Ogden, Utah

Preserving Section 8 Rental Subsidy and Rehabilitation with Community Preservation Partners

HAO worked with Community Preservation Partners (CPP), a WNC company, and HUD to avoid the loss of Section 8 project-based subsidy through an owner opting out of the Section 8 program.

Project Overview

Moving Section 8 Budget Authority Combined With Existing Section 8 HAP Contracts Facilitates Significant Preservation Transaction

Affiliated owners of three projects were interested in opting out of the Section 8 program to convert properties to market rate housing. Normandie Apartments and Osmond Apartments were partially Section 8 subsidized projects in Ogden, Utah with 54 of the 98 units receiving subsidies under two project-based Section 8 Housing Assistance Payments (HAP) Contracts. LaDawn Apartments was a 64-unit 100% Section 8 HAP contract subsidized property in Roy, Utah.

HAO worked with CPP and HUD to obtain the necessary approvals to save the Section 8 subsidy from LaDawn and move it to Normandie and Osmond to create one new HAP Contract covering 100% of the units. The LaDawn families were provided with enhanced Section 8 vouchers to continue residing at LaDawn at market rents or to move with the individual tenant vouchers to another property of their choice.

With all units subsidized by the HAP Contract, CPP was able to obtain financing and execute a low income housing tax credit transaction at Normandie and Osmond, completing a significant renovation on properties constructed in the 1970s.

Applicable HUD Programs

  • Section 8bb of the U.S. Housing Act
  • Project-Based Section 8
  • HAP Renewal
  • HAP Combination
  • Chapter 15/MUTM Post-Rehabilitation Rent Increase

Meet the Project Team

Karen Kramer

Karen Kramer


Artemis Jansen

Artemis Jensen

Legal Systems Manager

Project Details

CPP Works with HAO on Complex Project

By moving the Section 8 budget authority from one property to two other partial Section 8 properties, HAO helped CPP create a fully-subsidized combined project to facilitate a preservation financing.

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Section 8bb of the U.S. Housing Act

HAO worked with CPP to obtain the necessary HUD approvals to move the Section 8 budget authority to the unsubsidized units at Normandie Apartments and Osmond Apartments while ensuring the LaDawn tenants received enhanced vouchers to stay at LaDawn at market rents or to move with portable rental subsidy.

HAP Combination

Located 1.5 miles from each other with separate HAP Contracts, the two properties needed to secure combined financing for the transaction. HAO worked with CPP to obtain HUD approvals to combine the two HAP Contracts with the subsidy moved from LaDawn to create one HAP Contract covering all of the units.

20 Year HAP Renewal with Rent Increase

To support the financing for the rehabilitation, HAO obtained HUD approvals to renew the new combined HAP contract for a 20-year term with Chapter 15, post-rehabilitation rent increases on the original units under the Normandie Apartments and Osmond Apartments HAP Contracts and at existing market rents on the newly subsidized units.

LIHTC Transaction

The rehabilitation of each project was financed with conventional construction to permanent financing and equity generated by the sale of 4% low income housing tax credits. HAO worked with CPP to obtain HUD approvals to pledge the HAP Contract in connection with the financing.

Project Outcomes

Avoiding Conversion to Market Rate Housing and Preserving an Affordable Community

Moving the Section 8 budget authority from LaDawn and renewing a contract with 100% Section 8 subsidy at Normandie and Osmond facilitated CPP’s financing and significant renovation of 98 units of subsidized housing with low-income housing tax credits.

These units would otherwise have been lost as affordable housing and converted to market rate apartments.

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Our partnership with Community Preservation Partners shows how HAO guides clients through complex, multi-phase projects. See other examples of our work by viewing our project portfolio.

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