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Section 8 Payment Delay Leaves Landlords With 700m Shortfall

Leo Migdal
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section 8 payment delay leaves landlords with 700m shortfall

Thousands of affordable housing operators won’t be getting paid by the government on time this month. Some funds earmarked for Section 8 vouchers haven’t been distributed by the federal government to hundreds of local housing authorities, and the Department of Housing and Urban Development has notified the agencies that the... More than 500 public housing authorities have a shortfall for December payments that total between $700M and $800M, an industry representative familiar with the details of the program told Bisnow. A HUD spokesperson said the missed payments were caused by complications associated with the government shutdown, which was the longest in U.S. history at 43 days and ended in the middle of November. “Democrats shut the government down for more than 40 days.

As HUD warned from the beginning, this careless decision resulted in real-world consequences for vulnerable Americans. HUD is working to make these awards to PHAs to ensure no disruption in program services,” the spokesperson said in a statement to Bisnow. The federal government shutdown has been over for weeks, but the ramifications are hitting Section 8 landlords hard. The government failed to deliver funds designated for Section 8 housing vouchers at the start of the month, Bisnow reported. The delay leaves more than 500 public housing authorities in the lurch and may create a shortfall between $700 million and $800 million for operators. Public housing agency association groups learned of the funding shortfall on Monday.

Housing authorities in New York City, Georgia, Boston and Boca Raton are among those affected. “Following notice from HUD that payments to Section 8 landlords would be delayed this month, NYCHA is assessing interim options and will distribute funding as soon as it becomes available from HUD,” NYCHA said... “HUD is working to make these awards to PHAs to ensure no disruption in program services,” a spokesperson for the Department of Housing and Urban Development said in a statement. The agency also took the federal government’s typical line of blaming Democrats for the historic 43-day shutdown. If you'd like to help with maintaining or developing the website, contact us. Publish your stories and upcoming events on Indybay.

Thousands of landlords who participate in the federal Section 8 Housing Choice Voucher program will not receive their December payments on time due to delayed funding from HUD, as reported by Bisnow. The issue is tied to a recent 43-day government shutdown — the longest in U.S. history — which ended in November. Public housing authorities in cities like New York, Boston, and Boca Raton are among those notifying landlords of the delay, with many warning that full payments may not be made until mid-December or later. Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes New York City Housing Authority (NYCHA), the nation’s largest housing agency, said it’s exploring interim solutions but has not yet received its December funding.

Boston Housing Authority (BHA) expected a $40M disbursement from HUD on Dec. 1 but has received nothing. It’s now using $10M in reserves to make partial payments — about 25% of the total owed. Boston landlords who rent to tenants through the federal Section 8 voucher program will only get 25% of their December payments from the Boston Housing Authority for the time being as the country continues... A Tuesday letter from Kathlin McGonagle, chief of leased housing and admissions at the BHA, said that housing authorities across the country have not yet received approval of “shortfall funding,” which the BHA relies... “As a result of these federal approval and processing delays at the U.S.

Department of Housing and Urban Development, due in part to the federal government shutdown, our ability to release payments to our Section 8/Housing Choice Voucher Program landlords on the regular schedule has been negatively... Section 8 is a federal program that helps with rental payments for low-income households, seniors and those with disabilities. The letter also said that the BHA anticipates that full payments may not be given out until around the middle of the month. In the meantime, they’re giving out a quarter of the monthly payment to those who receive direct deposits. That percentage reflects the portion of funds the BHA currently has. Make your contribution now and help Gothamist thrive in 2025.

Donate today Gothamist is funded by sponsors and member donations The federal shutdown may be over, but it is still wreaking havoc on low-income New Yorkers. The federal Department of Housing and Urban Development told the New York City Housing Authority and others on Tuesday that funding for the Section 8 rental assistance program will be delayed this month in... The Section 8 program provides federal dollars to landlords who lease units to low-income tenants in order to subsidize the rent. Typically, someone in the Section 8 program is required to pay about 30 percent of their income toward housing and the government picks up the rest.

BHA will release 25% of December landlord payment. The remaining balance will be issued immediately upon receipt of full funding from the federal government. The Boston Housing Authority sent the following letter to its landlord partners: (PDF Link) Unfortunately, the Boston Housing Authority is experiencing delays in receiving the full amount of federal Housing Assistance Payment (HAP) funding for December for our Section 8/Housing Choice Voucher program. Housing authorities like ours across the country have not yet received approval of “shortfall funding”, a mechanism that covers the gap when rental inflation outstrips the original voucher budget allocations for the year. As a result of these federal approval and processing delays at the U.S.

Department of Housing and Urban Development (HUD), due in part to the federal government shutdown, our ability to release payments to our Section 8/Housing Choice Voucher Program landlords on the regular schedule has been... At this time, we anticipate that full HAP payments may not be disbursed until approximately mid-month. However, in order to mitigate the impact of this delay, for those who receive direct deposits, BHA will send out 25% of the monthly payment, which reflects the portion of funds we currently hold. The remaining balance will be issued immediately upon receipt of full funding from the federal government. We are hopeful that HUD will approve shortfall payments at the end of this week, and funds will become available next week, but we have not yet had formal confirmation of the timeline. Please note:

We understand the importance of timely payments and sincerely regret the inconvenience this temporary disruption may cause. We appreciate your patience and continued partnership during this period.

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