Section 983.5 - Description of the PBV program(a)How PBV works.(1) The PBV program is administered by a PHA that already administers the tenant-based voucher program under the consolidated annual contributions contract (ACC) in 24 CFR 982.151 . In the PBV program, the assistance is "attached to the structure," which may be a multifamily building or single-family building. (See description of the difference between "project-based" and "tenant-based" rental assistance at 24 CFR 982.1(b) ).(2) The PHA enters into a HAP contract with an owner for units in existing housing or in newly constructed or rehabilitated housing.(3) In the case of new construction or rehabilitation, the owner may develop the housing pursuant to an Agreement (§ 983.154 ) between the owner and the PHA. In the Agreement, the PHA agrees to execute a HAP contract after the owner completes the construction or rehabilitation of the units. Alternatively: (i) The owner may develop the housing without an Agreement, before execution of a HAP contract, in accordance with § 983.154(f) ; or(ii) In the case of rehabilitation, the owner may develop the housing or complete development activity after execution of the HAP contract, in accordance with § 983.157 .(4) During the term of the HAP contract, the PHA makes housing assistance payments to the owner for units leased and occupied by eligible families.(b)How PBV is funded. If a PHA decides to operate a PBV program, the PHA's PBV program is funded with a portion of appropriated funding (budget authority) available under the PHA's voucher ACC. This funding is used to pay housing assistance for both tenant-based and project-based voucher units. Likewise, the administrative fee funding made available to a PHA is used for the administration of both tenant-based and project-based voucher assistance.(c)PHA discretion to operate PBV program. A PHA has discretion whether to operate a PBV program. HUD approval is not required, except that the PHA must notify HUD of its intent to project-base its vouchers and when the PHA executes, amends, or extends a HAP contract. The PHA must also state in its Administrative Plan that it will engage in project-basing and must amend its Administrative Plan to include all PBV-related matters over which the PHA is exercising its policymaking discretion, including the subjects listed in § 983.10 , as applicable.70 FR 59913, Oct. 13, 2005, as amended at 79 FR 36165, June 25, 2014