Housing Choice Vouchers

The Housing Choice Voucher (HCV) Program is the nation’s largest low-income rental assistance program. Funded by the U.S. Department of Housing and Urban Development (HUD) and administered locally by public housing authorities (PHAs), Section 8 Housing Choice Vouchers serve approximately 2.2 million households, including over 700,000 that are served by CLPHA member PHAs.

The HCV program supports the lowest-income families who struggle to secure safe, affordable housing in the private market. At least 75 percent of new voucher holders must have incomes that are below 30% of their area’s median income. In 2018, the average annual household income among tenants in the program is approximately $14,700.

While targeting the most economically disadvantaged households, the HCV program also serves the most vulnerable. In 2018, 53 percent of HCV households were elderly (29 percent) or disabled (24 percent). Forty percent of HCV households included children under the age of 18. Of those non-disabled, non-elderly HCV households, 75 percent were working, worked recently, or likely were subject to work requirements.

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New Funding Opportunities Available to PHAs

Recently, HUD issued two PIH notices entitled Registration of Interest for HUD-VASH Vouchers (PIH Notice 2021-21), and American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding (PIH Notice 2021-23), announcing new funding opportunities available to public housing authorities (PHA). Please see essential information regarding each funding opportunity, eligibility criteria, and application deadlines below.

Registration of Interest for HUD-VASH (PIH Notice 2021-21)

This Notice announces the availability of $49 million in HUD-Veterans Affairs Supportive Housing (HUD-VASH) funding that will support approximately 6,000 new HUD-VASH vouchers. The Consolidated Appropriations Act, 2021, enacted on December 27, 2021, authorized $40 million (and an additional $9 million from prior year appropriations) for eligible PHAs to administer HUD-VASH vouchers in partnership U.S. Department of Veterans Affairs (VA).

PHAs must consult with their partnering VA facility to discuss their intentions of submitting a Registration of Interest and request a Letter of Support for HUD-VASH vouchers. Letters of support from the VA do not need to include a specific number of vouchers requested, because the number of vouchers offered to a PHA will be determined by a relative need formula using the VA Gap Analysis. HUD will award eligible PHAs a minimum of five (5) vouchers and up to five hundred (500) vouchers under this Notice.

Eligible PHAs that meet the threshold criteria below must email VASH_ROI@hud.gov a Registration of Interest no later than midnight per the PHA’s time zone on August 31, 2021.

Both new and existing administrators of the HUD-VASH program may apply if the following threshold is met:

Any PHA that currently administers the Housing Choice Voucher (HCV) program; and
PHA must not have any (1) major unresolved program management findings from an Inspector General audit, HUD management review, or Independent Public Accountant, or (2) other significant program compliance issues that were not resolved, or in the process of being resolved, as determined by HUD, or (3) outstanding civil rights matters.

In addition to the threshold criteria above, PHAs that currently administer the HUD-VASH program of more than 15 existing HUD-VASH vouchers must have a 70% HUD-VASH unit utilization rate as determined by April 2021 VMS reporting. PHAs with fewer than 15 HUD-VASH vouchers are exempted from the 70% HUD-VASH unit utilization rate requirement.

For more details, review PIH Notice 2021-21 - Registration of Interest of HUD-VASH Vouchers.

American Rescue Plan Act – Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding (PIH Notice 2021-23)

This Notice announces the availability of $200 million for CY 2021 HAP Renewal Adjustments to PHAs administering the HCV program and Mainstream Vouchers. The Emergency Housing Vouchers (EHV) section of the American Rescue Plan (ARP) Act of 2021, enacted on March 11, 2021, provides funding for PHAs that experience significant increases in per-unit costs (PUC) and for shortfall prevention. Due to the overlap of these funding categories with the Unforeseen Circumstances (UC) and Shortfall HAP Set-aside categories of the CY 2021 HAP Implementation Notice (PIH Notice 2021-10), HUD has decided to supersede the prior notice and streamline the funding of these two categories (UC and Shortfalls) under the new notice (PIH Notice 2021-23).

Extraordinary Circumstances (EC)

PHAs (including MTW agencies) that experience significant increases in per-unit cost in CY 2021 are eligible to request additional HAP set-aside funding if the following threshold is met:

The PHA’s PUC based on the most recent month of validated VMS data available at the time the application is reviewed (most likely in May 2021) must be 102% or greater than the PUC HUD used to determine the PHA’s CY 2021 renewal funding (the CY 2021 Inflated Renewal PUC); and
The PHA must have less than four (4) months of reserves.

Eligible PHAs that meet the threshold criteria above must submit one of the following:

Previously submitted by May 14, 2021, a completed Appendix G, PIH Notice 2021-10, Application for $110 Million Set-aside for Category 2a- Unforeseen Circumstances, 2021 HAP Set-Aside (PHAs that previously submitted Appendix G do not need to resubmit their application); or

Email a completed Appendix B, Application for $200 Million Renewal Funding Adjustment for PUC Increases Due to Extraordinary Circumstances Under ARP to 2021ARPApplications@hud.gov no later than 5 p.m., per the PHA’s time zone on August 10, 2021. PHA must also include a written narrative describing the extraordinary circumstances that significantly increased renewal costs in CY 2021. This narrative is not required if the extraordinary circumstance is related to COVID-19.

HUD anticipates that funding for UC will be awarded in early September after receiving all EC applications.

Shortfall Funds

PHAs that, despite taking reasonable cost-savings measures, would otherwise be required to terminate participating families from the program due to insufficient funds may apply for shortfall funding under this Notice. The criteria and calculation methodology under PIH Notice 2021-23 for the Shortfall Funds category are the same as those for the HAP set-aside Shortfall category described within PIH Notice 2021-10. In determining a shortfall for HCV and/or Mainstream Vouchers and the amount of funding to be provided, HUD will use the HCV Two-Year Projection Tool. If a PHA has previously applied for shortfall funding, it does not need to reapply.

Eligible PHAs must submit Appendix F – PHA Application for Category 1, Prevention of Terminations Due to Insufficient Funding (Shortfall) and PHA Certification of Reasonable Cost Savings Measures Undertaken to Prevent Termination of HCV Participants Due to Insufficient Funds to 2021Shortfallapplications@hud.gov. The application period will remain open.

For more details, review PIH Notice 2021-23- Adjustment Funding for Calendar Year 2021 Housing Choice Voucher Program and Mainstream Vouchers Renewal Funding and Updated Application Process for Unforeseen Circumstances Funding.