On February 5, HUD issued Notice PIH 2026-02, Process for Recapture and Reallocation of Services Fees for the Emergency Housing Voucher Program and Change to Portability Policy.
As required through Notice PIH 2025-19, HAs were to stop incurring EHV service fee costs as of October 19, 2025, and to enter expenditures in the Voucher Management System (VMS) by December 19, 2025. This notice revises the timeline and procedures for final reconciliation and closeout of EHV service fees, and disconnects the service fee closeout from the EHV program closeout. HUD states that it will issue a final Services Fee Reconciliation and Closeout enclosure to all EHV PHAs by the end of February 2026. This will allow HUD to reallocate undisbursed obligations and unspent EHV service fee funds to cover 2026 EHV Housing Assistance Payments (HAP) shortfalls. Information on how funds will be reallocated will be provided at a later date.
Revises Guidance on EHV Portability following PHADA and Members’ Advocacy
This notice also revises prior notices regarding EHV portability. Under the new policy, receiving HAs with an EHV program now have the option of absorbing the porting EHV household directly into their standard HCV program. Previously, such ports had to be either absorbed into the EHV program or billed. PHADA and its members had previously advocated for greater flexibility in absorbing EHV ports and are pleased with this new guidance.