Project-based leased housing is best understood in contrast to tenant-based housing assistance. With tenant-based rental assistance,
HOPWA funds are used to make payments on behalf of a HOPWA participant to a third party in a unit where the participant
holds the lease and the rental assistance "follows" the client. With project-based housing assistance, on the other hand,
the HOPWA rental assistance is connected to a particular unit or units, rather than to the HOPWA participant, per se.
There are a variety of project-based leased housing models used by HOPWA grantees and sponsors. These include:
Set-aside units, where a third-party property owner sets aside specific units for HOPWA-eligible tenants. Tenants are
typically identified and screened by a HOPWA grantee or sponsor, working under agreement with the property owner,
and rent subsidies are paid by the sponsor to the property owner; Master Lease units, where a HOPWA grantee or sponsor
actually holds the lease for a particular unit or units with a property owner and "sub-leases" units to eligible households.
This model is often used for projects that house higher-risk tenants, since the grantee or sponsor themselves,
as the lease holders, bear responsibility for any damages or unpaid tenant rent portions. The grantee and sponsor
also pay a rental subsidy to the property owner.; "Turn-Key" Master Lease units, where a HOPWA household comes
into a master-leased unit but, after a pre-established period of time and if there have been no problems, the lease converts
to the tenant directly. This model helps HOPWA participants who have minimal or poor housing histories to
establish a positive tenancy record. Eligible costs include the cost of leasing a unit or units from a third-party property owner
and the personnel costs associated with managing a leased housing program. As with other activities, this includes
the direct personnel costs of determining eligibility, conducting unit inspections, and calculating rent.