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

Interim Supplement Letter – effective 01 October 2025

BREAKING NEWS!

 You must report all changes in income, assets, family composition, and expenses to VSHA within 10 business days of the change.

 VSHA will process these changes even if they result in an increase to your portion of rent.

 Increases in your portion of rent will take effect the first day of the month with at least a 30-day notice with on time reporting.

On 21 July 2025, a letter was sent via email to landlords and property managers regarding the process for transfer of ownership. The letter was meant to be informative and a reminder and did NOT mean that anyone had initiated a transfer.

The letter was not clear on that fact and caused confusion. In the future, if you have any questions about the transfer process, or if you are interested in initiating that process, please contact your local Field Representative.

(Sample Letter that was sent)

On May 1, 2025, AffordableHousing.com began notifying applicants of Section 8 Vouchers, that they need to confirm they are still interested and wish to stay on the waitlist or could be removed. If you received a text message or email from AffordableHousing.com about the status of your application, you should respond to them by following the instructions in their message. They are a Florida-based company. This is not a scam.

If you need to contact them, you should call 888-406-4003.

They are reaching out to inform you of the upcoming Annual Waiting List Update and Purge for the Vermont State Housing Authority (VSHA) and its network of housing partners.

Each year, on behalf of VSHA and its partners Affordablehousing.com will conduct an update and purge of the (90+) waiting lists to ensure applicant information is current and to remove individuals who are no longer interested in housing assistance. This process is essential for maintaining accurate, efficient, and responsive waitlist management.

Key Points for Applicants: Applicants who do not respond to the update request will be removed from the waiting list without further notification. It is critical that all applicants keep their mailing address, phone number, and email address up to date to avoid unintended removal.

2025 Update Schedule:

• May 1, 2025: First notification sent via email and text message to applicants who have not updated their application in over one year. (For those who have opted into this feature.)
• May 15, 2025: USPS First Class Mail update request sent to any remaining applicants who have not yet responded online or through VSHA or a PBV Partner.
• May 29, 2025: Deadline to complete the update process.
• May 30, 2025: Applicants who have not completed their update by this date will be removed from the waiting list.

Applications open on 01 November 2024 to flood-effected households. The program opens to all others on 15 November.

Please see our page for more information: Rapid Response Mobile Home Infill Program (MHIP) – Vermont State Housing Authority (vsha.org)