Earlier today, HUD published PIH 2020-08 titled “CARES Act – HCV Program Administrative Fees.” This notice details how additional administrative fees allocated in the CARES Act will be distributed to PHAs. The CARES Act allocated $1.25 billion for the Housing Choice Voucher (HCV) program ($850 million for administrative fees and $400 million for HAP). The Department will obligate administrative fees in several actions. This notice details the first action, while forthcoming notices will provide details on future distributions.

Initially HUD will provide approximately $380 million to all PHAs (including Moving to Work agencies). Each PHA will receive approximately 2 months worth of administrative fee at the beginning of May. The amount of funding will be the average of the PHA’s calendar year (CY) 2018 and CY 2019 monthly administrative fee eligibility (at 100% proration or full eligibility) multiplied by two.

• Eligible Uses
  • Any currently eligible administrative costs during the period the program is impacted by the coronavirus;
    • includes necessary upgrades to IT or computer systems to enhance telework capacities and overtime pay for PHA staff to carry-out HCV Program responsibilities;
  • New coronavirus related-activities, including activities to support or maintain the health and safety of assisted individuals and families, and costs related to the retention and support of participating owners:
    • procuring cleaning supplies for HCV units and common areas of PHA-owned PBV units;
    • relocation of families to health units or other designated units for testing, hospitalization, or quarantine (may include transportation costs to these locations);
    • additional costs to supportive services vendors incurred due to coronavirus;
    • costs to retain or increase owner participation in the HCV program;
    • costs for providing childcare of PHA staff that would not otherwise be incurred;
    • costs associated with the delivery of goods, including food and medical supplies that comply with CDC requirements, to program participants;
    • public health security-costs to enforce shelter-in-place, stay-at-home, or visitor-restriction policies;
    • administration costs associated with the implementation of coronavirus-related activities that are not eligible HCV administrative costs;
    • other costs determined by HUD on a case-by-case basis.

Period of availability – the period of availability for these funds is the duration of the calendar year 2020, unless this period is extended by HUD.

Reporting – Unlike regular administrative fees, these funds must be tracked and accounted for separately. Funds not spent must be returned to HUD. Recipients of CARES Act funding in excess of $150,000 have quarterly reporting requirements, including a detailed list of project uses and activities (see notice for full details).

Ineligible expenses – funds may not be used to repay debts or amounts owed to HUD (including OIG, QAD or other monitoring review findings) or program participants. The funds used for salaries must comply with executive compensation requirements.

The full notice may be found here.