HUD PIH Notice § 2026-02

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Special Attention of:                               Notice PIH 2026-02
Public Housing Agencies
Public Housing Directors                            Issued: February 5, 2026
Regional Public Housing Directors
                                                    Expires: This notice remains in effect until
                                                    amended, superseded, or rescinded.

                                          Cross References: Notices PIH 2021-15,
                                          2021-20, 2023-23, 2023-35, 2025-07, and
                                          2025-19
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Subject: Process for Recapture and Reallocation of Services Fees for the Emergency
Housing Voucher Program and Change to Portability Policy

  I.   PURPOSE

       This notice establishes the process by which HUD will begin recapturing and reallocating
       unused services fees awarded under the Emergency Housing Voucher (EHV) program
       authorized by the American Rescue Plan Act of 2021 (ARP), Public Law 117-2. This
       notice specifically amends and supplements Notice PIH 2023-35, adding procedures for
       the recapture of unobligated EHV services fee funding. These returned fees will be
       reapportioned and obligated as housing assistance payments (HAP) to be used for HAP
       shortfalls to ensure continued assistance for EHV families as long as funds permit.

       Additionally, this notice revises EHV policy regarding portability to allow public housing
       agencies (PHAs) administering EHVs billed under portability to absorb EHV families
       into their Housing Choice Voucher (HCV) program, subject to budget authority and
       availability of units under their Annual Contributions Contracts (ACC).

 II.   BACKGROUND

       Section 3202 of ARP authorized $5 billion for the provision of EHVs and associated
       administrative costs and other eligible expenses. HUD allocated funding to PHAs for: (1)
       HAP, (2) ongoing administrative fees, and (3) a one-time services fee to support eligible
       activities to help EHV families successfully lease and maintain housing.

       EHV services fees are intended for eligible uses as described in Section 8.d of Notice PIH
       2021-15 and updated by Notice PIH 2023-23, including but not limited to housing search
       assistance, application fees, security deposit assistance, landlord incentives, tenant-
       readiness services, and other eligible costs. HUD is responsible for ensuring that such
       funds are used timely and effectively. Throughout the program, HUD has reminded


                                          www.hud.gov
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       PHAs that unused EHV services fees may be recaptured and reallocated to other PHAs to
       support EHV leasing and retention.

       As provided in Section 3202(b)(6) of ARP, after September 30, 2023, PHAs were
       prohibited from reissuing turnover EHVs. Furthermore, PHAs that reached their
       cumulative EHV lease-up count could not reissue any EHVs after September 30, 2023.
       Nevertheless, there remained a small number of never-issued EHVs that could potentially
       be leased. Given the earlier-than-anticipated depletion of program funds caused by
       historic increases in rental prices and higher per-unit costs, HUD mandated that PHAs
       must stop issuing EHVs effective 14 calendar days after the publication of Notice PIH
       2025-07.

       Considering the end of EHV leasing and the depletion of EHV funds, HUD began the
       process of closing out the EHV services fees funding category through Notice PIH 2025-
       19. In that notice, HUD set a deadline for services fee expenditures as two months after
       publication (August 19, 2025) and required PHAs to enter their expenditures in the
       Voucher Management System (VMS) no later than four months after publication.

       Through this notice, HUD describes the policies and process to recapture unused EHV
       services fees. To repurpose recaptured EHV services fees as HAP, HUD must then
       reapportion, reallot, and obligate these amounts as HAP. This will enable HUD to
       provide the HAP resources to extend the EHV program as long as possible.

III.   APPLICABILITY

       This notice applies to all PHAs that received EHV services fees under the EHV program.

IV.    SERVICES FEE CLOSEOUT

       This notice revises Sections 10.c and 10.d of Notice PIH 2023-35 to move up the timeline
       for the reconciliation and closeout of EHV services fees. In that notice, HUD stated that it
       would issue a final Special Fee Reconciliation and Closeout enclosure to PHAs that cease
       to participate in the EHV program no later than four months after the PHAs’ EHV
       program closeout.

       This notice revises that to state that HUD plans to issue a final services Fee
       Reconciliation and Closeout enclosure to all EHV PHAs by the end of February 2026.
       HUD will compare funds obligated and disbursed to PHAs to funds spent as reported in
       the services Fee expense fields in VMS through August 19, 2025. Undisbursed
       obligations and unspent funds will be returned to HUD. These funds will be reallocated
       to cover HAP and administrative fee needs in the EHV program based on need to cover
       2026 shortfalls. HUD will provide more information on how the funds will be reallocated
       later in the year.
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  V.    EHV PORTABILITY

        This notice revises Section 9 of Notice PIH 2021-15 to allow PHAs to absorb incoming
        EHV families into their HCV program.

        Currently, receiving PHAs administering EHVs must either: (1) absorb incoming EHV
        families into their EHV programs or (2) bill the initial PHA for the cost of assistance. The
        receiving PHA cannot absorb an EHV family into its HCV program. In contrast, non-
        EHV PHAs are permitted to absorb incoming EHV families into their HCV programs.

        Due to the depletion of EHV funds and the need to transition as many families as possible
        to the HCV program, HUD is revising its policy with this notice to authorize receiving
        PHAs administering EHVs to absorb incoming EHV families into their HCV programs,
        subject to budget authority and available units under their ACC. If a family wishes to
        move under portability from one EHV PHA to another EHV PHA, the receiving PHA
        can choose to absorb the family into their HCV program or to bill the initial PHA but
        may not absorb the family into their EHV program.

 VI.    EFFECTIVE DATE

        This notice is effective upon issuance.

VII.    PAPERWORK REDUCTION ACT

        The additional information collection requirements contained in this document are
        approved by the Office of Management and Budget (OMB) under the Paperwork
        Reduction Act of 1995 (44 U.S.C. 3501-3520). The OMB control number is 2577-0169.
        In accordance with the Paperwork Reduction Act, HUD may not conduct or sponsor, and
        a person is not required to respond to, a collection of information unless the collection
        displays a currently valid OMB control number.

VIII.   FURTHER INFORMATION

        Questions regarding this notice should be directed to the EHV mailbox at
        EHV@hud.gov.




                                              __________________________
                                              Benjamin Hobbs
                                              Assistant Secretary
                                               for Public and Indian Housing