|HUD No. 23-212
HUD Public Affairs
September 21, 2023
HUD Awards $25 Million to Stabilize Public Housing Agencies Facing Financial Shortfalls
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) awarded today $25 million to 157 public housing agencies (PHAs) experiencing or at risk of experiencing financial shortfalls. This Public Housing Operating Fund Shortfall funding, provided by the Fiscal Year 2023 Consolidated Appropriations Act, will enable PHAs to continue serving residents as they take steps to ensure long-term financial solvency. Please see the list of awardees here.
“Public housing agencies need support to fully serve HUD-assisted households and families,” said HUD Secretary Marcia L. Fudge. “This critical investment into public housing agencies across the country is a part of HUD’s commitment to meeting the needs of residents and taking steps toward long term financial stability.”
“These funds stabilize PHAs experiencing financial shortfalls so that they can meet the needs of residents and ensure that they can maintain decent, safe, and sanitary public housing,” said Richard Monocchio, Principal Deputy Assistant Secretary for Public and Indian Housing at HUD. “HUD will work closely with these agencies moving forward to develop plans to address the underlying drivers of shortfalls and help identify strategies to improve their financial stability.”
PHA awardees facing shortfalls are defined as having less than three months of operating expenses held in reserve. While PHAs of various sizes may have been eligible to receive funding, HUD is concerned with the ability of small and very small PHAs to generate resources to supplement their public housing program and, therefore, prioritize these PHAs in the distribution of funds.
To establish that PHAs that receive Shortfall funding take appropriate steps to ensure long-term financial solvency, HUD will monitor all PHAs that receive funding under this category. Additionally, HUD has identified and informed the PHAs of recommended actions that the PHAs can take to improve their financial performance. PHAs that receive Shortfall funding must develop a plan identifying action items the PHA can take to improve their financial performance.
Click here to read HUD’s Notice on Implementation of Public Housing Operating Fund Shortfall Funding from Federal Fiscal Year (FFY) 2023 Appropriations.