HUD Corrects Administrative Fee Proration Estimate for August 2026 in Email to Housing Agencies
By: Tushar Gurjal, Senior Policy Manager
August 5, 2026 — Earlier today, HUD sent an email to housing agency executive directors. The email noted that when HUD sent funding disbursements in August to housing agencies with Housing Choice Voucher programs, there was a miscalculation in the administrative fee enclosure. The miscalculation was caused by “an error in the data source used to calculate administrative fee eligibility.” The Department has corrected the error and new revised enclosures for the program will be sent to housing agencies within the next few days. At this time HUD estimates an administrative fee proration of 86% for calendar year 2026.
The full substantive text of the email can be found below (italics added):
Dear Executive Director,
Recently, HUD sent your PHA a Housing Choice Voucher administrative fee enclosure and funding disbursement for the month of August. HUD has since determined that there was an error in the data source used to calculate administrative fee eligibility for those disbursements. HUD has corrected the error and will be issuing revised administrative fee enclosures and funding disbursements to PHAs within the next several days. In the revised enclosures, the administrative fee disbursement amounts will be prorated at approximately 86 percent of PHAs’ administrative fee eligibility.
As a reminder, the monthly administrative fee proration is HUD’s best estimate based on available data. A final administrative reconciliation will be completed after December 2026 leasing data are reported in VMS, at which time the final proration for CY 2026 will be determined.
If you have any questions, please contact your FMC financial analyst.