HUD Provides Guidance for PHAs with Voucher Shortfalls

HUD’s Office of Public and Indian Housing (PIH) issued Notice PIH 2018-05 providing guidance regarding public housing agency (PHA) eligibility in FY18 for shortfall funding to prevent terminating rental assistance for households because the PHA has insufficient funds. When drafting the Notice, PIH could not be certain whether there would be yet another Continuing Resolution (CR) or a full appropriations act, and whether either would have provided for shortfall funding. The Notice was issued in the morning of March 23, hours prior to the president signing the FY18 Appropriations Act – which does make shortfall funding one of four options of potential uses under a $75 million set-aside.

The PIH Shortfall Prevention Team (SPV) and Field Office staff are identifying PHAs at risk of shortfalls. To receive shortfall funding, a PHA must stop issuing vouchers to applicants, not absorb portability vouchers from other PHAs, and not provide a tenant-based voucher to a household that wants to voluntarily move from a project-based voucher (PBV) unit.