The Government Shutdown Could Decimate America's Subsidized Housing Programs

January 22, 2019                 By: Sophie Kasakove

The contracts of over 1,000 Section 8 units have already expired, putting in jeopardy the housing of tens of thousands of people enrolled in the subsidy program. Should the shutdown continue, things could get much, much worse.

The government shutdown has hit the one-month mark, and subsidized housing programs are reeling.

Between December and January, the contracts of 1,150 Section 8 units expired, putting in jeopardy the housing of tens of thousands of people enrolled in the project-based rental assistance subsidy program (over half of whom are elderly or disabled). Another 500 contracts are set to expire if the shutdown continues into February.

Section 8 housing in the South Bronx. The shutdown may force landlords to put necessary home repairs on hold.     (Photo: Wikimedia Commons)

As administered through the Department of Housing and Urban Development (HUD), the project-based rental assistance program allows for HUD to "directly contract with private landlords to provide affordable homes to low-income tenants at certain properties," according to the National Housing Law Project, an advocacy group. More specifically, the program allows landlords to charge market rates, with tenants paying 30 percent of their income and HUD picking up the rest.

So far, it seems that many property owners have been able to make do by dipping into reserve funds, but within a few weeks these savings may start to dry up. This could force landlords to put necessary repairs on hold. Or, in the case of the not insignificant minority of units owned by non-profit developers—that is, community development corporations and housing organizations that aim to provide for those who are unable to obtain housing through the private market—it could mean cutting off additional services like afterschool and workforce programs. At worst, the funding cuts could lead landlords to demand that tenants pay the full rent themselves, or else face eviction....................Read More