Denver Housing Authority briefs council committee on voucher shortfalls, EHV sunset and tighter HUD rules

Denver Housing Authority officials on Tuesday briefed the City Council's Community Planning and Housing Committee on the scope and strain of the Housing Choice Voucher program and steps the agency is taking as some HUD funding streams change.

DHA Chief Executive Officer Joaquin Centrumvega said the agency is administering a little under 8,600 vouchers and is budgeted to spend about $142,000,000 in housing-assistance payments in the city this year. "Stability for families cannot wait on politics," Centrumvega said, urging action while noting contingency-planning underway in response to a partial federal shutdown.

Loretta Owens, HCV program director, told the committee DHA has reduced its voucher payment standard from 120% of HUD's fair market rent (FMR) to 100% after reviewing local rents and the agency's budget authority. Owens noted HUD sets FMRs for a metropolitan region that includes Denver, Aurora and Centennial, not only the city limits.

The agency described program composition and special-program allocations: tenant-based vouchers (held by participants in the private market), project-based vouchers (subsidy attached to a unit), and roughly 1,000 "boutique" vouchers reserved for specific populations such as veterans, non-elderly disabled households and foster-youth transitions.

On Emergency Housing Vouchers (EHV), DHA said HUD has notified housing authorities the EHV program will sunset Sept. 30 of next year and that funding for active use could run out earlier (DHA staff cited a June funding horizon). Staff said DHA is working to transition remaining EHV participants into other HCV funding streams where possible.

Councilmember Jamie Torres asked whether FMRs applied to the city or a larger region; DHA replied FMRs use a metro-area definition that includes surrounding jurisdictions. Torres and other members also raised questions about a prior city commitment to allocate 300 vouchers over three years; DHA said HUD restrictions during a national shortfall prevented issuing those additional vouchers but that the agency expects to seek restored authority in 2026 if utilization and budget authority allow.

DHA staff described compliance and operational changes under current HUD guidance. Owens said HUD has tightened timelines and paperwork expectations: voucher search time was reduced from as long as 180 days in prior years down to 60 days under the current budget authority, and missing deadlines can result in termination without automatic reinstatement. Staff said project-based leasing remains the most consistently leased category (DHA's project-based utilization is about 82%), but housing providers who fail to occupy contracted units within required windows risk having units removed for noncompliance.

On contingency planning, Joshua Crowley, DHA chief operating officer and general counsel, said the agency is operating "business as usual" using reserves while assessing longer shutdown exposures and noted that housing providers cannot lawfully evict a participant simply because a housing authority temporarily fails to make a HAP payment, provided the participant pays their portion.

Centrumvega said DHA is deepening landlord partnerships and developing a rolling RFP to give developers conditional commitments for project-based vouchers, an effort he said should accelerate use of the subsidy in new and rehabilitated housing. He also highlighted DHA's nonprofit affiliates and recent housing symposiums intended to align service providers and landlords.

The committee received the presentation and had no formal actions on the agenda. Chair Sarah Paradis thanked DHA staff and closed the meeting; committee members requested follow-up data on search-time terminations, eviction rates among voucher holders and monthly termination counts after April 17 procedural changes.

The presentation and Q&A were informational; no motions or votes were taken.