Housing Authority of the City of Los Angeles Warns of Possible Funding Shortfall

Housing Authority of the City of Los Angeles Warns of Possible Funding Shortfall

 During late October, the Housing Authority of the City of Los Angeles (HACLA) sent notice warning housing providers about the implications of the Federal Government shutdown, the 2026 Federal Budget and the status of the 2025 housing voucher funding shortfall for the Section 8 program.

According to the notice, the U.S. Department of Housing and Urban Development (HUD) has assured HACLA that Housing Assistance Payments (HAP) to property owners will be provided for the full amount of November 2025 HAP on or about November 1, 2025, even if the Federal government shutdown continues.

However, HACLA’s notice contained warnings about possible future funding shortfalls:

• 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 is continuing with cost containment measures put in place since March 2025, including (i) No new voucher leasing is allowed and applications suspended in March 2025 will remain on pause until the shortfall period ends; (ii) Voucher Payments Standards have been adjusted to 110% of the Fair Market Rent; and (iii) Some housing assistance programs for individuals and families experiencing homelessness may continue with new leasing and voucher participants may continue to move from one unit to another.

Important Disclaimer: The information and materials provided during this presentation is for general information purposes only. Absolutely no legal or tax advice is being given during this presentation. Keep in mind that every situation is unique, and the laws, rules and regulations are subject to change at any time. So, before acting, be sure to obtain tax and/or legal advice from your licensed professional.