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Mod Rehab

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Moderate Rehabilitation

What is the moderate rehabilitation program?
The moderate rehabilitation program provides project-based rental assistance for low income families. The program was repealed in 1991 and no new projects are authorized for development. Assistance is limited to properties previously rehabilitated pursuant to a housing assistance payments (HAP) contract between an owner and a Public Housing Agency (PHA).

How can owners apply to the moderate rehabilitation program?
No new rehabilitation commitments are authorized under the Mod Rehab program.

What is the history of the moderate rehabilitation program?
The moderate rehabilitation (Mod Rehab) program was designed in 1978 to be an expansion of the rental certificate program. The rental certificate program was initially amended to permit moderate levels of rehabilitation to upgrade and preserve the nation's housing stock.

Although the rental certificate program stimulated maintenance of the housing stock (with investment by owners averaging $1500 in repairs to meet the program housing quality standards), it was estimated that at least 2.7 million rental units had deficiencies requiring a moderate level of upgrading; approximately 85% of these units were in buildings of fewer than 20 units. The Mod Rehab program was designed to upgrade that housing stock.

Who administers the moderate rehabilitation program?
The program is administered locally by PHAs.

What families are eligible to apply for the moderate rehabilitation program?
Low-income families (i.e. families with incomes below 50% of the average median income) and low-income families (i.e. families with incomes below 80% of average median income).

How are families selected for the moderate rehabilitation program?
Eligible families are placed on the PHA's housing choice voucher or separate Mod Rehab waiting list. When vacancies occur in Mod Rehab projects, the PHA refers eligible families for participation in the Mod Rehab program from its waiting list to owner. Owners select families for occupancy of a particular unit after screening each family.

How much rent do families participating in the moderate rehabilitation program pay?
The family pays 30% of its adjusted income towards the rent.

Which moderate rehabilitation projects are eligible for renewal?
Expiring HAP contracts covering units in multifamily housing projects are eligible for renewal. A multifamily housing project is a property consisting of more than 4 dwelling units that is covered in whole of in part by a contract for a project-based assistance under Section 8 of the United States Housing Act of 1937.

What regulations and other HUD directives cover this program?
Regulations are found at 24 CFR Part 882 Subpart D and E. PIH Notice 2001-13 covers renewal of expiring moderate rehabilitation HAP contracts.

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Date Updated: 12/01/2021 02:26:51 AM