Housing Voucher Funding Alert 

NAA/NMHC members should be aware of uncertainty in the current funding for the Section 8 voucher program. Because Congress has yet to pass the FY 2011 appropriations bills, the federal government is operating under a temporary funding bill. That bill funds most programs, including the voucher program, at 2010 levels.

If 2010 funding levels are retained throughout 2011, public housing authorities (PHAs) will not have enough funding to cover all renewals and may begin taking cost-saving steps. These steps could include lowering payment standards (used to calculate the amount of housing assistance a family will receive), conducting rent reasonableness determinations mid-contract or reviewing utility allowances more than annually to determine if they are too high.

The U.S. Department of Housing and Urban Development (HUD) is finalizing data to determine 2011 funding needs to avoid program reductions. It is estimated that 2010-level funding will only cover 96 percent of the estimated need. HUD reports that some PHAs have assets that will help make up for any reduction in funding not covered by their 2011 allocation. NAA/NMHC members are urged to prepare for future shortfalls.

NAA/NMHC are actively monitoring the situation and urging lawmakers to fully fund the program for the remainder of FY 2011.

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