 | 511 Capitol Court, NE, Washington, DC 20002 phone: 202-546-5445 fax: 202-546-2280 www.phada.org |
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December 20, 2004
HUD notifies authorities HUD has notified housing authorities of their 2005 Section 8 contract renewal amount. In 2005, Section 8 contract renewals will be funded by taking the average number of units months leased during the May/June/ July, 2004 period and multiplying it by the average cost per voucher during that same period. This product will then be multiplied by the annual adjustment factor (AAF) for 2005 to arrive at the total amount of funding each housing authority will receive for the 12 month period from January, 2005-December, 2005. If the national amount needed based on this formula exceeds the $13.4 billion Congress appropriated, each agency's amount will be prorated down accordingly. This contract renewal amount will be all that agencies will receive for the 2005 calendar year. In 2005, there will be no central fund, no AAF appeal and no restoration of reserves. Agencies must plan their 2005 leasing based on this allocation amount. In 2005, HUD will also be required to recapture reserves down to the one week level. Housing authorities have until December 27 to submit any corrections to HUD's calculation to the Department. Agencies should carefully compare the number of unit months, the average cost per voucher and the AAF HUD has used to make sure they are accurate. If HUD has made a mistake, or if the agency submitted incomplete data in its May/June/July, 2005 voucher management system submission (form HUD 52681-B), the HA should provide documentation to the Department to support a correction in the calculation. The Department must receive an HA's information by no later than close of business Monday, December 27, 2004. Overnight mail (USPS, UPS, Fed Ex, DHL, etc.) must be used with a signature required upon delivery. Standard mail will not be accepted. |
