Yesterday, PHA executive directors across the country received a letter from Sandra Henriquez, assistant secretary of HUD's Office of Public and Indian Housing (PIH), about the sequestration cuts scheduled to go into effect this Friday, March 1.
While Henriquez acknowledges the possibility that the cuts “may be a temporary measure,” she nevertheless advises PHAs administering the HCV program to be prepared for a 94 percent proration of voucher renewal funding and a 69 percent proration of administrative fees if the cuts are not reversed.
Henriquez recommends that PHAs mitigate the effects of the potential housing assistance payment (HAP) cuts on existing HCV families by:
- Using the HCV forecasting tool (posted with a user guide on the HCV home page) to determine whether it’s wise to issue vouchers to applicants in light of the potential cuts
- Taking some of the steps outlined in Notice PIH 2011-28 to reduce HAP costs, such as lowering payment standards and reviewing utility allowances
Henriquez further recommends that PHAs review Notice PIH 2012-15, which suggests ways to reduce HCV administrative costs, and Notice PIH 2013-03, which lists four temporary compliance options that may reduce the time it takes to meet certain program requirements “during this period of decreased resources.”
Model policies for implementing Notice PIH 2013-03 will be included in the upcoming revisions of NMA’s model administrative plan and model ACOP. To stay updated on the latest program information, subscribe to the PIH Alert and Housing Resource Newsletter.
