From Norman's Desk

HUD Floats Proposal for Emergency Regulatory Change

By Norman Smith

HUD's attempt to solve the FY04 voucher funding problem by providing housing authorities with $150 million and by making slight changes to how it determines agencies' funding-appears to be running into difficulties. Since HUD's announcement to Congress on May 20, it has become clear that many agencies are still facing significant shortfalls. In an attempt to solve that problem, HUD held a call on June 10 with several organizations that represent housing authorities to ask for their support in an emergency regulatory change that would allow housing authorities to reduce their maximum payment for housing vouchers while providing minimal notice to tenants and landlords.

Such a change would result in landlords getting less for their units, with the tenant's share of the rent increased to offset the agencies' savings. Under current law, a tenant has one year before the increase would take effect, but HUD's proposal would make the increase effective within 30 days, giving residents little time to plan for rent increases. According to reports, HUD may publish this revision as early as Monday, June 14, to take effect within 30 days.

Meanwhile, reports continue to roll in from across the country that tell the story of the harmful effects of HUD's recent funding cuts that are already taking place. In Kearney, NE, for example, the Kearney Housing Authority will have to decide over the next months how to eliminate 23 vouchers of the 103 it currently administers.