Item 10 - AA for Housing Choice Voucher Program and Mainstream Voucher Program

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EXHIBIT 1 U.S. DEPARTMENT OF HOtiSING AND URBAN DEVELOPMENT WASHNGTON. DC 20410-5000 �FI,I JI YF. �C OFFICE OF PUBLIC k\D I\'DLa\ HOUSING March 30, 2023 Dear Executive Director: Subject: Housing Choice Voucher Program Calendar Year (CY) 2023 Renewal Funding_ Allocation The purpose of this letter is to advise public housing agencies (PHAs) of the CY 2023 Housing Assistance Payments (HAP) renewal funding allocations for the Housing Choice Voucher Program (HCVP). The funding allocations described herein are based on the requirements of the Consolidated Appropriations Act, 2023, (P.L. 117-328) referred to hereafter as "the 2023 Act," enacted on December 29, 2022. HUD is in the process of publishing the 2023 HCV Funding Implementation Notice and will notify PHAs by email when that occurs. The Notice will be posted at the following link: littp://poilal.hud.90V/hudpoilal/HUD?src=/program offices/administration/hudclips/notices/hih Your agency's CY 2023 HAP renewal funding is identified at the top of the Enclosure A provided with this letter. Enclosure A sets forth the funding calculations for your PHA and provides estimated RAD 1 funding for the first full year of conversion and CY budget authority associated with tenant protection actions; the calculations are fully explained in the descriptions provided for this enclosure, and you are encouraged to review them thoroughly. Also included are Appendix I and II. Appendix I provides calculations related to the CY 2023 offset for reallocation. Appendix II provides a list of funding increments for which the PHA is receiving an additional inflation factor in CY 2023 to support increased costs since the increments were initially funded. If your agency is administering HUD Veterans Affairs Supported Housing (VASH) vouchers, the renewal of these vouchers is included in the overall renewal calculations. These vouchers are not renewed separately, other than for Moving to Work (MTW) agencies. PHAs must comply, however, with the statutory requirement that VASH vouchers may only be used to assist VASH-eligible participants, both initially and upon turnover. The 2023 Act requires the Department to establish a new baseline for HAP funding eligibility, based on Voucher Management System (VMS) data for CY 2022 (January 1, 2022, through December 31, 2022). This practice is commonly referred to as re-benchmarking. Consistent with prior years, the Department provided PHAs with the opportunity to review and update all VMS data related to the funding calculations as detailed in this letter and the enclosure. The VMS data used is the data reported by each PHA and accepted in VMS as of the end of the data review period on January 27, 2023, the same date as the December 2022 data submission deadline. There will be no further appeals or adjustments to these data items, except at the direction of the Department. The 2023 Act provides that HUD may offset PHAs' CY 2023 allocations based on the excess amounts of PHAs' Restricted Net Position (RNP), including HUD -held program reserves (in accordance with VMS data in CY 2023 that is verifiable and complete), as determined by the Secretary. The Department has decided to exercise the offset for reallocation authority in CY 2023 (impacting a limited number of PHAs) but only to increase the national HAP proration to 100%. A www.hud.gov espanol.hud.gov