PHAs can only help low-income families with Housing Choice Vouchers if they can pay the costs of administering the program. Since the beginning of the program in the mid-1970s, the formula for allocating administrative fees has largely relied on differences in fair market rents (FMR) for determining administrative fee allocations, based on the weak theory that FMRs correlate with wage rates and other costs of operation, like office rent.

The lack of actual data on how much it costs to run a high performing and efficient voucher program has undermined HUD's efforts to ensure adequate levels of funding throughout the nation.

Through a very detailed and methodical approach, this study (1) used a history of high performance on SEMAP and site visits to 95 PHAs to identify a diverse sample of 60 PHAs administering high performing and efficient HCV programs, (2) tested different direct time measurement methods, (3) collected detailed direct time measurement data using Random Moment Sampling (RMS) via smartphones, and (4) captured all costs incurred by the HCV program (labor, non-labor, direct, indirect, overhead costs) between 2012 and 2014 at 60 high performing PHAs across the country.

• The study shows that PHAs have been significantly underfunded to run the 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 that capture the actual costs of running a high performing and efficient HCV program.
• 92% of non-MTW PHAs would have higher fees under the proposed formula compared to actual fees received between July 1, 2013 and June 30, 2014 at 75 percent proration.

On Friday April 17, 2015 from 11 am – 12:30 pm, HUD will hold a Public Briefing to release the Housing Choice Voucher Program Administrative Fee Study.

This event is for Public Housing Agencies (PHAs), PHA industry groups, HUD staff, and other interested stakeholders to learn about the study methodology and to hear the study results firsthand. The study proposes a new administrative fee formula that has implications for the overall budget and for individual PHAs.

Register today to participate in this informative and interactive dialogue on one of the most important issues facing PHAs today.