2021 Adjustment Funding for the HCV Program

HUD has published a notice titled “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). In allocating money for Emergency Housing Vouchers, the American Rescue Plan also stated that the money may be used for adjustments in the 2021 voucher renewal funding allocation. This notice makes $200 million available for PHAs that fall under the following categories:

1. They experience a significant increase in voucher per unit cost (PUC) due to extraordinary circumstances (i.e., extraordinary circumstances); or
2. That despite taking reasonable cost saving measures, they would otherwise be required to terminate rental assistance for families as a result of insufficient funding (i.e., shortfall funding).

Extraordinary Circumstances

This category is for PHAs and Moving to Work (MTW) PHAs that administer the voucher program or have Mainstream vouchers. To qualify, a PHA’s PUC must be 102% or greater than the PUC HUD used to determine the PHA’s calendar year (CY) 2021 renewal funding and PHAs must have less than four months of reserves. If the PHA’s reserves account has less than the amount needed to cover two months, the application will receive priority status. HUD will fully fund priority applications before considering regular applications. If the PHA has previously applied for funding from the extraordinary circumstances funding, it does not need to reapply. Adjustment funding in this category must be used by June 30, 2022 or will be recaptured. Applications should be submitted to 2021ARPApplications@hud.gov by 5 pm local time on Tuesday, August 10, 2021.

Shortfall Funds

The criteria for these shortfall funds are the same as for the shortfall category in PIH Notice 2021-10. The reporting requirements for these funds will differ depending on the source of funding (the appropriations act HAP set-aside or the American Rescue Plan). If the funding is from the American Rescue Plan, PHAs must track and report the funding and expenses of the funds according to the requirements of this notice. If a PHA has previously applied for shortfall funding, it does not need to reapply under this notice. Adjustment funding under this category must be used by Dec. 31, 2021 or will be recaptured.

The full notice can be found here.