Possible HCV Proration Under FY18 Appropriations

Date Published: 
January 26th, 2018

On December 28, 2017 HUD sent a letter to housing authority executive directors regarding Housing Choice Voucher (HCV) renewal funding during calendar year 2018 (CY18). Given that HUD is currently operating under continuing resolution (CR) funding for fiscal year 2018 (FY18), the letter was to inform housing authorities of the funding possibilities that would affect renewal funding calculations and awards once a full year CR or appropriations bill is enacted.

According to the letter, HUD evaluated the two funding bills separately offered by the House and Senate appropriations committees. Based on HUD evaluations, the Housing Assistance Payments (HAP) prorations would be 98.810% (Senate) and 95.301% (House); and the administrative fee prorations are  anticipated at 76.153% (Senate) and 70.233% (House). The proration levels were calculated by estimating the full HCV program need for 2018 and comparing the program need to the available funding.

According to the Center on Budget and Policy Priorities (CBPP), the number of leased vouchers fell by 22,000 from February to September 2017 due to the 2017 renewal funding prorations under the CR and final 2017 funding levels, and the decline is reflected in the Voucher Management System (VMS) data that HUD is using to produce its eligibility estimates.

Given the funding levels proposed in the House and Senate bills, and the estimated proration levels, the HUD letter implies a 2018 renewal formula eligibility of $19.6 billion, which is $230 million above the Senate proposal and $900 million above the House level. Attached is a chart estimating the state-by-state loss of HCV units according to the separate House and Senate proposals. This chart should be helpful in your advocacy.

Since the Senate bill represents a $230 million shortfall and the House bill has a $900 million shortfall, we urge CLPHA members to reach out to their members of Congress to ensure HCVs are fully funded in any final FY18 appropriations.

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