Assists very low-income, single, homeless individuals in obtaining decent, safe, and sanitary housing in privately owned, rehabilitated buildings.

Nature of Program: Under the SRO program, HUD enters into annual contributions contracts (ACCs) with public housing agencies (PHAs) in connection with the moderate rehabilitation of residential properties. These PHAs make Section 8 rental assistance payments to participating landlords on behalf of homeless individuals who rent the rehabilitated dwellings. The rental assistance payments generally cover the difference between a portion (usually 30 percent) of the tenant's adjusted income and the unit's rent, which must be within the fair market limit established by HUD.

HUD provides rental assistance for SRO units for a period of 10 years. Owners are compensated for the cost of rehabilitation (as well as the other costs of owning and maintaining the property) through the rental assistance payments. At the same time, each unit must need a minimum of $3,000 of eligible rehabilitation to qualify for the program.

Applicant Eligibility: HUD selects PHAs and private nonprofit organizations for funding on the basis of a national continuum of care competition, in which applicants must demonstrate a need for the assistance and the ability to undertake and carry out the SRO program. In their applications, applicants are required to identify the sponsors of proposed projects, specific structures to be rehabilitated, prospective sources of acquisition and/or rehabilitation financing, and a plan for providing supportive services for the homeless individuals in the units. Generally, very low-income, single, homeless individuals are eligible to occupy the assisted units.

Legal Authority: Section 441 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11401). Regulations are at 24 CFR part 882, subpart H.

Note: The Act to Prevent Mortgage Foreclosures and Enhance Mortgage Credit Availability Act was signed into law on May 20, 2009 (Public Law 111-22). Division B of this new law is the Homeless Emergency Assistance and Rapid Transition to Housing Act of 2009 (HEARTH Act). The HEARTH Act amends the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.) by consolidating and amending three separate homeless assistance programs (the Supportive Housing program, the Shelter Plus Care program, and the Moderate Rehabilitation/Single Room Occupancy program) carried out under title IV of the McKinney-Vento Act into a single grant program called the Continuum of Care Program. The Section 8 Moderate Rehabilitation Program will cease to exist upon implementation of the Continuum of Care program.

Administering Office: Office of Special Needs Assistance Programs (SNAPS) in the Office of Community Planning and Development, Assistant Secretary for Community Planning and Development, U.S. Department of Housing and Urban Development, Washington, DC 20410-7000.

Information Sources: Administering office and local HUD field offices. On the Web

Current Status: Active.