Sequester Update: Section 8 Funding

In a March 11, 2013 memo to Owner/Agents, Marie Head, Deputy Assistant Secretary of HUD explained how funding will work for Section 8 Project Based Rental Assistance under the sequestration.

HUD plans to manage the funding in a way that minimizes the potential impact of the sequestration, and assure the funding of all HAP payments during the current fiscal year.

– All Section 8 contracts expiring in FY 2013 will be renewed (if eligible) under current program rules and will receive full twelve month funding.

–  All existing multi-year contracts that expire after FY 2013 and have anniversary dates in the first quarter of FY 2013 (October-December) will receive full twelve month funding, assuring sufficient funding to carry them into the first quarter of FY 2014.

– All other multi-year Section 8 contracts will receive less than 12-month funding, but will be provided sufficient funding to carry them into the first quarter of FY 2014.  The approximately 11,000 contracts   in this category will, on average, receive about 8.5 months of funding depending on their anniversary date. For example, a multi-year contract funded in March 2013 might receive ten months of funding (March-December), while a contract funded in September 2013 might receive four months (September-December).

HUD‘s goal is to avoid payment disruptions during FY 2013 or early FY 2014. Funding after that point will depend on Congressional appropriations for FY 2014.

For more information about HUD and the sequester visit the  Sequestration Information page on the HUD website.