HUD HCV Guidebook § 3.7

HUD-Veterans Affairs Supportive Housing (HUD-VASH) - On August 13, 2024, HUD published Federal Register
Notice titled “Section 8 Housing Choice Vouchers: Revised Implementation of the HUD-Veterans Affairs
Supportive Housing Program” with updated operating requirements for the HUD-VASH program administered
by local PHAs that have partnered with local Veterans Affairs (VA) medical facilities.68 In the notice, HUD
allows PHAs to establish a separate HUD-VASH exception payment standard without HUD approval or
notification.
Additionally, PHAs’ HUD-VASH exception payment standards may go up to, but no higher than 120 percent of
the published metropolitan area-wide FMRs or SAFMRs (based on the PHA's applicable FMR) specifically for
its HUD-VASH program without approval or notification to HUD. PHAs that want to establish a HUD-VASH
exception payment standard over 120 percent, as allowed by 24 CFR 982.503(d)(4), must still request

63
   Except for certain tax credit projects that meet the criteria of 24 CFR 983.301(c)(1).
64
   See 24 CFR part 983, subpart G for requirements applicable to setting PBV rents.
65
   24 CFR 983.301(f)(3)(i)
66
   24 CFR 983.301(b)(1); see also additional rent limitations at 24 CFR 983.304-983.305
67
   For tax credit units that meet the criteria of 24 CFR 983.301(c)(1), including the criterion that the tax credit
rent exceeds the applicable FMR or any exception payment standard, the maximum rent is the lowest of (i) An
amount determined by the PHA in accordance with the Administrative Plan, not to exceed the tax credit rent
minus any utility allowance; (ii) The reasonable rent; or (iii) The rent requested by the owner. See also
additional rent limitations at 24 CFR 983.304-983.305.
68
   89 FR 65769 (August 13, 2024)

approval from HUD through the regular process for exception payment standards over 120 percent of the
applicable FMR outlined in Section 3.5.3 of this chapter.
Exception payment standards implemented by the PHA for HUD-VASH also apply in determining rents under
24 CFR 983.301(b) for PBV projects only when the project is comprised solely of units exclusively made
available to HUD-VASH families. This is because there can only be one contract rent for similar units per PBV
project. All rent reasonableness requirements at 24 CFR 982.507 continue to apply.
Emergency Housing Vouchers (EHV) - HUD issued guidance in Notice PIH 2021-15 which established an
alternative requirement permitting PHAs to establish separate higher payment standards for the EHVs in order
to increase the potential pool of available units for EHV families. The separate EHV payment standard must
comply with all other HCV requirements under 24 CFR 982.503 with the exceptions discussed below.
Establishing a separate EHV payment standard is at the discretion of the PHA, and the PHA is not required to
do so. PHAs are not permitted to establish a separate payment standard for the EHVs that is lower than the
regular HCV payment standard. If the PHA is increasing the regular HCV payment standard, the PHA must also
increase the EHV payment standard if it would be otherwise lower than the new regular HCV payment
standard. In addition, HUD established an alternative requirement to allow the PHA to establish a payment
standard amount for a unit size at any level between 90 percent and 120 percent (as opposed to 110
percent) of the published FMR for that unit size. HUD approval is not required to establish an EHV payment
standard within this range.
PHAs may also still request approval for exception EHV payment standards above 120 percent of the
applicable FMR/SAFMR from HUD. All rent reasonableness requirements at 24 CFR 982.507 continue to
apply to EHV units, regardless of whether the PHA has established an alternative or exception EHV payment
standard.
Stability Vouchers (SV) - HUD issued guidance in Notice PIH 2022-24 which established an alternative
requirement permitting PHAs to establish separate higher payment standards for SVs to increase the potential
pool of available units for SV families. The separate SV payment standard must comply with all other HCV
requirements under 24 CFR 983.503 with the exceptions discussed below.
Establishing a separate SV payment standard is at the discretion of the PHA and the PHA is not required to do
so. PHAs are not permitted to establish a separate payment standard for the SVs that is lower than the regular
HCV payment standard. For PHAs administering both SVs and EHVs, the SV payment standard must not be
less than the EHV payment standard. If the PHA increases the regular HCV payment standard, the PHA must
also increase the SV payment standard if it would be otherwise lower than the new regular HCV payment
standard. In addition, HUD established an alternative requirement to allow the PHA to establish a payment
standard amount for a unit size at any level between 90 percent and 120 percent (as opposed to 110
percent) of the published FMR for that unit size. HUD approval is not required to establish an SV payment
standard within this range.
PHAs may also still request approval for exception SV payment standards above 120 percent of the applicable
FMR/SAFMR from HUD if needed. All rent reasonableness requirements at 24 CFR 982.507 continue to
apply to SV units, regardless of whether the PHA has established an alternative or exception SV payment
standard.