HUD Tenants’ Rights during the Government Shutdown
Dear Friends,
Fiscal Year 2025 ended without Congress passing an FY 2026 appropriations bill, triggering a government shutdown. In the short-term, VSHA should be largely unaffected.
During the shutdown, US Department of Housing and Urban Development (HUD) – and US Department of Agriculture (USDA)-assisted households will continue to receive their rent payment on time, through November.
Assisted households retain their rights, please review the attached flyer for details. Tenants Rights must be upheld and enforced regardless of the government’s operating status.
Following is our analysis by program:
Section 8 Vouchers:
HUD has stated that we will receive payments through November 2025. Voucher tenants should not experience any disruption because of the shutdown at this time.
Project-Based Section 8 (PBS8):
Most PBS8 owners have active contracts with HUD that will not expire until the end of the year or later. Owners and managers of these properties should continue to receive on-time payments from HUD during a shutdown. Tenants in these properties should not experience any disruption because of the shutdown at this time. However, a very small number of PBS8 properties have contracts with HUD that will expire in the coming months. HUD expects to have staff on hand to renew and process all of these contracts.
USDA Rural Development:
Because of the way that USDA housing programs are funded, tenants receiving Rural Development Rental Assistance and Rural Development Vouchers likely do not have to worry about their rent getting paid for the next few months. We have been advised that there are likely sufficient funds to pay rental assistance for the next few months.
Community Planning and Development:
In past shutdowns, the Office of Community Planning and Development (CPD) continued to make previously obligated funds available for draw down by CPD grantees (CDBG, HOME, HOPWA, Homeless Assistance Grants and other grant funds). If there was no action or review needed by HUD employees for funds to be drawn down from the system, then grantees would be able to draw funds normally.
The duration of the shutdown is uncertain and is dependent on Congress passing a funding bill. We will provide additional information as it’s available.
Signed,
Kathleen Berk
Executive Director