HUD Notice on Voucher Program Management
HUD
Memo to Members: Vol 10, No. 9, March 4, 2005
On February 28, HUD issued Notice PIH 2005-9, on the subject of public housing agency flexibility to manage the housing choice voucher program in 2005. The notice outlines options for PHAs to deal with any shortfall in funds within the limits of current law. Housing agencies have begun implementing a number of these options.
In the notice, HUD reminds PHAs that Congress’ appropriations report requires PHAs to ensure that current elderly and disabled voucher families be protected against significant impacts resulting from adjustments made by agencies to maintain their voucher programs within their 2005 budgets. PHAs are given local discretion to determine “significant impact” while protecting elderly and disabled families during payment standard adjustments and changes in portability policies, for example.
PHAs can lower payment standards. New payment standards would apply immediately to all new admissions, all movers and remaining residents with new housing assistance payment contracts. For all other voucher participants, decreased payment standard amounts are not to be applied until the second regular reexamination after the payment standard is lowered. PHAs may seek a waiver of the delayed application of a new payment standard, as this is a regulatory requirement.
PHAs may also ask HUD field offices for payment standards lower than 90% of Fair Market Rent. However, HUD will not approve such payment standard amounts if the family rent share for more than 40% of vouchers participants exceeds 30% of monthly adjusted income. Again, this is a regulatory requirement that HUD could waive at the request of a PHA, if good cause is demonstrated and “at risk” families are protected. The notice notes that these regulatory waiver restrictions are only applicable to the tenant-based voucher program.
Utility allowances may be adjusted if it is determined that they are too high, and portability as well as moves within the PHA jurisdiction can be denied if the PHA does not have sufficient funds. Occupancy standards may be tightened, PHAs may stop issuing turnover vouchers, minimum rents could increase to $50, PHAs could accelerate income matching and income verification efforts as well as increase the frequency of interim income reexaminations for families reporting no income, and PHAs are encouraged to test for rent reasonableness.
The notice also suggests that voucher assistance termination policies due to insufficient funding be added to the PHA administrative plan. These policies should describe how a PHA will determine which housing assistance payment contracts will be terminated. Any PHA policies with respect to the resumption of assistance for impacted families must also be included in the plan. And, before terminating vouchers on the basis of insufficient funding, the PHA needs to ensure that the determination of such fact is documented.
The notice is available at www.hudclips.org/sub_nonhud/cgi/pdfforms/05-9p.doc.
