HUD Sends HCV Get-Ready Letter to PHA Executive Directors

On Jan. 18, HUD sent a letter to PHA Executive Directors titled “CY 2022 Housing Choice Voucher Program (HCV) Renewal Awards.” The letter provides information on current and future prorations of voucher accounts to help HCV program administrators in planning their program.

The letter notes that the federal government is operating under a continuing resolution (CR), which will fund federal programs (including the HCV program) at the same rate as last year until Feb. 18, 2022. Under this CR, the HCV housing assistance payment (HAP) proration will be 98.5% for Jan. and Feb. Similarly, under this CR, the HCV administrative fee proration will be 84% for Jan. and Feb. Mainstream vouchers will receive the same prorations for its HAP and administrative fee accounts respectively. At this time, PHAs may anticipate HAP and administrative payments for Feb.

The letter also provides prorations for amounts in Senate and House draft appropriations bills for CY 2022. The estimate for the House bill is 90% for the administrative fee and full funding for HAP. The estimate for the Senate bill is 93% for administrative fee and full funding for HAP. To estimate the total renewal amount required for HAP nationally, HUD applied a national average inflation factor of 3.73%. (Inflation factors for individual PHAs will vary.) Preliminary inflation factors for individual PHAs can be found in HUD’s two-year forecasting tool.

Some PHAs may hear from HUD staff, if HUD staff feels that those PHAs may experience a shortfall or have significant leasing potential. Finally, the deadlines to submit CY 2021 costs and leasing adjustment within the voucher management system is January 28, 2022.

The prorations provided by the letter are summarized in the table below.

 2022 CR (Jan. and Feb.)2022 Senate Approps. Bill2022 House Approps. Bill
Administrative Fee84%93%90%

The full letter can be found here.