HUD Publishes Notice on Recapture and Reallocation of Service Fees and Certain Portability Changes for the Emergency Housing Voucher Program

By: Tushar Gurjal, Senior Policy Manager

February 11, 2026 – On February 9 (though the notice is dated earlier), HUD published a notice titled “Process for Recapture and Reallocation of Services Fees for the Emergency Housing Voucher Program and Change to Portability Policy” (Notice PIH 2026-02). The notice discusses the procedures for the recapture of unobligated Emergency Housing Voucher (EHV) service fee funds to be used for Housing Assistance Payments (HAP) shortfalls for families served by EHVs. The notice also revises EHV portability policy to allow housing agencies that are billing ported EHVs to absorb those EHVs into their Housing Choice Voucher (HCV) program.

Notwithstanding guidance in earlier notices, HUD plans to issue a final services Fee Reconciliation and Closeout enclosure to all EHV PHAs by the end of February 2026. Undisbursed obligations and unspent funds will be returned to HUD. The funds will then be reallocated to cover HAP and administrative fee needs in the EHV program for 2026 shortfalls. The Department will provide additional details later in the year.

Again, notwithstanding prior guidance, HUD is authorizing PHAs receiving ported EHVs to absorb the incoming EHV families into their HCV programs. If a family wishes to port from one EHV PHA to another EHV PHA, the receiving PHA can choose to absorb the family into their HCV program or to bill the initial PHA. The PHA may not absorb the family into their EHV program.

The full notice can be found here.