HUD voucher program looking for landlords
Short-term rentals have displaced several families who benefit from the Housing Choice Voucher program, the Hot Springs Housing Authority said earlier this week.
Landlords in the U.S. Department of Housing and Urban Development’s Section 8 program receive rental income from vouchers HUD provides to low-income tenants, but some Section 8 landlords have converted their properties to shortterm rentals.
The housing authority held two meetings Tuesday to recruit more landlords into the voucher program. Almost 600 vouchers are active, and about 400 landlords are enrolled in the program, the housing authority said.
“People are in desperate need of housing,” Housing Authority Executive Director Richard Herrington Jr. said.
The ordinance regulating short-term rentals the Hot Springs Board of Directors adopted last year caps the number of STRs in areas zoned for residential use at 500 annually. The board is scheduled to consider an amendment next month that could reduce the annual cap to as low as 400.
“If they increase the number, that’s going to take our number down,” Herrington said. “People in town need housing. The short-term rentals only help the convention bureau. I’m concerned about the folks who live and work here. Those are the folks who get hurt.
“Those who work at the track, the hospitals, nursing homes, and those who are trying to go to school, trying to raise a family. Those are the ones who’ll be adversely affected by this. Why would you want to take up residential neighborhoods with this, particularly in the city?”
According to the city’s 2018 Analysis of Impediments to Fair Housing Choice, 1,344 rental units in the city are occupied for only part of the year for seasonal, recreational and occasional use. The housing authority said the rental market contracts during the live race meet at Oaklawn Racing Casino Resort.
“From December to May, they cannot hardly find any units because everything is scooped up by people coming in for the races,” Housing Choice Voucher Director Bobbi Partain said.
The tight market notwithstanding, Partain said some Section 8 landlords haven’t raised their prices.
“With all of the craziness in the housing market right now, the shortage on housing is just horrible,” she told landlords at
Tuesday’s meeting. “We know that you can get a lot more rent right now than you could have even a year ago. We appreciate when you’re willing to come down for those who can’t afford it.
“Even though you might be able to get $1,200 for a three bedroom, I have tenants who could only qualify for $800 or $900. We have multiple landlords who’ve agreed to stay at that level so people can have places to live.”
Local landlord Hilarie Dzianott praised the program, offering a testimonial HUD used for its Housing Choice Voucher Utilization Webinar.
“The voucher program pays right away the first of the month, every month, whatever they’re guaranteed to pay,” she said in her video message. “We have a wonderful office here in Hot Springs. They have already verified a lot of information on the prospective tenant.
“They will help you get more tenants. They will help you get good tenants. It will help you become a better landlord with your other tenants.”
The housing authority said applicants are waiting as long as 10 months for a voucher. Upon receipt, they have 120 days to find a unit and submit a request for tenancy. The housing authority said extensions are granted for special circumstances.
Herrington said more than 500 people are on the waiting list for Mountain View Heights, the 365 units the housing authority converted from public housing to Section 8 through HUD’s Rental Assistance Demonstration program. The housing authority has an ownership stake in the Mountain View Heights partnership, but Allied Orion Group manages the units.
The housing authority selected the Houston-based company for its expertise managing properties financed by Low Income Housing Tax Credits, which can be rescinded if properties fall out of compliance with the tax credit’s requirements.