On March 5th, HUD released a notice describing how PHAs could voluntarily relinquish their Emergency Housing Vouchers (EHVs) back to HUD and the procedure by which HUD would reallocate those vouchers to other housing agencies. The notice is titled “Emergency Housing Vouchers – Reallocation of Awards” [Notice PIH 2022-06 (HA)].
The process to voluntarily return an EHV award may involve multiple steps. First, PHAs that wish to return their EHVs should inform HUD (email email@example.com). The PHA will then work with a financial analyst in the Financial Management Center (FMC) to identify all funds associated with EHVs which must also be returned to HUD. Emergency Housing Voucher Housing Assistance Payments (HAP), services fees, and administrative fees are restricted to EHV program activities. If the housing agency improperly used any EHV-associated funding, it must be repaid. Housing agencies will also be required to cooperate with the FMC and other HUD staff in determining which funds should be returned.
Reallocation of Voluntarily Returned EHV Awards
HUD’s reallocation formula is based off of the initial allocation formula in Notice PIH 2021-15. The reallocation formula also considers EHV utilization. The reallocation formula will look for high-capacity PHAs (i.e., those PHAs with a with a high homeless need or those PHAs with a high estimate of at-risk homelessness, while ensuring geographic diversity and adjusting for PHAs below the minimum threshold to receive a voucher) that have a history of high EHV utilization (95% or higher). Housing agencies that are selected by this method will be notified by HUD and given the opportunity to accept or decline the additional EHVs.
Fees Accompanying EHVs
Housing agencies that accept additional EHVs will be eligible for additional funds.
- Issuance Reporting Fees – PHAs will receive $100 for each new EHV that is leased if the PHA reported the issuance within 14 days of issuance.
- Ongoing Administrative Fee – PHAs will receive the full Column A administrative fee amount (per Notice PIH 2021-15, page 10).
- Service Fee – PHAs will receive $3,500 for each additional EHV they accept. The scope of allowable activities is determined by Notice PIH 2021-15.
Later this year, HUD will issue another notice that describes the process for revoking and reallocating EHVs for PHAs that do not utilize a high percentage of them. Although this notice will be published later in 2022, at this time, NAHRO does not anticipate HUD will involuntarily reallocate EHVs until 2023.
The full notice can be found here.