HUD HCV Guidebook § 7.6

Penalties for Failure to Pay the Receiving PHA in a Timely Manner (HUD HCV Guidebook)

HUD guidance — not codified law
In Force
Verified 11/9/2026 · Next check 11/16/2026
effective 9/25/2026FederalSection 8 HCV

Operative Text

HUD HCV Guidebook § 7.6
HUD may transfer funds for assistance to ported families to the receiving PHA from funds available under the
initial PHA’s ACC.103 Upon request from the receiving PHA, HUD may exercise this authority in cases where the
initial PHA fails to comply with the initial and subsequent monthly billing payment due dates described above.
Notwithstanding the transfer policies described below, failure to comply with HUD’s financial procedures,
including the billing and payment deadlines outlined above, may also result in the reduction of administrative
fees.
The steps below outline the process for requesting the transfer of baseline units and funding from the initial to
the receiving PHA. The PIH field office with jurisdiction over the receiving PHA is the lead HUD office in
resolving any dispute over the timeliness of the billing payments. After examining the documentation
submitted by the PHAs the lead field office determines if the billing payments were late.
Receiving PHAs make a first attempt at resolving any late billing payments with the initial PHA. If such
attempts fail to result in a resolution, receiving PHAs may seek assistance from their local PIH field office. If
assistance from the local PIH field office also fails to result in a resolution, the receiving PHA may seek
transfer of the units and funding in question by following the steps below. PHAs are reminded to document all
communications between agencies and to retain a record of all transactions between PHAs.

Transfer of units and funds for late payments
                 Receiving PHA sends memorandum to the PIH Field Office Director (after attempts at resolution, as
                 described in preceding paragraph, have failed)
                        • A copy of all correspondence between the PHAs on the matter must be attached.

                                           
                 The receiving PHA’s PIH field office notifies the initial PHA of the request.
                        • Occurs within 15 business days after notification to the PIH Field Office Director
                        • The notice includes the amount of time to respond.

99
   24 CFR § 982.355(e)(2); PIH Notice 2016-09(13)
100
    PIH Notice 2016-09(13); PIH Notice 2016-09(15)(a)
101
    PIH Notice 2016-09(15)(a)
102
    PIH Notice 2016-09(15)(a)
103
    24 CFR § 982.355(f)(1)

Moves and Portability                                                                                                27

• A copy of the notice is sent to the PIH Field Office Director with jurisdiction over the initial
                                PHA.

                                           
                    The initial PHA responds to receiving PHA’s PIH Field Office.
                           • Occurs within 15 business days of receiving request from PIH Field Office Director
                           • If the initial PHA is contesting whether the billing payments were late, it must provide
                                supporting documentation in their response.

                                           
                    The receiving PHA’s Field Office must render a decision on the transfer of units and funds.
                           • Occurs within 15 business days of the initial PHA’s deadline to respond to PIH Field Office
                                memo

If the lead PIH field office determines that the payments in question were late, it will send a memorandum to
the Housing Choice Voucher Financial Management Division indicating the number of units to be permanently
transferred from the initial PHA to the receiving PHA. The number will correspond with the number of families
for which billing payments were late. A copy of this memorandum will be sent to the PIH field office with
jurisdiction over the initial PHA and to both PHAs.
After receipt of the lead PIH field office’s memorandum, HUD will reduce the baseline number of units and
budget authority from the initial PHA’s ACC and increase the baseline number of units and budget authority on
the receiving PHA’s ACC. HUD will use the revised baseline numbers to readjust the funding. The billing
arrangement on behalf of the family or families in question ceases with the transfer of the unit or units. The
initial PHA continues to be responsible for any outstanding payments due to the receiving PHA.
Source: Legislative text reproduced verbatim
Plain English

HUD Housing Choice Voucher Guidebook § 7.6 establishes a structured process for addressing situations where an initial Public Housing Authority (PHA) fails to pay a receiving PHA on time for ported families. When timely billing payments are not made, HUD has the authority to transfer baseline units and associated funding from the initial PHA's Annual Contributions Contract to the receiving PHA on a permanent basis. Additionally, failure to follow HUD's financial procedures, including billing deadlines, can result in a reduction of administrative fees for the non-compliant PHA. The PIH field office with jurisdiction over the receiving PHA serves as the lead office in resolving any disputes about payment timeliness.

Written by anthropic/claude-sonnet-4.6 · Reviewed on September 26, 2026

Plain English — not legal advice.

For Property Managers

Section 7.6 of the HUD Housing Choice Voucher Guidebook is primarily directed at Public Housing Authorities rather than private landlords, but property owners participating in the Housing Choice Voucher program should be aware that portability payment disputes between PHAs can affect the administration of their tenants' vouchers. Compliant initial PHAs generally adhere strictly to monthly billing payment due dates to avoid triggering the dispute resolution process, which can result in permanent loss of baseline units and budget authority. Operators who house ported voucher holders benefit from understanding that unresolved PHA billing disputes may be escalated through PIH field offices, potentially affecting the continuity of housing assistance payments.

General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.

For Tenants

Under HUD Housing Choice Voucher Guidebook § 7.6, tenants who have ported their voucher to a new jurisdiction have a stake in whether their initial PHA is meeting its billing obligations to the receiving PHA, since payment failures can disrupt the administration of their assistance. If a tenant believes their housing assistance has been affected by a billing dispute between PHAs, they can contact their receiving PHA to inquire about the status of payments and any ongoing dispute resolution efforts. Tenants may also reach out to their local HUD PIH field office or a tenant-rights organization for general information about how portability payment disputes are handled and what protections exist under this provision.

General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.

Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.

Effective Timeline

Current
Sep 25, 2026
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Related Rules

§ 888.113
§ 888.113 Fair market rents for existing housing: Methodology.
§ 888.115
§ 888.115 Fair market rents for existing housing: Manner of publication.
§ 0770-01-05-.05
CONFLICT OF INTEREST.

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