Policy updates for the Massachusetts Rental Voucher Program (MRVP) and Alternative Housing Voucher Program (AHVP)

An advisory for MRVP and AHVP participants and landlords regarding important program changes

HLC is updating several program policies for the Massachusetts Rental Voucher Program (MRVP) and the Alternative Housing Voucher Program (AHVP).  HLC is updating policies to help control rapidly increasing subsidy costs and ensure the future sustainability of these vital programs.

MRVP and AHVP serve not only program participants, but also property owners who rent to participants, property developers who build new housing for future participants, and housing agencies that administer vouchers. Careful consideration was given to adjusting program policies.  By spreading cost-savings across all program constituencies, HLC hopes that no one group is unduly burdened.  HLC looks forward to working together to navigate a difficult fiscal climate and maintain these voucher programs that provide 12,000 Massachusetts households with permanent, affordable, and stable housing.

Updates to Existing Policies

HLC is updating the following policies.

Move-in Costs

MRVP will no longer pay security deposits for all new leases effective on or after July 1, 2026.  AHVP will no longer pay first month’s rent, last month’s rent, and/or security deposits for all new leases effective on or after July 1, 2026.

Please refer MRVP and AHVP participants to the attached letter either via mail or online.

Elimination of Certain Exclusions and Deductions

HLC is eliminating the following exclusions and deductions for MRVP and AHVP.  HLC is eliminating these exclusions and deductions as a cost-saving measure, to reduce administrative burden, and bring voucher administration closer to industry standards.  A waiver signed by Secretary Juana Matias is forthcoming.

Young Adult Employment Income Exclusion

Half of the total employment income of a household member age 18, 19, or 20 will no longer be excluded from the household’s gross income. This exclusion only applied to MRVP.

Heat Deduction

AHVP households will no longer receive a deduction for heat, even if the household pays separately for heat.  Note that if the household pays for any utilities, their tenant rent share is 25% of net income, rather than 30%.

Personal Care Deduction

In both MRVP and AHVP, non-reimbursable payment for reasonable and necessary housekeeping or personal care services for a disabled household member may no longer be deducted from the household’s gross income.  Note that some person care expenses may still be allowed as medical expense deductions. Please review IRS Publication 502 for a complete list of allowable medical expenses.

Travel Deduction

In both MRVP and AHVP, travel expenses, in excess of the cost of the least expensive available transportation, for a household member with a disability may no longer be deducted from the household’s gross income.  Note that some travel expenses may still be allowed as medical expense deductions. Please review IRS Publication 502 for a complete list of allowable medical expenses.

Implementation

Exclusions and deductions listed above shall be removed from the household’s rent calculation at the first regular recertification or relocation effective on or after July 1, 2026.

Please refer MRVP and AHVP participants to the attached letter either via mail or online.

Example

John has a mobile MRVP, and his 19-year-old son, who is not a full-time student, earns $25,000 annually from his job.  Currently, only $12,500 is counted towards John’s household income.  At his next recertification effective 9/1/26, the housing agency shall count all of John’s son’s earned income, assuming his student status has not changed.

Philip has a mobile AHVP voucher.  He currently deducts $1,200 annually for travel expenses.  When he moves effective 8/15/26, he will no longer be able to claim these deductions.  After working with the housing agency, though, he was able to claim half of his travel expenses as medical deductions.

Utility Reimbursements (MRVP)

Some MRVP households who pay for heat and/or general electric who have very little to no income receive a utility reimbursement payment from the housing agency.  MRVP will no longer pay utility reimbursements to households. 

Implementation

At a household’s next regular recertification or relocation effective on or after July 1, 2026, no more utility reimbursements will be paid.

Please refer MRVP and AHVP participants to the attached letter either via mail or online.

HLC encourages housing agencies to refer any program participant with utility cost concerns to call 2-1-1 for additional resources in their community.

Example

Sofia has a project-based MRVP and pays for all utilities. Her regular recertification is in September.  She has no income.  As of 9/1/26, she will no longer receive a utility reimbursement check, which housing agency informs her of in a tenant rent share letter sent in mid-July.

Hold Harmless

MRVP and AHVP will apply the current and most recently effective payment standard (MRVP) or ceiling rent (AHVP) at the household’s regular recertification for all recertifications effective on or after July 1, 2026.  This means that participants will no longer be held harmless in the rare circumstance that the payment standard/ceiling rent goes down between recertifications.

The current and most recently effective payment standard/ceiling rent is also applied at relocation.

The payment standard/ceiling rent will not be updated at any other time, including when the contract rent is increased.

Implementation

For all regular recertifications effective on or after July 1, 2026, the current and most recently effective payment standard/ceiling rent shall be applied to the household’s tenant rent share calculation. These amounts can always be found on mass.gov/paymentstandard and are distributed directly to housing agencies by HLC.

Limits to Contract Rent Increases

HLC is limiting when and how much contract rent can be increased for MRVP and AHVP vouchers. HLC is taking these actions as a cost-saving measure and to protect mobile voucher holders from rent increases. Limiting rent increases to the lease renewal date follows rental market standards.  HLC is required to limit rent increases to lease renewal by each program’s budget language, as written and passed by the Legislature.  St. 2025, c.9, Line Item 7004-9024.

All relevant program documents are silent on the timing of mobile voucher contract rent increases in relation to the lease renewal.  Neither program’s contract promises a rent increase of any amount.  Both contracts contain language that all funds are subject to appropriation by the Legislature and release by the Executive Office of Administration and Finance.  Both contracts also state that the housing agency will determine the subsidy amount in accordance with [HLC] requirements, which include this guidance.  While HLC is actively working to update these documents, the current documents may continue to be used. 

All contract rents must be rent reasonable when compared to similar market-rate units at the property, if appliable, and neighboring area. 

Contract rents may only be increased once in any 12-month period.

Contract Rent Increases at Lease Renewal (Mobile)

For mobile MRVP and AVHP vouchers, contract rent may only be increased at the lease renewal date. While it is program policy that housing agencies maintain a copy of the lease, it is ultimately the owner’s responsibility to provide the lease and verify the lease renewal date if there is confusion.

Contract rent may be increased at any time during the lease for project-based vouchers.  This is because rents are traditionally raised for a whole property at once, leases can start on a variety of dates, and PBV participants pay 30% of net income regardless of the level of the contract rent.

3% Limit to Contract Rent Increases

Contract rents for all MRVP and AHVP vouchers, both project-based and mobile, may not be increased by more than 3%.  Housing agencies shall follow regular rounding rules.

Rent Reasonableness

All rents must be reasonable compared to unassisted market units at the property and/or in the community.  Housing agencies are encouraged to use care and judgment when reviewing rent reasonableness.  Contract rent should not be based on the highest comparable rents but rather reflect a reasonable and median rent for the area whenever possible.

Implementation

Any contract rent increases approved in writing as of April 16, 2026 are acceptable and do not need to be changed.

Otherwise, all MRVP or AHVP mobile rent increases effective on or after July 1, 2026 must be effective on the lease renewal date.  All MRVP or AHVP rent increases for mobile or project-based vouchers effective on or after July 1, 2026 shall not exceed a 3% increase.

Please refer property owners to the attached letter either via mail or online.

Property owners who continue to have questions may contact HLC at eohlcmrvp@mass.gov

Example

Calais moved into their unit on 11/3/24 with a mobile AHVP voucher.  Their contract rent is $1,750 and has never been increased.  Their property owner requests a rent increase to $1,950 effective 8/1/26.  The housing agency verifies that $1,803 (a 3% increase) is rent reasonable and processes the rent increase effective for 11/1/26, which is Calais’s lease renewal date.

The local community development corporation requests a rent increase from $3,000 to $3,100 for its three-bedroom MRVP project-based vouchers effective 9/1/26.  Rents were last increased on 9/1/25.  The housing agency determines $3,090 (a 3% increase) is rent reasonable and processes the rent increases on 7/10/26, effective 9/1/26, for all three-bedroom MRVP PBVs at the property.  Rent increases require at least 30 days’ notice to tenants.

Annual Recertifications (MRVP)

All MRVP households’ income and composition must be fully recertified at least once per year, as well as at relocation.  MRVP regulations require annual recertification. HLC is rescinding the August 3, 2022 regulation waiver of 760 CMR 49.05(7)(a).  A waiver signed by Secretary Juana Matias is forthcoming.

Note that AHVP currently recertifies households on an annual schedule.

Implementation

Housing agencies typically begin the regular recertification process approximately 90-120 days prior to the effective date. For all regular recertifications effective on or after November 1, regardless of effective year, shall begin to be performed annually.

Example

Edwin has a mobile MRVP voucher, and his regular recertification date is December 1.  His last regular recertification was 12/1/25 so his next regular recertification is currently set for 12/1/27.  The housing agency must include Edwin in their recertification batches effective December 2026 by sending him recertification paperwork around 9/1/26. They verify his income and household composition and send his updated tenant rent share, effective 12/1/26, to him in mid-October.

Increases in Earned Income (MRVP)

For all MRVP vouchers, all increases in all types of income of 10% or more shall cause the housing agency to perform an interim recertification, which typically causes the voucher payment to decrease and the tenant rent share to increase. The decrease in voucher payment will take effect the first day of the second month following submission of the new income information (to allow for 30 days’ notice of an increase in tenant rent share).  A waiver signed by Secretary Juana Matias is forthcoming. 

AHVP currently counts all increases in income of 10% or more immediately.

All MRVP and AHVP participants are required to inform the housing agency of all changes to income and household composition within 30 days of the change.

Implementation

All income increases of all types of income received by the household on or after July 1, 2026 shall be counted with 30 days’ notice.

Example

Jelani has a project-based MRVP voucher.  He begins working 25 hours a week, instead of 20, on 8/10/26.  He lets his housing agency know by submitting his first higher pay stub ($400, instead of $320) on 8/27/26.  Due to the Labor Day weekend, the housing agency doesn’t recalculate his tenant rent share until 9/7/26.  They count his increase in earned income and update his tenant rent share effective 11/1/26, providing 30 days’ notice.

Repayment Agreements

Repayment agreements are typically offered when a household fails to report changes in income in a timely manner and ends up owing money to a housing agency for excess subsidy paid on their behalf. Repayment agreements are offered when the housing agency believes the household committed an error but not fraud. 

HLC is requiring all housing agencies strictly apply continued eligibility qualifications for MRVP listed in 760 CMR 49.03(2-3) and AHVP listed in 760 CMR 53.03(3).  Therefore, housing agencies shall no longer offer repayment agreements for households who owe the housing agency money.  If this happens after July 1, 2026, the household must repay the excess subsidy paid on their behalf within 90 days or be terminated from MRVP or AHVP.

Additionally, housing agencies shall review all existing repayment agreements by October 1, 2026.  All existing agreements must be made current by January 1, 2027 and continue to remain current or the household be terminated from MRVP or AHVP.

If the housing agency believes a household committed fraud, termination is appropriate and the household shall not be offered the ability to repay subsidy.

Implementation

As of July 1, 2026, repayment agreements shall not be offered to households.  Any household that owes a housing agency money for subsidies inappropriately paid on their behalf shall be given 90 days to fully repay the amount or be terminated from MRVP or AHVP for the appropriate reason (normally failure to provide information and/or comply with the voucher).

For households with repayment agreements that are not current, housing agencies shall send written notice by October 1, 2026 that agreements must be made current by January 1, 2027 and include the past-due amount.  For any repayment agreements that become past due after October 1, 2026, housing agencies shall give households 90 days’ notice that if the agreement is not in compliance by that date, they will be terminated from MRVP or AHVP.

Example

Natasha has a project-based MRVP voucher.  Her next regular recertification is effective 12/1/26. She begins receiving child support on 3/17/26 but doesn’t report it to the housing agency until her recertification paperwork is returned in early October 2026.  The housing agency calculates what Natasha’s voucher payment should have been for June – November had she reported the child support within 30 days of receiving it and was given 30 days’ notice before her tenant rent share was increased.  Once the housing agency has that amount, they send Natasha two letters.  One alerts her of her new tenant rent share effective 12/1/26. The other states that she will be terminated as of 1/31/27 if she cannot repay the amount of the excess subsidy paid on her behalf.

Failure to Provide Information

Households in MRVP and AHVP must fully recertify their income and household composition at least once per year.  As part of that process, they are required to provide all required documents promptly.

HLC is updating its previous guidance in the MRVP Administrative Plan.  This guidance applies to AHVP participants as well.

Housing agencies shall ask for requested information for a regular recertification twice in writing prior to a termination letter being sent.  The termination letter must include an option to schedule informal hearing.  All other termination guidance applies.  All grievance requirements continue to apply.

Implementation

As of July 1, 2026, housing agencies shall ask for requested information as part of a regular recertification twice in writing prior to a termination letter being sent.

Please refer MRVP and AHVP participants to the attached letter either via mail or online.

Example

Joanne has a mobile AHVP voucher.  Her regular recertification is effective 1/1/27.  The housing agency sends her a recertification packet on 9/3/26 and requests documents be returned by 9/24/26.  Joanne returns bank statements and receipts for her prescriptions, but not her most recent social security benefit letter or signed release of information.  The housing agency sends her another letter on 9/29/26 requesting her most recent social security benefit letter and signed release of information (a blank one is included with the letter).  They note that if she doesn’t have her annual benefit letter, she can request one by calling SSA, going to her local office, or creating an account on SSA.gov. Joanne calls and says she’s working on getting documents but does not submit anything.  The housing agency sends her a termination letter on 10/22/26 telling her that her voucher will be terminated as of 12/31/26.  The letter notes that she did not supply a social security benefit letter or a signed release of information. 

Joanne submits the requested documentation on 12/29/26, and her termination for failure to provide information is cancelled.  Even though Joanne did submit her documents, she did not do so in a timely matter.  The housing agency now has two choices: 1) they can increase her tenant rent shared based on her slightly increased income effective 1/1/27 with no notice or 2) they can give her 30 days’ notice for her tenant rent share increase and then give her 90 days to repay the excess subsidy paid on her behalf during that time

Updates to Payment Standards/Ceiling Rents (Mobile Vouchers)

HLC is lowering the payment standard for mobile MRVP vouchers and ceiling rent for mobile AHVP vouchers to 105% SAFMR, generally, in the fall of 2026 when HUD announces FY27 FMR/SAFMR amounts.  HLC is taking this action as a cost savings measure. 

Further guidance with exact numbers will be released in approximately August 2026.  Until then, current guidance for MRVP and AHVP shall continue to apply.

Updates to Maximum Rents (Project-Based Vouchers)

The maximum rent for MRVP project-based vouchers shall continue to be 100% area-wide FMR.  Further guidance with exact numbers will be released in approximately August 2026 when HUD releases FY27 FMRs. Until then, current guidance for MRVP continues to apply.

Administrative Fees

Relocation Fees and First-Time Leasing fees will not be paid for any leases effective on or after July 1, 2026.  Housing agencies are urged to request these funds for leases effective prior to July 1, 2026 as soon as possible.

HLC is taking this action as a cost-saving measure.

Reminders

Below are existing policies that HLC is reminding housing agencies of.

Recertification

HLC reminds housing agencies that late recertifications are unacceptable.  Late recertifications typically mean that housing agencies are overpaying subsidy until the certification is complete.  Timely processing of recertifications saves limited program funds, ensures all households are paying the correct tenant rent share, and helps HLC understand the true voucher cost.  Late recertifications are a financial and administrative burden for both MRVP and AHVP.

Reasonable Accommodations

Housing agencies are required to comply with all relevant federal and state laws when reviewing requests for reasonable accommodations. 

Voucher Size

HLC is requiring housing agencies to audit their files and verify that each household’s voucher size is appropriate given their household composition.  In MRVP and AHVP, two household members under the age of 8 share a bedroom regardless of sex. Two household members of the same sex share a bedroom, regardless of age, unless there is a parent/child relationship.

For mobile vouchers, if the voucher size is incorrect, the housing agency shall apply the correct voucher size and payment standard (MRVP) or ceiling rent (AHVP) at the household’s next regular recertification.

For project-based vouchers, households that are over-housed (in a unit too big for the household) will be kept on a waiting list for administrative transfers.  If they can be relocated at the same property, the housing agency shall work with the property owner to relocate the household.  Note that mobile vouchers are not being issued to over-housed project based households due to the voucher issuance pause in place for MRVP.

Implementation

HLC expects housing agencies to have reviewed their files by January 1, 2027.

For mobile vouchers, if the voucher size is incorrect, the housing agency shall apply the correct voucher size and payment standard (MRVP) or ceiling rent (AHVP) at the household’s next regular recertification.

Example

Nancy has a mobile MRVP voucher.  She lives with her mom, sister, and five-year-old twins, a boy and girl. Nancy’s housing agency had issued her a mobile five-bedroom voucher.  Upon deeper understanding of the MRVP regulations and policies, the housing agency updates Nancy voucher size is to a three-bedroom voucher at her next regular recertification.

BedroomOccupantsAgeSexReason
1Nancy27FTwo household members of the same sex share a room, regardless of age
1Nancy's sister23FTwo household members of the same sex share a room, regardless of age
2Nancy's mom51FParent/child/grandchild relationship with all other household members
3Nancy's daughter5FTwo household members under 8 share a room, regardless of sex
3Nancy's son5MTwo household members under 8 share a room, regardless of sex

Zero Income Households

HLC is updating guidance on working with households that claim no income of any sort.  HLC is doing this as a cost-saving and fraud prevention measure.  Note that these policies apply to households that have no actual income, not households that have no net income.

Household Check Ins

Housing agencies shall meet with zero income households at least quarterly to review their income and expenses.  Housing agencies shall review bank statements, including any cash apps, with the household and investigate any deposits.  Housing agencies shall also review household expenses and how those are being paid.  Note that while these meetings do not need to be in person, housing agencies must meet with the household at least by phone or video conference.  Emails, returning paper forms, and submitting documents is not sufficient.  While HLC is only requiring quarterly meetings, housing agencies may require meetings as frequently as monthly.

Wage Match

Housing agencies shall perform Wage Match for all adult household members of zero income households quarterly.  Any jobs not reported by the household shall be followed up on, as well as income that is over 10% higher than reported.

3rd Party Income Verification

Housing agencies shall require that all adult household members in a zero income household provide a benefit statement from the Department of Transitional Assistance (DTA) quarterly.  If any adult household has a history of earned income or any previous employment on Wage Match, the household and the housing agency shall endeavor to verify that the adult household member(s) is not receiving unemployment insurance quarterly.

Implementation

Housing agencies must set internal schedules to review Wage Match and meet with zero income households by July 1, 2026.  Quarterly reviews and meetings shall begin on July 1, 2026.  Housing agencies may stagger quarterly reviews for administrative ease.

Example

Dani has a project-based MRVP voucher.  She has two children and does not receive child support.  Her only income is her work study job.  While Dani’s net income for MRVP is $0, she is not considered a zero income household.

George is the only household member on his mobile AHVP voucher.  He has no income but is applying for EAEDC and SSI.  The housing agency meets with George every three months to review his bank statements and household expenses.  Through these meetings, the housing agency discovers that George profits approximately $200 per month from various endeavors.  The housing agency counts this as earned income and increases his tenant rent share with 30 days’ notice. 

Rent Reasonableness

All rents must be reasonable compared to unassisted market units at the property and/or in the community.  Housing agencies are encouraged to use care and judgment when reviewing rent reasonableness.  Contract rent should not be based on the highest comparable rents but rather reflect a reasonable and median rent for the area whenever possible.

Terminations

HLC is requiring all housing agencies strictly apply continued eligibility qualifications for MRVP listed in 760 CMR 49.03(2-3) and AHVP listed in 760 CMR 53.03(3).  In the past where housing agencies may have used discretion or erred on this side of giving households one more chance, HLC is requiring regulations to be strictly and objectively followed.

HLC recognizes how valuable vouchers are to participating households.  As such, HLC is requiring households with a voucher to fully comply with program regulations and requirements as listed in their voucher.

Because HLC is requiring housing agencies strictly follow program regulations, HLC strongly urges that housing agencies provide reliable contact information for program staff to program participants.  Any reported changes shall be carefully noted. HLC is reiterating that housing agencies shall provide clear, concise, and accurate information to participants.

Voucher Expiration

While housing agencies should have very few “on the clock” vouchers, the expiration date for all MRVP and AHVP vouchers issued to households not residing in a subsidized unit shall be reviewed by October 1, 2026. For vouchers that have expired, the voucher is expired.  No additional notice to the household is required because the expiration date is in writing on the voucher.  For vouchers that have an unclear expiration date, the housing agency shall give the household 30 days’ written notice (or more, so that total search time is at least 120 days) of the voucher’s termination date.

Housing agencies are additionally reminded that administrative transfers from MRVP project-based units that are approved are considered required and not optional.  Project-based voucher holders issued a mobile voucher shall be terminated from MRVP if the mobile voucher is not utilized or expires.

Housing agencies shall not approve any extensions on issued MRVP and AHVP vouchers, except those requested via a reasonable accommodation. Note that a reasonable accommodation requesting an extension after the expiration date must address why the request was not made prior to the expiration date.  In other words, except via reasonable accommodation, voucher extensions may not be requested retroactively. 

Other Programs

DMHRSP (Department of Mental Health Rental Subsidy Program)

None of the changes outlined apply to DMHRSP.  DMHRSP is funded differently than other HLC voucher programs and has undergone other cost-saving measures which are unavailable to MRVP and AHVP.

Stable Start (7004-9034)

Stable Start will continue to follow all MRVP’s regulations and guidance, with the exception of tenant selection and payment standards.

Housing Choice Voucher Program (HCV; Section 8)

None of the changes outlined apply to any HCV or Section 8 vouchers.

Public Housing (Federal and State)

None of the changes outlined apply to federal or state public housing.

Resources and Support

Regulation Waiver

A waiver signed by Secretary Juana Matias is forthcoming.

Letter to MRVP Participants
Letter to AHVP Participants
Letter to Property Owners
MRVP Mobile Calculation Sheet, Effective 7/1/26
MRVP Project-Based Calculation Sheet, Effective 7/1/26
AHVP Mobile Calculation Sheet, Effective 7/1/26


Support

HLC truly values and relies on input and feedback from housing agency staff. 

HLC is available to housing agencies to support them in implementing this guidance.  Any comments, questions, or concerns can be addressed to MRVP and/or AHVP staff directly and/or eohlcmrvp@mass.gov

Program participants and property owners who have concerns or questions that cannot be addressed by housing agency staff are encouraged to contact HLC at eohlcmrvp@mass.gov.

eohlcmrvp@mass.gov is checked by program staff multiple times a day and is the best way to reach the most staff for a prompt and accurate response.

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