Performance-Based Contract Administration

Louisiana Housing Corporation (LHC) is currently in Annual Contribution Contract (ACC) with the U.S. Department of Housing and Urban Development (HUD) as the Section 8 Performance-Based Contract Administrator (PBCA) for the State of Louisiana to monitor HUD's "project-based" assets.  The Agency began administering the program on April 1, 2003.  Currently, our portfolio consists of 178 contracts representing 15,132 units statewide.

Just the Facts

The Section 8 Program was authorized by Congress in 1974 and developed by the U.S. Department of Housing and Urban Development (HUD) to provide rental subsidies for eligible tenant families (including single persons) residing in newly constructed, rehabilitated, and existing rental and cooperative apartment projects.  There are two types of Section 8 assistance provided by HUD in which a tenant's portion of the rent is based on 30% of their income.  The first type of Section 8 assistance is "project-based" in which the subsidy is committed by HUD for the assisted units of a particular property for a contractually determined period.  The other type of assistance is "tenant-based" in which the subsidy is committed by HUD on an individual tenant basis and monitored by local Housing Authorities.

The Major Tasks of LHC Include, but Not limited to:

  • Monitor compliance with Section 8 project owners with their obligation to provide decent, safe, and sanitary housing to assisted residents.
  • Pay Section 8 project owners accurately and timely.
  • Submit required documents accurately and timely to HUD (or as required by HUD).
  • Comply with HUD regulations and requirements, both current and as amended in the future, governing the administration of Section 8 HAP contracts.

The Agency has eight core tasks defined in our Annual Contributions Contract (ACC)

  1. Conduct Management and Occupancy Reviews
  2. Adjust Contract Rents
  3. Review and Pay Monthly Vouchers
  4. Renew HAP Contracts and Process Terminations or Expirations
  5. Respond to Tenant Health, Safety, and Maintenance Issues
  6. Report on LHC's operating plans and progress
  7. Submit Year End Reports and Certifications
  8. Submit Annual Financial Reports

    • Contract renewals and Rent Adjustments

      The Multi-Family Assisted Housing Reform and Affordability Act of 1997 (MAHRA) was enacted on October 27, 1997.  The major change brought about by this legislation was the new policies established for the renewals of Section 8 project-based contracts based on market rents instead of the Fair Market Rent (FMR) standard.  For most insured projects with rents above market, the Act transferred Section 8 processing functions from the Multi-family Hubs and Program Centers to the Office of Multi-Family Housing Assistance Restructuring (OMHAR) now known as the Office of Recapitalization (Recap).  Since then, legislation has been passed slightly modifying the renewal policies.                 

    • Management and Occupancy Reviews

      The Corporation must conduct an on-site management and occupancy review for each Section 8 property within our portfolio no less than annually.  The review must be a comprehensive assessment of the owner's procedures for directing and overseeing project operations, and the adequacy of the procedures for carrying out day-to-day, front-line activities.  

    • Monthly Housing Assistance Payments

      Each month LHC processes one payment for each of the 178 properties in our portfolio.  This involves verifying the owner's request and tenant certifications for compliance, accuracy, and completeness.  The electronic submission through TRACS is due by the tenth day of the month prior to when the payment is scheduled to be paid.