U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-5000
OFFICE OF PUBLIC AND INDIAN HOUSING
March 30, 2023
Dear Executive Director:
Subject: Mainstream Vouchers- Calendar Year (CY) 2023 Renewal Funding Allocation The purpose of this letter is to advise your agency of the CY 2023 renewal funding allocation for the Mainstream Vouchers,
The 2023 Act's appropriated amount for the Mainstream Vouchers should fully support the HAP renewal eligibility at 100%. The 2023 Mainstream Vouchers renewal eligibility calculation for your agency is provided in Enclosure A to this letter, To calculate your agency's Mainstream Vouchers renewal funding eligibility for CY 2023, the Department established a new baseline based on the costs and leasing reported in the Voucher Management System (VMS) for the Mainstream Vouchers for CY 2022 (January 1, 2022, through December 31, 2022), adjusted for first-time renewal funding for new 2022 Mainstream Vouchers increments, and the 2023 renewal funding inflation factor. This practice is commonly referred to as re-benchmarking, The VMS data used is the data reported by each PHA for the Mainstream Vouchers and accepted in VMS by January 27, 2023.
Further, PHAs must retain the appropriate records to support VMS submissions for the collected periods, as they are subject to on-site and remote reviews by HUD and auditors. VMS cost and leasing data is subject to review by our Quality Assurance Division (QAD), and subsequent recalculation of CY 2023 Mainstream Vouchers renewal funding eligibility will occur if a QAD review demonstrates that costs were incorrectly reported, resulting in excess funding.
Additionally, HUD continues to disburse HAP based on current cash management procedures. The Department is required to control disbursement of funds to PHAs in such a way as to ensure that PHAs do not receive federal funds before they are needed, as described in PIH Notice 2017-06 - Cash Management Requirements for the Housing Choice Voucher Program, To ensure compliance with cash management requirements, PIH continues to determine HAP disbursements based on the PHA' s latest validated HAP expenses for Mainstream Vouchers as reported in VMS and will reconcile based on actual CY 2023 validated HAP expenses, in accordance with PIH Notice 2017-06 (or successor). In the event that the PHA's calculated monthly disbursement(s) is short to meet the monthly HAP need, the PHA should contact their Fimmcial Analyst at the Financial Management Center for a funding adjustment.
Note that PHAs administering Mainstream Vouchers cannot engage in over-leasing (leasing above the total authorized units), consistent with the Housing Choice Voucher Program.
Calculations are not included herein for CY 2023 administrative fees (admin fees), Admin fees will continue to be paid for the Mainstream Vouchers solely based on leasing as of www.hud.gov espanol.hud.gov
EXHIBIT 2
the first of each month and reported in VMS. Monthly fee advances are provided, based on estimated earnings, and are reconciled once actual leasing is reported. National eligibility for the quarter is compared to one-quarter of the appropriations available for Mainstream Vouchers administrative fees, and all PHAs' fee earnings are prorated at the same percentage of eligibility as in the HCV program. This proration is required by the Consolidated Appropriations Act, 2023 (the 2023 Act). Admin Fee rates for CY 2023 will be posted on the Department's web site to enable PHAs to estimate eligibility. An announcement will be made when they become available on HUD's website:
https:/ /www.hud.gov/program _ offices/public _indian_ housing/programs/hcv.
If you have any questions concerning your CY 2023 Mainstream Vouchers renewal funding, please contact your Financial Analyst at the Financial Management Center.
Enclosure
Sincerely,
MIGUEL
FONTANEZ
SANCHEZ
' Digltally signed by MIGUEL
' FONTANEZ SANCHEZ
Date:,2023.04.0614:27:21
-04'00'
Miguel A. Fontanez
Director,
Housing Voucher Financial
Management Division
EXHIBIT 2
1 HA Number
2 HA Name
3 Summary of Funding Eligibility
4 Total Mainstream Program HAP Expenses Reported in VMS for CY 2022 2,276,112$ 5 Total UMLS Reported in VMS for CY 2022 1,491
6 Total UMAS 2,772
A. If Overleased, Number Of Umls Deducted From Eligiblity -$ B. Uninflated PUC $1,526.57
C. Cost Of Overleased Units (PUC X Overleased Units) -$ 7 Mainstream Program Renewal Eligibility After Reduction For Cost Of Overleased Units 2,276,112$ 8 Inflation Factor 1.07505
9 CY 2022 Renewal Funding At 100% 2,446,934$
CY Renewal Funding difference is due to rounding
10 Renewal Funding Inflator Adjustment For New Increments -$ 11 Total Mainstream Program Renewal Funding For CY 2023 2,446,934$ 12 CY 2023 Inflated PUC $1,641.14
FUNDING SUMMARY
13 CY 2023 Renewal Funding Prior to Amounts Due to HUD 2,446,934$ 14 Reduction for Amounts due to HUD -$
15 Total CY 2023 Renewals 2,446,934$
16 Obligated Funds through April 818,044$
17 To be obligated May through December 1,628,890$
SUMMARY - CY 2023 MAINSTREAM VOUCHERS RENEWAL FUNDING
CA093
CITY OF SANTA ANA HSG AUTH
EXHIBIT 2