Rising rents, Section 8 shortfall mean hundreds could lose housing

Hundreds of local residents who rely on housing vouchers to help pay their rent are in jeopardy of losing their homes because of a projected budget shortfall at the Cincinnati Metropolitan Housing Authority.

The local housing authority administers the housing choice voucher program, formerly known as Section 8, for eligible Hamilton County residents who receive housing assistance payments from the U.S. Department of Housing and Urban Development, or HUD .

The local housing authority is one of dozens nationwide that HUD expects to fall into "shortfall” status by December 2024, according to a letter sent by the Cincinnati housing authority to its community partners.

The subsidies the housing authority administers to help cover the rent for very low-income families, the elderly, and the disabled will exceed the agencies' budgets by that time.

One of the major reasons, local officials say: Cincinnati's rising rents.

The local housing authority is on pace to spend more than $101 million on the voucher program by the end of the year but is only funded for $97 million through HUD, according to agency officials, who said they would use reserve funds to help bridge the gap.

HUD orders local housing vouchers voided

As a result of the projected shortfall, HUD has ordered the housing authority to "immediately'' void vouchers for program participants who fail to renew their vouchers before they expire, according to the letter obtained by The Enquirer.

People eligible for assistance through the voucher program are required to have their vouchers recertified annually to account for changes in income and family composition, which determine the amount of rent they pay and the assistance provided by HUD.

There are 351 vouchers issued by the local housing authority that could expire within the next three months, putting the holders at risk of being kicked off the voucher program, according to Cincinnati housing authority officials.

Housing authority 'pushing' to keep families on vouchers

"We're pushing hard to make sure no families are terminated off the program,'' Missy Knight, a spokeswoman for the local housing authority told The Enquirer, noting that the agency has redoubled its outreach efforts to get families to comply with the recertification process.

But "if they don’t follow through with the recertification process, at some point the voucher expires,'' she said. "We’re trying to sit on this fence here; providing help to all of the people who need to be cared for in Hamilton County....while also meeting the HUD mandates.''

In addition to canceling vouchers for existing program participants, HUD has also ordered the housing authority to immediately stop issuing new vouchers to more than 3,000 Hamilton County residents on the voucher program waiting list.

However, once the housing authority resumes issuing vouchers, those on the waiting list will keep their spots, Knight said. And the restrictions on new vouchers do not apply to those in certain special circumstances, such as the homeless and veterans in need of housing, she added.

Vouchers will also continue to be issued to families wishing to transfer from one rental unit to another.

High housing costs to blame for voucher program crunch, officials say

Knight blamed the cost-saving measures on rising housing costs that have outpaced HUD funding.

The housing authority pays subsidies to landlords directly on behalf of participating families. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.

The rents landlords charge can't be increased within the first year of the lease, according to HUD rules, but any rent increases landlords are allowed to charge are based on prevailing market rates.

Cincinnati-area rents among fastest rising in the country

In Cincinnati, rent is rising at a faster rate than most other metro areas in the country, according to a recent report from Redfin , a national real estate brokerage and market tracker.

The median asking rent for all-sized apartments in the Cincinnati area shot up 11% to $1,372 in May 2024, compared the same month a year earlier, according to Redfin.

Cincinnati was among just four metro areas that saw double-digit percent gains in median asking rents over the same period: Cincinnati (10.9%), Chicago (10.8%), Virginia Beach, VA (10.3%) and Minneapolis (10.3%).

"Housing has basically inflated for the past three or four years,'' Knight said. "Those housing costs are now coming back on us.''

What to do?

If you have a housing choice voucher that is expected to expire soon, you can call the Cincinnati Metropolitan Housing Authority main office at (513) 721-4580 to discuss the program requirements and procedures for recertification.

Families receiving housing assistance payments through the housing authority must verify their family composition and income each year to maintain their vouchers and recalculate their rent and the assistance payments, according to HUD.

This article originally appeared on Cincinnati Enquirer: Rising rents, Section 8 shortfall mean hundreds could lose housing