Proposed Cuts In Section 8 Funding
Housing and Urban Development officials propose cuts in funding for rent subsidies, from $14.2 billion this year to $13.2 billion next year, in exchange for more freedom for local housing agencies to set their own program requirements and award vouchers.
By Alison Bethel / News Washington Bureau Chief
-----------------------
Looks like it could get a little harder to find section 8 tenants. It seems like there would also be less people who receive a 100% subsidy.
I am currently interested because this is an area I was looking into for cash flow after I start rehabbing.
-wayne
I have tenants on section 8 and others on a state rental assistance program. RAP pays a smaller part of the rent and it is harder to get an increase.
Sounds like there will be more pressure on the state level to keep their current levels of assistance.
Sad thing is this will some low income families out of quality living arrangements. Contrary to the belief of some. There are poor people who still work hard.
This isn't good from an investors perspective either.
The changes could go into effect as soon as October.
Politics.
More than likely, the federal funding cut will not affect any current program participants. Instead, the cut will limit the number of new Section 8 applicants who will be admitted to the housing subsidy program next year.
Some Section 8 applicants do eventually leave the program. I had one Section 8 tenant whose income increased enough that she no longer qualified for the subsidy. I had another Section 8 tenant who got married and the combined household income disqualified her from Section 8 assistance. As a result of the funding cut, attrition in the program will not be replenished from new appicants.