DCHA has announced that security deposit assistance for the Federal and Local Voucher Programs is discontinued effective January 10, 2026, due to the exhaustion of allocated budgets. Here's what landlords and voucher holders need to know.
Key Notice
Security deposit assistance requests received on or before January 9, 2026 will be honored. Any Requests for Tenancy Approval (RFTAs) received after January 9, 2026—including those from transferring participants or new applicants—that include a request for security deposit assistance will not be processed.
What Changed
The DC Housing Authority (DCHA) posted a notice on January 10, 2026, confirming that the security deposit assistance program has been suspended for both federal (HCVP) and local (LRSP) voucher programs. The reason: the allocated security deposit budgets have been fully exhausted.
| Scenario | Status |
|---|---|
| SD request submitted on or before Jan 9 | Will be honored |
| SD request already in process | Will be honored |
| RFTA submitted after Jan 9 with SD request | Will not be processed |
| SD application added after initial RFTA submission | Will not be accepted |
RFTA Submission Rules
SD Application Must Be Included Upfront
All RFTA packets requesting security deposit assistance must include the Security Deposit (SD) application at the time of initial submission. SD applications submitted separately or added after the RFTA packet is received will not be accepted or processed.
Transferring Participants & New Applicants
This applies equally to transferring participants and new applicants. If either group submits an RFTA after January 9, 2026 that includes a security deposit assistance request, the entire SD portion will not be processed.
How Security Deposit Assistance Worked
Before this change, DCHA administered security deposit assistance programs for eligible voucher participants through its Moving to Work (MTW) flexibility:
- Maximum payment: Equivalent to one month's contract rent
- Payment process: DCHA sent the security deposit directly to the landlord or their designated management entity
- Timing: Payment was sent alongside the first Housing Assistance Payment (HAP) after the lease was executed and the HAP Contract signed
- Eligibility: Federal voucher participants only (HCVP), subject to available funding
Why This Is Happening: The Bigger Funding Picture
This suspension comes amid broader federal housing funding challenges that DC landlords should be aware of:
Emergency Housing Vouchers Ending
DCHA received notice from HUD that funds for the 2021 Emergency Housing Voucher (EHV) program—a $5 billion federal initiative—will run out in 2026. Originally projected to last through FY2030, rapid rent increases caused funds to be expended faster than planned. Approximately 60,000 households nationwide are at risk.
Proposed HUD Budget Cuts
The proposed FY2026 federal budget aims to reduce HUD funding by 43%—a $26.7 billion cut from rental assistance programs. Neither the House nor Senate FY26 bills provide enough funding to renew all existing Housing Choice Vouchers.
DC Local Budget Pressure
DC rents increased 12% from 2023 to 2024—the highest among major metro areas. The District is also scaling back safety net programs including Rapid Rehousing and the Emergency Rental Assistance Program due to budget constraints.
What This Means for Section 8 Landlords
Action Items for Landlords
- ✓ Plan for security deposits independently. You can no longer rely on DCHA to cover the security deposit for new voucher tenants. Factor this into your leasing process.
- ✓ Negotiate directly with tenants. Consider flexible security deposit arrangements such as installment plans, which are permitted under DC law.
- ✓ Verify existing requests. If you submitted an RFTA with an SD application on or before January 9, confirm with DCHA that your request is being processed.
- ✓ Stay informed on EHV developments. Monitor whether Congress allocates additional funding to transition EHV households to standard vouchers.
- ✓ Don't reject voucher tenants. The HAP (monthly rent assistance) is unaffected. Only the one-time security deposit assistance is suspended.
It's important to note that monthly Housing Assistance Payments (HAP) are not affected by this change. DCHA will continue to pay its portion of rent directly to landlords each month. Only the one-time security deposit assistance program has been suspended.
Disclaimer: This article is based on the DCHA notice posted January 10, 2026 and publicly available information about federal housing funding. It is for informational purposes only and does not constitute legal or financial advice. For the latest updates, visit dchousing.org or contact DCHA at (202) 535-1000.