March 13, 2013
On March 12, HUD Deputy Assistant Secretary Marie Head sent NCSHA and other stakeholders a memorandum
on HUD’s plans to manage the funding of Section 8 project-based rental assistance (PBRA) under the cuts imposed by the Fiscal Year (FY) 2013 sequestration, or across-the-board cuts, applicable to all HUD programs. To minimize the potential impact of sequestration and ensure that HUD is able to fund all Housing Assistance Payments (HAP) contracts coming due during FY 2013, the memorandum states the Department has developed the following plan of action:
- All Section 8 contracts expiring in FY 2013 will be renewed if eligible under current program rules and will receive full 12-month funding.
- All existing multi-year contracts that expire after FY 2013 and have anniversary dates in the first quarter of FY 2013 (October-December) will receive full 12-month funding, ensuring sufficient funding to carry them into the first quarter of FY 2014.
- All other multi-year Section 8 contracts will receive less than 12-month funding, but will be provided sufficient funding to carry them into the first quarter of FY 2014.
HUD’s memo indicates that there are about 11,000 Section 8 contracts that fall in the last category and, on average, they will receive approximately 8.5 months of funding. The actual amount will vary, depending on anniversary date. HUD’s overall goal is to avoid payment disruptions during FY 2013 or early FY 2014. Funding after that point will depend on congressional appropriation action for FY 2014.