In mid-December, the Deputy Assistant Secretary of the Office of Public Housing and Voucher Programs, Milan Ozdinec, sent a letter to PHA Executive Directors informing them that due to the Continuing Resolution (CR) that is currently in effect until April 28, 2017, HAP renewal funding for the months of January and February will be at 95 percent proration. This is because HAP renewal costs nationally have risen, but the HUD office of Housing Voucher Programs will receive the same funding that it received last calendar year at this time.
The letter states that “[a]ctual HAP disbursements . . . for January and February 2017 were based on the higher of the calculated need based on your PHA’s September HAP (plus a 2 [percent] margin) or 1/12 of estimated eligibility. Estimated eligibility was calculated based on CY 2016 HAP expenses through September 2016.” The final three months were estimated by using September 2016 expenses as a proxy figure. Administrative fees will be advanced based on the September 2016 quarterly reconciliation. The administrative fee proration will be adjusted as new information becomes available.
NAHRO is working to inform legislators of the problems that operating on a CR cause Housing Choice Voucher (HCV) program managers. To prevent a continued HAP proration throughout the year, Congress needs to pass a budget for FY 2017 with adequate funding for the HCV program’s continuing needs. If Congress chooses to extend the CR for the entire year, then Congress needs to provide an anomaly for a sufficient level of funding for vouchers. NAHRO will continue to work to make these concerns known to legislators.
HUD’s letter concerning HCV funding proration can be found here.