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

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EXHIBIT 2 q�Q�TMEurp�yOc U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT IIWAKIINGTON, DC 20410-5000 �BqN DEYF�D�� OFFICF 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 fiends 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 Financial 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