Project-Based Contract Administration

Rental

Kentucky Housing Corporation (KHC) administers the Project-Based Contract Administration (PBCA) program on behalf of the U.S. Department of Housing and Urban Development (HUD). This program provides rental assistance to specific housing complexes for low-income residents. Through PBCA, KHC helps maintain the availability of safe, decent, and affordable housing across Kentucky.

How it works:
- Rental subsidies are paid directly to property owners on behalf of residents.
- The assistance is property-based—it does not move with the resident if they relocate to another property.
KHC’s role as Contract Administrator:
- Ensures compliance with HUD program requirements by property owners, management agents, and residents.
- Conducts onsite visits and desk reviews of properties.
- Works with property owners and residents to resolve reported issues.
- Assists property owners with:
  - Renewing federal Housing Assistance Payment (HAP) contracts
  - Rent adjustments
  - Reviewing utility allowance requests
- Processes HAP payments in a timely manner to ensure owners receive funds by the first business day of each month.
Property Owner Responsibilities:
- Develop and maintain written tenant selection policies and procedures, including:
  - Eligibility requirements
  - Income limits for admission
- Make tenant selection policies available to the public.
- Accept and process applications from individuals seeking rental assistance who meet eligibility requirements

Tenant Concerns: KHC staff will work with property owners, management agents and residents to help resolve any reported issues or concerns.

Management and Occupancy Reviews (MORs)

We are encouraging all property owner and management agents to be prepared for MOR reviews. Stay current on all HUD policies and procedures and ensure that all property management staff are aware of any changes that you have made in your own individual policies. Ensure that staff have access to training and materials that are necessary to ensure HUD requirements and regulations are being followed.

When conducting an MOR, KHC is responsible for following the guidelines that are outlined in the HUD Handbook 4350.1, Chapter 6. The review is conducted using the HUD-9834 form. The latest version of this form was posted to HUD's website in June 2016.

To stay informed and ready, KHC staff recommend reviewing the following:

Review the updated version of HUD-9834 form in its entirety. This form will be used by the MOR auditor and contains all the questions that will be asked. Addendum C will list all documents that KHC staff must review while on site.
Conduct a random review of your files for mistakes and missing documents.
The MOR auditor will ask for a copy of your owner approval letter, CAAF, UAAF and copies of certifications showing that the appropriate staff have completed the Cyber Security Awareness Training as required by HUD.
Review your current Tenant Selection Plan and House Rules to include information on the latest changes and updates.
Ensure you are using the latest HUD version of all forms required.
Review your Affirmative Fair Housing Marketing Plan and update if necessary.

Owner Changes

All properties should have a Property Contact and Signature Authorization on file. Whenever there is a change in owner, agent, or other staffing this document must be updated immediately. This form also serves as official notice of personnel that have been authorized to sign Section 8 business documents.

Owners must also submit:

A Direct Deposit form will need to be completed when there is a change in the bank account where housing assistance payments are deposited. A voided check must be attached for the changes to be made and brief explanation provided for the change.
A W-9 when a change in property ownership and/or tax identification occurs. Please provide an effective date for the change.

NOTE: HUD must approve of all ownership changes. KHC will not make this change until we can confirm the approval from the HUD Account Executive.

Please email completed owner change forms and any questions to pbcapropertycontactinformation@kyhousing.org.