Applications Due January 16, 2026
On December 17, 2025, HUD published Notice PIH 2025-30, “Implementation of Public Housing Operating Fund Shortfall Funding from Federal Fiscal Year 2025 Appropriations.” The notice details the process HUD will use to distribute the $25 million in Public Housing Operating Fund Shortfall funding included in the full-year continuing resolution appropriations act for 2025.
Applications, which only require a signed application submitted through the Public Housing Portal, are due at 5:00 PM, Eastern Time on January 16, 2026.
Small Agencies Prioritized
As in prior years, HUD will prioritize smaller agencies in shortfall, working upwards in size until all available funds have been awarded. Five cohorts have been established based on the number of public housing units. Shortfall agencies with fewer than 250 units will be funded first, followed by agencies up to 499 units, 1,249 units, 6,599 units, and finally those with at least 6,600 units. Because of the limited $25 million available, not all agencies in shortfall will receive funding. A link in the notice to the published list of PHAs and their eligibility status was not yet available.
Changes From Prior Years
Several changes are made from prior year shortfall funding requirements. Significantly, agencies are not required to submit a Shortfall Improvement Plan (SIP) as part of the grant request, and submission of a SIP is no longer required for funds to be available for drawdown. Instead, funds will be available for drawdown immediately. Additionally, agencies that received shortfall grants in 2022, 2023, or 2024 are not eligible for shortfall funding in 2025, agencies are not required to submit annual budgets for 2025 shortfall funds, and the process to appeal determinations or correct deficient applications in revised.
The notice also notes that “all recipients of federal financial assistance are responsible for making sure activities … comply with applicable existing and future executive orders.” Such compliance mandates have been subject to significant litigation and whether the Department can enforce such mandates remains under question.
Eligibility Determinations
As in prior years, HUD will identify agencies in shortfall based on Financial Data Schedule (FDS) submissions for fiscal years ending December 31, 2023; March 31, 2024; June 30, 2024; and September 30, 2024. Audited submissions will be used when available, with unaudited submissions used when audited submissions are not yet available. Agencies with less than three months of operating reserve will be determined to be in shortfall, and funding will be awarded to bring reserves up to the three-month threshold.
In calculating these amounts, HUD will exclude agencies that have exited the public housing program. HUD also will remove from the calculations mixed-finance properties and properties that completed a RAD conversion at any time during the applicable fiscal year. Additional details on eligibility determinations and calculations are provided in the notice.
PHADA Advocacy Continues
In 2024, total shortfall eligibility was almost $600 million, yet Congress continues to appropriate only $25 million in shortfall funding. PHADA continues to advocate for full funding of the public housing operating fund, as well as adequate appropriations for shortfall funding. This advocacy will continue to highlight the importance of public housing to communities and the negative local impacts likely to result if the loss of publicly owned housing continues.