Notify HUD of Your PHA’s Transition Date by September 30, 2026 • Comply by February 1, 2027
HUD has finalized the administrative procedures and implementation guidelines for National Standards for the Physical Inspection of Real Estate for the Housing Choice Voucher (HCV) and Project-Based Voucher (PBV) Programs (NSPIRE-V). While PHAs already use NSPIRE standards for public housing, this notice specifically applies to HCV and PBV units and replaces housing quality standards (HQS). PHAs are not required to comply with the NSPIRE-V inspection protocols until February 1, 2027, but HUD encourages all PHAs to begin making the transition.
The biggest change from HQS to NSPIRE standards is the focus on the condition of the dwelling units, prioritizing tenant health and safety. NSPIRE-V eliminates the "site and neighborhood" inspection requirement to remove subjective opinions about the appearance or aesthetics of a unit and property in the inspection process.
Notably, HUD had previously stated it was developing its own app for PHAs to use when completing NSPIRE-V inspections, but this notice states that HUD is no longer creating that app. PHAs can choose to use HUD’s checklist or any tool, software, or application that works best for them and their program as long as they comply with the latest version of the NSPIRE standards (currently 3.0).
In April 2025, CLPHA and industry partners urged HUD to delay their October 1, 2025, deadline for compliance with NSPIRE-V. Our efforts were successful, and in September 2025, HUD announced the new compliance date would be February 1, 2027.
What do members need to do now?
- If you previously gave HUD a transition date and are now delaying, send your new one. Notify HUD of your transition date by September 30, 2026. Email [email protected], copying your field office representative, with your PHA name, PHA code, and either the date you transitioned to NSPIRE-V or, if you haven't yet, the date you plan to — no later than February 1, 2027. PHAs that implemented NSPIRE-V and notified HUD are not required to provide further notification. If you previously gave HUD a date and are now delaying, send your new one.
- Resubmit any variations or alternative inspection methods for re-approval. Prior approvals do not carry over to NSPIRE-V. Re-analyze each one against NSPIRE standards and resubmit it to the email address above. You cannot use a variation or alternative inspection method until HUD approves it. If HUD denies your request, revise your inspection standards to meet the NSPIRE standards by February 1, 2027.
- Update your Administrative Plan with the NSPIRE-V inspection protocol and any approved variations or alternative inspection methods.
- Inform participating families and property owners of the changes to the inspection standards under NSPIRE-V.
Additional training resources including presentations, instructional videos, and webinars for PHAs implementing NSPIRE-V can be found on HUD Exchange and on the NSPIRE webpage. For questions about NSPIRE-V implementation guidance, contact Dana Kitchen, Office of Public Housing and Voucher Programs, at [email protected].
CLPHA's IT Coalition meets weekly on challenges related to HUD data system upgrades. PHA program managers and directors dealing with NSPIRE-V technical issues are welcome to join; contact Madeline Morris at [email protected].
From HACLA and LACDA's press release:
Flat funding adjustments arrive amid a $700 million shortfall, rising local costs, and HUD directives to cut program spending.
Comments on the methodology due August 5.
Nearly 60 percent of CLPHA members will receive a 0 percent inflation adjustment to their HCV renewal funding for fiscal year 2026, according to CLPHA's analysis of HUD's newly published renewal funding inflation factors (RFIFs), the annual adjustments HUD applies to each PHA's HCV renewal funding to account for local changes in rents, utility costs, and tenant incomes. The FY26 factors are final and took effect July 6, 2026. CLPHA will be submitting comments on the RFIF methodology and the proposed FY27 changes and strongly encourages members to do the same.
A zero percent factor means these agencies' renewal funding will not be adjusted for local cost growth. This comes in an environment where costs continue to rise and fair market rents (FMRs) struggle to keep pace with local market conditions. Nationally, HUD found the expected change in per unit cost (PUC) to be 2.337 percent, a 2.3 percentage point decrease from FY25.
Members are already absorbing a deepening shortfall
The zeroed-out inflation factors land on agencies already under acute fiscal strain. HUD currently estimates a funding shortfall of $700 million in the voucher program this calendar year. In letters to PHA Executive Directors, the Department has directed agencies to immediately implement cost-saving measures to address anticipated shortfalls.
Several CLPHA members have already taken these steps, including:
- Pausing the issuance of new vouchers
- Increasing total tenant payments from 30 percent to 40 percent of income
- Raising minimum rents
Each of these measures shifts costs onto low-income families or reduces the number of households served. Members are doing their part to contain costs, but a zero percent inflation factor works against those efforts by locking renewal funding below actual local cost growth, leaving agencies to close the gap through further program contraction. CLPHA remains concerned that the RFIF methodology leaves members vulnerable to shortfall in their voucher programs.
The RFIF methodology is not keeping pace with local costs
To estimate rent inflation, HUD blends two data sources, Fair Market Rents (FMRs) and the CPI gross rent index, weighting them at roughly 56% and 44%, respectively. For each geographic area, the inflation factor itself reflects the year-over-year change in that area's FMR from FY25 to FY26, and HUD then applies these area-specific factors to each PHA's eligible renewal funding using leasing and cost figures pulled from VMS data for the prior calendar year.
CLPHA's analysisreview shows this methodology is not keeping pace with local market cost increases. One CLPHA member reported an 80% increase in their average HAP payment over the last three years but received an inflation factor of 0% and have therefore had to raise minimum rents for work-abled households. Another CLPHA member also received a 0% inflation factor, despite having a 102% budget utilization. While FY26 factors are final, HUD is accepting public comments on the methodology used to calculate them through August 5, 2026, and changes that could shape future years' factors. CLPHA continues to urge HUD to incorporate private sector rental data and local PUC increase data to support these calculations so that inflation factors reflect the costs PHAs face.
HUD is proposing to penalize areas for local policies outside PHA control
In the FY26 RFIF notice, HUD is soliciting comments on a potential change to the FY27 RFIF methodology that would reduce an area’s RFIF where HUD determines that local land use, permitting and other regulatory policies are contributing to rent cost growth. While HUD has not specified how it would measure “policy-driven” inflation or how large the adjustment to the inflation factor would be, the effect would be to shrink renewal funding for local jurisdictions based on policies out of the control of PHAs.
Setting zoning codes, controlling permitting timelines, and decisions on land-use ordinances are done by city councils, county boards, and state legislatures. Adjusting the renewal funding based on these policies would penalize PHAs despite having no role in creating them, yet the impact will be most felt by CLPHA member PHAs in high-cost urban areas where the PUC growth has routinely outpaced RFIFs.
Renewal funding should reflect the real cost of the units PHAs lease to voucher holders, not serve as a mechanism to penalize agencies for local policies out of their control. CLPHA strongly opposes incorporating a local land-use or policy-based adjustment to the RFIF and urges HUD to withdraw this proposal. Should HUD continue with this methodology change, CLPHA asks that HUD postpone its implementation pending further study of local policies and consultation with PHAs.
What members can do
- Submit comments by August 5, 2026. CLPHA will be submitting comments on the RFIF methodology and the proposed FY27 changes and strongly encourages members to do the same. Comments may be submitted electronically through the Federal eRulemaking Portal at regulations.gov and must reference Docket No. FR-6607-N-01.
- Contact HUD about shortfalls. For PHAs experiencing shortfall, HUD is offering technical assistance throughout 2026. PHAs whose PUC increases are outpacing their RFIFs should contact [email protected].
- Review your agency's factor. The full dataset is available at FY26 Renewal Funding Inflation Factors.
For questions about this notice, contact Madeline Morris at [email protected].