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5 <br /> U.S. Department of Housing and Urban Development <br /> Public and Indian Housing <br /> Special Attention of: PIH Notice 2013-28 <br /> Office Directors of Public Housing; <br /> Regional Directors;Public Housing Issued: December 16, 2013 <br /> Agencies. <br /> Expires: Effective until amended, <br /> superseded, or rescinded <br /> Cross References: Notice PIH 2O13-12 <br /> SUBJECT: Guidance on the Use of Outside Sources of Funds in the Housing Choice <br /> Voucher(HCV)Program { <br /> { <br /> i. Purpose. This purpose of this Notice is to provide guidance to public housing agencies <br /> (PHAs)regarding the use of outside sources of funds for Housing Assistance Payments <br /> (HAP) expenses in the Housing Choice Voucher(HCV)Program. <br /> 2. Background. HUD has received numerous inquiries from PHAs requesting clarification <br /> regarding whether outside sources of funding may be used to make HAP payments. In some <br /> cases PHAs are seeking to maintain leasing or increase leasing up to baseline,which without <br /> outside sources of funding would not be possible for the PHA in light of the deep proration in <br /> renewal funding as a result of sequestration. Other PHAs have asked if outside sources may <br /> be used to prevent the termination of families as a result of insufficient funding. This notice <br /> clarifies the requirements regarding the use of outside funds for calendar year 2013 and <br /> subsequent years. <br /> I <br /> I <br /> 3. Acceptable Sources of Funds. PHAs administering the HCV program have several <br /> acceptable sources of funds available to cover eligible HAP expenses in the HCV program. <br /> These sources of funds include HCV budget authority,HUD-held HAP reserves (undisbursed <br /> budget authority),PHA-held Net Restricted Assets (NRA), funds from the HAP Set-aside (if <br /> available after PHA application and approval) and Unrestricted Net Assets (UNA— <br /> commonly referred to as administrative fee reserves). Use of these sources of funds (other <br /> than current year admin fees) are acceptable in order to maintain current leasing, increase <br /> leasing, and/or covering increased HAP costs under the HCV program. (The use of current <br /> administrative fees may only be used for administrative expenses and may not be used to <br /> cover HAP costs until the PHA fiscal year end,when unused administrative fees roll into the <br /> administrative fee reserve.)For PHAs participating in the Moving to Work initiative, <br /> fungible Public Housing Operating and Capital funds are also acceptable sources of funds to <br /> cover eligible HAP expenses in the HCV program. Note also that certain categories of Set- <br /> aside funding, such as funding to prevent terminations of families due to insufficient funding, <br /> may not be used to place new families under lease in the HCV program. PHAs with any <br /> questions regarding the eligible uses of Set-aside funding should contact their financial <br /> analyst at the Financial Management Center(FMC) for assistance. <br />