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EXHIBIT 2 <br />3 <br />3 <br />(ACC)inVMSforCY2020). <br />Step 2: As required by the 2021 Act, HUD adjusts allocations for the first-time <br />renewals of tenant protection vouchers and special purpose vouchers (SPVs), such as <br />HUD Veterans Affairs Supportive Housing (HUD-VASH) vouchers, Family <br />Unification Program (FUP), Foster Youth to Independence (FYI), and Non-Elderly <br />Disabled (NED) vouchers for which the initial increment expires in CY 2021. Affected <br />provided for CY 2021 for first-time increments not initially funded for twelve months. <br />Note: Reissuance of vouchers originally issued to families under the Disaster Voucher <br />Program/Disaster Housing Assistance Payments-IKE (DVP/DHAP-IKE) is not <br />permitted. For DVP/DHAP-IKE vouchers, as with vouchers issued under the sunset <br />provisions identified in Section 6 ofPIH Notice 2018-09, <br />Annual Contributions Contract (CACC) unit authorizations and CY 2021 renewal <br />funding allocations reflect a reduction in units based on the number of such families <br />underassistanceas reported in VMSas ofDecemberof2020. <br />Step 3: The Renewal Funding Inflation Factor (RFIF), adjusted for localities, is applied <br />-month renewal requirement after all adjustments have been <br />ice of <br />Policy, Development and Research (PD&R) and can be found at <br />https://www.huduser.gov/portal/datasets/rfif/rfif.html. <br />Step 4: HUD determines the total HAP renewal funding eligibility for all PHAs and <br />compares that amount to the total HAP renewal funds available per the 2021 Act to <br />2021 eligibility. A proration of less than 100% is applied if the nationwide eligibility <br />exceedstheavailableHAP renewal funding. <br />Step 5 <br />Net Position (RNP), including HUD-held <br />program reserves (in accordance with VMS data in CY 2020 that is verifiable and <br />complete), as determined by the Secretary. PIH will perform a small offset (impacting a <br />limited number of PHAs) for reallocation in CY 2021 to ensure the national HAP <br />prorationiscloserto100%.GiventhefundingprovidedfromtheAmerican RescuePlan <br />Act (ARPA) for the adjustment of PUC cost increases and to prevent the termination of <br />rental assistance for families as the result of insufficient funding, PIH may reconsider to <br />offsetaportionoftheprogramreservestosupplement theHAP shortfallcategory. <br />Detailed calculations of the offsets will be provided to impacted PHAs in the renewal <br />allocation enclosure. Offsets will come from excess program reserves reconciled <br />December 31, 2020 and will protect multiple categories of eligibility. In accordance with <br />PIH Notice 2020-17, amounts originating from CARES Act HAP awards are not <br />included with program reserves. Appendix B to this notice,CY2021 Offset <br />Reallocation,is anexampleoftheoffset enclosuresthat willbeprovided <br />3 <br />In rare instances where vouchers were transferred from one PHA to another during the re-benchmarking period, <br />the leasing and cost data of the PHAs will be adjusted to ensure that the leasing and costs represented by the <br />transferredvouchersareproperlyaccountedfor intheeligibility determinations. <br /> <br />