The Real Estate

Activists: City Could Lose 10,000 Section 8 Housing Units

By this fall, according to activists, the city could lose over 10 percent of the remaining 90,000 affordable housing units that exist under the federal Section 8 program if Congress doesn't plug a $2.4 billion budget shortfall at the Department of Housing and Urban Development.

A pair of U.S. representatives, Nydia Velazquez of Brooklyn and Queens and Jerrold Nadler of Brooklyn and Manhattan, are holding a rally tonight to pressure Congress to approve supplemental funding so HUD can continue to guarantee owners of Section 8 buildings rents to match the market. Without such gurantees, there's a risk of apartments leaving Section 8 for the increasingly expensive open market.

“If owners can’t rely on the subsidy then they will opt out of the Section 8 program,” Patrick Coleman of the group Tenants and Neighbors, one of the rally’s organizers, said. The rally's at 6:30 at Judson Memorial Church on Washington Square South.

The problem surfaced in July, when HUD’s monthly payments to landlords with project-based Section 8 contracts became spotty, causing owners to cut-back on maintenance and tenant services, the rally’s organizers said.

At first, HUD said administrative problems were behind the late payments, according to Mr. Coleman said. The rally's organizers blame the Bush administration for securing only $6.1 billion of the estimated $8.1 billion needed to operate project-based Section 8 this year. HUD is not only scaling back allocations to buildings, but now they are only guaranteeing funding through Sept. 30, Mr. Coleman. Though $7.1 billion has already been allocated for the 2009 fiscal year, there is still the matter of the $2.4 billion deficit that HUD will accumulate in 2008 if no additional money is secured.

“The problem is what will come on Oct. 1,” said Mr. Coleman. “This is unprecedented so we don’t know what’s going to happen in the next fiscal year. They’re saying ‘we’ll hobble along until Sept. 30 and then get more money,’ but Congress has never approved a HUD spending bill on time so they are not going to have enough to renew building contracts.”

Even if Congress approved supplemental funding on Oct. 1, renewing all the contracts at once would be a huge administrative burden for HUD employees, who usually stretch negotiations out over the course of a year.

The Housing Conservation Department represents tenants during negotiations between HUD and landlords with project-based Section 8 contracts. John Raskin, the agency’s coordinator in Hell’s Kitchen, is involved in negotiations between HUD and five landlords over the market value of their units.

“When they believe they won’t be funded it’s much more difficult,” Mr. Raskin said. “Five years ago, everyone jumped at a 20-year contract. Now they want [shorter ones] and we have to do a lot of work to convince Hells Kitchen landlords that it’s in their interest to stay in the program.”

In areas where rents have sky-rocketed over the past decade like Hells Kitchen, the funding issue is only partially behind landlords’ desire to convert affordable housing to market-rate units. For them, sporadic subsidy payments may prove to be the final straw. The owner of the Hudson View I building in Harlem that houses 93 low-income families is one landlord considering converting the building to market-rate due to insecure funding.

In less desirable neighborhoods, Section 8 building owners are less likely to opt out of their subsidy contract because it provides a steady source of revenue, but HUD’s budget shortfall is nevertheless taking its toll.

A press release about the rally issued today quotes Yvonne Graham, a tenant at Morris Heights Mews in the Bronx, saying her manager attributed the deteriorating conditions to late payments from HUD: “Management could only afford to pay 1 porter to clean 3 buildings – tenants were mopping the hallway floors in front of their own apartments. We went without a security guard for months."

Mr. Nadler said in a statement that the program has been under funded for years, but is “arguably this nation’s most successful, large-scale, public-private partnership to provide safe, decent and affordable housing for low-income and working Americans, seniors and the disabled.

 

“The Bush Administration, instead of asking for the proper level of funding, has only guaranteed short-term payments to landlords, which may ultimately result in the permanent loss of these precious units of affordable housing. I reject that approach, and back efforts to provide support for important programs like project-based Section 8 funding."

The success of project-based Section 8 is not disputed—especially when compared to programs like Mitchell Lama where landlords have no incentive to renew. Congress has not approved a new project-based Section 8 housing contract since 1983 and no other housing program provides rents that are really affordable to low-income tenants, said Mr. Raskin, the Housing Conservation Department coordinator.

But it seems unlikely that all of the Section 8 buildings in Manhattan will disappear in the next year. HUD communications officer Adam Glantz said there are 850 multi-family developments that receive HUD subsidies or some form of assistance. Since they began tracking project-based Section 8 housing in 1999, only 50 developments have abandoned the program. The average length of a contract is five years, and the owner has to notify the tenants and federal government a year in advance to opt out.

Mr. Glantz said he did not “know what they are talking about” regarding the $2.4 billion budget gap.

“I have not seen any sort of trend of buildings opting out of program,” he said. “In fact we’ve been very successful using HUD’s tools to keep landlords in the program.”

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Comments
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Anonymous (not verified) says:

I'm a section 8 voucher holder, and can't seem to find an apartment no where in new york,and weschester,because all the landlords are asking for hpd section 8, because they pay morethan regular section 8. how on earth do they expect for regular section 8 voucher holders to find an apartment with not just the problem with rent increasing, but if a landlord sees they can get more for a 4 bedroom with hpd rent amount then regular section 8, who do you think they're going to take? If they don't do something about this battle between hpd section 8 and regular section 8,alot of families are going to be homeless. yeah you can transfer too,but alot of places in weschester require you to have a car, and say if you can't get a car ,or don't know how to drive,plus with the price of gas. Let's be really serious about all of this. they know that as a single parent, or low,income families can't afford that.

Anonymous (not verified) says:

i am a section 8vocheri rather live in va or sc to get better house not apatment, so that why i move to va live in nice apartment but soon by next yr or two, will able to live a 2broom house you do not have to be stuck in nyc there are states that takes vochers in better place besides nyc.

Anonymous (not verified) says:

the rest of the country is in foreclosure and people are still getting free rent and subsidies? Where is the fairness? People going without food and shelter and others living the high life? Something has to be done to help more families and share the wealth of these lucky few section 8 people.

Anonymous (not verified) says:

Attention to all who will listen .. we need to get together and address this issue . i am a single mother recieving section 8,i am disabled and cannot work right now ,because of medial resons, my children recieve welfare for the food stamps .and the rest goes to bills . i came from a mother who worked all her life .and is a tax payer .went to college put me threw private school . my situation changed . and i am currently on the section 8 housinng choice program . you have know idea the amount of time invested in trying to find a place to live for my four children and myself . the discrimination and the things were subjected to hear sometimes . some landlords will not even let you explain the program to them .and if they do they will give you excusses, the rooms too small your kids too big , your kids too small your a young mom . whatever , .. i feel like i am forced to move into a smaller apartment just so i can pay my share . electricity has gone up 22% and food cost .. milk almost five dollars etc., how do you expect us not to need some assistance with our children .. the economy has changed drastically .. we all may need some assistance soon if we dont work together ,what do you think is going to happen when you raise your rent so high to pay your bills , you may get a tennant who will fall behind in payments , and if you cant rent it youll loose money on that place till you find someone .. would you like to be put into a catagory like this . poor families trying to live off tax payers money .thats so shallow . were better off than other countries this is america . well at the rate things are going if you dont rent to us you may have to sell your homes , because the oil is going up and everything else ... then what will you do ..we are black hispanic .white , asian and mexian . we are the rainbow. there isnt one race i know that isnt on this program .. please give us a chance .. get to know the program see how it works .. theres also a program hpd section 8 .. leaving us in the cold because they offer more money because there clients come from shelters or have specail needs ..they are making it so hard to let regular section families find a place to live giving insentives . are they more specail than us . we are all in the same situation ... give reg section 8 an insentive because a group got together and brought it to congress . ..

do you know how much i have to put up front to rent a 3 bed room almost 6,ooo dollars up front ..because they wont wait for section 8 . if you find a landlord its quicker faster ... the reltors want 15% of the rent there share and half of them dont even bring you to see the place .making that more than a month in half . come on ..
and the web site like craigs list no luck waste of time , the apartments are over priced for what there offering .and its funny now in our own area of the five boroghs we cant find a landlord to take it ..whats going on .and if you want to relocate you'd be lucky if you find a section 8 office that will let you transfer it out there . some places are closed .. i feel that landlords there just thriving off the fact that we would love a house for our children and raise the rent very high almost to 2,300 for a 3 bed and included the words section 8 welcome after you looked at the pictures and all the amenities .. .. im sorry i am going on and on and im writing of the top of my head i am trying to make this work and I am wondering if they just increased the rent standards how did the rents go up from the last standard thinking maybe now we will find something .. but the realestates convience the landlords they can get the max rent and the rents are raised once again .

but i just want to get the word out there ... there are some decent people on the program some working and some with other special needs ,and aome really trying to make it . i want a safe place for my kids to grow up ,open up toooo new areas we can search ..believe me some of the areas they sent us too we don't want to live in ,my kids say this is where they sent us.. my children are very smart and the school system in some areas are not too good .. i don't want to be a contradiction ,and say i am being discriminating against my own neighborhood. this is where i grew up but i believe there are better things for us and i have hope something will come along soon .. .. please stop the discrimination . about our backround , our family size . it could be someone you know one day if there situation changed .. i bumped into someone in section 8 and said i cant believe I'm here in the welfare work program ..never say not you !he explained he lost everything and had it all .. his wife divorced him and she took everything including the big house .. imagine .thank god for section 8 program and workfare

well
i said you'll be back on your feet again this too shall pass just a little help or now ,and it hit me some folks are so proud ,is that why some, not all, will rent because of the stigma ... its guaranteed rent every month . your reg tenant might be behind but section 8 for what I've seen pays directly to you ...and there on time every month direct deposit to your account .. ..

At a section 8 meeting , i discussed the fact it was so hard to find people who were willing to accept the program, and better yet if there wise to the discrimination . and the new law that was passed saying its illegal to rent to a section 8 voucher holder... they look for some other way to make it illegal to live there bringing yourself to a tough situation . pay 30% of my rent plus pay for all utilities including water and heat . this is outrages . and section 8 pays the least for private houses , they pay more with utilities included. that are on the market for rent ..
there are so many of us section 8 tenants who have kept to there side of the bargain ,and have had to deal with slum landlords . who want to put you in housing court leaving us with our credit ruined . making it harder to move again . forcing us to live in violations because of repairs, our credit it ruined or better yet homeless .. and section 8 will not pay forcing you out of the section 8 program if not resolved.. at this point im feeling its going to expire befor i find something .. . my children have been active in community , and have marched in parades for political leaders .there good kids . now looking for a second time after renewing my emergency transfer ...when does this law take effect ? can anyone advocate for us .. because the brokers sure have a con game for us as soon as we walk in the door .. you pay your portion . plus pay another fee ..ill fix everything ..paying a lil more out of the pocket is ok , but 4 and 500 more thats just illegal..

please help us ... section 8 if your reading these post .please do something ..and sec 8 applicants put in the paper work if you feel the same way , its discrimination . when you go to real estate and they turn you away .keep trying and dont give up ... im not ...

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