What Causes Delays In Hud Payments To Section 8 Landlords

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 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. 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. Several recipients and landlords of Section 8 Housing Choice Vouchers across various states, including Guam, New York City, and parts of California, are experiencing delays in May 2025 payments. Although the U.S. Department of Housing and Urban Development (HUD) has not issued a nationwide alert, local housing authorities and legal aid groups have confirmed disruptions affecting voucher disbursements. These delays risk increasing housing instability for tenants and financial stress for landlords. Tenants and landlords in Guam, New York City, and certain California regions have reported late or missed Housing Choice Voucher payments.

Guam’s Housing and Urban Renewal Authority (GHURA) failed to meet its usual May 1 payment deadline. In New York City, payment delays of over a week have become more frequent, while California authorities cite staffing shortages and paperwork challenges as key issues. Multiple factors contribute to the recent payment disruptions, including administrative backlogs due to understaffed housing authorities, banking complications from outdated tenant or landlord information, delays in tenant recertification submissions, and timing mismatches between federal... Some housing authorities are withholding payments until all documentation is fully processed. Late voucher payments can jeopardize tenants’ housing stability by causing negative rent balances, increasing eviction threats, and exposing tenants to discrimination by landlords frustrated with payment delays. Legal aid organizations warn that ongoing disruptions may worsen housing insecurity, particularly for tenants unable to cover rent out-of-pocket during processing gaps.

Tenants are advised to submit recertification paperwork promptly, verify that banking details are current, keep detailed records of communications with housing authorities and landlords, and seek legal assistance if threatened with eviction due to... As of June 4, 2025, Section 8 housing voucher recipients in several parts of the U.S. are reporting delays in their monthly rental payments. The delays are affecting both renters and landlords, sparking concerns about late fees, evictions, and missed mortgage payments. While HUD has not issued a national alert, several local Public Housing Authorities (PHAs) have posted updates about processing backlogs and temporary funding holdups. Payment distribution normally begins during the first three business days of the month, but some areas are now reporting delays of up to five days.

HUD has acknowledged that technical issues and funding disbursement timing may cause short delays at the local level. However, the agency has not reported any permanent changes to Section 8 funding schedules for June. In a statement issued to partner PHAs, HUD noted: “Voucher recipients should not be penalized for delays caused by administrative processing or federal timing issues. Renters are encouraged to communicate directly with their landlord if delays occur.” The U.S.

federal government recently entered a partial shutdown that has directly impacted the Department of Housing and Urban Development (HUD). This situation is raising concerns among real estate investors and landlords, especially those who rent to tenants with HUD assistance (such as Section 8 vouchers). In this post, we’ll cover what is happening, why it’s happening, what is expected to happen next, and what landlords should expect in the short term. This shutdown arose because Congress failed to pass a budget or stopgap funding bill by the start of the new fiscal year. In other words, lawmakers did not reach an agreement on federal spending in time, leading to a lapse in appropriations and the shutdown of most non-essential government functions. The impasse was driven by disagreements over spending priorities.

Government shutdowns affecting HUD are not unprecedented. In fact, a similar budget standoff in 2018–2019 led to the longest shutdown in U.S. history. During that period, HUD’s programs experienced delays - for example, over a thousand project-based rental assistance contracts expired and had to be renewed retroactively once funding was restored. Earlier shutdowns also caused temporary disruptions, though critical housing subsidies were eventually restored. When a federal shutdown happens, HUD does not completely close, but it significantly reduces its operations.

Around 70% of HUD’s staff have been furloughed, leaving only essential operations active. HUD has a contingency plan that outlines which activities continue and which are paused. Here are the major impacts: Rental Assistance Payments: HUD will continue paying rental subsidies under previously obligated contracts. That means existing Section 8 and project-based rental assistance payments are being made, at least while pre-obligated funds last. Funding has been secured through October and likely into mid-November.

The U.S. Department of Housing and Urban Development in early October announced Section 8 is funded through the remainder of 2025. Fiscal year 2026 housing and rental assistance budgets still await full congressional approval or a continuing resolution, which will require the House of Representatives to return to session. Although both chambers voted in July to reject President Trump’s proposals for 40 percent cuts and block-granting of rental assistance, neither offered a spending bill that covers renewal costs for all existing vouchers. Under the House bill, an estimated 181,900 households would lose rental assistance; under the Senate plan, 107,800 would. Also HUD has floated the idea of using rule changes to institute time limits and work requirements.

The Housing Choice Voucher program, better known as Section 8, helps low-income renters afford private-market housing by restricting their portion of the monthly rent to 30 percent of their income. The federal government pays the remainder. The program is run by the U.S. Department of Housing and Urban Development (HUD), which transfers its portion of the rent to local public housing authorities (PHAs) each month. The PHAs then pay landlords directly. But Section 8 is facing increased fiscal and administrative uncertainty under the current executive leadership.

In late January, for example, Section 8 recipients nationwide wondered if February’s rent would get paid when the White House called for a freeze on all federal funding. So, what happens when a Section 8 tenant pays their portion of the rent, but the government fails to pay its share? According to statute, the tenant cannot be held responsible for the unpaid amount. (HUD in an email declined to provide specific information, instead referring Shelterforce to the Housing Assistance Payments contract. The applicable information can be found on page 9, subsection 5d, which states that “PHA failure to pay the housing assistance payment to the owner is not a violation of the lease. The owner may not terminate the tenancy for nonpayment of the PHA housing assistance payment.”) HUD rules also prohibit landlords from demanding tenants cover the housing authority’s portion and may not evict tenants solely...

But that doesn’t mean tenants aren’t at risk. Here is more information on what protections HUD provides, how tenants should protect themselves, and what risks they still face. Although the Section 8 program is designed to incentivize landlords to participate by promising (and providing) reliable, government-backed rent payments, that guarantee can break down if a housing authority delays or fails to pay... In such cases, landlords—who are still prohibited from collecting the missed subsidy directly from tenants—may face financial strain, particularly if they rely on timely payments to cover mortgages or maintenance costs. This could discourage landlords from accepting Section 8 vouchers in the first place, or prompt those already in the program to opt out once their contracts expire, further limiting the pool of affordable housing... The New York Apartment Association has been informed by officials at NYCHA that Section 8 voucher payments will be delayed due to complications associated with the federal government shutdown earlier this year.

NYCHA posted this statement on their website: “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’s Section 8 payments to landlords are contingent on federal funding, with the Authority serving as a pass-through for Housing Assistance Payments (HAP). It is NYCHA’s standard procedure to pay its Section 8 landlords as soon as is reasonably practicable following its receipt of funding from HUD.” NYCHA officials said they expect to receive the rest of the federally approved funding in the next week, at which point they will send over the remaining payments owed to property owners. NYAA is monitoring this closely and will provide additional information to our members as it becomes available.

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