Damien Allen : Overview Util ization

Linda Pistilli : ShortfallMeaghan Messner : HUD-VASH

Housing Choice Voucher

Purpose and Importance

Purpose: Ensure full use of HCV funding Focus HUD interaction with PHAs to enable more informed

decisions

Demonstrates that PHA can efficiently administer program consistent with program mission

Maintains consistent lease up and utilization results in a more efficiently run program

Allows for revenue generation because admin fee is based on lease up

Minimizes risk

HCV Utilization Goals

Optimizing Utilization: Achieving the optimal zone

Optimal Zone = 95-100% UML or ABA + excess NRA.

No Shortfall/Overleasing PHAs No Underleasing PHAs Stabilized leasing, No W phenomenon

Maximizing Utilization Benefits PHA

Enhances control over voucher issuance, budget and administrative procedures and performance trending

Encourages information sharing within the PHA

Fosters improved reporting and stronger data in HUD/PHA systems

Increases access and support from FO partners related to funding and programmatic concerns

HCV Utilization - Two Year Tool

Historic Lease Up Patterns: Attrit Down

Stable Leasing Pattern

Field Office Contacts

Damien Allen – PHRS, 215.861.7681 or Damien.C.Allen@hud.gov

David Kinnard - Financial Analyst, 215.861.7610 or David.L.Kinnard@hud.gov

… THE “DARK SIDE” OF HCV

UTILIZATION

Shortfall Prevention Team

Shortfall

… what happens when all (projected) funds available for the calendar year (NRA, ABA, set-aside, other funds) are not sufficient to support (projected) HAP costs for all current participants through year-end

Calculation does not include cost to support units in excess of UMA

Objective: NO Families Terminated for Insufficient Funds

HCV a budget-based program since 2005No guarantee that funding will support all

units authorizedPHAs must manage program within the

limits of available funding

Variables

Funding – not definite until ??NRA – PHA-held and HUD-heldHAP costs – YTD and projected PUCUnit months leased – YTD and projections

based on Leasing Attrition

Identifying Shortfalls

Monthly master utilization report includes “risk list” of PHAs that may be in trouble … each PHA screened by Field Office and results posted online

Confirmed shortfalls referred to Shortfall Prevention Team (SPT) for help in developing and implementing Action Plan

Additional referrals from Field Offices, Financial Management Center

SPT Bag of Tricks

Stop leasingReview cost-saving measures discussed in PIH

Notice 2011-28, and implement where appropriate

Request HQ approval of Payment Standard Waiver for immediate, across-the-board reduction in payment standard (and FO approval for PS below 90% of FMR)

Amend policy, request HQ approval of Utility Allowance Waiver to allow use of voucher size for UA when family leases larger unit

HUD-VASH

PHAFY

2008FY

2009FY

2010FY

2011FY

2012

PBV Set-

AsideTOTAL VASH

AWARDS

% of vouchers Porting

Wilmington 35 0 25 15 25 0 100 57%

Philadelphia 105 105 75 50 75 0 410 2%

Scranton 0 0 25 0  0 0 25 4%Harrisburg 0 35 0 25 25 0 85 54%Delaware County  0 35 25 0 0  0 60 27%

Chester County 105 35 0 25 50 0 215 14%Wilkes Barre 35 35 0 25 0  0 95 79%Lebanon County 70 20 25 0  0 0 115 72%Allentown 0 0 0 0 15 0  15 24%Bucks  0  0  0  0 10  0 10 0%

350 265 175 140 200 0 1130