HUD Publishes Guidance on Accessing HCV HAP HUD-Held Reserves During Shutdown

Earlier today, HUD sent an email to Executive Directors informing them that those PHAs administering Housing Choice Voucher (HCV) programs may access their HUD-held Housing Assistance Payment Reserves (HHR) under certain circumstances. In those instances where scheduled payments (for January and February) are not sufficient to meet a program’s Housing Assistance Payment (HAP) need, PHAs may access their reserves.

Specifically, in situations where a failure to act “would result in an imminent threat to the safety of human life or the protection of property,” PHAs may request their HAP reserves from HUD in the following instances:

  1. To protect families that are at imminent risk of termination; or
  2. PHAs that were eligible to receive a payment for January 2019 and did not receive it (e.g., first time Rental Assistance Demonstration (RAD) payment) and need reserves to ensure that the property owner(s) receives a HAP payment to continue assistance and protect the residents at the property.

These funds may only be used for HAP funding. To request the additional payment, please contact Robert.H.Boepple@hud.gov.  The request should include the following:

  1. amount of the payment;
  2. supporting monthly leasing projections;
  3. point of contact email address;
  4. point of contact phone number; and
  5. cost saving measures that PHAs have taken to decrease the likelihood of a shortfall (see PIH Notice 2011-28).

Housing authorities should also review PIH Notice 2013-28 titled “Guidance on the Use of Outside Sources of Funds in the HCV Program.”

HUD’s email guidance can be found here.