The Continuing Resolution (CR) appropriating funds for FY13 included a $103 million voucher renewal set-aside for certain circumstances and created a new use for the set-aside, allowing a public housing agency (PHA) without sufficient funds to cover existing vouchers to apply for funds to prevent voucher terminations. An April 26, 2013 letter from HUD’s Office of Public and Indian Housing (PIH) and PIH Notice 2013-12 provided criteria for PHAs seeking “shortfall funds” (see Memo, 5/6 and 5/31). A new notice, PIH 2013-24, makes two revisions to the eligibility criteria for PHAs seeking shortfall funds.
- Because sequestration did not apply to the HUD-VASH program, the notice is revised to make it clear that PHAs receiving shortfall set-aside funds are expected to continue their HUD-VASH leasing efforts, including leasing turnover HUD-VASH vouchers, up to the baseline level of units under all of their HUD-VASH allocations, not just recent allocations as originally specified in Notice 2013-12.
- A PHA that did not expect a shortfall when the April 26 letter was sent, and therefore did not stop issuing vouchers or rescind vouchers remaining on the street, may now apply for shortfall funds if they face a potential shortfall.
Shortfall funds are a priority and “category 1” among four categories for use of the $103 million. As in the past, the set-aside may also be used to cover: significant increases in voucher renewal costs due to portability or unforeseen circumstances; vouchers not in use the previous year because they were held for a project-based voucher commitment; or HUD-VASH.
View PIH Notice 2013-24 at: http://1.usa.gov/uBAGLE