A Comprehensive Guide to Special Housing Types in the HCV Program

While the majority of Housing Choice Vouchers are used in standard apartment or single-family home rentals, the program is designed with the flexibility to serve a wide range of community needs. As an investor, understanding these “special housing types” can unlock new markets, allow you to serve specific populations like the elderly or persons with disabilities, and diversify your portfolio.

However, this flexibility comes with a critical trade-off: each special housing type operates under a unique set of rules for occupancy, Housing Quality Standards (HQS), and, most importantly, rent and payment calculations.

This guide will provide a detailed breakdown of Single Room Occupancy (SRO), Congregate Housing, Group Homes, Shared Housing, and Manufactured Homes, equipping you with the knowledge to navigate these opportunities successfully.

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1. Single Room Occupancy (SRO) Facilities

An SRO unit is a distinct housing model that provides a single room for living and sleeping for the exclusive use of one person. The defining feature is that the occupant is required to share sanitary facilities (bathrooms) and/or food preparation facilities (kitchens) with other residents in the building.

Occupancy Rules

The rule here is simple and strict: an SRO unit is for one person only. Program regulations do not permit more than one person to occupy an SRO unit, even if the space would otherwise allow it.

Unique HQS Requirements

SRO facilities follow most HQS rules, but several key standards are modified to fit the model. Crucially, the standard requirements for private sanitary facilities and kitchens within the unit do not apply. Instead, investors must adhere to these specific SRO standards:

• Sanitary Facilities: A shared bathroom must be provided for every six or fewer residents. This bathroom must include, at a minimum, a private flush toilet, a lavatory basin, and a bathtub or shower with hot and cold running water.
• Space and Security: Each SRO unit must contain at least 110 square feet of floor space. Additionally, it must have at least four square feet of closet space. If the closet is smaller, the habitable floor space of the unit must be increased by the amount of the deficiency. All exterior doors and windows must be lockable.
• Access: Each resident must be able to access their unit without passing through another person’s private unit.
• Fire Safety: According to the handbook, all SRO facilities must have a sprinkler system protecting major spaces and hard-wired smoke detectors.

Payment and HAP Calculation for SROs

The financial structure of an SRO is unique and is designed to reflect the smaller, non-self-contained nature of the unit.

The payment standard for an SRO unit is set at 75% of the PHA’s 0-bedroom payment standard.

This adjusted, lower payment standard becomes the new ceiling for the subsidy calculation. The Housing Assistance Payment (HAP) is then calculated as the lower of:

• The SRO Payment Standard (75% of the 0-BR standard) minus the Total Tenant Payment (TTP).
• The Gross Rent for the SRO unit minus the Total Tenant Payment (TTP).

Example: SRO Calculation

• PHA’s 0-Bedroom Payment Standard: $800
• SRO Payment Standard: $800 x 0.75 = $600
• Tenant’s TTP: $200
• Gross Rent for the SRO Unit: $550

The HAP would be the lower of ($600 - $200 = $400) or ($550 - $200 = $350).

In this case, the HAP to the owner would be $350.

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2. Congregate Housing

Congregate housing is a specialized model designed for elderly persons or persons with disabilities. It consists of a private living area for the resident combined with a shared central kitchen and dining area. A key feature mandated by the program is that some form of food service (e.g., prepared meals) must be provided.

Unique HQS Requirements

The most significant HQS difference is that the individual private units are not required to have their own kitchen. The facility must instead have:

• A refrigerator of appropriate size within each resident’s private unit.
• A central kitchen and dining facility that is fully accessible to residents and adequate for storing, preparing, and serving food.

Payment and HAP Calculation for Congregate Housing

The payment standard for a unit in a congregate facility is based on the number of bedrooms within the resident’s private living space.

• If the private unit has one bedroom, the PHA uses the 0-bedroom payment standard.
• If the private unit has two or more bedrooms, the PHA uses the 1-bedroom payment standard.

The HAP is then calculated using this payment standard, ensuring the rent used in the calculation is for shelter and utilities only, excluding any charges for food or other services.

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3. Group Homes

A group home is a state-licensed or certified facility designed for the shared residential use of 2 to 12 elderly persons or persons with disabilities. Residents have their own bedrooms (which can be shared by no more than two people) but share common living spaces like the kitchen, living room, and bathrooms.

Unique HQS Requirements

Group homes have a distinct and detailed set of HQS rules that supersede the standard requirements:

• Sanitary Facilities: There must be at least one bathroom for every four or fewer residents.
• Food Preparation: The home must have a kitchen and dining area with adequate space and equipment to store, prepare, and serve food for all residents.
• Space and Security: The home must contain at least one bedroom of appropriate size for every two residents.
• Site and Neighborhood: The home must be located in a residential setting that is reasonably free from health and safety hazards.

Payment and HAP Calculation for Group Homes

The HAP calculation for a resident in a group home is the most complex and involves a pro-rata share. This is because the subsidy is for an individual family, but the rent is for a larger, shared home.

The payment standard used for the HAP calculation is the LOWER of:

1. The payment standard for the assisted family’s individual unit size (typically a 0- or 1-bedroom voucher).
2. The family’s pro-rata share of the payment standard for the entire group home.

The pro-rata share is calculated by dividing the number of persons in the assisted household (the tenant, plus any approved live-in aide) by the total number of residents in the group home.

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4. Shared Housing

Shared housing occurs when an assisted family leases a unit and shares it with other individuals who are not on their voucher. The unit consists of common spaces (like a kitchen and living room) used by all occupants, plus separate, private space for the assisted family.

Unique HQS Requirements

The key HQS consideration in shared housing is the distinction between common and private space.

• The entire unit, including common areas, must meet all applicable HQS.
• The private space for the assisted family must contain at least one bedroom for every two family members.
• Critically, the number of bedrooms in the family’s private space cannot be less than the family’s voucher unit size.
• A 0-bedroom unit (studio) cannot be used for shared housing.

Payment and HAP Calculation for Shared Housing

The payment calculation for shared housing also uses a pro-rata model, but it is based on the number of bedrooms, not people.

The payment standard is the LOWER of:

1. The payment standard for the assisted family’s individual voucher size.
2. The family’s pro-rata share of the payment standard for the entire shared unit.

The pro-rata share is calculated by dividing the number of bedrooms in the assisted family’s private space by the total number of bedrooms in the entire unit.

Example: Shared Housing Pro-Rata Calculation

• An assisted family is issued a 2-bedroom voucher. The PHA’s 2-bedroom payment standard is $1,200.
• They find a 3-bedroom apartment to share with a roommate. The PHA’s 3-bedroom payment standard is $1,500.
• The family’s pro-rata share is: 2 bedrooms / 3 total bedrooms = 0.667

Now, we calculate the two potential payment standards:

1. The family’s voucher payment standard: $1,200
2. The pro-rata share of the shared unit standard: $1,500 x 0.667 = $1,000.50

The PHA will use the lower figure. The effective payment standard for the HAP calculation is $1,000.50. The HAP payment is then calculated normally using this adjusted standard.

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5. Manufactured Homes

A manufactured home (often called a mobile home) can be assisted under the HCV program in two very different ways, and it is essential for an investor to know which scenario they are entering.

Scenario A: Tenant Rents the Manufactured Home and the Space

This is the most straightforward scenario. If you own both the manufactured home and the land (or space in a park) it sits on, and you rent them together as a single package, this is treated as a standard rental unit.

• HQS: The unit must meet all standard HQS requirements, plus the specific performance requirement that it be placed on a stable site and free from hazards like sliding or wind damage.
• Payment Calculation: All calculations are identical to a standard rental. The payment standard is based on the number of bedrooms in the unit, and the HAP is calculated normally.

Scenario B: Tenant Owns the Home and Rents the Space

This is the true “special housing type.” In this scenario, the assisted family already owns their manufactured home, and they are seeking voucher assistance to pay for the rent of the lot or space it occupies.

• Payment Standard: The payment standard for the space rental is the same payment standard amount used for regular rental units of that bedroom size. The old system of using a separate, lower FMR for space rentals no longer applies.
• Rent Calculation: This is the most critical distinction. According to the handbook, the “rent” for the space is the sum of:
  • The rent charged for the manufactured home space (the “lot rent”).
  • Any owner maintenance and management charges for the space.
  • The family’s monthly payments to amortize the loan for purchasing the home.
  • The applicable PHA utility allowances for tenant-paid utilities.
• Utility Allowance: For the first 12 months of the lease only, the utility allowance must include an amount for a utility hook-up charge if the family actually incurred one because of the move.