HUD Allocates New Vouchers and Administrative Fees

On August 2, HUD published a notice titled “Allocation of New Incremental Housing Choice Vouchers and Special Administrative Fees” (Notice PIH 2023-21 (HA)). The notice explains the process for awarding approximately four thousand new general purpose vouchers to PHAs and also explains how administrative fees related to these vouchers will be distributed. To be eligible for these vouchers, an entity must be a PHA that administers the Housing Choice Voucher (HCV) program through an existing Consolidated Annual Contributions Contract.

The Department will notify PHAs of their allocation. The notification will specify the number of vouchers allocated and provide instructions for declining the vouchers. Agencies may decline a voucher by replying to NewHCVs@hud.gov by the deadline indicated in the notice.

Voucher Allocation

The vouchers will be distributed based on an allocation formula based on need for an area, representation of both rural and urban areas, and high utilization rates. The allocation formula weighs certain factors to estimate the need for an area:

• 10% of the weight of the formula need depends on the number of extremely low and very low income families overcrowded in an area;
• 75% of the weight of the formula need depends on the number of extremely low income families that are severely cost burdened, overcrowded, or without a kitchen or plumbing; and
• 15% of the weight of the formula need is determined by the number of very low income renters in an area.

Each state receives a minimum of 20 vouchers and each U.S. territory receives a minimum of five vouchers.

Agencies that have utilization in the highest 25% of their state or have a leasing utilization above 95.08% are eligible for a share of vouchers in their state. The notice states that “[c]apacity is measured as the number of leased vouchers divided by the number of vouchers each PHA could potentially lease using available funds, including unspent funding reserves.” Agencies eligible for fewer than five vouchers will receive none, except for PHAs in rural areas, which may receive as few as three vouchers.

Administrative Fee Distribution

Housing agencies that receive vouchers will receive the following administrative fees:

• One-time lease up fee – each PHA receiving vouchers will receive an initial $250 per voucher.
• Homeless/DV incentive lease up fee – PHAs will receive a $250 incentive fee for vouchers leased to families experiencing homelessness or survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking. A PHA may receive this $250 fee up to two times the number of vouchers it has been allocated (e.g., a PHA receiving 20 vouchers may receive this fee up to 40 times).
• On-going administrative fee – PHAs will receive administrative fees under the current administrative fee formula in use.

The full notice may be found here.