On Jan. 5, HUD sent an HCV Get Ready Letter to PHA Executive Directors. The letter informs PHAs “of the status of HCV program funding, projections for calendar year (CY) 2023 renewal funding” and certain other items.
The Department estimates that the overall funding proration levels for 2023 will be the following:
- 99% for Housing Assistance Payments (HAP); and
- 91% for administrative fees.
Housing agencies should anticipate an offset to ensure that there is enough funding for 100% of voucher renewal expenses. The Department calculates the national average inflation factor to be 10.13%, though individual agencies will have their own individual inflation factors. In absolute terms, there has been an increase in HAP and administrative funding, and HUD recommends that PHAs make adjustments to account for this increase.
Additionally, housing agencies should expect timely HAP and administrative fee disbursements for the HCV program and the mainstream voucher program through Feb. 2023. These payments have been obligated as follows:
- Jan. and Feb. 2023 HAP obligations at 100% proration of estimated CY 2022 eligibility;
- Jan. and Feb. 2023 administrative fee obligations at 89% of estimated CY 2023 eligibility; and
- Jan. and Feb. mainstream voucher funding at the same levels for the respective accounts as listed above.
The deadline to submit CY 2022 costs and leasing adjustments in the Voucher Management System (VMS) is Jan. 27, 2023. All CY 2022 PIC reporting must be submitted by 4 pm on March 31, 2023.
The full 2023 HCV Get Ready Letter may be found here.