The Housing Voucher Funding Reallocation Act

119th Congress Introduced by Mike Lawler

Recapture unused tenant-based voucher funds from PHAs each year and reallocates them to PHAs that fully use their allocations to better meet demand.

Introduced in House

Overview

The Housing Voucher Funding Reallocation Act (H.R. 9584) would modify the reallocation of unobligated funding for tenant-based housing assistance under the U.S. Housing Act of 1937. Specifically, it requires the Secretary of Housing and Urban Development (HUD) to recapture unused tenant-based assistance funds from public housing agencies (PHAs) at the end of each fiscal year and then reallocates those recaptured funds to PHAs that have fully utilized their tenant-based assistance allocations.

Purpose: Increase targeting of unobligated voucher funds to PHAs with unmet demand or need for tenant-based assistance.

Primary sponsor: Representative Mike Lawler (co-sponsor).

Key Provisions

Amendment to Section 8(o) of the U.S. Housing Act of 1937, adding a new subsection (24) titled “Reallocation of Amounts.”

Reallocation mechanics:

End of each fiscal year, HUD must recapture from each PHA any amounts provided for tenant-based assistance under paragraph (1)(A) that the PHA did not obligate during that fiscal year. The recapture excludes administrative fees or other amounts made available under subsection (q).
HUD must reallocates the recaptured funds to PHAs that used all of the amounts provided to them for tenant-based assistance under paragraph (1)(A).

Scope: Applies to unobligated tenant-based assistance funding, not including administrative or other non-tenant-based funds specifically referenced.

Who/What is Affected

Affected Entity: Public housing agencies (PHAs) receiving tenant-based assistance (voucher) funding under the Housing Act.

Impacted Parties:

PHAs that do not obligate or expend their allocated tenant-based assistance funding by year-end could see recaptured funds redistributed.
PHAs that fully utilize their allocations for tenant-based assistance could be eligible to receive additional funds if other PHAs have unobligated balances.

HUD: Responsible for implementing the recapture and reallocation process at year-end.

Procedural and Timeline Considerations

Timing: Reallocation occurs at the end of each fiscal year.

Process: 1) Identify unobligated tenant-based assistance funds at year-end for each PHA. 2) Recapture those unobligated amounts (excluding administrative fees and certain other funds under subsection (q)). 3) Reallocate the recaptured funds to PHAs that have fully expended their tenant-based assistance allocations.

No new funding amounts are specified in the text; the bill focuses on reallocation of unobligated funds rather than creating new appropriations.

Potential Impacts and Considerations

Resource Efficiency: Aims to reduce unspent voucher funds and ensure available resources are allocated to PHAs with demonstrated need and full utilization.

Demand Alignment: Could improve responsiveness to households seeking tenant-based assistance by directing funds to PHAs with higher utilization or need.

Administrative Considerations: Requires HUD to track obligation status at year-end and manage intra-agency reallocations, which may involve data reporting and administrative processes.

Summary

H.R. 9584 would mandates a yearly recapture of any unobligated tenant-based voucher funds from PHAs and reallocates those funds to PHAs that have fully used their allocations, under the framework of the U.S. Housing Act of 1937. The goal is to optimize the use of voucher funding by directing unspent resources to PHAs in need of additional tenant-based assistance, thereby improving overall efficiency and impact of the housing voucher program.