HUD HCV Guidebook § 3.3
Denying Family Requests to Move for Insufficient Funding (HUD HCV Guidebook)
Operative Text
Under certain circumstances, a family move may be denied because the PHA has insufficient funds to cover
the move.17 This section outlines when PHAs may deny moves due to insufficient funding, and describes the
steps PHAs must18 take to deny moves for this reason.
16
24 CFR § 982.353(b)
17
24 CFR § 982.354(e)(1)
18
PIH Notice 2016-09(7)
Moves and Portability 7
After the billing arrangement is established with the receiving PHA, the initial PHA must 19 not terminate the
voucher for insufficient funding because the initial PHA is no longer a party to the HAP contract. Additionally,
initial PHAs must20 not impose a cap on the amount of HAP they will pay for a family that has moved under
portability. Imposing such a cap could cause a receiving PHA to not be able to bill the initial PHA for a higher
subsidy amount that the initial PHA would have had to pay for otherwise (such as when the subsidy amount
increases based on changes in the family’s circumstances).
A PHA must21 not deny a request to move due to insufficient funding unless all of the following applies:
1. The move is to a higher cost unit (for moves within the PHA’s jurisdiction) or to a higher cost
area (for portability moves). See definitions below.
2. The receiving PHA is not absorbing the voucher (applicable only to portability moves).
3. The PHA would be unable to avoid termination of current participants during the calendar year
in order to remain within its budgetary allocation (including any available HAP reserves) for
housing assistance payments.
Higher cost unit is defined as a unit which requires a higher subsidy amount due to an increase in the gross
rent for the new unit. A PHA may not deny requests to move due to insufficient funding if the subsidy for the
new unit is equal to or less than the current subsidy being paid for the family.
Higher cost area is defined as an area where the PHA would have to pay a higher subsidy amount due to
higher payment standards or more generous subsidy standards of the receiving PHA (e.g. the receiving PHA
issues a 3-bedroom voucher to a family that received a 2-bedroom voucher from the initial PHA). A PHA may
not deny requests to move due to insufficient funding if the area the family has selected is not a higher cost
area.
If a PHA approves a family’s request to move and then subsequently experiences a funding shortfall, the PHA
may only rescind the voucher if the family would be allowed to remain in its current unit. If the family cannot
remain in the unit (e.g. family has already vacated the unit or family has already notified the owner of their
intent to vacate and the owner has re-let the unit to another family) the PHA must22 not rescind the voucher.
The family must23 be allowed to lease a new unit. This requirement applies to moves within the PHA’s
jurisdiction and to portability moves.
A PHA may not deny a family request to move under portability for insufficient funding:
• If the receiving PHA has confirmed that they will absorb the family into their program. In such
cases, the initial PHA has no grounds to deny the portability move under 24 CFR 982.354(e)(1).
• For families moving within the PHA’s jurisdiction (even if the new unit is a higher cost unit) if the
family must24 move from their current unit (e.g. the unit failed HQS, the owner failed to renew the
lease, etc.). If the family is moving under portability, the PHA may deny the move under these
circumstances if the family is moving to a higher cost area under portability and the receiving PHA
is not absorbing the family into their program.
• Because it wishes to admit additional families from its waiting list into its voucher program,
regardless of whether it has unit months available to do so. If the PHA denies a family’s request to
19
PIH Notice 2016-09(7)
20
PIH Notice 2016-09(7)
21
PIH Notice 2016-09 (7)(a)
22
PIH Notice 2016-09 (7)
23
PIH Notice 2016-09 (7)
24
PIH Notice 2016-09 (7)
Moves and Portability 8
move, it may not subsequently admit families from its waiting list to its HCV program until families
with open requests to move (based on PHA policy) are processed. family’s request to move, it may
not subsequently admit families from its waiting list to its HCV program with open requests to
move (based on PHA policy) are processHUD Housing Choice Voucher Guidebook § 3.3 sets out the narrow conditions under which a Public Housing Authority (PHA) may deny a voucher holder's request to move on the basis of insufficient funding. All three conditions must be met simultaneously: the move must be to a higher-cost unit or area, the receiving PHA must not be absorbing the voucher, and the funding shortfall must be severe enough that the PHA would otherwise have to terminate current participants within the calendar year. Even when those conditions are met, additional protections apply — for example, a PHA that has already approved a move generally cannot rescind the voucher once a family has vacated or committed to vacating their current unit.
Plain English — not legal advice.
As a housing provider participating in the Housing Choice Voucher program, § 3.3 of the HUD HCV Guidebook is primarily directed at PHAs rather than landlords, but it has practical implications for owners whose tenants hold vouchers. When a PHA approves a family's move and the family has already vacated or given notice to vacate, the PHA is generally prohibited from rescinding the voucher, meaning the family retains the ability to lease a new unit. Owners who re-let a unit after receiving a tenant's notice of intent to vacate should be aware that this action is one of the circumstances that triggers the PHA's obligation to allow the family to continue searching for a new unit under § 3.3.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under HUD Housing Choice Voucher Guidebook § 3.3, voucher holders have meaningful protections against a PHA denying a move request solely on funding grounds — a denial is only permissible when all three specific conditions are satisfied at once, and several situations (such as moving because a unit failed HQS inspections or because the receiving PHA will absorb the voucher) are explicitly off-limits as grounds for denial. If a PHA has already approved a move and a family has vacated or committed to vacating their unit, the PHA generally cannot take back the voucher. Tenants who believe a move denial does not meet the criteria outlined in § 3.3 may consider raising the issue directly with the PHA, filing a complaint with the U.S. Department of Housing and Urban Development, or reaching out to a local tenant-rights organization for general information about available options.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 26, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.