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program was repealed in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.
