Housing authority identifies $125,000 HCV shortfall; project-based vouchers could be at risk

At a recent Charlottesville Housing Authority meeting, staff reported an estimated $125,000 shortfall in the Housing Choice Voucher (HCV) program for the current year and said the gap could threaten planned project-based voucher placements at two local developments.

The shortfall stems from higher market rents and serving fewer families than last year, Housing Director said, who noted that staff will continue negotiations with the U.S. Department of Housing and Urban Development (HUD) and pursue additional funding. "We met with HUD ... and it was determined that we are going to run into a shortfall for the HCV program. It's about a $125,000 this year," the Housing Director said.

Why this matters: the authority uses voucher funding to subsidize rent for eligible households; a sustained shortfall could delay or reduce assistance and complicate planned uses of vouchers tied to development projects.

Staff told the board that HUD previously awarded additional funds in similar circumstances and that the authority has applied again. A meeting with HUD is scheduled for later in the month to discuss measures to address the shortfall. The Housing Director said staff had not been told by HUD that households would be removed from the program. "They have not hinted towards removing anyone from the program," the Housing Director said.

Commissioners were warned that the shortfall may affect project-based voucher plans at South First Street phase 2 and Sixth Street phase 1. "Us being in shortfall could impact that," the Housing Director said, referring to those projects by name.

Staff also said some other housing authorities owe the Charlottesville authority significant amounts—individual debts that in some cases exceed $100,000—and that collecting those funds could reduce or eliminate the shortfall. The Housing Director said HUD's state representative now manages funding decisions for the entire state and has the authority to reallocate funds or enforce collections, and staff have submitted requested documentation to that representative.

Staff said they are not pulling from general HCV wait lists and are limiting intake to special programs (for example, a Fostering Youth Initiative and other targeted programs) while they address funding uncertainty. A payment-standard request, which sets allowable voucher payment levels for bedroom sizes, may be brought to the board for consideration next month or in November.

Ending: Staff will report back after the meeting with HUD; commissioners asked staff to continue pursuing owed funds from other housing authorities and to return with recommended contingency steps if HUD grants no additional allocations.