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Administrative Plan 7/1/2025 Page 17-28 <br />17-II.G. SUBSIDY LAYERING REQUIREMENTS [24 CFR 983.11, 24 CFR 983.153(b), <br />24 CFR 4.13, Notice PIH 2013-11, and FR Notice 3/13/23] <br />Development Activity Before HAP Contract [24 CFR 983.153(b)] <br />As part of the PBV project or proposal selection process, the project owner must disclose <br />information regarding all HUD and/or other federal, state, or local governmental assistance <br />committed to the project, as well as other governmental assistance, using Form HUD-2880 (even <br />if no other governmental assistance is received or anticipated) [FR Notice 3/3/23]. <br />HUD requires a subsidy layering review (SLR) be conducted when new construction or <br />rehabilitation housing will include PBVs in combination with other governmental housing <br />assistance from federal, state, or local agencies, including assistance such as tax concessions or <br />tax credits. The SLR must occur before the PHA attaches PBV assistance to a project. This <br />means when an SLR is required, the PHA may not execute an AHAP or HAP contract until HUD <br />or a HUD-approved housing credit agency (HCA) has conducted the required subsidy layering <br />review and determined the project compliance with 24 CFR 4.13 and other related regulation <br />requirements with regards to attaching PBV assistance. Subsidy layering requirements also do <br />not apply to existing housing when PBV is the only governmental assistance. <br />Conducting the SLR [FR Notice 3/3/23 and Notice PIH 2023-15] <br />PHAs request an SLR through their local HUD Field Office or, if eligible, through a <br />participating HCA. The PHA is responsible for collecting all required documentation for the <br />SLR from the project owner. Appendix A of FR Notice 3/23/23 contains a list of all required <br />documentation. The owner must inform the PHA if any information changes during or after the <br />application process. If new information becomes available after initial submission, the PHA is <br />responsible for submitting updated information to HUD or the HCA. <br />If HUD completes the SLR and determines the PBV assistance complies with all requirements, <br />HUD will notify the PHA in writing. If the SLR request is submitted to an approved HCA, and <br />the proposed project-based voucher assistance meets HUD subsidy layering requirements, the <br />HCA must submit a certification to HUD and notify the PHA. The PHA may proceed to execute <br />an AHAP at that time if the environmental approval is received. <br />EXHIBIT 1