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What Happens When EHV Funding Ends: How PHAs Can Prepare Now

For the past few years, Emergency Housing Vouchers (EHVs) have been a vital lifeline for individuals and families facing homelessness due to the COVID-19 pandemic. But with EHV funding projected to run out by the end of calendar year 2026, many PHAs are left asking the same hard question: 

What happens next? 

On June 24, 2025, HUD released Notice PIH 2025-19 to support PHAs in transitioning families from EHVs to the Housing Choice Voucher (HCV) program—where capacity allows. 

The goal is clear: Prevent families from falling through the cracks as federal EHV dollars phase out. 

Still, many agencies are understandably concerned about capacity, funding limitations, and the real risk of families becoming homeless again. If that’s you, you’re not alone. While there’s no one-size-fits-all solution, there are clear, proactive steps PHAs can take right now to prepare. 

What the New HUD Guidance Says 

Notice PIH 2025-19 outlines several key provisions to support a smooth transition from EHV to HCV assistance: 

Service Fees Are Ending 

PHAs must stop using EHV service fees within 60 days of the notice’s publication and complete all related reporting within 120 days. 

Payment Standards Can Be Aligned 

PHAs may align EHV and HCV payment standards, up to 120% of the applicable FMR, without HUD approval as originally permitted under PIH 2021-15. 

To reduce harm to families benefiting from higher EHV payment standards, PHAs have two options: 

  • Align both programs’ payment standards using the process in PIH 2024-34, or 
  • Maintain the higher EHV payment standard for families remaining in the same unit. 

Note: The 40% affordability cap at initial lease-up does not apply to EHV families transitioning to HCV. 

No New Paperwork for Same Units 

If a family stays in their current unit, PHAs do not need a new HAP contract or tenancy addendum. 

$1,000 Incentive for Transitions 

When a family is successfully transitioned using the “EHCV” code on Form HUD-50058, the PHA receives a $1,000 administrative fee. 

Don’t Skip the Eligibility Check 

While EHV and HCV programs are closely linked, their rules are not identical. Before moving forward, PHAs must assess whether each EHV household meets standard HCV eligibility requirements, including income limits, citizenship status, and other program criteria. 

HUD has not waived these requirements for transitioning families, so early screening is key to preventing delays, denials, or disruptions. 

What PHAs Should Do Now 

Start Outreach Now 

Educate EHV families about the transition process. Make sure they know how to apply to the HCV waitlist under the EHV preference. 

Update Your Plans 

If your transition strategy includes a new waitlist preference, update your Admin Plan and PHA Plan. Don’t forget the required public comment period. 

Secure Your Data and Use the Right Codes 

Accurate reporting matters. Use the correct 50058 codes (“EHCV”) to ensure families are properly tracked, and to receive the $1,000 administrative fee. HUD relies on this data to assess national progress. 

Assess Your Capacity 

Review your budget, unit availability, and payment standards to determine how many families you can reasonably carry forward into the HCV program. 

What to Do If You Can’t Carry These Families 

Despite your best efforts, your agency may not be able to absorb every EHV household into HCV. Here’s how to prepare with compassion and clarity: 

Communicate Early and Honestly 

Families deserve transparency. Let them know about the transition timeline and the limits of your current funding. Reassure them they won’t navigate this alone. 

Leverage Local and Regional Partners 

Deepen partnerships with CoCs, DV shelters, ESG grantees, and local nonprofits. These partners can offer bridge housing, wraparound services, and flexible funding. 

If your agency can’t absorb a family, coordinate a portability transfer to a PHA with available HCV funding. In some rural areas, vouchers are more readily available and with the growth of remote work, relocating to a more affordable area may be a viable option for some families. 

The key is to know where those openings are and start the conversation early. 

Provide Housing Navigation Support 

Assign a navigator, case manager, or intern to help families access alternative programs, identify units, or secure financial assistance for deposits, moving costs, or utilities. 

Seek Flexible Funding 

Explore emergency relief funds, ARPA remainders, and support from philanthropic partners. If a family doesn’t qualify for HCV, these resources can help bridge the gap. 

Tell the Story with Data and Humanity 

Track how many families can’t be absorbed, why, and what happens next. Use this data along with anonymized family stories to advocate for funding and policy change. 

Keep Everyone in the Loop 

Maintain clear communication with your board, staff, and community partners. Transparency builds trust and may open doors to unexpected support. 

Additional Resources and Programs to Explore 

If your agency cannot transition all EHV families, consider connecting them with: 

  • Family Unification Program (FUP) and Foster Youth to Independence (FYI)
    Support for youth aging out of foster care or families at risk of separation due to housing instability. 
  • Emergency Solutions Grants (ESG)
    Flexible funds for rapid rehousing, homelessness prevention, and essential services. 
  • Continuum of Care (CoC) Programs
    Includes rapid rehousing and permanent supportive housing options aligned with EHV family needs. 
  • State Housing Stabilization or Eviction Prevention Funds
    Many states still offer ARPA-related emergency funds to help households remain housed. 
  • Faith-Based and Nonprofit Assistance Funds
    These partners may offer fast, flexible support—from short-term subsidies to donated services. 

Closing Thoughts 

The end of EHV funding doesn’t have to mean the end of housing stability for vulnerable families. With proactive planning, thoughtful communication, and strong community partnerships, your agency can lead this transition in a way that protects people and honors your mission.  

About AMA Consulting Group 

At AMA Consulting Group, we partner with Public Housing Authorities to improve operations, strengthen compliance, and increase community impact. From HUD-funded programs to local innovation strategies, we help PHAs lead with excellence—and put people first. 

To learn more visit amaconsultinggroup.com.  

 

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