This webpage highlights the importance of timely and accurate reporting of the Emergency Housing Voucher (EHV) service fee to the Voucher Management System (VMS).  Public housing agencies (PHAs) administering the EHV program received $3,500 per EHV allocated for the EHV service fee.  You are reminded of the requirement to account for and report in VMS how the service fee was used under any of the four main components of eligible use defined in Notice PIH 2021-15.  If you do not spend your EHV service fee you are putting funds at risk of recapture.  HUD may recapture your unspent EHV service fee and reallocate to another PHA (see section 1 below to identify your unspent EHV service fee).  The components for eligible use of the EHV service fee are listed in section 2 of this letter.  The remaining sections will provide your agency with a better understanding of the management and reporting requirements of EHV Service Fee.   

You may also view the percent of your EHV service fee spent and the breakdown of EHV service fee expenses on page 6 of the EHV Data Dashboard.

1. Eligible Use of EHV Service Fee:
   The eligible use of the four main components of the EHV service fee is comprised of the following:

• Housing Search Assistance Expenses:  Housing search assistance is a broad term which may include many activities such as but not limited to hiring staff to carry out the required housing search assistance,  helping a family identify and visit potentially available units during their housing search, helping to find a unit that meets the household’s disability-related needs, providing transportation and directions, assisting with the completion of rental applications and PHA forms, and helping to expedite the EHV leasing process for the family.
• Security/Utility Deposit/Rental Application/Holding Fee Expenses: This component also includes utility arrears (it does not include rental arrears).
• Owner-Related Uses: Owner recruitment, owner outreach, owner incentive, and/or retention payments for renewing the lease for the EHV family.
• Other Expenses: Moving expenses (including move-in fees, deposits, storage expenses, lock change), tenant-readiness services (mitigate barriers such as negative credit, lack of credit, negative rental/utility history), essential household items (tableware, bedding, groceries, toiletries, etc.), renter’s insurance if required by the lease.

PHAs can also maximize their EHV service fees by considering the following:

• The $3,500 service fee is not tied to a specific household,
  The EHV service fee is designed to give voucher holders a menu of services to lower barriers into housing, attract landlords or retain landlords at lease renewal,
• If you are having difficulty finding landlords, consider adding/increasing the one-time payment/bonus to the landlord for a successful lease,
  Create a landlord mitigation fund to repay landlords for losses beyond wear and tear or terminated leases – landlords submit claims with documentation after tenant moves out, which is usually capped at a certain amount per unit/claim,
• The PHA and CoC should work together to understand leasing barriers to expediate leasing,
  Housing search assistance must be offered to all EHV participants and may be provided directly by the PHA or through the CoC or another partnering agency or entity.  The PHA may use the EHV service fee (or the EHV administrative fee) in order to provide the required housing search assistance,
• Take advantage of other funding to leverage for similar resources, so there is not duplication and the EHV service fee could be used for other unmet needs or leasing barriers.
  The EHV service fee can be used for broker fees related to leasing transactions and the cost for pre-inspections of rental units.
   

2. VMS EHV Expense inputs for EHV Service Fee Expenses and UMLs:

Please review VMS data to confirm that the EHV service fee reports are reported accurately across the four main components of eligible use, notably those months with no EHV service fee expenses.  As the majority of the eligible uses are upfront costs for successful leasing, and for many PHAs, much of the upfront leasing occurred, HUD wants to ensure that all EHV service fee expenses incurred in support of the EHV program are being captured in VMS as this is how service fees are calculated to be paid out to you.  If the amounts reported in VMS are incorrect, please correct in via the Prior Month Correction (PMC) process.  If you need assistance, please contact EHVresearch@hud.gov. 
 

3. Training and Resources Available:

For information on the eligible use of the EHV service fee or how to report the EHV service fee, please access the EHV Office Hours below:

• Management and Reporting of EHV Service Fees (EHV 2/7/23 Office Hours): https://youtu.be/e1EVZwaoHhU

Other EHV resources available include:

• (New) Notice PIH 2023-23 – This notice amends Section 6.d of the EHV operations notice, Notice PIH 2021-15, and adds new eligible activities that can be funded with the EHV Services Fee. The Notice also expands the descriptions of existing activities to provide communities with additional ways to facilitate successful leasing of EHVs.
• Notice PIH 2021-25 – this notice details the VMS reporting requirements for the EHV program.
• EHV FAQs – page 23 begins the Q&A of the EHV service fee.
• EHV How-To-Guide PHAs – Section 5 on page 19 covers “Use of the Service Fee.”
• Previously Held EHV Office Hours – to access video recordings on additional topics related to the EHV program.
   

4. Common Monitoring Findings Related to the EHV Service Fee:

HUD’s Quality Assurance Division (QAD) and our EHV Research Team have commenced monitoring of the EHV program and below are the common monitoring findings specific to the EHV service fee.

• Do not report the EHV service fee expenditures as part of the admin expenses or HAP expenses; the EHV service fee should be separate,
• Do not use the EHV service fee to pay the tenant portion of the rent,
• Create a separate sub-ledger for EHV, so that the EHV service fee expenditures are not part of regular HCV expenses,
• Revisit your Administrative Plan, and ensure eligible expenditures are documented,
• Supporting documentation needs to be kept for all EHV service fee expenditures,
• Remaining EHV service fees held by the PHA are unearned revenue. They do not have an impact on the RNP since the cash is offset by the unearned revenue.
   

Thank you for your continued effort serving vulnerable individuals and families with the EHV program.  Should you have any questions regarding the eligible use of the EHV service fee or if you would like to request technical assistance, please contact ehv@hud.gov.  If you have questions regarding how to report the EHV service fee in VMS, please contact your FMC Financial Analyst.