1.    Receive and file the Emergency Housing Voucher (EHV) Program Service Fee Reconciliation Notice; and
2.    Authorize the City Manager or his designee to remit $105,720 in unspent EHV Service Fees to the U.S. Department of Housing and Urban Development (HUD) in accordance with federal requirements.

•    Housing search assistance
•    Landlord outreach and engagement
•    Coordination with supportive service providers
•    Activities promoting long-term housing stability for participants

Service Fees were awarded based on the number of vouchers allocated to each PHA.  Although the full award amount was obligated, only 50% of the total award was initially disbursed effective June 1, 2021.  PHAs were eligible to request two additional disbursements (each equal to 25% of the initial disbursement) once expenditure thresholds were met. These thresholds were based on expenses incurred relative to the initial disbursement amount, not the total award.

Subsequent federal guidance, including PIH Notices 2023-35, 2025-19 and 2026-02, established reconciliation procedures and closeout deadlines for EHV Service Fees as the program sunset 5 years sooner than anticipated.

HUD has completed the reconciliation of the City of Hawthorne Housing Authority’s EHV Service Fee award based on reported expenses in the Voucher Management System (VMS). The reconciliation results are as follows:

Description	Amount
EHV Service Fee Award	$234,500
EHV Service Fee Expense Reported in VMS	$11,530
EHV Service Fee Disbursed to PHA	$117,250
Funds Available at HUD (Undisbursed Obligations to be Reduced)	$117,250
Funds PHA Will Remit to HUD	$105,720

Based on this reconciliation, the Housing Authority is required to remit $105,720 to HUD. The remittance deadline is March 20, 2026.

Failure to remit the required balance may result in compliance findings or administrative action.

Staff recommends that the City Council receive and file this report and authorize the City Manager or his designee to remit $105,720 to HUD in compliance with federal reconciliation and closeout requirements for the Emergency Housing Voucher Program.