On February 5, 2026, the U.S. Department of Housing and Urban Development (HUD) issued U.S. Department of Housing and Urban Development Notice PIH 2026-02, establishing the process for recapturing and reallocating unused Emergency Housing Voucher (EHV) services fees and revising EHV portability policy.

Services Fee Recapture & Reallocation
Under the Emergency Housing Voucher (EHV) program authorized by the American Rescue Plan Act of 2021, HUD will begin recapturing unobligated and unspent EHV services fees.

These funds will be:

• Returned to HUD
• Reapportioned and obligated as Housing Assistance Payments (HAP)
• Used to address 2026 HAP shortfalls
• Intended to extend assistance for EHV families as long as funding permits

HUD should have issued final Services Fee Reconciliation and Closeout enclosures to all EHV PHAs by the end of February 2026. Funds will be reconciled against expenditures reported in the Voucher Management System (VMS) through August 19, 2025.

Portability Policy Change
Notice PIH 2026-02 revises prior guidance to allow PHAs administering EHVs to absorb incoming EHV families into their Housing Choice Voucher (HCV) programs, subject to:

• Available budget authority
• Unit availability under the Annual Contributions Contract (ACC)

Receiving PHAs may:

• Absorb EHV families into their HCV program
• Bill the initial PHA
• Not absorb families into their EHV program

Effective Date:
The notice is effective upon issuance February 5, 2026.

Review Notice PIH 2026-02 carefully and assess your agency’s EHV services fee balances, VMS reporting, and portability procedures to ensure compliance and strategic planning for 2026 funding.