HUD Logo
USA%20Flag  
Site Map         A-Z Index         Text   A   A   A
HUD   >   Program Offices   >   Public and Indian Housing   >   PIH   >   Office of Housing Choice Vouchers   >   Conversion Vouchers
Conversion Vouchers

What are conversion vouchers?
Conversion vouchers assist PHAs with relocation or replacement housing needs that result from the demolition, disposition, or mandatory conversion of public housing units. Also conversion vouchers include providing assistance to families living in section 8 projects for which the owner is opting out of the HAP contract, HUD is taking enforcement action against owners with project-based assistance, and projects for which the owner is prepaying the mortgage.

How can families receive a conversion voucher?
If a family lives in a public housing unit that scheduled to be demolished, disposed of or converted, they will be contacted by the PHA when they are eligible for a conversion voucher. Families living in projects that are affected by the owner's decision to opt-out of a Section 8 project-based contract, or by the owner's decision to prepay the mortgage, will be notified by the owner to contact the PHA.

What organizations are eligible to apply for conversion voucher funding from HUD?
PHAs having jurisdiction in a community where the projects are located for either of the two categories are eligible to submit an application for housing choice conversion voucher funding. In order to be eligible, the PHA

1. must have:

  • a HUD approved application for demolition or disposition,
  • a HOPE VI revitalization plan, or
  • a plan for removal (mandatory conversion) of public housing units under Section 33 of the U.S. Housing Act of 1937.

2. or must have jurisdiction in the areas where a project is located and
the owner is:

  • opting out of a Section 8 project-based contract
  • prepaying a HUD issued mortgage
  • subject to an enforcement action brought against the owner by HUD.

How do PHAs apply for conversion voucher funding from HUD?
Upon being notified of HUD approval of their plan for the demolition or disposition or mandatory conversion of public housing units, the PHA is also notified to submit the housing choice voucher program application. Also, PHAs will be invited to apply for conversion vouchers by HUD when an owner opts-out of a Section 8 project-based contract or elects to prepay a HUD issued mortgage.

How does a PHA determine if a family is income eligible for a conversion voucher?
The PHA compares the family’s annual income (gross income) with the HUD-established very low-income limit or low income limit for the area. The family cannot earn more than this limit. In the case of mortgage prepayments, moderate income families may be eligible for assistance.

How do families obtain conversion vouchers?
Families that are affected by the conversion action will automatically receive a voucher if the family meets all other program requirements.

How do families obtain an apartment once they have a voucher?
It is the responsibility of a family to find a unit that meets their needs. If the family finds a unit that meets the housing quality standards, the rent is reasonable, and the unit meets other program requirements, the PHA executes a HAP contract with the property owner. This contract authorizes the PHA to make subsidy payments on behalf of the family.

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. In the case of a housing conversion action, the family also has the option to select to remain in the former project-based unit.

How much rent do vouchers cover?
The PHA pays the owner the difference between 30 percent of family income and PHA determined payment standard or the gross rent whichever is lower. In some cases (e.g., housing conversion actions) gross rent may be higher than the payment standard and the family will receive the benefit of an "enhanced" voucher.

Do families have to lease a unit in the jurisdiction where the PHA issued the voucher?
No. A family may choose a unit anywhere in the United States where there is a PHA that administers a tenant-based voucher program. However, the family may only use the voucher to rent a unit in an area where the family is income eligible at admission to the program.

What type of funding is available under the conversion voucher program?
HUD makes a special allocation of funds to the PHA when it approves the PHA's demolition or disposition application. Similarly, when an owner opts-out of a Section 8 project-based contract or the owner prepays the mortgage, HUD makes a special allocation to the PHA.

What regulations cover these types of vouchers?
Regulations are found in 24 CFR Part 982.

Related Information