Inadequate Congressional appropriations and reductions due to sequestration continue to strain the Housing Choice Voucher program. Consequently, public housing agencies (PHAs) are asking HUD whether outside sources of funding may be used to supplement federal sources. PIH Notice 2013-28, issued on December 16 by HUD’s Office of Public and Indian Housing (PIH), addresses such questions.
The Notice states that PHAs may use outside sources of funds only to prevent current voucher holders from being terminated. In order to do so, the PHA must take all reasonable cost-saving measures; have a HUD-confirmed financial shortfall, and obtain HUD approval. Examples of outside funding sources include net proceeds from public housing demolition or disposition, PHA Central Office Cost Center funds, state funds, philanthropic funds, and Mod Rehab administration fees from the Housing Certificate Fund. The leasing and costs covered by these sources will be included to calculate voucher renewal funds in the next calendar year.
In addition, the Notice makes it clear that voucher holders who would be terminated due to insufficient funding could be assisted with the HOME program’s Tenant Based Rental Assistance option (TBRA). These households could receive a local preference to return to the voucher program once adequate voucher funds are available.
Outside funds may not be used to lease up to a PHA’s allowable voucher baseline, maintain current leasing level, or otherwise compensate for the loss of leased units through attrition brought about by limited funding.
PIH Notice 2013-28 is available at: http://bit.ly/19EDVgC