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How PHAs Can Prepare for HUD’s Admin Fee Cuts

Do More With Less: What the $795M HUD Admin Fee Cut Really Means 

There’s no easy way to say it: HUD’s proposed $795 million reduction in administrative fees sends a clear message to PHA: You’re going to be expected to do more with less. 

This is more than a funding cut. 

Between the potential for rescinded unobligated funds, an intensified focus on compliance, and policy shifts that keep accelerating, the window to “catch up” is closing fast. The way your agency works will need to change—not just to survive, but to thrive. 

Here are four actions your agency can take now to prepare for what’s coming:

4 Ways to Prepare Your PHA for What’s Coming 

1. Clear Your Backlog Now 

If your agency is already behind on recerts, inspections, or eligibility determinations, the idea that you’ll somehow get ahead while managing deeper cuts just isn’t realistic. 

Now is the time to bring in the help you need. HUD has already signaled that unobligated funds may be up for grabs. If you’re sitting on reserves or slow to obligate, you’re at risk. 

Start by addressing your backlog and ensuring you’re in compliance today. That’s not fear-based urgency, it’s just smart preparation for what’s ahead. 

2. Update Policies in Line with HOTMA 

HOTMA provisions are rolling out. New rules are active. And more are on the way. 

If your policies haven’t been updated recently, or you’re unsure how they align with current HUD guidance, it’s time to make this a priority. Clear, current policies are the backbone of compliance and now is not the season to get caught off guard. 

Need help? Get it. You don’t have to do this alone, but you do have to do it right. 

3. Build SOPs That Support Success 

Policies are only half the equation. If you want your staff to consistently deliver accurate, compliant work, especially under resource constraints, you need Standard Operating Procedures (SOPs) that match your policies and streamline your operations. 

At minimum, every PHA should have documented SOPs for: 

  • Waiting List Management 
  • Eligibility 
  • Voucher Management 
  • Lease-Up and Moves
  • Portability (In/Out) 
  • Annual and Interim Recertification 
  • Rental Increases 
  • Inspections 
  • Program Integrity 
  • Denials and Terminations 
  • Compliance Monitoring
  • SEMAP 
  • Reasonable Accommodations 
  • FSS Management 

These SOPs reduce training time, minimize repeat errors, and give your team confidence in how to operate when staffing is tight or turnover hits. 

4. Explore Task-Based Operations 

Just because “we’ve always done it this way” doesn’t mean it’s still serving you. 

Task-based operations flip the script. Instead of every caseworker juggling everything for every household, this model creates a clear assembly-line style structure for how work moves—reducing errors, boosting accountability, and giving your team more flexibility. 

PHAs using task-based approaches have: 

  • Reduced backlogs 
  • Shortened processing timelines 
  • Increased staff specialization and quality 
  • Improved compliance and SEMAP performance 

Download Our Free Guide to Task-Based Operations 

Want to see how it works? 

Download our free guide: Task-Based Operations Management 

It walks you step-by-step through how to implement this model with the resources you already have—no fancy software or massive restructuring required. 

Final Thought 

This proposed budget cut is more than a line item—it’s a call to reimagine how your agency operates. Now is not the time to wait and see what happens. Now, before crisis arrives, is the time to start building stronger, smarter systems.  

How AMA Consulting Group Can Help 

Our team brings deep expertise in program management, HUD compliance, and operational transformation to help Public Housing Authorities navigate today’s demands and prepare for what’s next. 

Whether you need help clearing a backlog, updating policies, or building systems that actually work—we’re here to help. 

We offer: 

  • Experienced teams to help reduce backlogs and restore compliance 
  • Policy experts to keep your agency aligned with HUD requirements, including HOTMA 
  • A team who loves training, documentation, and building SOPs that make life easier for your staff 

We believe that even with fewer resources, your agency can operate with clarity, confidence, and excellence. 

Learn more at amaconsultinggroup.com.

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