Project-Based Vouchers

Housing Choice Vouchers are generally intended to be tenant-based, meaning that the assisted household can use the voucher to lease a rental unit on the private market. However, some vouchers are project-based, meaning that the vouchers are tied to a specific development. PHAs can choose to project-base up to 100% of their HUD-VASH vouchers although they must make sure that no more than 20% of their overall voucher allocation, which includes HUD-VASH, is project-based. Project-Based Vouchers (including the project-basing of HUDVASH vouchers) can be used for existing units but also or in connection with new construction or rehabilitation of existing units. However, in most cases USICH believes issuing tenant-based vouchers is the preferred approach in order to achieve rapid lease-up and to achieve the goal of ending homelessness among Veterans by 2015. USICH believes project-basing can be an effective part of a community’s HUD-VASH strategy under the following conditions:

·         The lack of available rental units within the PHA’s payment standard impedes Veterans’ ability to use tenant-based vouchers;

·         Project-based vouchers are used for existing units in order not to unduly delay the leasing of HUDVASH vouchers; or

·         Project-basing is necessary to preserve existing affordable housing stock.

If a community opts to project base some portion of its HUD-VASH allocation, HUD and VA approval is required. It is also essential that this approach targets chronic and vulnerable homeless Veterans as recommended with a tenant-based approach.

Want more guidance on HUD-VASH? Learn about these topics:


Rapid Lease-up

Case Management

Active Collaboration

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