WASHINGTON, D.C. – July 1, 2010 – (RealEstateRama) — Today, Congressman Jerrold Nadler (D-NY) commended the City of New York, particularly the Department of Housing Preservation and Development (HPD) and the New York City Housing Authority (NYCHA), for working to restore Section 8 vouchers to 2,600 needy families. Nadler, joined by colleagues and community organizations, had expressed his outrage over the City’s previous errors in regard to allocation of vouchers and voiced his concern for the 2,600 families who have since faced entering the shelter system or homelessness. He has consistently fought for increased funding of the Section 8 program in Congress and has successfully passed amendments on the floor of the House to do just that.
“I want to thank the City for stepping up and answering the calls of tenants and elected officials to provide for the thousands of New Yorkers who, through no fault on their own, fell into the cracks of housing bureaucracy,” said Nadler. “I am very pleased that the City was able to put together a creative plan using its already appropriated federal subsidies to address the needs of the people they are funded to serve. NYCHA should never have promised vulnerable tenants vouchers that it could not honor, but I hope this serves as a lesson in better administration and fiscal responsibility. There are unfortunately still over 1,000 families who will be left waiting for Section 8 vouchers to come available by attrition, and we must ensure that they are not permanently left to fend for themselves.”
Today’s proposal by HPD, NYCHA, and the New York State Division of Housing and Community Renewal will use HPD’s existing federal funds to pay for the vouchers and create a rental assistance program, which will prevent the termination of Section 8 subsidies to current voucher holders and restore vouchers to 1,500 families whose vouchers were rescinded in December. This plan will reduce NYCHA’s 2010 budget deficit and prevent voucher terminations. Without this plan, NYCHA could be forced to terminate thousands of families from the program or reduce rental subsidies for approximately 45,000 families, which would increase their rent burden.
In cooperation with the New York City Department of Homeless Services (DHS), HPD and NYCHA will prioritize vouchers for the most vulnerable of the 2,600 families, selecting 1,500 to receive immediate assistance. The remaining families will be served as NYCHA Section 8 vouchers become available.
In December 2009, NYCHA rescinded 2,600 vouchers from low-income New Yorkers in search of affordable housing. Those whose vouchers were terminated included referrals from DHS, victims of domestic violence, intimidated witnesses, and children aging out of foster care. It was later revealed that, beginning in May 2009, the U.S. Department of Housing and Urban Development had urged NYCHA to stop issuing new Section 8 vouchers because it had no money left to fund them. Nevertheless, NYCHA continued to issue vouchers without any warning to families that they may be worthless.
