HUD’s Office of Public and Indian Housing (PIH) issued PIH Notice 2021-23 implementing funding adjustments to calendar year 2021 (CY21) Housing Assistance Payment (HAP) renewal funding allocations for the Housing Choice Voucher (HCV) and Mainstream Voucher programs. The “American Rescue Plan Act of 2021” (ARP) provided $200 million for adjustments for PHAs that experience a significant increase in voucher per-unit cost (PUC) due to extraordinary circumstances (Extraordinary Circumstances) or that, despite taking reasonable cost-saving measures, would otherwise be required to terminate rental assistance for families as a result of insufficient funding (Shortfall Funds).
Significant Increase in PUC Due to Extraordinary Circumstances
For PHAs (including Moving to Work PHAs) that experience a significant increase in voucher PUC in CY21, voucher renewal funding adjustments will be based on those cost increases. Mainstream Vouches are targeted to non-elderly disabled families. To be eligible, a PHA’s PUC based on the most recent month must be 102% greater than the PUC used to determine the PHA’s original CY21 HAP renewal funding, and the PHA must have less than four months of reserves.
PHAs that previously applied for funding under the Unforeseen Circumstances CY21 HAP set-aside (see PIH Notice 2021-10) do not have to resubmit a funding request. For PUC increases from CY20, PHAs should refer to PIH Notice 2021-10 for guidance on the second round of HAP set-aside funding regarding the Unforeseen Circumstance category.
If a PHA’s CY20 end of year HAP adjusted reserve is less than the amount needed to cover two months of the PHA’s average CY21 HAP expenses, the PHA application qualifies for priority status. PIH will fully fund priority applications before considering other applications. If there is funding remaining after the priority applications have been fully funded, PIH will prorate the funding for the other applications if the remaining funding is insufficient to fully fund those applications.
Adjustment funding awarded under the Extraordinary Circumstances category must be used by June 30, 2022.
Shortfall Funds
The criteria and calculation methodology for PHAs requesting Shortfall Funds are the same as those for the HAP set-aside Shortfall category described in PIH Notice 2021-10. PHAs that applied for Shortfall Funds under the CY21 HAP set-aside (see PIH Notice 2021-10), do not have to resubmit a Shortfall Funds application. Adjustment funding under the Shortfall Funds category must be used by December 31, 2021.
PIH Notice 2021-23 is at: https://bit.ly/3iVFMpI
PIH Notice 2021-10 is at: https://bit.ly/2USJd8N
More information about the Housing Choice Voucher program is on page 4-1 of NLIHC’s 2021 Advocates’ Guide.
More information about the Mainstream Voucher program is on page 4-23 of NLIHC’s 2021 Advocates’ Guide.
More information about the Moving to Work (MTW) Demonstration is on page 4-60 of NLIHC’s 2021 Advocates’ Guide.