To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Executive Director
Report Title: Report on the shortfall funding status of the Housing Choice Voucher program
☐Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
CONSIDER accepting a report on the shortfall funding status of the housing authority’s (HACCC) Housing Choice Voucher program.
BACKGROUND:
Shortfall in the Housing Choice Voucher (HCV) program is when a housing authority does not receive enough annual renewal funding to continue housing everyone on their program currently. There are many reasons a housing authority could face shortfall, but, in general, Congressional funding for the voucher program has not kept up with rent inflation nationally, which has been historically high over recent years. As a result, the United States Department of Housing and Urban Development (HUD) has been inundated with an increasing number of housing authorities across the country who have fallen into shortfall, and it has been difficult for HUD to juggle funding to keep everyone housed nationally.
HUD also believes that rents have “moderated significantly nationally” and yet they have “not seen corresponding moderation in national HCV program costs, and many PHAs are now on pace to see significant funding shortfalls again in 2026.” As a result, HUD has implemented more rigorous shortfall procedures for 2026.
Staff will update the Board at its July 7, 2026, meeting.
FISCAL IMPACT:
The United States Department of Housing and Urban Development (HUD) is projecting a $13,320,654 shortfall in voucher funding for HACCC’s HCV program.
CONSEQUENCE OF NEGATIVE ACTION:
None. Informational item only.