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CBS News
11-03-2025
- Politics
- CBS News
Housing Authority official says LA could see rise in homelessness after Section 8 changes
An official with Los Angeles' Housing Authority said the city could see more people struggling with homelessness after the agency stopped accepting new applications for the program — a measure it says was taken due to millions in federal funding cuts. Last week, the Housing Authority announced no new or ongoing applications were being processed for Section 8, which assists 60,000 households in LA by offering rental subsidy payments to private landlords on behalf of very low-income families, senior citizens and people with disabilities. The nationwide program is funded by the U.S. Department of Housing and Urban Development (HUD), one of a number of federal agencies facing funding cuts and other changes or downsizing under the Trump Administration. Carlos Van Natter, director of Section 8 for the city of LA, said the new changes could worsen an already concerning issue in a region with some of the highest rent costs in the country. More than 45,000 people face homelessness in the city of Los Angeles, according to the LA Homeless Services Authority's latest estimate. "The biggest impact would be that we could end up having more folks become homeless," Van Natter said Tuesday. The Housing Authority first learned it was going to see reductions in December, with the slashed funding currently amounting to around $47 million to $114 million, Van Natter said. Given those losses, he said, the department knew it would not be possible to continue its Section 8 program through the end of the year, he said. Van Natter said that meant some tough changes had to be made "to make sure we don't get to that point because our highest priority is not terminating the assistance of people already on the program." He said the thousands of families currently enrolled in Section 8 will not be affected, and the Housing Authority is also continuing the VASH program which aids unhoused U.S. veterans. However, along with not accepting new applications, the Housing Authority also closed its waiting list — which opened in December 2022 and operates by lottery — and paused the application process for 3,300 families currently trying to get on Section 8. "That is the sad reality that we have to take, step we have to take at the moment," Van Natter said. "There could be others that come. We have families that have vouchers on the street looking for units. At this time, families can continue to search for units, but it could come to pass in the future that we have to suspend those as well." Last week, the Housing Authority said current funding cuts and "uncertainty with the federal budget" — given the expected expiration of federal funding March 14 — had led to the changes. And a spokesperson for the Housing Authority said even more slashes to federal funding would force the LA Housing Authority and other agencies like it "to consider all options to ensure program solvency, including terminating vouchers." With the threat of a government shutdown this week, unless lawmakers approve more funding, Van Natter said the Housing Authority is monitoring the situation in D.C. in hopes that some funding comes through and reaches the LA agency. "Like everybody, we're keeping a close eye on what is going on this week in Washington, in Congress," Van Natter said. "We have seen some proposals that could help us. We'll see by Friday — the continuing resolution March 14 is the deadline. If we get sufficient funding, we might not have to take the drastic measures that we are doing right now."
CBS News
07-03-2025
- Business
- CBS News
LA Housing Authority stops accepting Section 8 applicants due to federal funding "uncertainty"
Due to federal funding cuts, the Housing Authority of the City of Los Angeles is not accepting new applications for the Section 8 voucher program and is pausing the application process for 3,300 families. More than 13,000 property owners in Los Angeles could be affected as nearly $800 million in federal funding backs the rental subsidy payments made to private landlords, according to the Housing Authority. Under Section 8, these payments are made to property owners on behalf of very low-income households, people with disabilities and senior citizens facing high rent costs. It's not clear when the department will resume accepting new applications and processing already submitted ones. A spokesperson for the Housing Authority said in an email that there is no set time frame for when that may happen. A waiting list for the program, which operates by lottery and opened in December 2022, has been closed and there is no time frame for its reopening yet either. The Los Angeles Times first reported on the changes early Thursday, and later in the day, the Housing Authority formally announced them in a statement, saying the decision to halt new applications was "made with great difficulty and careful consideration of all possible alternatives." The department has said it will work to continue offering assistance to those already enrolled. In an email, a spokesperson for LA's Housing Authority said "uncertainty with the federal budget" and the coming expiration of federal funding on March 14 has resulted in the halting of new and ongoing Section 8 applications. Congress would need to approve new funding if the federal cuts remain as the spokesperson said there appears to be no other potential sources for the money. "The economic and human impact of these funding gaps cannot be overstated," the Housing Authority said in a statement Thursday. "Without additional resources, Los Angeles could see increased housing instability, affecting thousands of families, property owners, and the broader community." Section 8 aims to cover high rents across the country and is funded by the U.S. Department of Housing and Urban Development (HUD), one of a number of federal agencies being targeted with firings and slashes to funding under the Trump Administration. Among the series of cuts and contract cancelations HUD is facing is the stalling of $60 million in funding intended for affordable housing developments, the Associated Press reported Friday, citing information and documents obtained by AP. Los Angeles County has one of the most expensive apartment markets in the country, with an average rent rate of $2,502, according to a report released Friday by HUD's Economic and Market Analysis Division. One exception to the new changes is the Housing Authority's continuance of funding for a program known as Veterans Affairs Supportive Housing, or VASH, which offers housing vouchers to U.S. veterans who are unhoused. Meanwhile, the Housing Authority is working to find other solutions to keep assisting those currently in Section 8. "Our guiding principle is to not terminate housing assistance to housed families and property owners participating in the program," a spokesperson said in an email. "HACLA is taking careful measures available to minimize the impact before we consider pulling back existing vouchers as this would be devastating to families." "Right now, we have not seen the House or Senate budget proposals," the email continues, adding that if the federal government decides to "dramatically" reduce funding for Section 8 then the LA Housing Authority and other agencies like it "will be forced to consider all options to ensure program solvency, including terminating vouchers."
