Funding is available for Section 8 program and public housing programs in January

Funding is available for Section 8 program and public housing programs in January

By Lynda Carson - January 2, 2018

It appears that the government shutdown may have caused some confusion throughout the 3,000 Public Housing Authorities (PHAs), regarding the funding available to them during the shutdown.

As an example, reportedly, if the partial government shutdown extends past January 1, 2019, the Altoona Housing Authority won’t have subsidies to pay 450 landlords in their Section 8 housing voucher program. This would place hundreds of Section 8 renters at risk of losing their housing.

In the City of Baltimore, their housing authority is claiming in a news report that they are able to keep operating normally during the government shutdown because of their reserve funds, that will allow them to provide full services and pay vendors as well as their employees.

Additionally, reportedly in New Brunswick, New Jersey, the government shutdown may result in the delay of paychecks to the employees of the New Brunswick Housing Authority (NBHA), and the housing authority is trying to minimize any impact on the residents in its city housing projects/programs. NBHA is funded with federal money for its $14 million budget. It has 18 full-time and 2 part-time employees, and operates four affordable and public housing projects, plus a Section 8 Housing Choice Voucher program with around 868 vouchers.

However, despite the reports of a lack of funding occurring in some PHAs, in a news alert email below from the Public Housing Authorities Directors Association (PHADA):

From: sembry [at] phada.org
To: tenantsrule [at] yahoo.com

Dec 31 at 6:31 AM

Ms. Carson,

First, thank you for writing about HCV funding which is a crucial issue. I read your recent article and wanted to pass you some up to date information regarding funding for the HCV program during the shutdown. Funding is available for January 2019 so there should be no lapse in payments to landlords or other vendors. Let me know if you have any additional questions.

https://phada.createsend1.com/t/ViewEmail/y/82F83E36594CEC8A

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(From: PHADA in email mentioned above)

Government Shutdown Not Expected to Impact Housing Programs in January

FOUR MINUTE READ

The partial government shutdown is not expected to have an impact on housing programs, at least in the short term. HUD-PIH staff informed PHADA last week they believe the Department has sufficient funding for programs through the early part of 2019. Dominique Blom, HUD’s Acting Assistant Secretary for PIH, said today that HCV and Operating Fund payments will definitely be made for January. She said that voucher deposits would be made January 2, adding, “With the government shutdown, the staff in the Financial Management Center in Kansas City and in our Field Offices are not working. As such, they are not returning calls/emails inquiring about the status of funds. I would appreciate if you could communicate with your members to let them know that January payments will be made.”

That is consistent with the message the Financial Management Division conveyed to HAs last week (see the first message below). Although that message covers public housing, we were informed voucher funding will be also available for January.

The other excerpt below is from HUD’s contingency plan in the event of a shutdown. It indicates a number of HUD’s IT systems will remain operable if there is a shutdown.

PHADA will continue to provide information on the shutdown as it is available.

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Message from the Financial Management Division

To PHA Executive Directors/Business Partners:

The Public Housing Operating Fund program has provided obligations for the months of January and February. These obligations are based on an initial estimate of 2019 eligibility and a 90% proration rate. HUD uses a conservative methodology for funding PHAs when using an estimate, and when funding is based upon a Continuing Resolution. Because Operating Subsidy funding is provided on a cumulative year to date basis, using a conservative methodology early in the year is intended to result in increasing funding amounts later in the year.

While HUD’s estimate is normally quite accurate on a portfolio level, on a project level it can vary widely from what actual eligibility winds up being. If a PHA considers the funding over the amount it should receive for this period, that amount of fund shall not be withdrawn from eLOCCS. The PH-Financial Management Division (FMD) will post a detailed explanation of the estimate methodology and obligation letters on the Operating Subsidy web page as soon as possible. The Operating Subsidy web page for 2019 is available here.

If you have questions regarding this communication, please contact your local HUD Field Office.

Happy Holidays from the HUD PH-Financial Management Division

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With the government shutdown being into its second week, people across the nation hope that it will end soon.

Lynda Carson may be reached at tenantsrule [at] yahoo.com

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