Should Congress fail to pass a Continuing Resolution to continue government funding, the Federal Government will shut down on midnight, Saturday, September 30, 2023. Preparing for a government shutdown can be challenging, but PHAs should take steps to minimize the impact on their operations and the residents they serve. Government shutdowns can vary in duration and severity, so it is essential to have a comprehensive plan in place.
HUD details in its latest Contingency Plan for Possible Lapse in Appropriations how the Department will continue to operate in the absence of appropriated funding. Most critically, the contingency plan identifies how PHAs can draw down funding for the Public Housing and the Housing Choice Voucher (HCV) programs during a government shutdown. HUD advises that PHAs will be able to draw down funds from the Line of Credit Control System (LOCCS) that have been previously obligated to the PHA. CLPHA confirmed with HUD that October and November Public Housing Operating Funds have been obligated and October HCV HAP (Housing Assistance Payment) funds will also be made available. Nonetheless, as the contingency plan allows an “excepted activity to make payments to avoid loss of life or property,” HUD intends to make additional payments to PHAs should the government shutdown continue.
CLPHA will update our members with any additional news regarding the potential government shutdown and how it may affect PHA operations.