HUD Publishes Rate Reduction Incentive Guidance

Requests due July 31, 2023

HUD has released PIH Notice 2023-17. This notice updates the prior 2022 guidance on the Rate Reduction Incentive program (RRI) in public housing and several related utility and Operating Fund programs by changing the request date to July 31 each year. The RRI allows PHAs to keep a portion of cost savings—generally half—from specific types of practices that decrease its utility rate to be used for Operating Fund purposes. The 2022 notice modified and made additions to the RRI eligibility, request, and calculation processes. It also described program requirements for participating PHAs. Notice 2023-18 maintains those requirements.