By: Tushar Gurjal, Senior Policy Manager

August 18, 2026 – Yesterday, HUD corrected—via a supplementary payment—a Housing Choice Voucher (HCV) administrative fee error that was made in the beginning of August, 2026. In correcting the error, the Department sent a letter to housing agency executive directors. In the letter, HUD notes that there “. . . was an error in the data used to calculate the August disbursements.” It also states that “HUD has corrected this error and is now providing [housing agencies] with an additional Administrative Fee disbursement.”

The letter discusses the supplementary payment. The administrative fee disbursement amount for August, 2026 is prorated to 86% of eligibility. The letter also notes that “. . . if excess fees were identified in the January-December 2025 Administrative Fee Reconciliation,” then the amount will be adjusted further. Finally, the Department notes that the disbursement amount is based on leasing data reported in the Voucher Management System (VMS) for January through December 2025.

The full letter to housing agencies can be found here.

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