What Is Project-Based Voucher
A Project-Based Voucher (PBV) is a Housing Choice Voucher that is attached to a specific housing unit rather than to a tenant. When a voucher is project-based, the subsidy stays with the property. If a tenant leaves, the voucher remains at that address for the next eligible household. This differs from tenant-based vouchers, which move with the household to any unit that meets Housing Quality Standards and rent limits.
Key Differences From Tenant-Based Vouchers
The distinction matters operationally and financially. With tenant-based vouchers, a household can search for housing anywhere in the jurisdiction and keep their subsidy. With PBVs, the owner and the Public Housing Authority (PHA) have a long-term agreement for that specific property. The owner agrees to rent units at or below Fair Market Rent (FMR), and the PHA commits subsidy dollars to those units. This creates stability for landlords but reduces tenant mobility.
PBV Program Requirements and Compliance
- Affordability cap: At least 40% of units in a project must serve households at or below 30% of Area Median Income, per 24 CFR 983.
- Term length: PBV contracts typically run 15 years, renewable at mutual agreement between owner and PHA.
- HQS inspections: All PBV units must pass NSPIRE inspections and annual recertifications. Failed inspections can lead to subsidy loss.
- Rent setting: Rents are set at initial lease-up and can only increase by the PHA's annual adjustment factor or with documented cost justification.
- Tenant protections: PBV tenants receive the same lease protections as traditional Section 8 households, including protections against unwarranted eviction.
Owner and Tenant Implications
Owners gain predictable income and guaranteed rent payment from the PHA, reducing vacancy risk. However, they must maintain properties to HQS standards consistently. Non-compliance can result in abatement of subsidies or termination of the PBV contract.
Tenants in PBV units benefit from stable, subsidized housing but cannot take their voucher elsewhere if they want to move. They are limited to available units at that property or must leave the program.
Common Questions
- Can a tenant break their lease in a PBV unit? Tenants can break leases under the same conditions as any Section 8 tenant, such as unsafe living conditions, domestic violence, or with 30 days notice in some jurisdictions. However, they lose the subsidy and cannot transfer it to another property.
- What happens to a PBV subsidy if the owner violates HQS standards? The PHA can abate (reduce or suspend) subsidy payments until violations are corrected. Repeat non-compliance can trigger contract termination, at which point the subsidy is typically lost rather than converted to tenant-based vouchers.
- Are PBV rents locked in forever? No. While initial rent is set at lease-up, the PHA adjusts rents annually based on an adjustment factor (typically tied to inflation). Owners can request higher rents if operating costs increase, but this requires PHA approval and market analysis.