On May 6, HUD published its highly anticipated notice PIH 2026-12, Implementation of the Federal Fiscal Year (FFY) 2026 Funding Provisions for the Housing Choice Voucher Program. The notice provides information on voucher renewal, administrative fee, and set-aside funding; offsets; and allocation of incremental vouchers.
All HAs administering a voucher program should have received correspondence with a funding enclosure listing both renewal allocation and offset calculations. For initial MTW agencies, a separate notice will provide details on offset calculations and appeal policies & procedures.
The initial estimated HAP proration amount is 100 percent. Despite this high proration amount, HUD is forecasting extensive shortfall levels, and the notice states that HAP set-aside categories other than shortfall may not be funded. Members should note that the deadline for Categories 2–5, 9, and 10 (unforeseen circumstances, portability, project-based vouchers, MTW Expansion HA development adjustment, non-life-threatening inspection withheld HAP, and Mainstream vouchers increased costs) is June 26.
The notice also states that Tenant Protection Vouchers (TPVs) will generally only be awarded for vacant units that were occupied in the last 12 months, rather than the 24 months permitted in prior years. HUD may take other steps (such as not funding any vacant units) if funding limitations require it.
Disappointingly, HUD has not provided details regarding how it intends to utilize TPV funding to prevent Emergency Housing Voucher (EHV) terminations. Instead, the Department will provide information through a future notice. HUD notes, however, that recaptured EHV service fees are available to cover EHV shortfalls, and agencies anticipating EHV shortfall “in the coming months” should reach out to their financial management center’s financial analyst (FMC FA), with a copy to: EHV@hud.gov, to request funding to cover EHV shortfalls.
The notice also includes details on 10 categories of special administrative fees that may be available. PHADA will provide additional information in the upcoming Advocate.