Hud S December Section 8 Housing Choice Voucher Program Funds Are

By: Tushar Gurjal, Senior Policy Manager December 1, 2025 – Earlier today, in a call to industry groups, HUD stated that shortfall payments for the Housing Choice Voucher (HCV) program would be delayed for December, 2025. Shortfall payments in the HCV program are payments by HUD to PHAs that are experiencing a funding deficit in the Housing Assistance Payment (HAP) budget. The Department anticipates sending the shortfall payments to banks by the end of the week through early next week. Local banks may need a few business days before making the payments accessible to housing agencies depending on the bank. The Department has stated that housing agencies may use reserves or unrestricted net position (UNP) for the payments or may delay payments if necessary.

Moving forward, the Department anticipates making another round of shortfall payments in January and believes that funding from the continuing resolution (CR) should cover HAP and administrative fee payments for January and potentially most... Housing agencies with questions or concerns should reach out to their HUD Financial Management Center (FMC) analyst for support. NAHRO recommends that PHAs review section 7 of the HCV HAP contract which details when penalties may or may not be imposed for late payments to landlords. If you'd like to help with maintaining or developing the website, contact us. Publish your stories and upcoming events on Indybay. Thousands of landlords who participate in the federal Section 8 Housing Choice Voucher program will not receive their December payments on time due to delayed funding from HUD, as reported by Bisnow.

The issue is tied to a recent 43-day government shutdown — the longest in U.S. history — which ended in November. Public housing authorities in cities like New York, Boston, and Boca Raton are among those notifying landlords of the delay, with many warning that full payments may not be made until mid-December or later. Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes New York City Housing Authority (NYCHA), the nation’s largest housing agency, said it’s exploring interim solutions but has not yet received its December funding. Boston Housing Authority (BHA) expected a $40M disbursement from HUD on Dec.

1 but has received nothing. It’s now using $10M in reserves to make partial payments — about 25% of the total owed. Landlords participating in the Housing Choice Voucher (HCV) program are being advised to expect delays in their December 2025 Housing Assistance Payments, following an announcement from the U.S. Department of Housing and Urban Development (HUD). According to HUD, shortfall payments, federal funds issued to housing agencies facing temporary budget deficits, will not be distributed on the usual schedule this month. These payments play a critical role in helping local housing authorities meet their monthly obligations to landlords.

What this means for you:HUD expects to release the delayed funds to financial institutions by the end of this week through early next week. Please note that once the funds are sent, individual banks may take a few business days to make them available to housing agencies, which may cause temporary delays in landlord payments. Looking ahead, HUD anticipates issuing another round of shortfall payments in January. Current federal funding is expected to support January payments and potentially most February payments. We appreciate your patience as we navigate this federal funding delay. Landlords with additional questions may contact the Housing Authority directly by email at brha@bocahousing.orgcreate new email.

The federal government shutdown has been over for weeks, but the ramifications are hitting Section 8 landlords hard. The government failed to deliver funds designated for Section 8 housing vouchers at the start of the month, Bisnow reported. The delay leaves more than 500 public housing authorities in the lurch and may create a shortfall between $700 million and $800 million for operators. Public housing agency association groups learned of the funding shortfall on Monday. Housing authorities in New York City, Georgia, Boston and Boca Raton are among those affected. “Following notice from HUD that payments to Section 8 landlords would be delayed this month, NYCHA is assessing interim options and will distribute funding as soon as it becomes available from HUD,” NYCHA said...

“HUD is working to make these awards to PHAs to ensure no disruption in program services,” a spokesperson for the Department of Housing and Urban Development said in a statement. The agency also took the federal government’s typical line of blaming Democrats for the historic 43-day shutdown. Thousands of affordable housing operators won’t be getting paid by the government on time this month. Some funds earmarked for Section 8 vouchers haven’t been distributed by the federal government to hundreds of local housing authorities, and the Department of Housing and Urban Development has notified the agencies that the... More than 500 public housing authorities have a shortfall for December payments that total between $700M and $800M, an industry representative familiar with the details of the program told Bisnow. A HUD spokesperson said the missed payments were caused by complications associated with the government shutdown, which was the longest in U.S.

history at 43 days and ended in the middle of November. “Democrats shut the government down for more than 40 days. As HUD warned from the beginning, this careless decision resulted in real-world consequences for vulnerable Americans. HUD is working to make these awards to PHAs to ensure no disruption in program services,” the spokesperson said in a statement to Bisnow. On November 17, 2025, HUD issued PIH Notice 2025-28, “Cost-Savings Measures in the Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) Programs” (the Notice). As rent costs have risen and federal funding for the Section 8 voucher program has grown tighter, increasing numbers of public housing authorities (PHAs) are facing potential funding shortfalls in their HCV and PBV...

The Notice describes measures PHAs may take to cut program costs. This is not the first time in the Section 8 Voucher Program’s history that funding shortfalls have occurred. This Notice updates previous guidance dating back to 2011. Several of the cost-savings measures articulated in the Notice are similar to those proposed in the past; a few are new. The Notice lists a number of potential measures PHAs can take, organized into three categories: Cost-savings measures in Category 1 are mandatory program requirements, and the Notice reminds PHAs that they must follow these program rules.

Some of these measures include: Category 2 are voluntary cost-savings measures. Some of these measures include:

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