On August 2, HUD published Notice PIH 2023-21, Allocation of New Incremental Housing Choice Vouchers and Special Administrative Fees, summarizing the awards process for approximately 4000 new general purpose vouchers and related administrative fees to housing authorities (HAs). These are regular vouchers, requiring no separate tracking or reporting. Funds for these vouchers are made available through the Consolidated Appropriations Act of 2023.
To be eligible for these vouchers, an entity must be an HA that administers the Housing Choice Voucher (HCV) program through an existing Consolidated Annual Contributions Contract (CACC). HUD will notify HAs of their allocation, specifying the number of vouchers allocated and will also provide instructions for how an HA may decline these vouchers. (Agencies may decline their allocation of vouchers by replying to: NewHCVs@hud.gov by the deadline specified in the award allocation notice sent by HUD).
Vouchers will be distributed through an allocation formula that is based on area need with respect to both rural and urban areas as well as high voucher utilization rates. The allocation formula is weighted for specific criteria in estimating area need:
- 75 percent of the weight of the formula need is based on the number of extremely low income families who are severely cost burdened, overcrowded, and/or without a kitchen or plumbing.
- 15 percent of the weight of the formula need is based on the number of very low-income renters in an area (households between 30 and 50 percent of Area Median Income).
- 10 percent of the weight of the formula need is based on the number of extremely low and very low income families who are overcrowded in an area. (HUD notes a correlation between homeless families and overcrowding.)
Each state will receive a minimum of 20 vouchers and each U.S. territory will receive a minimum of five vouchers. Agencies with utilization in the highest 25 percent of their state or those with a leasing utilization above 95.08 percent are eligible for a share of vouchers in their state.
HAs eligible for fewer than five vouchers under the allocation formula will receive none, except for HAs in rural areas. These agencies will qualify for an allocation if they are eligible for at least three vouchers.
Administrative Fee Distribution
The 2023 Act authorizes HUD to use $30 million of the administrative fee appropriation for HAs that need additional funds to administer their voucher programs. HUD is using a portion of this $30 million administrative fee to provide HAs:
- One-Time Lease Up Fees
HAs will receive a one-time, preliminary start-up fee of $250 per HCV allocated to the HA once the HA’s CACC is amended to reflect the new funding obligation. This fee amount will support the anticipated immediate start-up costs that HAs incur and facilitate leasing of these vouchers.
- Incentive Lease Up Fees
HAs will receive a $250 incentive fee for vouchers leased to families experiencing homelessness or survivors of domestic violence, dating violence, sexual assault, stalking, or human trafficking. HUD will gather this information through the Inventory Management System/PIH Information Center (IMS/PIC) or the Housing Information Portal (HIP). An HA may receive this $250 fee up to two times the number of vouchers it has been allocated under any award. (Example: an HA that receives 20 vouchers will be eligible for 40 fees, or $10,000.)
- Ongoing Administrative Fees
HAs will receive administrative fees under the current administrative fee formula in use. Under this calculation, HAs are allocated a fee amount for each voucher that is under HAP contract as of the first day of each month.