Chapter 17: Moderate Rehabilitation Program







The Moderate Rehabilitation program attaches rental assistance to a particular unit rather than to a family (as with tenant-based rental assistance).  The program was repealed in 1991 and no new projects are authorized for development.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 the Housing Authority. The Moderate Rehabilitation program is not a Moving to Work (MTW) program.



24 CFR 882.514 (b):  “When vacancies occur, the PHA will refer to the Owner one or more appropriate size families on its waiting list.”




The HA’s guidelines for the unit size a family is eligible for under the Moderate Rehabilitation Program is as follows:

Unit Size                                 Number in the Household

Single Room Occupancy        1 Person

Studio                                     1 to 2 Persons

One Bedroom                         1 to 2 Persons

Two Bedrooms                       3 to 4 Persons

Three Bedrooms                     5 to 6 Persons

Four Bedrooms                       7 to 8 Persons


The HA will refer families matching the appropriate bedroom size to the owner from the site-based Moderate Rehabilitation interest list to fill the vacancy. 


Applicants Registered on the Interest Lists Opened 2020: If an applicant is not eligible for the Moderate Rehabilitation unit due to their subsidy size, they will be inactivated from the property voucher interest lists. The applicant must reactivate themselves on the interest lists to be considered for additional opportunities for a property voucher (Moderate Rehabilitation rental unit).


Should the HA fail to provide sufficient eligible families to fill a vacancy within 30 days of the owner's notification to the HA of a vacancy, the owner may solicit applications from low-income families and refer such families to the HA to determine eligibility.


The family’s placement and eligibility on any other HA waiting list will not be affected if the family is housed under the Moderate Rehabilitation program.




            24 CFR 882.514 (c) “Since the Owner is responsible for tenant selection, the Owner may refuse any family, provided that the Owner does not unlawfully discriminate. However, the owner must not deny program assistance or admission to an applicant based on the fact that the applicant is or has been a victim of domestic violence, dating violence, sexual assault, or stalking, if the applicant otherwise qualifies for assistance or admission.”



Applicants Registered on the Interest Lists Opened 2020: If an applicant is denied Moderate Rehabilitation assistance based on the property owner’s tenant screening and selection criteria, the applicant would be determined ineligible for the property by the Housing Authority and inactivated from the property voucher interest lists. The applicant must reactivate themselves on the interest lists to be considered for additional opportunities for a property voucher (Moderate Rehabilitation rental unit).  



24 CFR 882.514 (a):  “Initial determination of family eligibility. (1) The PHA is responsible for receipt and review of application, and determination of family eligibility for participation in accordance with HUD regulations (see 24 CFR parts 5, 750 and 760).”



The owner must lease all units under contract with the Moderate Rehabilitation program to eligible families.


An eligible family must be briefed on the Moderate Rehabilitation program and must sign a ‘Moderate Rehabilitation Program Statement of Family Responsibility’.


An otherwise eligible family whose monthly Housing Assistance Payments are $0, will be allowed to occupy a rehabilitated unit for the remaining period of the owner's contract with the HA, unless the family is evicted for cause or the family's size changes or the HA determines that the family must move to satisfy Housing Quality Standards (HQS) requirements.



24 CFR 882.515 (a):  “Regular reexaminations. The PHA must reexamine the income and composition of all families at least once every 12 months.  The PHA must adjust Tenant Rent and the Housing Assistance Payment to reflect any change in Total Tenant Payment.”

24 CFR 882.516 (b):  “Periodic inspection. In addition to the inspections required prior to execution of the Contract, the PHA must inspect or cause to be inspected each dwelling unit under Contract at least annually and at such other times as may be necessary to assure that the Owner is meeting the obligations to maintain the unit in decent, safe and sanitary condition and to provide the agreed upon utilities and other services.”


Moderate Rehabilitation families will follow the regular and interim reexamination and inspection policies for non-MTW families as described elsewhere in this Administrative Plan.




            24 CFR 882.411 (b)(1): “If an Eligible Family vacates its unit (other than as a result of action by the Owner which is in violation of the Lease or the Contract or any applicable law), the Owner may receive the housing assistance payments due under         the Contract for so much of the month in which the Family vacates the unit as the    unit remains vacant.  Should the unit continue to remain vacant, the Owner may receive from the PHA a housing assistance payment in the amount of 80 percent of the contract Rent for a vacancy period not exceeding an additional month. However, if the Owner collects any of the Family’s share of the rent for this period,  the payment must be reduced to an amount which, when added to the Family’s  payment, does not exceed 80 percent of the Contract Rent.  The Owner will not be  entitled to any payment under this paragraph (b)(1) of this section unless the  Owner: (i) immediately upon learning of the vacancy, has notified the PHA of the vacancy or prospective vacancy, and (ii) has taken and continues to take all feasible actions specified in paragraphs (a)(2) and (3) of this section.”



Vacancy payments (calculated based on 80% of the last Moderate Rehabilitation tenant’s contract rent amount) may be made for up to 30 days for vacant Moderate Rehabilitation units provided the vacancy is not the owner’s fault, the owner gave prompt notice to the HA of the vacancy, and the Owner has taken and continues to take all feasible actions to fill the vacancy.




24 CFR 882.509: “If the PHA determines that a Contract unit is not decent, safe, and sanitary by reason of increase in Family size, or that a Contract unit is larger than appropriate for the size of the Family in occupancy, housing assistance payments with respect to the unit will not be abated; however, the Owner must offer the Family a suitable alternative unit should one be available and the Family will be required to move. If the Owner does not have a suitable available unit, the PHA must assist the Family in locating other standard housing in the locality within the Family's ability to pay and require the Family to move to such a unit as soon as possible.”


The HA will provide continued assistance to a family residing in a Moderate Rehabilitation unit who is being forced to move through no fault of their own, such as an increase or decrease in family size, provided the family is otherwise eligible to continue receiving housing assistance. The HA will also provide continued assistance for families needing a reasonable accommodation for an accessible unit due to current unit not meeting participants’ needs. Assistance will be provided in the order stated below: 


  • The current owner must offer the participants a suitable and appropriately sized vacant Moderate Rehabilitation unit, if such vacancies exist.


  • The HA will provide a tenant-based Housing Choice Voucher, if available.