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.
HUD has published PIH Notice 2023-12, which extends the period of availability for American Rescue Plan (ARP) Act Adjustment Funding for Calendar Year 2021 (CY21) Housing Choice Voucher (HCV) Program and Mainstream Vouchers Renewal Funding. This notice extends the deadline originally set by PIH Notice 2021-23 so that PHAs can expend the adjustment funding awards they received in CY21 and report these expenses in the Voucher Management System (VMS). The new deadline to report the expenditures of the ARP adjustment funding is December 31, 2023.
Under PIH Notice 2021-23, HUD awarded ARP Housing Assistant Payment (HAP) budget authority to multiple PHAs to address significant increases in per-unit costs (PUCs) in the HCV Program and Mainstream Vouchers. This Notice also provides PHAs with guidance examples for reporting the spending of these funds in VMS and includes guidance on reporting in memo fields that were created for these funds in the VMS User Manual.
This Notice does not apply to the Emergency Housing Voucher (EHV) Program funding, Section 8 Moderate Rehabilitation Program funding, or the Section 8 Moderate Rehabilitation Single Room Occupancy Program funding. Funds that are not expended by the updated deadline will be reconciled and returned to the EHV Program. All other terms of PIH Notice 2021-23 remain in effect.
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HUD announced that it will make available $5 million for new Family Unification Program (FUP) voucher assistance for youth and families who lack safe and adequate housing. Approximately 10 awards will be made from this announcement, and the minimum number of vouchers that a PHA can apply for is three vouchers. The closing date for applications is May 25, 2023. There is no time limit on FUP vouchers issued to families. FUP vouchers issued to youth are limited to 36 months unless the youth meet the requirements to receive an extension of their voucher assistance under the Fostering Stable Housing Opportunities (FSHO) amendments. PHAs administer the FUP in partnership with PCWAs who are responsible for referring FUP families and youths to the PHA for determination of eligibility for rental assistance.
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On April 18, 2023, the House Committee on Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies (THUD) convened their first budget hearing for the fiscal year (FY) 2024 request for the Department of Housing and Urban Development (HUD). Secretary Marcia Fudge, the only witness, was tasked with defending HUD’s budget before Subcommittee Chairman Tom Cole (R-OK), Ranking Member Michael Quigley (D-IL), and other members of the subcommittee panel. While Republicans affirmed that HUD would not see a budget increase in FY 2024, Secretary Fudge staunchly advocated for the funding that housing authorities need to serve the most vulnerable families in their communities and outlined the dire consequences that would result from failing to increase HUD funding in the next appropriations bill.
The Senate Committee on Appropriations THUD subcommittee held their hearing related to the FY 2024 HUD budget request two days later on April 20, where Secretary Fudge again defended HUD’s budget request before Subcommittee Chairman Brian Schatz (D-HI), Ranking Member Cindy Hyde-Smith (R-MI) and other panel members.
HOUSE HEARING OVERVIEW:
During the House hearing, Chairman Tom Cole began by acknowledging the discussions surrounding proposed cuts to the FY 2024 budget. Chairman Cole mentioned that HUD would unlikely see an increase in the FY 2024 Budget. However, a continuing resolution was a concern for both parties.
In her testimony, Secretary Marcia Fudge stated that the FY 2024 budget reflected the Administration’s commitment to providing safe, affordable, and equitable housing to our underserved communities. The Secretary emphasized the Administration’s first-of-its kind proposal for mandatory funding of $104 billion over 10 years to provide additional housing assistance. The Secretary also expressed her concern regarding proposed budget cuts in FY 2024 which would have a serious impact on HUD and the communities they serve.
Proposed Cuts to the HUD Budget:
Chairman Cole, Ranking Member Quigley, Congresswoman Bonnie Coleman (D-NJ), and Congresswoman Norma Torres (D-CA) of the House subcommittee asked Secretary Fudge what the impacts would be on HUD and federally assisted housing if the federal government operated with the following circumstances:
Continuing resolution (CR): Secretary Fudge shared that over 125,000 people currently served by HUD would lose their homes. HUD would be $500 million short in renewing Project-Based Rental Assistance (PBRA) contracts and would serve 32,000 fewer people who are experiencing homelessness. The department would also have difficulty maintaining their IT systems, putting residents’ information at risk.
Secretary Fudge mentioned that there would also be a major setback for housing authorities because HUD wouldn’t know how much rent they could pay. Fudge stated that as a former mayor and member of Congress, she understood the difficulty of passing a budget but said that “I would just ask you to consider the fact that you do not want to balance a budget on the backs of poor people.” She added, “We serve about 4 million people a month...I would hate to put them, public housing authorities, our private partners, [and] our contractors in a position where they have no idea where we go next.”
20 percent cut to the HUD Budget or Operating at FY 2022 funding levels: Secretary Fudge stated that a 20 percent cut to the HUD budget would be significantly worse than a CR. Housing authorities would be unable to conduct inspections, and public housing would become significantly worse due to the capital improvements that need to be done. “HUD itself does not provide housing; our partners do.” Public housing would not be able to work on capital improvements. The department would have difficulty continuing to recover from the effects of COVID, which destroyed payment plans.
If HUD were to operate at FY 2022 funding levels, the Secretary shared that 640,000 people currently served by HUD would lose their homes. HUD would be $4 billion short for renewing Public Based Rental Assistance contracts and would serve 95,000 fewer people who are experiencing homelessness. Secretary Fudge stated that “We are one of the very few agencies that directly impact people’s lives.”
Homelessness, Justice-Involved Individuals, and Health:
Members from both parties discussed their concerns for the homeless population, mental health, and justice involved individuals.
Congressman Juan Ciscomani (R-AZ) asked how the federal government can help HUD, landlords, and housing authorities to improve landlord engagement to ensure individuals such as people experiencing homeless can obtain housing in the private market. The Secretary acknowledged that HUD programs need landlords, and they are currently working on initiatives to incentivize and engage landlords.
Congressman Ben Cline (R-VA) discussed policies related to homelessness and mental health. The Congressman shared that his district expressed concerns from homeless service providers regarding programs and policies that do not treat underlying causes of homelessness such as mental illness. He asked, “Why is HUD using old data to inform policies? Why do we conduct PIT (point-in-time) counts during the coldest month of the year AND why is it only once a year?” Secretary Fudge shared the same concerns regarding data collection and aggregation.
Congressman John Rutherford (R-FL) praised the continuum of care program and how the wraparound services are significant to the community, especially justice-involved individuals. He acknowledged that housing is a big challenge for those who are justice-involved. He noted his involvement in the second chance re-entry task force, a bipartisan task force focused on creating policies to help justice-involved individuals seek housing, employment, and health care.
Lead hazards in public housing were mentioned by both parties. Congressman Rutherford asked how HUD was prioritizing lead removal. Congressman Adriano Espaillat (D-NY) expressed concerns regarding the Rental Assistance Demonstration (RAD) program and if it can be used to remove lead in housing. The Secretary shared that lead removal is a huge priority with HUD.
Congressman Peter Aguilar (D-CA) asked how HUD is working with departments such as Health and Human Services (HHS) and Medicaid services to access health care services for people experiencing homelessness. During this questioning, the Secretary shared that “housing really is a social determinant of health.”
While the HOME Investments Partnership Program (HOME) and Community Development Block Grant Program (CDBG) are rumored to be on the chopping block for cuts this year, only HOME was discussed by Republicans during the hearing. Concerns surrounding the HOME spend out rate were expressed in skepticism for more funding, when additional and substantial funds were given in the American Rescue Plan Act, and questioning why HOME funds are difficult to use.
SENATE HEARING OVERVIEW
The center of discussion for the Senate THUD appropriations subcommittee hearing also focused on housing and health, homelessness, and landlord engagement in the Housing Choice Voucher Program (HCVP). Both parties expressed their concern for the homeless population, especially families and children and rural areas. Secretary Fudge also conveyed the importance of ensuring that the FY 2024 funding request for HOME is important to increase affordable housing. According to the Secretary, the proposed budget for the HOME program will bring about 15,000 new homes if the FY 2024 request is enacted.
Health And Housing
Subcommittee Chairman Schatz discussed the barriers of using Medicaid waivers to support case management and housing services, especially for people experiencing homelessness. The Senator shared that complications and delays with billing impedes providers from helping the homeless population. Chairman Schatz asked the Secretary how HUD is helping with this challenge. The Secretary shared that HUD and HHS launched a joint technical assistance center. HUD is speaking with different groups to see how they work around certain regulations and provide technical assistance to providers who use the waivers.
The Secretary also announced that $25 million will be allocated to housing authorities for supportive services and more resources for mobility services next month. However, funding like this would be significantly lessened if Congress maintained FY 2022 levels.
Homelessness
Subcommittee Ranking Member Hyde-Smith voiced her concern for homelessness in rural areas and asked for the Secretary’s commitment to improving this problem.
Vice Chair Susan Collins (R-ME) of the Senate Committee on Appropriations asked, “What are we doing for the homeless population who are elderly?” The Secretary shared that the challenge is that we do not have enough senior housing or housing where people can age in place.
Landlord Engagement
Senator Collins asked how we can encourage landlords to house individuals experiencing homelessness, especially those who are chronically homeless. The Secretary acknowledged that engaging landlords to house individuals experiencing homelessness is difficult. However, the Secretary shared that offering master leases to certain properties, creating toolkits to serve as resources, and finding incentives can improve landlord engagement.
Choice Neighborhoods Initiative
Senator Christopher Van Hollen (D-MD) and Senator Christopher Coons (D-DE) voiced their support for the Choice Neighborhoods Initiative (CNI). The Secretary offered that CNI truly transforms neighborhoods and helps these communities with moving away from segregation based on poverty. However, the Secretary did note that there needs to be more resources for CNI.