A Special Study Session of the Housing Authority Board on Section 8 was held Thursday, February 24. Kerri Spear and David Oliver from NSD attended a presentation on how the rents are calculated per regulatory requirement (affordability and rent reasonableness) as well as a discussion on current pay standards set by the local HACC. The group also briefly discussed inspections.
HUD allows local housing authorities to pay between 90-110% of the fair market rents. A few years ago, the HACC was authorizing some leases to pay up to 110% of the fair market rent. During this period, however, the HACC was authorized to serve up to 1,358 voucher holders but only served 1,200; partially due to this increase in rent subsidy. A HUD audit discovered the HACC was paying out $46,000 more per month in reserves to offset what the HUD voucher assistance did not cover and HUD made the recommendation the HACC lower the payment standard. The HACC did lower the rent payment standards to 95%. Landlords are expressing frustration over their ability to cash flow at these lower rents although the HACC staff noted that an additional 210 families were recently able to find affordable units when they received vouchers. This information will be important to consider with the final results of the Regional Housing Study as we compare the housing needs with unit availability.
