Project Based Vouchers

Project-based vouchers are a component of a public housing agency’s (PHA’s) housing choice voucher program. A PHA can attach up to 20 percent (20%) of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. PHAs refer families who have already applied to a PHA for housing choice vouchers and are on the PHA's waiting list to properties that have project-based voucher assistance when units become vacant. Under the tenant-based housing choice voucher program, the PHA issues an eligible family a voucher and the family selects a unit of its choice. If the family moves out of the unit, the contract with the owner ends and the family can move with continued assistance to another unit. Under the project-based voucher program, a PHA enters into an assistance contract with the owner for specified units and for a specified term. The PHA refers families from its waiting list to the project owner to fill vacancies. Eligible families pay 30% of their adjusted monthly income or 10% of their monthly gross income toward rent and utilities, whichever amount is higher. Because the assistance is tied to the unit, a family who moves from the project-based unit does not have any right to continued housing assistance. However, they may be eligible for a tenant based voucher when one becomes available.