Follow Us! 

HUD Issues FY 23 HCV Funding Notice

On April 4, HUD published PIH Notice 2023-07: Implementation of the Federal Fiscal Year (FY) 2023 Funding Provisions for the Housing Choice Voucher Program. This Notice covers calculation of Calendar Year (CY) HAP Renewal Funding, Tenant Protection Vouchers, Administrative Fees and Special Fees, HUD-VASH funding, Tribal HUD-VASH Renewals, Mainstream Vouchers, and the Family Unification Program. The notice also addresses New HCV Incremental Vouchers, availability of $200 million HAP Set-aside eligible categories and submission requirements, and specific provisions for Moving To Work agencies, and Moving To Work Expansion agencies. 

The notice also includes sections providing “important information regarding administrations of the public housing agency’s (PHA’s) HCV Program.” These topics include the inapplicability of this notice to Mod-Rehab renewal, SRO programs, or the Emergency Housing Voucher (EHV) Program; reminders to utilize HAP RNP and HUD-held Program Reserves for HAP expenses and to utilize the two-year tool; reference to PIH Notice 2022-18 regarding use and reporting of administrative fees and UNP; the need for continued VMS/FASS reporting and data integrity; prohibitions on over-leasing included in the 2023 Act; and reference to PIH Notice 2013-28 regarding the use of outside sources of funds in the HCV Program. 


Renewal Funding and TPVs

Agencies have received or will shortly receive individual renewal funding notices which are based on the appropriated HAP Renewal Funding and the requirement of the 2023 Act to re-benchmark the renewal formula based on leasing and cost data in VMS for calendar year 2022. This section of the notice includes information on adjusted allocations for first-time renewals of TPVs and SPVs where the initial increment was for less than 12 months. 

With over $330 million available for Tenant Projection Vouchers, the notice indicates that HUD will, at least initially, allow TPVs for vacant units that were occupied within the prior 24 months. If demand and costs run higher than anticipated, HUD may suspend this policy and revert to non-eligibility of vacant units in order to ensure that TPVs are available for displaced households. 


New Incremental Vouchers

According to the Notice, HUD will issue a separate operational notice to describe the eligibility formula, uses of funds, and reporting requirements for the $50 million available for new Incremental Vouchers. HUD also indicates it will make $94 million in new incremental HUD-VASH funding available ($40 million from FY 23 and $53 million from remaining prior year funds) to PHAs in 2023 through forthcoming ‘comprehensive guidance’ on the 2023 HUD-VASH voucher allocation and administrative funding.

The Family Unification Program also received $30 million for new incremental vouchers. This Notice states that HUD plans to award $5 million via a NOFO. The remaining $25 million is limited to FUP-eligible youth via the Foster Youth to Independence Program (FYI); $15 million with be awarded non-competitively through a PIH Notice, and $10 million will be awarded via a NOFO.

The notice also includes detailed information on eligibility categories and submission requirements for requesting any of the $200 million available in set-aside funding. 

PHADA Fact Sheets, Issue Briefs, and Position Papers

Read PHADA's in-depth analysis of important issues facing the industry.

Read More