The U.S. Department of Housing and Urban Development (HUD) today announced the availability of $30.3 billion for the Housing Choice Voucher (HCV) Program for 2023. This historic $2.9 billion (10.5 percent) increase over the prior year will help Public Housing Authorities (PHAs) address recent rent inflation and enable more low-income families to use housing vouchers to afford a safe, decent place to call home.
In an initial notice published last week, HUD awarded $27 billion of the $30.3 billion to PHAs to renew assistance for the 2.3 million low-income households currently using housing vouchers. Seniors and people with disabilities comprise more than half of these households, and most of the rest are working families with children. These households also include some 79,000 veterans who formerly were homeless. The notice also makes $337 million available to continue assistance for tenants in public or other assisted housing that is being demolished or otherwise removed from service and $2.8 billion for PHA administrative expenses (a 15 percent increase).
Later in the year, HUD will award $50 million for new vouchers for homeless veterans under the Veterans Affairs Supportive Housing (VASH) program, $30 million to expand assistance for foster youth and families under the Family Unification Program (FUP), as well as $50 million for flexible new housing vouchers to meet other local housing needs.
“We know there is a housing affordability crisis, and this funding will help people who are struggling to find a place they can afford to live, including people experiencing homelessness,” said Secretary Fudge. “With the awarding of these funds for housing choice vouchers — which represents HUD’s single largest investment in affordable housing — public housing agencies throughout the country have flexible resources to offer more housing options so that no one is ever denied housing because they are unable to pay the monthly rent.”
HUD Secretary Marcia L. Fudge announced in Toledo, OH, while highlighting how communities like theirs and throughout the country can use these resources to attract more landlords to the HCV program and get people in affordable housing.
HUD continues to work with communities to help them promote the housing choice voucher program by offering tools for landlord engagement and working with PHAs to meet their local housing needs with the HCV utilization resources.
The 2023 Fair Market Rents (FMRs) will make it easier for families with housing vouchers to use them to access affordable housing. The new FMR levels will enable the voucher program to keep up with rent increases in the private market.
The President’s 2024 Budget proposal also includes $32.7 billion for the Housing Choice Voucher Program, $13 billion for vouchers for low-income veterans, and $9 billion to support youth leaving foster care.
Potential Impact of the New Funding
According to Hannah Baldwin, Firm Administrator with Smith Marion “Housing authorities have been faced with rapidly increasing rental costs. This funding will help housing authorities deal with the housing assistance payments for tenants to landlords that have been steadily increasing. The funding is not really an increase in the program as inflation and rent increases have been off the charts. The increase in the administrative fees will help the housing authorities stay competitive in the wage market by being able to offer wages in line with the rest of the housing market.”
The new funding for the Housing Choice Voucher Program has the potential to impact the lives of millions of low-income families significantly. By increasing the availability of vouchers and making it easier for families to use them, the funding will help to reduce homelessness, improve housing stability, and boost economic opportunity.Here are some of the potential impacts of the new funding:
- Reduced homelessness: The new funding will help reduce homelessness by providing more families access to affordable housing. According to HUD, the HCV program is the nation’s largest single source of rental assistance for low-income families, and it is an effective way to prevent and end homelessness.
- Improved housing stability: The new funding will help to improve housing stability for low-income families by making it easier for them to find and keep a safe, decent, and affordable place to live. When families have stable housing, they are better able to achieve their goals, such as finding and keeping a job, going to school, and raising healthy children.
- Boosted economic opportunity: The new funding will boost economic opportunity for low-income families by giving them a stable place to live and allowing them to focus on other important goals, such as finding and keeping a job. When families have stable housing, they are more likely to be able to find and keep a job, which can lead to increased earnings and improved financial security.
The new funding for the Housing Choice Voucher Program is a significant investment in the future of low-income families. By helping families find and keep a safe, decent, and affordable place to live, the funding will help improve millions of people’s lives and boost the economy.