HUD Increases HCV Administrative Fee Proration

In a letter to PHA Executive Directors on Wednesday, August 30, 2017,  HUD announced that it had calculated each PHA’s Administrative Fee eligibility for the months of January to June and established an estimated proration factor. In March of 2017, the proration factor was slightly higher than 74 percent. HUD “[t]hrough the use of recaptured and carryover funds that were reprogrammed” was able to increase the national administrative fee proration to “be around 76%-77%.” The Department will provide a 77 percent proration from between January to June with a 76 percent proration for the final six months of the year. This is only an estimated proration factor. The final reconciliation will determine the final proration factor.

While NAHRO is pleased at the increase in the proration of the administrative fee, it is still far from the full funding that is needed to run the Housing Choice Voucher program. NAHRO continues to educate policy makers about the need for full funding to properly administer affordable housing programs.

9/6/17 update – HUD has sent an email on the administrative fee proration stating “[a]t this point, HUD has reprogrammed available carryover funds, which have increased the national proration to 77% through June 2017. However, the final administrative fee reconciliation (December 2017), which will account for the total number of units leased for CY 2017, will determine the final administrative fee proration.”

9/11/18 correction – typographical error for the old proration was corrected.

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