Friday, April 9, 2010

Section 8 program may run out of money

From the NY Times:

Because of a $45 million budget gap, the New York City Housing Authority may have to revoke rental-assistance vouchers from more than 10,000 low-income tenants, a drastic move that could cause families to lose their apartments.

The federal government gave the housing authority less money for the voucher program, known as Section 8, than the authority expected. But the authority made matters worse by continuing to issue new vouchers until December, eight months after the government warned it to stop doing so because the program was likely to run a deficit.

Michael P. Kelly, the authority’s general manager, said that terminating vouchers would be a last resort. The authority has not decided who might lose their vouchers, but if the deficit is not closed, the cuts could begin this summer.

The agency is seeking federal and state funding to avert the voucher cuts. But the state is facing a huge deficit. Sandra Henriquez, an assistant secretary of the Department of Housing and Urban Development, said that HUD would review the housing authority’s books, but she added that “they cannot and should not expect that the federal government will cover the shortfall.”

As an alternative, the housing authority is considering reducing the value of each voucher, meaning that landlords, tenants or both would have to absorb the cost.

Under Section 8, residents typically pay 30 percent of their income toward rent, and the voucher covers the balance. In New York City, about 102,000 families now have vouchers, which are administered by the authority and allow families to live in units where private landlords accept Section 8 benefits. An additional 178,000 or so families live in public housing complexes owned by the authority.

After the authority voided 2,600 outstanding vouchers in December, prompting an outcry from affected families, it urged people to apply for public housing, although the waiting list is years long.

HUD provides money for the Section 8 vouchers and tells housing authorities the maximum number they can use. In May, HUD told the New York City Housing Authority it was in danger of exceeding its allotted number.


Anonymous said...

"Section 8 program may run out of money"

Why not? The taxpayers have!!!!

Anonymous said...

That's a shame.

Anonymous said...

If you forced the able bodied and the contraception ignorants off welfare than Section 8 would have a cash surplus.

Anonymous said...

Take the vouchers away from any one who came to the US less than 18 years ago & Section 8 would be solvent. Take the vouchers away from any immigrants, illegal or not. let them be homeless like many Americans are, let them have the full experience of life in NYC.
another way to solve Section 8's problems is to take it away from drug dealers. I am happy to provide the address of apartment buildings that are full of Dominican drug dealers and prostitutes.

Anonymous said...

Yeah I never understood why the immigrants of olden days had to sign something saying they promised not to be a burden on the country, yet the ones coming here today get handouts.

Queens Crapper said...

It's called tweeding.

Anonymous said...

The City is running out of money.... However the Mayor has over $ 10 million , State Senator Carl kruger has $ 2 million, Councilman Recchia has $ 1 million & BP Marty Markowitz has over $ 50 million for an 8000 seat Amphitheater in Brighton Beach, that no one wants or needs.
Now does this makes sense?
I guess those that will be thrown out of their apartments can always go over to the Amphitheater & live there.
These politicians are all screwed up.

Anonymous said...

its only a matter of time b4 all the social programs go bust. HALF the country is now on some form of gov asst. not good. or maybe taxes on the ever shrinking middle class "lucky" enough to still be working will increase to 50 or 60% in the next few years. kinda gives you the disincentive to be a productive person, no?

Anonymous said...

There's no reason to work hard and try to do better in this city. You get rewarded for doing nothing. They don't have to tell me twice. I'm taking it easy. Let the other people pay. Suckers!!!

Anonymous said...

Too Bad! Get a job,go work. Stop having kids as a mean of income.. When we all fall we will all do better in the long run, Let all suffer....