Absorbing and Billing

Absorbing and Billing 

The receiving PHA has the option to either absorb or bill the subsidy for family. What this means is the PHA can either bill the housing choice voucher assistance to the initial PHA, in which case the subsidy payments come from the initial PHA’s funding, or they can choose to absorb the family into their own program, meaning they would take on full responsibility for the family, voucher, and assistance payments.  

 A PHA that bills a housing voucher may change that decision and decide to absorb at any time in the future. It is not necessary to wait for recertification to absorb a billed voucher. Whether the PHA decides to absorb at the initial move into their jurisdiction or at a later time, the receiving PHA must promptly inform the initial PHA whether it will bill the assistance payment or absorb the family into its own program. 

When a new voucher holder signs a lease under portability, the receiving PHA’s decision to bill or absorb will determine which PHA is able to count the family for income targeting and reporting purposes. If the voucher is billed, the family will be included in the initial PHA’s income targeting calculations. If the receiving PHA absorbs, it will include the family in its admissions. 

If the receiving PHA absorbs the family, the family is no longer considered a ported family. The initial PHA will no longer be involved with the family’s subsidy. There is no billing and no further communication on other details of the family’s occupancy. If the receiving PHA decides to bill the subsidy, both PHAs will have certain responsibilities to the ported family. These responsibilities will be addressed in greater detail later on in this course.  

Billing Amount 

The amount billed will be the full amount of the housing assistance payment plus the administrative fee amount. Both PHAs have the discretion to negotiate and agree to an administrative fee amount. HUD publishes the administrative fee rates every year on the HUD HCV webpage. You can find that page here:  https://www.hud.gov/program_offices/public_indian_housing/programs/hcv  

The administrative fee amounts may be used for the entire calendar year to avoid the need for PHAs to recalculate their portable fees each quarter, unless otherwise instructed by HUD. 

Billing the Initial PHA 

The initial PHA must enter the date by which the first billing must be received on Part I, line 9 of the Form HUD-52665. The receiving PHA must then complete and send Part II of Form HUD-52665 with enough time for it to reach the initial PHA on or before the initial billing deadline which must be no more than 90 days after the expiration date of the initial PHA’s voucher.  

For example, if the initial PHA’s voucher expires 10/30/2021, the initial billing deadline is 01/28/2022.  

The initial PHA is generally not required to honor any initial billings that are not received by the billing deadline. If the initial PHA does not receive a billing notice by the deadline and determines that it will not accept a late billing, they must inform the receiving PHA of this decision in writing. A receiving PHA that fails to send the initial billing by the billing deadline is generally required to absorb the family into its own program unless the initial PHA is willing to accept the late submission. HUD may require the initial PHA to accept the late billing in certain cases, such as where the receiving PHA does not have the funds to support the voucher and the family would be terminated if the initial PHA refused to accept the late billing. The initial PHA can notify HUD of the receiving PHA’s failure to submit the bill on time, and HUD may take action to address it, including reducing the receiving PHA’s administrative fee.  

Billing Payments 

The initial PHA must pay the first billing amount within 30 calendar days of receipt of Form HUD-52665, and no later than the fifth business day of each month after that the billing arrangement is in effect. The payment must be provided in a form and manner that the receiving PHA is able to accept.