What Is ACC Units
ACC Units represent the maximum number of Housing Choice Vouchers a Public Housing Agency (PHA) is authorized to administer under its Annual Contributions Contract (ACC) with HUD. This is a hard cap set by HUD based on the agency's funding allocation and historical program performance. For example, if a PHA receives ACC Units for 5,000 vouchers, it cannot issue more than 5,000 vouchers in its jurisdiction, regardless of demand or available funding.
How ACC Units Affect Landlords and Tenants
For landlords, ACC Units directly impact participation opportunities. If a PHA is at or near its ACC Unit cap, the agency cannot issue new vouchers, which limits your ability to accept Section 8 tenants. For tenants, it means waitlist movement depends partly on whether the PHA has available ACC Units. When a PHA reaches 100% utilization of its ACC Units, it typically cannot add new applicants to its waitlist.
Utilization vs. Authorization
It's critical to understand the difference. ACC Units are what HUD authorizes. Utilization Rate is the percentage of those units actually leased up at any given time. A PHA might have 5,000 ACC Units but only have 4,200 vouchers in use (84% utilization). This gap matters because it shows the PHA's financial headroom to issue new vouchers or recover from tenant turnover.
- ACC Units: The authorization from HUD. Fixed number set in the contract.
- Utilization Rate: The percentage actively leased. Can fluctuate month to month.
- Example: 5,000 ACC Units with 4,500 leased = 90% utilization rate.
Practical Impact on Program Operations
PHAs report ACC Units and utilization data to HUD quarterly. If utilization drops below 95%, HUD may investigate program management. Chronic underutilization can result in reduced funding or ACC Units in future contract renewals. Conversely, PHAs operating at or above 95% utilization demonstrate effective management and may receive additional units during contract amendments.
Landlords should check with their local PHA about current utilization rates before making decisions about accepting vouchers. High utilization may mean slower processing times; low utilization may indicate the PHA is actively recruiting landlords.
Common Questions
- Can my PHA request more ACC Units? Yes. PHAs submit requests to HUD during the budget process, typically based on waitlist demand and demonstrated utilization rates of 95% or higher. Approval depends on HUD's funding availability.
- What happens when a PHA reaches its ACC Unit cap? The PHA stops issuing new vouchers. Existing tenants keep their vouchers. New applicants go on a waitlist, which may be closed until units become available through turnover.
- Does my lease agreement reference ACC Units? Not typically. Your Housing Assistance Payment (HAP) contract references the voucher authorization, but ACC Units operate at the agency level, not the individual lease level.
Related Concepts
- Annual Contributions Contract - The HUD agreement that defines ACC Units and funding
- Utilization Rate - The percentage of ACC Units actively leased at any point in time