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According to the 2020 PBRA Quick Reference Guide section 2.10.2, existing tenants must be provided with a Move-In/Unit Inspection at the time of conversion. I know that each rehabbed unit will have a move-in/unit inspection completed after it is rehabbed. My question is does the PHA have to conduct a move-in/unit inspection for each existing tenant prior to completion of rehab? If so, how long does the PHA have to conduct these inspections? or Can the most recert annual unit inspection conducted by the PHA be used is it is within the last 12 months?

A new unit inspection is required at the time the lease is executed. The unit inspection must be conducted within 30 days of the effective date of the lease. For more information regarding the unit inspection requirements, refer to HUD Handbook 4350.3, REV-1, CHG-4, Chapter 6.

In-Person Meetings During COVID-19

Where can a PHA or owner find guidance regarding PBRA or PBV program requirements that customarily involve in-person meetings?

Guidance is available and will be continually updated at www.hud.gov/coronavirus. Guidance for PBRA can be found within “FAQs for Multifamily Housing Providers” (Available at https://www.hud.gov/sites/dfiles/Housing/documents/HUD_Multifamily_Corona_QA_FINAL.pdf). For PBV, please see “FAQs for Public Housing, Housing Choice Voucher, Project-based Voucher Program, and Native American Programs.” (Available at https://www.hud.gov/sites/dfiles/PIH/documents/COVID19_FAQ_PIH_Final.pdf)

Administrative Fees

Is the administrative fee that is paid to the contract administrator at the same rate as for tenant based vouchers?

If you are referring to a RAD PBV conversion, the admin fee PHAs receive for regular vouchers is the same admin fee PHAs receive for PBVs. If you are referring to PBRA and the admin fee that performance based contract administrators (PBCAs) get to administer a PBRA HAP contract, it is a different fee (but also a different set of work). It is also important to note that RAD PBRA HAP contracts are currently administered by HUD and not PBCAs.

Work Requirements after Conversion for New Residents

Are work requirements for new residents (not returning residents) permitted under PBRA?

Owners may not require a specific minimum income, however, owners may adopt a Working Families preference in selecting families from the waiting list for those families in which the head of household or spouse is employed. Even if the owner adopts such a preference, however, discrimination against persons unable to work is prohibited. Owners must not deny the preference to households in which the head or spouse is 62 or older, or to a person with disabilities. Refer to HUD Handbook 4350.3, REV-1, Chapter 4, Paragraphs 4-6.C.2 and 4-8.A.

Security Deposit Requirements for RAD PBRA Conversions

We have converted 164 units of PH to RAD under PBRA. Are we now required to pay interest on Security Deposits and to keep these funds in a separate bank account?

RAD PBRA conversions are subject to HUD Handbook 4350.3 Occupancy Requirements for Subsidized Programs. Paragraph 6-17.B of the Handbook states, "The owner must place the security deposits into a segregated, interest-bearing account. The balance of the account must equal the total amount collected from all tenants then in occupancy, plus any accrued interest." Also refer to paragraph 6-18 regarding 'Refunding and Use of the Security Deposit' which states that any interest earned on the security deposit is to be paid at move-out, provided the tenant is due a refund of the security deposit. For existing tenants, this requirement applies to any security deposits carried over from their public housing tenancy. No new or additional security deposit can be required for existing tenants. For new tenants, collection of security deposits must be done in accordance with the HAP Contract and with the requirements of the Handbook.

Waitlist Management for PBRA Conversions

I am converting a public housing project to RAD using PBRA. There is an existing public housing project-specific waiting list, and I’m planning to implement a project-specific PBRA waiting list. What happens to folks currently on the public housing project-specific waiting list? Post-RAD, how would we select an applicant to fill a vacated unit?

See Section 1.7.C.3 of the RAD Notice, which discusses establishment of the new waiting list. Because your project has an existing project-specific public housing waiting list, all applicants on that waiting list would transfer to the new post-RAD PBRA waiting list, where their priority will be “in accordance with the date and time of their application to the original project's waiting list” as required by the RAD Notice. After transferring all applicants from the existing public housing waiting list, you would then manage the new PBRA waiting list, and select applicants from that waiting list to fill vacated units, in accordance with the requirements of HUD Handbook 4350.3 (Chapter 4 Waiting List and Tenant Selection).

Post-Closing Audit/Financial Data Schedule

Relative to future audits, I'm guessing a PH development converted to PBRA via RAD would be treated like any other 4350.1 property (Section 8 New Construction, 236, etc.) in that a separate audit would be required, but that the former PH property would no longer be included in the Housing Authority's Financial Data Schedule - is that right?

The RAD PBRA contract will require the electronic submission of annual financial statement data to HUD. However, the PHA will also record financials for the property under "Other Business" in FASS-PH.

Treatment of Over-income Tenants Following RAD PBRA Conversion

How are over-income tenants treated following conversion to a RAD PBRA HAP contract?

Any existing tenants at the time of RAD conversion may remain in the project, and the unit may remain under HAP, even if the tenant's Total Tenant Payment (TTP) exceeds the Gross Rent. In these instances, the tenant will pay a rent amount equal to the lesser of (a) the applicable FMR, less the utility allowances, or (b) any applicable maximum rent setting requirement the unit is subject to under another federal, state, or local program (e.g., LIHTC or HOME). If the "lesser of test" results in a rent cap that is below the Gross Rent (which would cause the tenant to fall out of zero-HAP status), then TTP is capped at the Gross Rent for the unit.

Phase-In Rents for Zero-HAP

When the PBRA Zero-HAP rent cap results in a rent increase, can we use a phase-in to gradually bring the tenant rent amount up to the cap?

If the implementation of the zero-HAP rent cap results in a rent increase of more than $25 or 25%, then the owner/management agent may apply the 3 or 5 year rent phase in as described in the RAD Notice, paragraph 1.7.B.3.

Calculating the Zero-HAP Rent Cap

My property converted to PBRA. Can I use the Small Area FMR vs Metro FMR when calculating the zero-HAP rent cap?

Yes, the owner/management agent may use the Small Area FMR to calculate the zero-HAP rent cap.

Zero-HAP Family Refuses to Recertify Annual Income

What happens when a zero-HAP family in a PBRA property refuses to recertify annual income and assets?

When a household refuses to provide required information at the time of recertification or fails to sign/submit required consent and verification forms, the owner/management agent must process a termination of assistance in accordance with Chapter 8 of HUD Occupancy Handbook 4350.3. This is also true for families who are zero-HAP renters. In such cases, the owner/management agent shall provide written notice of the termination of assistance and rent amount to be paid to the Owner shall be the Contract Rent amount for the unit as listed on the HAP Contract/Rent Schedule. Termination of assistance can often result in a termination of the tenant’s lease if the family is unable to make rent payments.

Using FMRs During Annual Recertification for PBRA zero-HAP Renters

When we process annual recertifications for PBRA zero-HAP renters, when calculating the zero-HAP rent cap, do we use the FMR in place at the time of the recertification review? If new FMRs are published after the recertification review is complete, do we need to adjust the tenant rent?

Owners/Management Agents shall use the FMRs published at the time of the recertification review. If the Owner/Management Agent completes the recertification review before new FMRs are published, even if the new FMRs will be effective when the recertification goes into effect, the Owner/Management Agent does not need to re-calculate the zero-HAP rent cap. If new FMRs are published before the Owner/Management agent completes the recertification review, and the new FMRs will be effective when the recertification goes into effect, then the Owner/Management Agent shall use the new FMRs when calculating the zero-HAP rent cap.