federal government shutdown – impacts on the performance-based contract administration (pbca) housing assistance payments (hap)

Colorado Housing and Finance Authority (CHFA) recognizes that the current federal government shutdown may create uncertainty for participants and property owners under the Performance-based Contract Administration (PBCA) program. CHFA continues to closely monitor the situation, maintain communication with our federal partners, and remains committed to supporting the U.S. Department of Housing and Urban Development (HUD) as appropriate.

We want to share that to date, CHFA has continued to receive Housing Assistance Payment (HAP) funds from HUD and to make corresponding payments to property owners without interruption. Essential HUD personnel have remained operational to process these transactions, and no payment delays have been experienced thus far.

As HAP are funded from amounts previously obligated under individual HAP contracts, CHFA anticipates November HAP payments will be funded and disbursed in a timely manner. The status of December payments remains uncertain and will depend on several factors, including the level of funds already allocated under each contract, the duration of the shutdown, and the continued availability of federal appropriations.

In the event future HAP payments are delayed due to a lapse in federal funding, please note the following:

• Residents remain responsible only for their portion of rent and utilities.
• Section 8 participants are not responsible for any unpaid rent assistance resulting from the federal government shutdown.
• Landlords may not assess late fees or penalties related to delayed HUD HAP payments.
• Residents may be subject to late fees only if their tenant portion of rent is paid late, as permitted under the terms of the lease.
• Tenants may not be evicted due to delayed or non-received HUD HAP payments.

CHFA remains hopeful that the federal government shutdown will be resolved promptly, minimizing any potential impacts on the PBCA program and the disbursement of HAP funds. CHFA will continue to provide updates as information becomes available.