Supporting Affordable Housing Developments

Project-Based Vouchers (PBV) are among the most effective tools MPHA has to help build new and sustain deeply affordable housing in Minneapolis. The Project Based Voucher (PBV) program is a HUD-funded housing subsidy program that ties the federal rental assistance directly to a specific unit. This differs from the traditional tenant-based Housing Choice Voucher (HCV) program, which is connected to an eligible household.

MPHA solicits proposals from property owners and developers for PBV rental assistance, allowed through the agency’s Moving to Work (MTW) flexibility. Rather than the traditional tenant-based Housing Choice Vouchers (“Section 8”) awarded to an individual or family, PBVs sit with physical building units. This provides developers a long-term source of revenue via federal housing subsidies and access to a list of potential residents through MPHA’s Housing Choice Voucher waiting list. For the tenant, PBVs take the burden off individuals needing to secure their own housing from a Section 8-eligible landlord and instead creates a pipeline of subsidy-ready units across the city for qualifying families and individuals.

The PBV program at MPHA has been incredibly successful. Since 2019, MPHA PBVs have accounted for more than half of all deeply affordable homes built in Minneapolis. Further, the agency has committed to helping develop at least 150 new units of deeply affordable housing each year over the next four years as a part of the agency’s strategic plan.

The Project Based Voucher (PBV) program is a HUD-funded housing subsidy program that ties the federal rental assistance directly to a specific unit. This differs from the traditional tenant-based Housing Choice Voucher (HCV) program, which is connected to an eligible household.

Eligible households receive rental assistance by agreeing to live in existing, newly constructed, or rehabilitated PBV units. The households continue to receive assistance as long as they maintain their program eligibility and reside in the specific project-based dwelling units. If MPHA has HCVs available, a household may be eligible to request a tenant-based voucher to move to a unit of their choice, after living in a PBV unit for 12 months. The PBV remains with the original unit.