What's Going On?
Hundreds of public housing agencies (PHAs) may be experiencing voucher funding shortfalls for the current fiscal year (FY09). HUD is urging these PHAs not to terminate voucher holders. Instead, PHAs are encouraged to work with HUD to minimize the impact on families and prevent terminating vouchers.
Please work with your PHA so that HUD can be contacted if the agency is moving toward termination. You can contact Linda Couch,
linda@nlihc.org, to discuss how your PHA is responding to a voucher funding shortfall.
Background
At this moment, HUD has about $41 million available to meet the needs of PHAs facing voucher shortfalls. It is very unlikely that this amount will be sufficient to cover the remaining shortfall (HUD has already allocated $89 million). While HUD is working with many PHAs to minimize the impacts of the shortfall on voucher holders, it is critical that agencies contact HUD by August 14 to ensure that HUD has an accurate understanding of the scope of the shortfall so appropriate solutions can be achieved, including seeking solutions from Congress before October 1.
NLIHC is very concerned that the voucher shortfall is causing some PHAs to: recall vouchers that are in the process of being leased up; decrease payment standards; or, hold onto vouchers that, with appropriate funding, would otherwise be provided to the next household on the agency's waiting list.
NLIHC will continue to work with HUD and Congress on solutions to the funding shortfall so that PHAs can issue vouchers to new households and keep rents affordable.
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