HACLA Advises Owners on Government Shutdown and Potential Short-Fall in Funding

HACLA Advises Owners on Government Shutdown and Potential Shortfall in Funding

HACLA is providing this courtesy message to keep property owners apprised of the 2026 Federal Budget and the current 2025 voucher shortfall situation for the Section 8 program.

📊 2026 Federal Budget Scenario

• There is a potential of a federal government shutdown on October 1, 2025.
• HUD has assured HACLA that Housing Assistance Payments (HAP) to property owners will be provided for October 2025, even if a shutdown occurs.

⚠️ Current 2025 Voucher Shortfall

• HACLA projects a shortfall of December 2025 HAP due to higher housing assistance payments.
• HACLA has applied to HUD for shortfall prevention funds to cover this gap and has received assurance from HUD that it will be covered.
• As a result of the current shortfall status, HACLA continues with cost containment measures put in place since March 2025:

🏛 Cost Containment Measures Currently in Place

• No new voucher leasing is allowed, and applications suspended in March 2025 will remain on pause until the shortfall period ends.
• Voucher Payments Standards have been adjusted to 110% of the Fair Market Rent.
• Some housing assistance programs for individuals and families experiencing homelessness may continue, allowing new leasing and voucher participants to move from one unit to another.

📉 Desired Shortfall/Budget Outcomes

• Secure full funding of HACLA December 2025 voucher shortfall.
• Avert a federal government shutdown.
• Obtain a 2026 budget that fully funds the Section 8 Program, including an inflation factor for HAP cost increases.

🎯 HACLA will keep property owners advised of any future changes.