, understanding the key differences between the programs is essential to running a successful PBV program.
The scope and timing of the "development" work are important to determining whether Davis-Bacon requirements apply to existing housing under the PBV program.Information as to whether a PHA manages the PBV program may be found by contacting the local PHA.This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law.In many areas the final rule has taken the approach of giving the PHAs more discretion in the implementation of the PBV program, consistent with the industry comments on the proposed rule.The proposed rule would have allowed preferences for people who qualify for available services rather than for those that need services.The HAP contract may further be extended for an additional 20 years.Under RADs second component, Rent Supplement, Rental Assistance Payment, and Section 8 Moderate Rehabilitation properties may convert tenant protection vouchers to PBVs.Parallel Table of Authorities and Rules provided by, gPO Government Printing Office.