The purpose of HUDs PBCA program is to implement the policy of the United States, as established in section 2 of the 1937 Act, of assisting States and their political subdivisions in addressing the shortage of affordable housing and of vesting the maximum amount of responsibility and flexibility in
program administration in PHAs that perform well.
The PBCA program furthers these policies by effectuating the authority explicitly provided under section 8(b)(1) of the 1937 Act for HUD to enter into ACCs with PHAs for the administration of Section 8 HAP contracts.
For the project-based programs authorized under Section 8, the 1937 Act authorizes HUD to enter into an ACC with a PHA as defined in section 3(b)(6)(A) of the 1937 Act.
The ACC is the funding mechanism to support the PHAs public purpose in making assistance payments to Section 8 project owners.
The ACC includes Exhibit A, section 4 of which includes a detailed treatment of the Administrative Fee.
Section 5, Performance Requirements Summary (PRS), includes a table that specifies the Acceptable Quality Level (AQL) for performance of each of the 8 Performance-Based Tasks (PBTs), the Performance-Based Allocation Percentage, the method used to evaluate performance, and the frequency with which HUD will assess and pay the Basic Administrative Fee Earned.