HUD Implements HCV Exception Payment Standard Waivers for 2024
On October 12, HUD published a notice titled “Certain Regulatory Waivers for the Housing Choice Voucher (including Mainstream) Program and Streamlined Review Process” (Notice PIH 2023-29). The notice would allow PHAs to use an expedited process to receive waivers from HUD to use a higher payment standard and to apply the payment standard during the Housing Assistance Payment (HAP) contract term. Waiver requests must be received by HUD by midnight on June 3, 2024.
Exception Payment Standards
The notice allows PHAs to request three different payment standard waivers. The first would allow for PHAs to use exception payment standards up to 120% of the Small Area Fair Market Rents (FMRs) for PHAs that have voluntarily or mandatorily adopted Small Area FMRs. The second waiver would allow PHAs to adopt exception payment standards up to 120% of the FMR. The third waiver would allow for a PHA to adopt exception payment standards up to 120% of the Small Area FMRs for PHAs that are currently approved for exception payment standard Small Area FMRs.
In order to request one of the above three waivers, PHAs must meet certain criteria. Either one of the two following criteria must be true. Either the PHA must have a success rate under 80% for the most recent 12-month period for which there is data or more than 40% of the families in the program must be cost-burdened (i.e., pay more than 30% of adjusted income as the family share). In determining these numbers, the PHA should include special purpose vouchers.
Increases to the Payment Standard during the HAP Contract Term
The notice also allows PHAs to apply for a waiver that will allow for PHAs to increase their payment standards for a family at any time after the effective date of the increase (as opposed to the next recertification for the family). To apply for the waiver, the PHA must have “good cause.” Examples of “good cause” include, but are not limited to, instances were the PHA has experienced an increase in family rent burdens or instances where the PHA anticipates potential negative impacts to tenants or the onset of housing instability.
Requesting a Waiver
To request a waiver through the streamlined process, PHAs should email PIH_Expedited_Waivers@hud.gov. Each request should state the following in the subject line: “Streamlined Regulatory Waiver Request, [PHA name and code].” The body of the email should include the PHA business address and a point of contact’s email address; the name of the requested waiver; a justification of the waiver that shows good cause (the justification should include why the PHA needs the waiver and the impact on PHA operations or applicants, if the waiver is not provided); and the requested duration of the waiver (up until December 31, 2024). PHAs should ensure they have the budgetary authority to enact the waiver.
The full notice can be read here.