Findings from HCV Administrative Fee Study

HUD Proposes More Accurate Formula

Findings from HCV Administrative Fee StudyThe U.S Department of Housing and Urban Development has released a Housing Choice Voucher Program Administrative Fee Study.

This study is the first detailed analysis of all costs incurred (labor, non-labor, direct, indirect, overhead) for agencies operating a Housing Choice Voucher program.

For the study, data was gathered from a sampling of 60 Public Housing Authorities from across the country, including the New Jersey Department of Community Affairs.

Key findings included:

  • This study shows public housing agencies (PHAs) have been significantly underfunded to run the Housing Choice Voucher (HCV) program.
  • Across a broad sample of 60 high performing PHAs, this study measured the actual costs of operating a well?run HCV program.
  • The average cost of administering the program in 2013 was $70.03 per voucher per month.
  • The study proposes a new formula based on 7 variables that cover a broad range of cost drivers capturing the actual costs of running a high performing and efficient HCV program.
  • 92% of PHAs would have higher fees under the proposed formula compared to the actual fees received (existing formula at 75 percent proration) between July 1, 2013 and June 30, 2014.
  • HUD intends to seek public comment soon, and when available, the public will be able to comment on www.regulations.gov.

Click here for an overview of the study.

Click here to access Housing Choice Voucher Program Administrative Fee Study.