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Sequestration Update: Cost Saving Measures for PHAs facing Sequestration Cuts

On April 26, HUD’s Office of Public and Indian Housing (PIH) sent letters to PHA executive directors, providing interim guidance regarding cost savings measures they must take to be eligible for funds set aside to prevent voucher terminations. The letter also provides helpful clarification about PBV contracts.

Detailed guidance on the process to apply for set-aside funding will be provided in a forthcoming PIH Notice. In the interim, this letter informs PHAs of the reasonable cost savings measures that PHAs must undertake in order to be eligible for funding under the insufficient funding category.

This letter also clarifies thatPHAs may not unilaterally reduce the rent to owner in HCV program due to insufficient funding.

You may find a copy of this letter on NAHMA’s Grassroots Action Center, under the Sequestration Grassroots Action Webpage link. Alternatively, you may also visit this link to view the letter directly.

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