The Tenant's Search Period
When a prospective tenant approaches you with a Housing Choice Voucher, it’s crucial to understand that this document is not a guaranteed lease. Think of it as an authorization to shop for housing with a specific expiration date. The clock starts ticking for the family the moment they receive their voucher. For you, the investor, understanding this timeline is key to managing your expectations and assessing the likelihood of a successful and timely lease-up.
This process is governed by a set of timelines, extensions, and pauses that can affect how quickly you can get a tenant into your unit and start receiving payments.
The Initial Voucher Term: The Starting Clock
The “voucher term” is the official period a family has to find a suitable rental unit and submit the necessary paperwork to the Public Housing Authority (PHA).
According to the HUD handbook, every PHA must give a family an initial search term of at least 60 calendar days. However, this is just the minimum requirement. Many PHAs recognize that local market conditions, like low vacancy rates or high rents, can make it difficult to find a unit in that timeframe. As a result, your local PHA may establish a longer initial term (e.g., 90 or 120 days) as their standard policy.
Note
The initial search term is not universal. When you receive interest from a voucher holder, it’s wise to ask them about their voucher’s expiration date. This single piece of information tells you how much urgency is behind their search.
Extending the Search Time
The initial voucher term is often not the final deadline. The PHA has the authority to grant extensions, which are typically handled in two ways:
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Discretionary Extensions: A PHA can choose to grant extensions based on its own policies and the family’s circumstances. When reviewing a request, the PHA will often consider factors like:
- Local Market Conditions: Is it a tight rental market?
- Tenant’s Effort: Has the family been actively searching, contacting landlords, and viewing properties?
- Extenuating Circumstances: Were there legitimate obstacles that prevented the family from finding a unit, such as a serious illness, a death in the family, or an emergency?
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Reasonable Accommodation Extensions: This is a critical point for investors to understand. If a family member has a disability, the PHA must extend the voucher term if it’s needed as a reasonable accommodation to make the program accessible. For example, a family searching for a wheelchair-accessible unit may need more time than the standard term allows. These requests are
rarelyalmost never denied if properly documented.
Tip
If a prospective tenant informs you they are waiting on an extension from the PHA, don’t immediately dismiss them. If they have made a good-faith effort or have a valid reason for the request (especially one related to a disability), the PHA is likely to grant them more time.
Suspension of the Clock: Hitting “Pause” on the Search
This is perhaps the most important and least understood part of the voucher timeline. A “suspension,” also referred to as “tolling,” is when the PHA essentially hits the pause button on the voucher’s expiration clock.
This happens for one specific reason: when the family submits a Request for Tenancy Approval (RFTA) for your unit.
The clock stops on the day the RFTA is submitted and does not restart until the PHA makes a formal decision to either approve or deny the tenancy. Whatever time was used during this PHA review period is then added back to the family’s voucher term if the unit is denied.
Example Scenario
Let’s walk through an example:
- May 1st: A family with a 60-day voucher (expiring June 29th) finds your unit.
- May 15th: The family submits the RFTA to the PHA for your property. On this day, their voucher clock STOPS. They have used 14 days and have 46 days remaining.
- May 24th: The PHA inspects the unit but denies the tenancy because the rent is not reasonable. On this day, the voucher clock RESTARTS.
- New Expiration Date: The 9-day period from May 16th to May 24th (the “tolling time”) is added to their original expiration date. The family now has their remaining 46 days plus the 9 suspended days to find another unit.
Important
Tolling is designed to protect the family. It ensures they are not penalized and do not lose valuable search time while the PHA is performing its due diligence on your property—conducting the inspection and rent reasonableness analysis. From your perspective, it means that once a tenant submits your paperwork, their voucher is highly unlikely to expire while you’re waiting for the PHA’s decision.