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PIH Notice Implements FY17 Voucher Funding Provisions

Each year, HUD’s Office of Public and Indian Housing (PIH) issues a notice explaining how it will implement the latest appropriations act provisions for the Housing Choice Voucher program.  Notice PIH 2017-10 contains the provisions for FY17. While much of the text is like previous years’ notices, this years’ Notice has two provisions that anticipate more public housing agencies (PHAs) will need to tap a set-aside fund to prevent households’ vouchers from termination due to inadequate Congressional appropriation.

Notice PIH 2017-10 includes typical provisions pertaining to tenant protection vouchers (TPVs) and Veterans Affairs Supportive Housing (VASH), Tribal VASH, Mainstream 5-Year Program, and Family Unification (FUP) vouchers. The TPV section the Notice discusses the $5 million set-aside for households living in low vacancy areas who are in danger of paying more than 30% of their income for rent and utilities (see Memo, 8/22/16), elaborates on the difference between relocation and replacement TPVs, and explains that, due to limited funding, TPVs will be provided only for units that were occupied at the time a PHA applied for TPVs (instead of occupied within 24 months prior to an action causing HUD-assisted housing to leave the assisted stock). 

Notice PIH 2017-10 has two provisions indicating that HUD anticipates more PHAs than usual will not have sufficient voucher funding to continue to assist all households that have vouchers.

First, because the appropriations act allows HUD to offset a PHA’s 2017 allocation based on excess amounts of net restricted assets, including any HUD-held programs reserves, HUD will use a small offset for reallocation in 2017 to help prevent the termination of voucher assistance due to insufficient funding.

Second, as in most recent years, the FY17 appropriations act allows HUD to set aside $75 million to adjust PHA allocations under four categories:

  1. Preventing voucher terminations due to insufficient funds (Shortfall Funds)
  2. Unforeseen circumstances and portability cost increases
  3. Project-Based Vouchers
  4. HUD-VASH vouchers

This year, however, HUD estimates that the entire $75 million will be needed to prevent households’ vouchers from termination due to insufficient funds. Therefore, HUD will not take applications for funding adjustments in the other three categories.

As in previous years, to apply for Shortfall Funds, a PHA must stop issuing vouchers (with three exceptions), cease absorbing portable vouchers, and rescind vouchers issued to applicant households. Unlike previous years, the Notice clarifies that a PHA does not have to rescind an applicant’s voucher if the applicant has submitted a Request for Tenancy Approval and the unit has passed inspection. Notice PIH 2017-10 updates the Shortfall Fund eligibility criteria that were in Notice PIH 201-7 (see Memo, 5/1).

Notice PIH 2017-10 is at: http://bit.ly/2slFL6Q

More about Housing Choice Vouchers is on page 4-38 of NLIHC’s 2017 Advocates’ Guide at: http://bit.ly/2ptO8du

More about Tenant Protection Vouches is on page 4-50 of NLIHC’s 2017 Advocates’ Guide at: http://bit.ly/2tqh6xu

More about Family Unification Vouchers is on page 4-43 of NLIHC’s 2017 Advocates’ Guide at: http://bit.ly/2sVFlTv

More about the Veterans Affairs Supportive Housing (VASH) is on page 5-50 of NLIHC’s 2017 Advocates’ Guide at: http://bit.ly/2sr3Ggq