HUD Publishes New Guidance on Manual Review of eLOCCS Grants

By: Andrew Van Horn, Policy and Research Advisor

June 16, 2025—On May 29, HUD published PIH Notice 2025-17, “Requirements to Approve Vouchers via Manual Review in the Electronic Line of Credit Control System When Public Housing Agencies are in Noncompliance with Grant Terms and Award Conditions.” HUD begins by noting that they have the ability to impose additional grant terms and conditions when agencies are not in compliance with statutes and regulations. They specifically reference OMB requirements, statutory and regulatory requirements, and Annual Contributions Contract requirements.

When agencies are deemed to be out of compliance, HUD states that they have the ability to require a manual review of all eLOCCS funding requests. Before imposing this penalty, HUD will notify agencies in writing of violations leading to the manual review, remedies, and the agency’s appeal process. Once HUD requires administrative reviews, PHAs may not submit more than one request per week, PHAs must notify the field office via email each time they make a request, and HUD staff will review the request within three days of the review. The notice also specifies sources of HUD’s legal authority, detailed procedures for requiring manual review, appeal processes for agencies, and reassessment of manual review status.