The Benefit of Giving PHAs More Flexibility

HUD can help agencies make the most of their limited budgets by reducing rigid rules and letting them tailor the program to local needs.

Today’s Reality

There is a gap between rising housing costs and funding for the HCV program, yet many PHAs—particularly those with added flexibility through HUD’s Moving to Work (MTW) program—are developing innovative strategies to overcome these challenges despite limited resources.

Best Practices and Policies:

Use Allowed Flexibility in Payment Standards

Many successful PHAs are overcoming challenges in rising rental costs by both broadly increasing payment standards and adopting geographic variation that mirrors HUD’s Small Area Fair Market Rent (SAFMR) policy.

Maximize the Effectiveness of Issuance Strategies

PHAs should consider more active issuance strategies that tradeoff increased risk of shortfall with a greater likelihood of reaching full budget utilization.

Allow Longer Search Times in Difficult Housing Markets

PHAs experiencing utilization problems related to declining success rates should consider across-the-board increases to allowable search time and even greater flexibility for hard-to-house individuals or families.

HUD Should Increase PHA Flexibility in Use of Program Funds

HUD should allow non-MTW PHAs greater financial flexibility to use funds for proven practices like landlord engagement and incentive programs and more robust tenant navigation and support programs.