Shutdown threatening funds for LR housing aid
As the partial federal government shutdown stretches into its 28th day, the Little Rock housing authority is preparing for the end of February, when funds will run out for several of its programs that provide rental assistance to people with low incomes.
Tenants and landlords involved in the Section 8 program will soon receive letters telling them that because of the shutdown, the Metropolitan Housing Alliance may not be able to pay rental subsidies after February. The letters will go out to between 4,000 and 5,000 people as soon as possible, board members said at Thursday’s meeting.
“Where we can, let’s give as much notice as possible,” Chairman Leta Anthony said.
The letters also will be posted online and at the housing authority office. The Little Rock agency provides more than 2,000 Section 8 vouchers directly to tenants and has about 650 Project-Based Section 8 vouchers, which are assigned to properties. One voucher is given per household.
The agency converted three of its public-housing towers to Project-Based Section 8 last year.
The government shutdown
began in December because of arguments over whether to fund the construction of a border wall between the United States and Mexico. It’s the longest government shutdown in U.S. history.
“We have no idea how long it’s going to last,” said Marshall Nash, special adviser to the board.
Nash is taking on the duties of executive director until the agency hires a replacement for former director Rodney Forte.
Nash added that the authority’s office had been fielding calls from worried tenants and landlords.
“As you know, our primary reason for being here is our tenants, and our landlords are just as important,” Nash said.
The authority was scheduled to dole out about $15.3 million in rent to landlords through both Section 8 programs in 2019, according to budget documents.
The U.S. Department of Housing and Urban Development, which funds housing authorities, sent a memo earlier this month to 1,500 landlords across the nation asking them to make up the difference from their own reserves until the government reopens.
Housing advocates say that if government stays closed through February, people who get rental assistance may be faced with paying their full rent, eviction or homelessness.
Jeannie Owens, director of the alliance’s voucher program, said contracts between landlords and the housing authority state that tenants can’t be held responsible if the agency doesn’t pay its share of their rents. That section of the contracts should provide some protection against eviction for tenants in Little Rock, she said.
Board members on Thursday discussed the possibility of asking tenants to work out deals with their landlords to compensate for the loss of rental subsidies.
Anthony said she wanted to compile a list of nonprofits and other agencies that are helping people with food and rent and make that list available to tenants.
“There are people gearing up who recognize that this is happening,” Anthony said.
To keep public-housing programs afloat, the agency can dip into reserves that were being saved for future construction projects, financial director Ron Hooks said.
Agency officials also plan to let employees know that if the shutdown continues, they won’t be receiving paychecks. Administrators and board members are working to create a list of necessary staff members to keep the housing authority functioning. The list should be ready by the middle of next month.
“They’re keenly aware of the shutdown,” Nash said of the employees.
Nash said he was worried that if some employees are let go in March, they wouldn’t come back, leaving the agency with an inexperienced workforce.
“At this point, the reality is that we need a skeleton plan that we can build on,” Anthony said.
Thousands of low-income Arkansans rely on rental assistance from various HUD programs and the U.S. Department of Agriculture’s Rural Development office. Neither department is operating fully.
Nash said the Little Rock housing agency was waiting for the right time to talk to renters, employees and landlords in case politicians in Washington reached an agreement.
“What we were hoping for is a deal,” Nash told the board.
“We can’t afford to wait for that,” Anthony replied.
Housing advocates say that if government stays closed through February, people who get rental assistance may be faced with paying their full rent, eviction or homelessness.