April 26, 2004
HUD CLARIFIES IMPLEMENTATION OF 2004 SECTION 8 FUNDING
Guidance to Public Housing Authorities Available On-line
WASHINGTON - Due to the escalating cost of Section 8 vouchers, Congress placed a provision in HUD's 2004 Appropriations Act to modify federal funding to public housing authorities (PHA) to renew existing vouchers. To comply with the change, the Department of Housing and Urban Development recently issued guidance to public housing authorities (PHA) regarding the implementation of this provision.
"This guidance clarifies the law to our partners in this program - housing authorities, participating landlords and the residents they serve," said HUD Assistant Secretary Michael Liu. "HUD continues to work with housing authorities to assist them in managing their programs to meet the need of their residents."
The Consolidated Appropriations Act (Public Law 108-199), which was signed into law on January 30, 2004, 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.
The Act instructs HUD to pay PHAs vouchers based on a unit cost reported to HUD as of August 1, 2003. The Act allows for additional adjustment of the August 2003 unit costs by applying an inflation factor. PHAs that can document higher local inflation rates have until July 15, 2004 to submit requests to HUD for consideration of additional appropriations.
Under current projections, HUD expects less than half of 2,500 public housing authorities that participate in the Housing Choice Voucher Program will experience any change under the Congressionally imposed mandate.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development as well as enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and espanol.hud.gov.