SUPPLEMENTARY INFORMATION:

A. Background

This Notice provides the methodology used to determine the CY 2021 administrative fee rates by area, which HUD uses to determine administrative fees for the HCV, Mainstream, and Moderate Rehabilitation programs, including the Moderate Rehabilitation Single Room Occupancy programs. The HCV program is the federal government's major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Mainstream Vouchers are tenant-based vouchers serving households that include a non-elderly person with a disability, available to PHAs through a competitive Notice of Funding Opportunity (NOFO), and noncompetitively through CARES Act authorization. The Moderate Rehabilitation program provides project-based rental assistance for low-income families. The program was repealed in 1991 and no new projects are authorized for development. Assistance is limited to properties previously rehabilitated pursuant to a Housing Assistance Payment (HAP) contract between an owner and a PHA.

B. CY 2021 Methodology

For CY 2021, in accordance with the 2021 Consolidated Appropriations Act (Pub. L. 116-260, 134 Stat. 1182), administrative fees are determined ( printed page 50096) based on vouchers leased as of the first day of each month. This data is extracted from the Voucher Management System (VMS) at the close of each reporting cycle and validated prior to use. For the Moderate Rehabilitation program, including the Single Room Occupancy program, administrative fees are earned based on the units under a Housing Assistance Payment (HAP) contract.

In the attached table, two fee rates are provided for each PHA. The first rate, Column A, applies to the first 7,200 voucher unit months leased in CY 2021. The second rate, Column B, applies to all remaining voucher unit months leased in CY 2021. In years prior to 2010, Column C applied to all voucher unit months leased in dwelling units owned by the PHA. For CY 2021, as in recent years, there are no Column C administrative fee rates. Fees for leasing PHA-owned units are determined in the same manner as for all other voucher leasing using the same Column A and Column B rates as for all other voucher leasing.

In some cases, the fee rates calculated for CY 2021 are lower than those established for CY 2020. In these cases, the affected PHAs are held harmless at the CY 2020 fee rates.

The fee rates for each PHA generally cover the fees for areas in which the PHA has the greatest proportion of its participants, based on Public Housing Information Center (PIC) data submitted by the PHA. In some cases, PHAs have participants in more than one fee area. If such a PHA chooses, the PHA may request HUD establish a blended fee rate proportionately to all areas in which participants are located. Once a blended rate is established, it is used to determine the PHA's fee eligibility for all months in CY 2021. The 2021 HCV Funding Implementation Notice described how to apply for blended fee rates and the deadline date for submitting such requests. The notice can be accessed through the following link: https://www.hud.gov/​sites/​dfiles/​PIH/​documents/​pih2020-04.pdf.

PHAs operating over large geographic areas, defined as multiple counties, may request a higher administrative fee rate if eligible under the criteria described in the CY 2019 Implementation Notice. The 2021 HCV Funding Implementation Notice described when to apply for higher fee rates and the deadline date for such requests. Higher administrative fee rates differ from blended administrative fee rates in how they are calculated. Requests for higher administrative rates must clearly demonstrate that the PHA's published rate cannot cover their projected expenses. Next, a breakeven rate is calculated to ensure the PHA receives sufficient funds to cover their expenses while also ensuring the administrative fee reserves do not grow.

This notice identifies the monthly per-voucher-unit fee rates to be used to determine PHA administrative fee eligibility for the programs identified in this notice. These fee rates remain posted on the Department's website at: http://portal.hud.gov/​hudportal/​HUD?​src=​/​program_​offices/​public_​indian_​housing/​programs/​hcv, under Program Related Information.

Direct questions concerning this notice should be directed to the PHA's assigned representative at the Financial Management Center or the Financial Management Division at PIHFinancialManagementDivision@hud.gov.

C. Moving to Work (MTW) Agencies

In cases where an MTW Agency has an alternative formula for calculating HCV administrative fees in Attachment A of its MTW Agreement, HUD calculates the HCV administrative fees in accordance with the MTW Agreement provision.