Renters and landlords to take a hit from Section 8 housing subsidy cuts

TRD New York /
Jun.June 10, 2013 09:30 AM

Government agencies will issue 6,000 fewer low-income housing vouchers than were slated for this year as a result of federal cuts — widely-deemed “sequestration” —  that will cut $120 million from the budget for Section 8 of the Housing Act of 1937, Crain’s reported. This would be the first major housing subsidy cut since President Richard Nixon founded Section 8 in 1974, in order to assist landlords in providing low-income rental housing.

The cuts will affect both landlords whose tenants receive Section 8 vouchers as well as landlords who contract directly with the Department of Housing Preservation and Development, Crain’s said. Roughly 630 city properties with 75,000 subsidized units will be affected, which could lead to rent hikes for tenants or loan defaults for landlords who have mortgages backed by Section 8.

City agencies involved with the program, such as the New York City Housing Authority and Housing and Urban Development, are grappling with the issue and will likely issue fewer vouchers than previously planned and issue some vouchers for lower amounts, Crain’s said.

“The real problem is, these are our neediest tenants, the ones who cannot even afford the units in our developments,” who will be affected in many cases, HPD Commissioner Mathew Wambua told Crain’s. [Crain’s]Hiten Samtani


Related Articles

arrow_forward_ios
A rendering of 165 Broome Street (Credit: Handel Architects)

Nonprofit plans affordable housing development near Essex Crossing

Nonprofit plans affordable housing development near Essex Crossing
All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag

All Falls Down: Kanye West’s “Star Wars”-themed affordable housing plan hits snag
Mayor Lori Lightfoot (Getty; iStock)

Chicago affordable housing program has failed, report finds

Chicago affordable housing program has failed, report finds
Mayor Bill de Blasio (Getty)

“Status quo means going backwards:” How development fell from grace under de Blasio

“Status quo means going backwards:” How development fell from grace under de Blasio
2870 Ocean Avenue and Isaac Chetrit, and 936 Home Street (Google Maps) 

Chetrit family’s dev site buy tops weekly mid-market sales

Chetrit family’s dev site buy tops weekly mid-market sales
HUD's Lynne Patton and of Frederick Douglass Houses resident Claudia Perez (Getty; RNC)

NYCHA tenants say they were duped into RNC video appearance

NYCHA tenants say they were duped into RNC video appearance
Broadway Federal Bank CEO Wayne-Kent Bradshaw and City First Bank CEO Brian Argrett (Photos via Getty, City First Bank)

Black-led banks combine, focused on multifamily housing

Black-led banks combine, focused on multifamily housing
Barika Williams of the Association for Neighborhood and Housing Development and Vicki Been of Housing and Economic Development (Getty; ANHD)

What’s wrong with NYC housing? A lot, these folks say

What’s wrong with NYC housing? A lot, these folks say
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...