Section 18 of the United States Housing Act of 1937 (42 U.S.C. 1437p)(1937 Acts), 24 CFR 970.9, and related Tenant Protection Vouchers guidance requires the BHA to give resident notice as ask for consultation in pursuing an application through HUD’s Special Application Center (SAC) to approve BHA for tenant protection vouchers (TPVs) under PIH Notice 2018-04.
The BHA is pursing consideration for TPVs under a RAD Blend Rule that would allow for additional federal funding to improve both the long-term operations and the physical condition of units in Reverend Butler and Walnut Woods Communities. If approved, 25% of units at Reverend Butler and Walnut Woods would be assisted with a tenant protection voucher. TPVs allow for the BHA to receive more subsidy to improve physical and financial conditions of the properties. TPVs do not impact resident rents paid; those rents will remain calculated at 30% of adjusted monthly income or a minimum rent of $50 per month, whichever is higher.
BHA staff is hosting three meetings to review Section 18 and its resident impact. Please attend to learn more. Individuals with special needs may receive assistance by calling 812-339-3491 x 124.
- Meeting with Resident Council Officers: July 10, 2019 at 4:30 PM in the Community Building at 1002 N. Summit Street
- Presentation at Resident Council Community Meeting: July 17, 2019 at 4:30 PM in the Community Building at 1002 N. Summit Street
- Resident Advisory Board Meeting: July 25, 2019 at 2:00 PM at the BHA Main Office.
Frequently Asked Questions about Section 18:
What is Section 18 and what is BHA’s plan for my unit?
During the summer of 2018, the BHA held a meeting to explain that we were applying for approval from HUD to change to way your apartment is funded through the Rental Assistance Demonstration program or RAD. Currently, the type of housing assistance you receive includes a federal Public Housing subsidy which covers some rent and a small amount of maintenance and repair costs. BHA is changing the subsidy from public housing to project-based Section 8 funding. HUD’s Section 18 process also allows housing authorities to apply tenant protection vouchers to 25% of the converting units. TPVs are beneficial because they come with higher subsidy potential for the BHA, thus increasing funding for ongoing operations and to borrow funding for major improvements.
When will this happen?
BHA will submit their application for Section 18 and TPVs around October 2019. BHA will meet with residents whose units are funded with a TPV as well as community groups, such as the Resident Council. There will be no change in tenant rent paid, however, tenants will need to attend a briefing meeting, complete some paperwork and sign a new lease. We will also inspect your unit again.