80A - AFFORDABLE HOUSING POLICIES

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EXHIBIT 1 Proiect-Based Voucher Program Source of Funds Project -based vouchers are a component of a public housing authority's (PHA) Housing Choice Voucher Program. Funding for project -based vouchers comes from funds already obligated by the U.S. Department of Housing and Urban Development to a PHA under its Annual Contributions Contract. A PHA can attach up to 20 percent of its Annual Contributions Contract 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. The PHA can use up to 20 percent of its housing choice vouchers for project -based vouchers. Eligible Borrowers Eligible borrowers are nonprofit Housing Development Corporations (HDC's) duly organized to promote and undertake community development activities on a not-for-profit basis, or for-profit housing developers or development corporations, with proven capacities to develop, own, and operate affordable housing. Limited partnerships whose general partners are otherwise eligible under the above are also eligible to borrow Program funds. Eligible Projects Eligible projects include acquisition, rehabilitation, or new construction of rental housing projects which: 1. The PHA may attach PBV assistance for units in existing housing or for newly constructed or rehabilitated housing developed under and in accordance with an Agreement. a. Existing housing—A housing unit is considered an existing unit for purposes of the PBV program, if at the time of notice of PHA selection the units substantially comply with HQS. i. Units for which rehabilitation or new construction began after owner's proposal submission but prior to execution of the Agreement to Enter into a Housing Assistance Payments Contract do not subsequently qualify as existing housing. ii. Units that were newly constructed or rehabilitated in violation of program requirements also do not qualify as existing housing. Eligible Uses and Activities Program funds can be used to enter into an Agreement with eligible borrowers who will provide affordable housing, principally for low and moderate income households. Eligible uses of Project -Based Voucher funds include, but are not limited to, the following: (1) acquisition and/or rehabilitation of eligible rental properties; (2) acquisition and conversion of nonresidential property to multifamily rental housing units; and (3) new construction of rental housing units. Affordability Requirements All units assisted under this program shall be affordable to households with incomes that do not exceed 30% of median income. Affordable Housing Funds Policies and Procedures Page 34