PHADA President Mark Gillett.
HUD held a 50th anniversary celebration of the Housing Choice Voucher (HCV) program in Washington, D.C. on October 16. Along with colleagues George Guy (Fort Wayne, IN), Jeffrey Patterson (Cuyahoga, OH), Lindsey Reames (Grand Rapids, MI) and Section 8 “founder” Nan McKay, I was delighted to be a panelist during the event, which included 325 people who attended in person and hundreds of others who viewed the program virtually. Notable speakers included Representative Maxine Waters (D-CA), Acting HUD Secretary Adrianne Todman, and Principal Deputy Assistant Secretary Richard Monocchio. Several other former HUD officials, housing practitioners, and program participants shared insights into the program’s impact over the past five decades.
(L) Alison Bell, Policy Advisor, HUD’s Office of Housing Voucher Programs, with PHADA President Mark Gillett. (R) Panel discussion with Nan McKay, Jeffrey Patterson (Cuyahoga, OH), George Guy (Fort Wayne, IN), and Lindsey Reames (Grand Rapids, MI).
Congress Creates Program in 1974
The Housing and Community Development Act of 1974 authorized HUD to create a new paradigm for rental assistance. Up until that time, the federal government supported low-income renters through project-based developments and subsidies for private developers to build affordable housing.
Speakers noted that the voucher program has been a cornerstone of housing assistance ever since, helping millions of low-income families, people with disabilities, and older adults access safe, decent, and affordable housing in the private market. In recent years, Congress has appropriated more than $30 billion for tenant-based rental assistance programs annually.
The Program’s Value in Addressing Housing Needs
As practitioners, we know that vouchers are highly effective at providing long-term stability to formerly homeless populations and are frequently paired with supportive services to offer comprehensive assistance to individuals with mental and physical health conditions. I explained how we have successfully partnered with service providers in the Oklahoma City region, including philanthropic organizations, internet providers, furniture companies and utilities. Other panelists outlined similar approaches in their communities, and we all stressed the need for more local flexibility and less red tape. The common theme throughout the session was that, at the end of the day, it is all about those we serve.
Some other themes that were touched on included the success of the VASH program for veterans, recruitment and retainment strategies that appeal to owners, and other success stories. In a recent report, Harvard’s Joint Center for Housing Studies noted the critical role that service coordinators in publicly funded housing have also played in providing food and supplies, assisting with technology, and combating resident anxiety and loneliness. This attribute was especially invaluable and well-documented in so many communities during the COVID-19 pandemic.
Our industry is proud that housing authorities are trusted partners in thousands of local rental markets around the country. With the proper funding—we have long implored both HUD and Congress to provide adequate administrative fees, which are essential to success—HAs have the capacity to do even more.
Challenges Going Forward
Monocchio and others mentioned some of the challenges ahead and the program’s future role in addressing housing insecurity in America. Indeed, funding for the present fiscal year is not resolved as evidenced by the Continuing Resolution that is in effect until December 20.
Right now, there are barely enough dollars to fund all vouchers in use. PHADA reported earlier this year that HUD implemented an unprecedented second offset based on excess HAP reserves. The shortfall is the result of the fact that Per Unit Cost (PUC) increases are higher than HUD’s initial projections. In addition, HUD’s inflation factor was too low, and its recommendations to maximize leasing and adopt higher payment standards to expand housing choice have also contributed to the current shortfall. Many of our members are deeply concerned that their HCV programs will spiral downward in 2025 because new funding and administrative fees are based on prior leasing, which was hurt by the factors mentioned above.
PHADA is also concerned that successive Presidents and Congresses have employed accounting gimmicks to fund the Section 8 accounts. For example, Washington has designated more than $10 billion in Section 8 funding (tenant and project-based) as “emergency” spending to avoid strict federal budget caps that are in place. While this certainly helps secure all existing vouchers now, what happens if a new congress or administration does not agree to the approach?
Conclusion
There is no question that there are challenges ahead for the program —and, for that matter, all domestic discretionary programs. Still, the Section 8 voucher program has been a remarkable success as one part of an overall strategy to house low-income individuals and families. In fact, HUD shared a special publication that outlines the program’s history and advancements (Cityscape: Volume 26 Number 2 | Fifty Years of Tenant-Based Rental Assistance). Interested readers can access the publication here. PHADA remains committed to working with the next administration and new Congress to strengthen the program so we can celebrate many more happy anniversaries.