Public Housing Authorities Directors Association

Public Housing Authorities Directors Association

          

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Overview of HUD’s HCV Administrative Fee Study and Formula

For several years, federal policymakers have argued that it is hard to build congressional support for increased administrative fees because “we don’t know what it actually costs HAs to run the voucher program.” Based on that premise, HUD conducted a multi-year study designed to answer the question.

In late April 2015, HUD released its report and has since made more data available so that HAs can see how the new numbers affect them. On a positive note, the study confirms our long-held position that the admin fee is grossly under-funded. However, similar to the revised operating fund formula, the new HCV funding method would affect individual HAs in a variety of ways, resulting in whole new set of “gainers and decliners.”

PHADA has covered the admin fee study at length, and suffice it to say, we have several concerns with the study’s sample size, methodology, and other important factors. We will be submitting official comments to that effect and posting them to this page in order to keep our members up-to-date on the latest developments. PHADA continues to believe the admin fee study and proposed formula changes are as important to the HCV program as the Harvard Cost Study was in the public housing arena.

Administrative Fee Data and Analyses

It is important for HAs to understand their seven fee formula variable values and what financial impacts each one would have on their fee funding if adopted. Additionally, some agencies that reviewed and used HUD’s on-line information mistakenly thought that the proposed fee formula is good for them when it is not. To this end, PHADA provided additional analyses of HUD’s fee formula by agency, agencies within each State/Territory, and nationally.

Issue Briefs & Legislative Action Items

  • Link to PHADA’s Issue Brief titled, “Update: Over 100,000 Go Without Housing – PHADA’s Cost Neutral Proposal Would Help Fix this Growing Voucher Leasing Crisis.”
  • Link to PHADA’s PPT presentation titled, “The Voucher Administrative Fee Formula: State Level Impacts and Strategies,” by Jim Armstrong and Jonathan Zimmerman
  • Link to PHADA’s Issue Brief titled, “HUD Must Fix Its Voucher Administrative Fee Study To Address Major Flaws: Congress Should Not Let HUD Change Fee Rates Unilaterally Through Regulation.”
  • Link to PHADA’s PPT presentation titled, “A New Voucher Fee Formula: Impacts and Strategies,” by Jim Armstrong and Jonathan Zimmerman

Comment Letters

On October 4, 2016, PHADA filed a comment letter to HUD along with 78 comments from Housing Authorities and others regarding its proposed administrative fee rule in Section 8 voucher programs. PHADA’s comments, analyses and positions are in support of Housing Authorities of all voucher sizes including small, medium and large, all geographies including city, county, regional and State, and in all rental housing markets including urban, suburban and rural. Some of the topics in PHADA’s comment letter to HUD are covered in this article but not all. A link to the full copy of PHADA’s comment letter is available in the related resources section at:  http://www.phada.org/advocate/article.php?storyid=2575

President’s Forum

Updates on HCV Administrative Fee Study and Formula

PHADA has and will continue to provide its members with updates on relevant information and developments regarding HUD’s HCV administrative fee study and formula.

Surveys and Study Reports Regarding Housing Authorities and Voucher Program

An analysis of HUD’s “Quality Control for Rental Assistance Subsidies Determinations for FY 2012,” report covered in the November 26, 2014 Advocate article titled, Voucher Admin. Fee Cuts Adversely Impact HA Staffing and Rent Calculation Errors.

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