HUD HCV Guidebook § 3.3

Under certain circumstances, a family move may be denied because the PHA has insufficient funds to cover
the move.17 This section outlines when PHAs may deny moves due to insufficient funding, and describes the
steps PHAs must18 take to deny moves for this reason.

16
   24 CFR § 982.353(b)
17
   24 CFR § 982.354(e)(1)
18
   PIH Notice 2016-09(7)

Moves and Portability                                                                                   7

After the billing arrangement is established with the receiving PHA, the initial PHA must 19 not terminate the
voucher for insufficient funding because the initial PHA is no longer a party to the HAP contract. Additionally,
initial PHAs must20 not impose a cap on the amount of HAP they will pay for a family that has moved under
portability. Imposing such a cap could cause a receiving PHA to not be able to bill the initial PHA for a higher
subsidy amount that the initial PHA would have had to pay for otherwise (such as when the subsidy amount
increases based on changes in the family’s circumstances).
A PHA must21 not deny a request to move due to insufficient funding unless all of the following applies:
            1. The move is to a higher cost unit (for moves within the PHA’s jurisdiction) or to a higher cost
               area (for portability moves). See definitions below.
            2. The receiving PHA is not absorbing the voucher (applicable only to portability moves).
            3. The PHA would be unable to avoid termination of current participants during the calendar year
               in order to remain within its budgetary allocation (including any available HAP reserves) for
               housing assistance payments.
Higher cost unit is defined as a unit which requires a higher subsidy amount due to an increase in the gross
rent for the new unit. A PHA may not deny requests to move due to insufficient funding if the subsidy for the
new unit is equal to or less than the current subsidy being paid for the family.
Higher cost area is defined as an area where the PHA would have to pay a higher subsidy amount due to
higher payment standards or more generous subsidy standards of the receiving PHA (e.g. the receiving PHA
issues a 3-bedroom voucher to a family that received a 2-bedroom voucher from the initial PHA). A PHA may
not deny requests to move due to insufficient funding if the area the family has selected is not a higher cost
area.
If a PHA approves a family’s request to move and then subsequently experiences a funding shortfall, the PHA
may only rescind the voucher if the family would be allowed to remain in its current unit. If the family cannot
remain in the unit (e.g. family has already vacated the unit or family has already notified the owner of their
intent to vacate and the owner has re-let the unit to another family) the PHA must22 not rescind the voucher.
The family must23 be allowed to lease a new unit. This requirement applies to moves within the PHA’s
jurisdiction and to portability moves.

A PHA may not deny a family request to move under portability for insufficient funding:
        •   If the receiving PHA has confirmed that they will absorb the family into their program. In such
            cases, the initial PHA has no grounds to deny the portability move under 24 CFR 982.354(e)(1).
        •   For families moving within the PHA’s jurisdiction (even if the new unit is a higher cost unit) if the
            family must24 move from their current unit (e.g. the unit failed HQS, the owner failed to renew the
            lease, etc.). If the family is moving under portability, the PHA may deny the move under these
            circumstances if the family is moving to a higher cost area under portability and the receiving PHA
            is not absorbing the family into their program.
        •   Because it wishes to admit additional families from its waiting list into its voucher program,
            regardless of whether it has unit months available to do so. If the PHA denies a family’s request to

19
   PIH Notice 2016-09(7)
20
   PIH Notice 2016-09(7)
21
   PIH Notice 2016-09 (7)(a)
22
   PIH Notice 2016-09 (7)
23
   PIH Notice 2016-09 (7)
24
   PIH Notice 2016-09 (7)

Moves and Portability                                                                                   8

move, it may not subsequently admit families from its waiting list to its HCV program until families
            with open requests to move (based on PHA policy) are processed. family’s request to move, it may
            not subsequently admit families from its waiting list to its HCV program with open requests to
            move (based on PHA policy) are process