HUD Releases Guidance for Shortfall and Administrative Fees for HCV Program

On April 26, HUD released a notice (PIH 2017-07) titled “Guidance Related to (1) Eligibility for Potential Shortfall Funding Under the Calendar Year (CY) 2017 Housing Assistance Payments (HAP) Renewal Set-Aside for the Housing Choice Voucher (HCV) Program and (2) CY 2017 Administrative Fees.” The notice provides guidance for eligibility for shortfall funding when available and information on administrative fees.

Shortfall Guidance – For PHAs that have been identified by their field offices or the Shortfall Prevention Team as at risk or potentially at risk for a shortfall, the following actions must be taken upon instruction by the Shortfall Prevention Team:

1. Continue to work with the Field Office or Shortfall Prevention Team;
2. Cease issuing vouchers as of the date notified of the potential shortfall (though certain exceptions apply);
3. Rescind vouchers that were issued to applicant families and stop leasing rescinded vouchers as of the date the PHA is notified of the potential shortfall;
4. Cease absorbing portable vouchers; and
5. Stop issuing vouchers for households that have project-based vouchers, but want to voluntarily move with tenant-based assistance.

If shortfall funding is available, it will be made contingent on housing authorities have taken the steps listed above, when instructed by the Shortfall Prevention Team.

Administrative Fee Guidance – For CY 2017, HUD intends to make $10,000,000 available for PHAs that need additional funds to administer their Section 8 programs. The following fee categories are available:

1. Homeownership Fees – HUD provides a $200 special fee for every homeownership closing reported in PIC for families participating in the Voucher Homeownership, Section 8 Family Self-Sufficiency, or Section 8 MTW Homeownership programs.
2. Special Fees for Multifamily Housing Conversion Actions – For multifamily housing conversions, a special (one-time) fee of $200 will be provided for each unit occupied on the date of the eligibility event.
3. Special Fees for Portability – Receiving PHAs, where portability vouchers comprise a significant portion (20 percent or more) of their vouchers under lease, are eligible for a special fee. While PHAs do not need to apply for these funds, PHAs should ensure that all PIC data has been updated and successfully submitted no later than 5 pm ET, May 22, 2017.
4. Special Fees for Audit Costs Related to HCV Voluntary Transfers – To request fees under this category, please see notice PIH 2015-22 titled “Process for Public Housing Agency Voluntary Transfers and Consolidations of Housing Choice Vouchers, Mainstream 5 Year Vouchers, Project-Based Vouchers and Project-Based Certificates.”
5. Other special fees under the Secretary’s discretion.

Blended Administrative Fees –  PHAs that serve multiple administrative fee areas may request a blended rate based on the actual location of their assisted units. Requests for blended rates must be received by, close of business, 5 pm ET, May 22, 2017. PHAs can send electronic requests for blended rate fees by emailing PIHFinancialManagementDivision@hud.gov. The subject line should read “PHA Number (i.e., PHA xxx), 2017 Request for Blended Rate Administrative Fees.”

Higher Administrative Fees – A PHA that operates over a large geographic area (multiple counties) may request higher administrative fees. The PHA will have to submit actual costs at the end of the calendar year to enable HUD to determine if the approved increase was needed. To apply for higher administrative fees, a PHA must submit certain documentation to their assigned Financial Analyst by the close of business, 2 pm CT, May 22, 2017.

NAHRO will provide additional coverage of this notice to our members. The notice can be found here.