KHRA Shutdown Update
The partial federal government shutdown has resulted in a legitimate concern among property owners and participating families regarding the receipt of Housing Assistance Payments (HAP) for the federally funded Housing Choice Voucher (HCV) Program. Kingsport Housing & Redevelopment Authority (KHRA) administers the HCV Program through 1,575 vouchers in six counties in upper East Tennessee. KHRA has been advised that funding for the HCV program is available through February 28, 2019. We anticipate issuing timely Housing Assistance Payments until that time.
Notice to Landlords & Management Agents
The administration of the HCV program is subject to the availability of sufficient appropriated funding. As a result KHRA may not issue HAP beyond the approved budget authority. Upon receipt of additional federal funding appropriation KHRA will continue its contractual commitment to resuming housing assistance payments payable to property owners on behalf of HCV assisted families at the conclusion of the shutdown. It is important to note that under HAP Contract which is governed by federal regulations:
- 982.451(b)(4)(iii). “…“the tenant is not responsible for paying the portion of rent to owner covered by the PHA housing assistance payment under the HAP contract between the owner and the PHA. A 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.”
982.451(b)(5)(ii)(A). Additionally, the PHA is not obligated to pay any late payment penalty if HUD determines that late payment by the PHA is due to factors beyond the PHA’s control. § 982.451(b)(5)(ii)(B).
Notice to HCV Participants
Active KHRA HCV Participants are obligated to continue paying their portion of the rent to their landlord in compliance with their HCV obligations. In addition, HCV Participants are also obligated to comply with re-exam processing/reporting requirements by supplying documentation in accordance with HCV Family Obligations. Requirements related to Annuals, Interims, Relocations, Portability, etc. remain unchanged.
KHRA will issue additional information as it becomes available.
Last modified: January 24, 2019
