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HUD Issues Operating Subsidy Notice for 2023 First Quarter

HUD is in the process of obligating Operating Subsidy grants for the months of January, February, and two to three weeks of March 2023. The explanatory HUD notice can be accessed here. In a meeting with HUD, staff explained that HUD is putting out as much operating funding as possible because of uncertainty surrounding passage of the FY 23 appropriations bill.  

Nearly three months into the fiscal year, we are currently operating under a Continuing Resolution (CR) that expires on December 16. Congressional leaders have reached an agreement on topline spending numbers, allowing leadership to move forward with designating funding to all twelve appropriations committees, including Transportation, Housing and Urban Development, and Related Agencies (T-HUD). Congress will now pass a one-week CR to keep the government funded through December 23 while it drafts the FY 23 legislation.  

According to the HUD notice, the initial operating fund proration is 95 percent, but this is subject to change once FY 23 appropriations have been determined and some other technical factors are considered. HUD staff asked PHADA to alert members that the funding that is being released is slightly higher than what would normally be put out in the first quarter due to concerns that a final spending bill might not be enacted. This means that the remainder of funds for March and April will be comparatively lower. 


Members Take Action on HUD Programs and LIHTC 

It is critical that members weigh in with their Representatives and Senators and ask them to enact a spending bill for FY 23. Members should also encourage their elected officials to alert leadership of our funding priorities and to support the higher of the House and Senate numbers, which can be accessed here. It is also possible that the important LIHTC provisions that PHADA has been working on with other housing credit advocates to enact will be included in the spending package. Members should urge lawmakers to express their support to leadership on the Senate Finance Committee and the House Ways and Means Committee. It is especially important that Republican members make their support known for the LIHTC provisions. 

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