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New Policy Provisions in FY 21 HUD Budget

Seth Embry, PHADA Policy Analyst

The President’s FY 21 budget has received a lot of attention for what was not included – sufficient funding to maintain housing assistance for millions of households or for housing authorities (HAs) to serve them. However, there were policy provisions that reveal the Department’s priorities and should cause careful contemplation.

 

Tenant-Based Rental Assistance

The Administration proposes to remove language limiting HUD from funding agencies for more vouchers than authorized under their ACC. While the budget documents do not go into detail regarding this proposed change, it would be expected to bolster efforts to increase utilization. If this language were to be removed, it would still be likely that HUD would prohibit HAs from over-leasing on an annual basis but would allow and support over-leasing on a monthly basis. Absent the explicit threats in HUD’s historical warnings against over-leasing HAs may be more aggressive in issuing vouchers and leasing than they would otherwise.

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