Because of the shutdown, more than 1,000 affordable housing contracts have expired

January 8, 2019                                  By: Suzy Khimm and Laura Strickler

"It's a mess," an affordable housing advocate said. "The pain is coming a lot earlier than we thought."

Federal contracts for more than 1,000 government-funded properties that house low-income renters have already expired as a result of the government shutdown, which could delay critical repairs and place poor families at risk of eviction, advocates and landlords say.

The Headquarters of the Department of Housing and Urban Development in Washington.  Carol M. Highsmith / Buyenlarge/Getty Images File

About 1,150 contracts with private landlords have expired since the shutdown began on Dec. 22, according to Jereon Brown, a spokesman for the Department of Housing and Urban Development. That represents about 5 percent of all contracts for a federal Section 8 program known as Project-Based Rental Assistance, which subsidizes rent and utilities for 1.2 million low-income families, including many who are elderly or disabled.

About 500 more contracts will expire in January and 550 in February if the shutdown continues, HUD said in a statement.

HUD has told the landlords participating in the Section 8 program that they “can use their reserves, where available, to cover any shortfalls," said Brown. He said that most of the properties have cash reserves on hand, which are typically required by mortgage lenders...................Read More