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.
organizations are eligible to apply for conversion voucher funding
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,
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
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
How do PHAs apply for conversion voucher funding
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 familys 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
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.