HUD’s plans to manage the funding of this program under the
cuts imposed by the Fiscal Year 2013 Sequestration:
In order to minimize the potential impact of the
Sequestration, and to assure that HUD is able to fund all HAP payments coming
due during the current fiscal year, the Department has developed the following
plan of action:
• All
Section 8 contracts expiring in FY 2013 will be renewed if eligible under
current program rules and will receive full twelve month funding.
• All
existing multi-year contracts that expire after FY 2013 and have anniversary
dates in the first quarter of FY 2013 (October-December) will receive full
twelve month funding, assuring sufficient funding to carry them into the first
quarter of FY 2014.
• All other
multi-year Section 8 contracts will receive less than 12-month funding, but
will be provided sufficient funding to carry them into the first quarter of FY
2014.
There are about 11,000 Section 8 contracts that fall in this
last category, and on average, they will receive roughly 8.5 months of funding.
The actual amount will vary, depending on anniversary date. For example, a multi-year
contract funded in March 2013 might receive ten months of funding
(March-December), while a contract funded in September 2013 might receive four
months (September-December).
The overall goal is to avoid payment disruptions during FY
2013 or early in FY 2014. Funding after that point will depend on Congressional
appropriation action for FY 2014. 
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