Voucher Programs with Higher Per Unit Costs (PUC) Can Apply for Additional HAP

Earlier this summer, HUD published a notice titled “CARES Act – Housing Choice Voucher (HCV) Program Housing Assistance Payments (HAP) Supplemental Funding” (PIH Notice 2020-17). This notice allows for PHAs to apply for additional CARES Act funding for significant increases in per unit cost (PUC) due to extraordinary circumstances. Applications for this funding must be submitted by October 31, 2020.

If a PHA has previously submitted applications for calendar year (CY) 2020 HAP renewal set-aside funding under the “Unforeseen Circumstances” category due to PUC increases caused by COVID-19, the PHA must resubmit according to instructions in this new notice. For those who submitted under the “Unforeseen Circumstances” category for other reasons, they are not required to resubmit, but may do so if their PUC has further increased because of COVID-19.

Public Housing Agencies must meet certain requirements to access this funding. First, applications must be submitted by Oct. 31, 2020. Applications will be reviewed by HUD on a rolling basis. Second, to be eligible, a PHA must have a PUC that is 102 percent or greater than the PUC HUD used to determine the PHA’s CY 2020 renewal funding. The PHA must also meet the submission requirements detailed in the notice.

The PHA will also receive a priority status. If the PHA’s HAP reserves contain an amount that is less than the amount needed to cover 3 months of HAP expenses, the PHA will qualify for priority status. Public housing agencies qualifying for priority status will receive funding shortly after their application is processed, subject to funding availability. Those agencies that receive regular priority will receive notification that their application has been approved, but funding will not be made until November.

Group Complete ApplicationPUC > than 102%HAP Reserve < 3 months
PriorityEligible for Immediate fundingYesYesYes
RegularTo be funded in Nov. 2020YesYesNo
IneligibleIneligible for FundingNoNoN/A

To be eligible for funding, a PHA must submit a completed Appendix B in the notice to 2020COVIDHCV@hud.gov.

These funds may not be rolled into restricted net position (RNP) and must be tracked and accounted for separately through the period of availability.

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