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Housing Authority official says LA could see rise in homelessness after Section 8 changes
Housing Authority official says LA could see rise in homelessness after Section 8 changes

CBS News

time11-03-2025

  • 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."

Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington
Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington

Yahoo

time06-03-2025

  • Business
  • Yahoo

Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington

The Housing Authority of the City of Los Angeles has stopped accepting new applicants for the Section 8 voucher program that subsidizes rent for tens of thousands of tenants in the city. The local authority, which is funded by the federal government, said it made the move because it doesn't expect Congress to provide enough cash this year to maintain current operations. For now, the housing authority has only paused new applications. Those who currently have a Section 8 voucher are unaffected and their rent subsidies will continue, though it's possible some families could eventually be knocked off. "We are trying to ensure that we are doing everything possible to avoid that from taking place," housing authority Chief Executive Lourdes Castro Ramirez said. The Section 8 program, named after a section of the federal Housing Act, is one of the U.S. government's most powerful tools to keep rental housing affordable and to fight overcrowding and homelessness. It is financed with federal dollars but administered by local authorities. In Los Angeles, some 60,000 families use Section 8 vouchers to pay the rent, generally to private landlords. Tenants typically pay 30% of their income toward rent, with the federal subsidy making up the remainder of the payment to the landlord. Because rent tends to rise each year, housing authorities need to see their budgets increase by a certain amount annually to maintain current operations. But funding from the federal government is set to expire March 14, and the Trump administration and congressional Republicans are looking to shrink the size of government. Carlos Van Natter, the head of the Section 8 program at L.A.'s housing authority, said proposals from the House and Senate are not expected to be enough to keep up with obligations, leading to annual shortfalls projected to range from nearly $48 million to $114 million. Housing authorities across the country are facing similar issues, but Los Angeles' funding problem was made worse because last year, under the Biden administration, the U.S. Department of Housing and Urban Development took back $38 million in reserves from the authority to help fund local agencies elsewhere in the country that were then experiencing shortfalls, Van Natter said. HUD did not immediately respond to a request for comment, but Van Natter said his agency had estimated the worst projections coming out of Congress could require it to cancel the vouchers of 6,000 households that currently use them. Van Natter said his agency is working with the federal agency to minimize the impact to both tenants and landlords and decided to pause new applicants as a first step to start reducing its shortfall, though he didn't have an estimate for how much the action will save. There are 2,900 households that were in the middle of the Section 8 application process that now won't receive a voucher, along with about 400 others that applied to several other small programs for homeless individuals that the housing authority also paused. And an additional 24,000 households on the Section 8 waiting list can't move forward in the process either. Some voucher programs were not paused, including one specifically for homeless veterans, as well as a special type of Section 8 voucher that can be used only at specific properties. People with a traditional Section 8 voucher who haven't yet found a place to live will also see no change, and can continue looking with their subsidy. Castro Ramirez called on Congress to provide more resources so the authority can reopen applications and not risk further cuts. "The economic and human impact of these funding gaps cannot be overstated," she said. "Los Angeles could see increased housing instability, affecting thousands of families, property owners, and the broader community." Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week. This story originally appeared in Los Angeles Times.

Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington
Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington

Los Angeles Times

time06-03-2025

  • Business
  • Los Angeles Times

Los Angeles stops accepting new applicants for Section 8, citing budget uncertainty in Washington

The Housing Authority of the City of Los Angeles has stopped accepting new applicants for the Section 8 voucher program that subsidizes rent for tens of thousands of tenants in the city. The local authority, which is funded by the federal government, said it made the move because it doesn't expect Congress to provide enough cash this year to maintain current operations. For now, the housing authority has only paused new applications. Those who currently have a Section 8 voucher are unaffected and their rent subsidies will continue, though it's possible some families could eventually be knocked off. 'We are trying to ensure that we are doing everything possible to avoid that from taking place,' housing authority Chief Executive Lourdes Castro Ramirez said. The Section 8 program, named after a section of the federal Housing Act, is one of the U.S. government's most powerful tools to keep rental housing affordable and to fight overcrowding and homelessness. It is financed with federal dollars but administered by local authorities. In Los Angeles, some 60,000 families use Section 8 vouchers to pay the rent, generally to private landlords. Tenants typically pay 30% of their income toward rent, with the federal subsidy making up the remainder of the payment to the landlord. Because rent tends to rise each year, housing authorities need to see their budgets increase by a certain amount annually to maintain current operations. But funding from the federal government is set to expire March 14, and the Trump administration and congressional Republicans are looking to shrink the size of government. Carlos Van Natter, the head of the Section 8 program at L.A.'s housing authority, said proposals from the House and Senate are not expected to be enough to keep up with obligations, leading to annual shortfalls projected to range from nearly $48 million to $114 million. Housing authorities across the country are facing similar issues, but Los Angeles' funding problem was made worse because last year, under the Biden administration, the U.S. Department of Housing and Urban Development took back $38 million in reserves from the authority to help fund local agencies elsewhere in the country that were then experiencing shortfalls, Van Natter said. HUD did not immediately respond to a request for comment, but Van Natter said his agency had estimated the worst projections coming out of Congress could require it to cancel the vouchers of 6,000 households that currently use them. Van Natter said his agency is working with the federal agency to minimize the impact to both tenants and landlords and decided to pause new applicants as a first step to start reducing its shortfall, though he didn't have an estimate for how much the action will save. There are 2,900 households that were in the middle of the Section 8 application process that now won't receive a voucher, along with about 400 others that applied to several other small programs for homeless individuals that the housing authority also paused. And an additional 24,000 households on the Section 8 waiting list can't move forward in the process either. Some voucher programs were not paused, including one specifically for homeless veterans, as well as a special type of Section 8 voucher that can be used only at specific properties. People with a traditional Section 8 voucher who haven't yet found a place to live will also see no change, and can continue looking with their subsidy. Castro Ramirez called on Congress to provide more resources so the authority can reopen applications and not risk further cuts. 'The economic and human impact of these funding gaps cannot be overstated,' she said. 'Los Angeles could see increased housing instability, affecting thousands of families, property owners, and the broader community.'

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