Temporary Pause on Rent Increases

Notice

Date: July, 10 2025
To: HCV Landlords/Partners
Re: Temporary Pause on Rent Increases

Effective July 10, 2025, the Indianapolis Housing Agency (IHA) will temporarily pause the processing of all new rent increase requests for Housing Choice Voucher (HCV) units through the second quarter of Fiscal Year 2026.

This difficult but necessary decision is the result of significant operational and financial challenges stemming from extended system outages in 2022 and 2024. These outages severely impacted IHA's ability to maintain accurate payment records and led to widespread discrepancies in Housing Assistance Payments (HAP). As a result, some landlords were inadvertently underpaid, overpaid, or issued duplicate or missed payments, creating a complex financial reconciliation process.

IHA is now undertaking a comprehensive review and correction of all HAP transactions dating back to 2024, including the processing of approved retroactive rent increases and payment adjustments. This effort is essential to ensure all landlords are made whole and to restore the program's financial integrity.

However, this process has also led to a substantial increase in HAP expenses, which now exceed the annual budget authority allocated by the U.S. Department of Housing and Urban Development (HUD). As a result, IHA is projecting a funding shortfall (expenses greater than income) by the end of Calendar Year 2025.

To protect the program's long-term viability and to avoid interruptions in assistance to the thousands of families currently being served, IHA is implementing this pause to stabilize the program, fully address payment discrepancies, and gain a clearer picture of future housing assistance obligations.

We understand that this temporary action may cause inconvenience or frustration for our valued landlord partners, and we do not take this step lightly. Please know that IHA is actively working with HUD to explore additional funding options; however, the availability and timing of such funding remain uncertain.

We are committed to keeping all stakeholders informed and will continue to share updates as the situation evolves. Your patience and partnership are greatly appreciated as we work diligently to restore program stability and maintain our shared mission of providing safe, affordable housing to families in need.

Sincerely, 

Yvonda A. Bean 
Ceo/President