HUD Issues Second HCV Get Ready Letter – Plan for Higher Funding

In mid-Feb., HUD sent a letter to PHA executive directors. The letter informed PHAs of their individual inflation factors for the Housing Choice Voucher (HCV) program. While HUD had previously revealed that the national average inflation factor for 2023 would be 10.13%, the new letter provides PHAs with their individual inflation factors (which may differ substantially from the national factor). The inflation factor is used by HUD to calculate funding for voucher programs for the upcoming year (i.e., the inflation factor, as a whole number, is multiplied by the renewal funding to calculate the program’s total funding for the year).

In addition to being provided in the letter, the inflation factor has also been added for each individual PHA that has a voucher program in the Two-Year tool. The Two-Year tool is a spreadsheet created by HUD, pre-populated with individualized program data, that PHAs can use to help plan their voucher programs.

This year’s inflation factor is substantially larger than previous years. Housing agencies should plan for a larger yearly increase in funding than they may typically be used to.

The Two-Year Tool can be found here.

The Department has also created a one-pager with links to tools to help increase utilization that can be found here.

Finally, the Department has created a video that provides an overview of the HCV funding process (see below).

HUD Releases New BABA Waiver Delaying Implementation for Most Programs Until 2024

HUD has released a new public interest waiver delaying the implementation of the Build America, Buy America Act (BABA) for most HUD programs. The implementation dates are as follows for the following programs and purchases.


  • Community Development Block Grants used for iron and steel: November 15, 2022;


  • Choice Neighborhood and Lead Hazard Control and Healthy Homes grants used for iron and steel: February 22, 2023;
  • Recovery Housing Program grants used for iron and steel: August 23, 2023;


  • Choice Neighborhood and Lead Hazard Control and Healthy Homes grants used for construction materials and manufactured products: August 23, 2024;
  • Community Development Block Grants used for construction materials and manufactured products: Fiscal Years 2024 and 2025;
  • Recovery Housing Program grants used for construction materials: Fiscal Year 2024 and manufactured products: Fiscal Year 2025;
  • All other HUD programs receiving Federal Financial Assistance used for iron and steel (not including HOME, Housing Trust Fund, and Public Housing funding used for maintenance): February 22, 2024; and
  • All other HUD programs using Federal Financial Assistance (including for maintenance) for construction materials and manufactured products: August 23, 2024.

These dates apply to when funds are obligated by HUD to recipients. For example, only Public Housing Capital Fund dollars obligated on or after August 23, 2024 would fall under BABA requirements but those obligated before this date would not. Because the current public interest phased implementation waiver runs through February 21, 2023 and this new proposed waiver will not be effective until after its comment period ends March 2, 2023, funding obligated between these two dates would be subject to BABA requirements. However, HUD has informed NAHRO that the department will not allocate funding to agencies during this gap to ensure funds do not fall under BABA.

For more information about this waiver, see the waiver text here, NAHRO Direct News, and the February 28 edition of The NAHRO Monitor.

FHEO Notice on Filing VAWA Complaints and HUD’s Investigatory Authority

In late Jan. HUD’s Office of Fair Housing and Equal Opportunity (FHEO) published a notice titled “Notice to Public Regarding FHEO Enforcement Authority and Procedures: Violence Against Women Act 2022 (VAWA)” (FHEO 2023-01). The 2022 reauthorization of the Violence Against Women Act (VAWA) included new requirements for HUD to implement and enforce. The notice implements those requirements related to the filing and processing of individual VAWA complaints and notifies the public of HUD’s authority to investigate VAWA violations.

The notice states that FHEO will “implement and enforce the housing provisions of VAWA with, and in a manner that provides, the same rights and remedies as those provided for in the Fair Housing Act.” Additionally, the notice announces that HUD will engage in rulemaking to fully implement the compliance review provisions of the 2022 reauthorization of VAWA.

People who believe their VAWA rights have been violated may file a complaint here.

The full notice may be found here.

Office of Management and Budget Releases Proposed Rule for the Build America, Buy America Act

Comments due March 13, 2023

The Office of Management and Budget (OMB) has continued implementing the Build America, Buy America Act (BABA) by releasing a proposed rule that clarifies and revises BABA requirements.

First, the proposed rule seeks input on definitions of materials covered by BABA—construction materials, manufactured goods, and iron and steel—as well as “suggestions for reducing burden for recipients” of Federal Financial Assistance.

Second, the notice provides text of Part 184, an addition to 2 CFR chapter I, “Office of Management and Budget Governmentwide Guidance for Grants and Agreements.”

Find the notice here and see the Feb. 28 edition of The NAHRO Monitor for further details.  

HUD Awards $315 Million in Grants to Address Unsheltered and Rural Homelessness

On Feb. 2, HUD released a Special Notice of Funding Opportunity (NOFO), which awarded $315 million in grants to Continuums of Care (CoC) to address unsheltered and rural homelessness. The grants will support 46 cities that span across 30 states. Among the total funding, over $54.3 million is allocated to support rural housing with over $260.3 million going to support unsheltered homelessness.

Grantees are encouraged to coordinate their planning efforts collaboratively with partners that may include healthcare providers, PHAs, other HUD-assisted housing providers, and people with lived experience. Additionally, more of these grants are expected to be announced in the coming weeks for other communities.

For the list of CoCs awarded see here.