HUD Announces End of Funding Timeline for EHVs

By: Tushar Gurjal, Senior Policy Manager

On March 6, 2025, in a letter sent to PHA Executive Directors, HUD states that it will obligate a final allocation for “all EHV [Emergency Housing Voucher] HAP [Housing Assistance Payment] funds that remain available to HUD under the American Rescue Plan . . . .” Emergency Housing Vouchers were created by the American Rescue Plan. These vouchers are used to assist families that are in one of the following categories:

• Experiencing homelessness;
• At risk of experiencing homelessness;
• Fleeing, or attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking; or
• Were recently homeless and for whom providing rental assistance will prevent the family’s homelessness or having a high risk of housing instability.

The notice also states that “[a]fter this final allocation, the Department will provide no additional EHV CY [Calendar Year] HAP Renewal funding allocations to PHAs, but the amount allocated is anticipated to extend beyond the end of CY 2025 and those remaining amounts will be available to cover HAP costs in 2026.” The notice notes that PHAs should not expect any additional funding for this program beyond the final allocation amount.

To calculate the estimated renewal funding amount for 2025, HUD uses CY 2024 validated cost and leasing data from the Voucher Management System (VMS). The Department then applies a renewal funding inflation factor (RFIF). The Department may then adjust this amount based on how much EHV reserve funding an agency is holding. Then the Department made certain other adjustments to the renewal amount based on which vouchers cannot be reissued and whether a PHA was issued new EHVs when certain EHV allocations were reallocated. The Department will not prorate the HAP funding for these vouchers.

While there will be no additional funding, if the funds last longer than the anticipated CY 2026, they will not expire until September 30, 2035. The Department will provide additional information on options for managing EHVs in future notices.

Finally, EHV administrative fees and funding for other eligible expenses may only used in support of EHVs and cannot be used for regular HCVs.

The full letter can be found here.