The Department last week, acting on a provision in its 2004 Appropriations Act, recently issued guidance to public housing authorities regarding changes in funding for renewal housing vouchers.

The Consolidated Appropriations Act, signed into law on January 30, enacted changes in the Housing Choice Voucher Program -- formerly known as Section 8 -- to fund PHAs at levels that more closely reflect actual funding needs and local rental market changes.

Under the provisions of the Act, the Department will pay for vouchers based on the unit cost reported to HUD last August 1. The Act does, however, allow for adjustments to the unit costs by applying an inflation factor. PHAs with higher local inflation rates have until July 15 to submit requests for additional appropriations.

Under current projections, the Department expects less than half of the 2,500 public housing authorities that participate in the Housing Choice Voucher Program to experience any change under the Congressionally imposed mandate.

For more information, click on the Department website at http://www.hud.gov/.