HUD CLARIFIES POSITION ON THE IMPACT OF THE GOVERNMENT SHUTDOWN

Thousands of Families May Still be affected if Section 8 Program Receives Additional Cuts

 

Alhambra, CA,  On October 11th, the U.S. Department of Housing and Urban Development (HUD) clarified its position on the impact of a prolonged government shutdown and its ability to provide funding to public housing authorities (PHAs).  According to the revised Contingency Plan that was posted on HUD’s website, monthly payments for the Housing Choice Voucher (Section 8) program, “for November and December are scheduled to be made timely.”

 

This is great news since just two weeks ago, PHAs, across the country, including the Housing Authority of the County of Los Angeles (HACoLA), began bracing for the worst when HUD announced that its ability to disburse funds between now and 2014 was dependent upon Congress’ passing a budget or reaching an agreement on a continuing resolution.  This news sent PHAs scrambling to figure out ways to avert the possible displacement of their Section 8 assisted families, which for HACoLA, includes over 23,000 households (and approximately 13,000 landlords).

 

This bit of good news, however, is tempered by the reality brought by the continuous threat of another round of sequestration.  Because the sequester required PHAs to exhaust their reserves from HUD earlier in the year, HACoLA must now turn its attention to contingency planning if further program cuts result from the new Federal budget.  Should further cuts be made to the already underfunded Section 8 program, then HACoLA may be forced to terminate the assistance of hundreds of families beginning as early as January of 2014.

 

HACoLA will continue its efforts to educate and inform decision-makers about the damage that underfunding and sequestration have brought upon program participants.  For more information on HACoLA’s programs, please call (626) 262-4510.  All media may contact Elisa Vásquez, Public Information Officer, at (626) 586-1762.

 

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