The King County Housing Authority Board of Commissioners yesterday approved major changes to the Section 8 Housing Choice Voucher rental assistance program that will result in thousands of families on the program paying more in rent each month or being squeezed into smaller living spaces. Effective immediately, assistance to new households also will be halted, eliminating any hope for housing subsidies for thousands of low-wage working families, disabled individuals and senior citizens on the waiting list for the foreseeable future. Concerns about further cuts at the federal level continue to cloud the future of this program.

The changes are part of an effort by the Housing Authority to deal with a $3.5 million reduction in funding by the U.S. Department of Housing and Urban Development.

“The Section 8 Housing Choice Voucher program is a critical support for low-income families at a time when housing costs are outstripping income. Less money from HUD, however, means less money to pay for vouchers,” said Doreen Cato, Chair of KCHA’s Board of Commissioners. “We know these are painful changes. But we’d rather make these difficult decisions now than see a single family lose their housing.”

This year’s funding shortfall is the equivalent to the cost of 375 vouchers – or 5.5 percent of the current program. Currently, the program serves more than 8,100 households; more than 5,100 families are on the waiting list. Section 8 is the Authority’s largest program for subsidizing low-income households; almost half the households on the program are disabled and/or elderly. The program, which allows low-income families to seek private market housing, has been a powerful tool for housing the most vulnerable residents in high-cost King County. Typically, participants pay 30 percent of their income for rent on a modest rental unit with the voucher picking up the remainder.

To deal with reduced federal funding while ensuring that no one on the program loses their housing, the Commissioners voted to:

Stop issuing Section 8 Housing Choice Vouchers. Impact: Vouchers turned in by families who leave the program will not be used to assist new families. This essentially freezes the waiting list for the foreseeable future.
Deny all landlord requests for rent increases. Impact: Landlords may elect to no longer participate in the program as their costs go up, further reducing the number of units affordable to low-income tenants.
Decrease the payment standard. This is the maximum amount of subsidy the Authority will pay for each size rental unit within a given housing market. Impact: Thousands of households will be required to increase their own rent contributions and likely will pay well in excess of 30 percent of their income for housing. Some may be evicted if they cannot provide sufficient payment. As affordable options diminish, families may choose to live in lower-cost neighborhoods, tending to concentrate poverty in particular areas of the county.
Tighten the standards that determine the appropriate unit size for each household. Under the new standards, families will be required to downsize to fewer bedroom (less expensive) units or pick up more of the cost of their existing unit. Impact: The Authority estimates that approximately 1,000 families will be required to move to a smaller unit or pay substantially more out of pocket for rent to remain in their existing units.

If the above-mentioned measures prove inadequate to close the funding gap, the Board also voted to allow the Housing Authority to implement a surcharge on all households in the program.

“The Section 8 program is a lifeline to the elderly, to people with disabilities, to domestic violence victims, and to the working poor,” said Ms. Cato. “We’ve done our best to throw out a life preserver, but these cuts will hurt. With the implementation of these strategies, most current participants will experience an additional financial hardship, but no one will lose their home – at least for the time being. However, with further significant cuts projected for the Section 8 program over the next several years, it will only get more difficult to serve the poorest families in our communities.”

KCHA administers a range of quality affordable rental and homeownership programs for residents of King County. The Authority serves more than 17,000 families, elderly and disabled households on a daily basis.