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10400 Detrick Avenue
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FOR IMMEDIATE RELEASE CONTACT: Scott Ellinwood Thursday, January 20, 2004 301-929-6736
5,000 MONTGOMERY FAMILIES FACE RENTAL SUBSIDY CUTS HUD Budget Cuts Threaten Montgomery County Voucher Recipients
The Housing Opportunities Commission of Montgomery County (HOC) has announced that, effective immediately, the Housing Choice Voucher (HCV) program – also known as “Section 8” – will undergo significant changes to keep the program intact after extensive congressional budget cuts threatened the HUD-funded program.
“We are absolutely heartsick that it has come to this,” said HOC Chair Richard Nelson. “Voucher holders and housing agencies around the country have been faced with bleak options following the funding changes at HUD. We are fighting to the last to make sure that as many families as possible keep their vouchers.”
The HCV program serves low-income families who pay up to a minimum of 30% of their income for rent and utilities. HUD’s cuts to this program are shifting more of the financial burden onto families who are already struggling to make ends meet. The change comes following the recent news that home values continue to surge in Montgomery County, pricing many families out of both the rental and home ownership markets.
In 2004, a family of three in Montgomery County, renting a two-bedroom unit would have been eligible for voucher assistance up to a maximum of $1,306 per month. Any amount over $1,306 would have been paid by the family. Following the HUD budget cuts, the maximum subsidy for a two-bedroom unit has been reduced to $1,187, increasing the monthly financial burden on even the poorest of families.
Among the changes being implemented are reducing the voucher amount, increasing the minimum rent for program participants, and requiring families to immediately report increases in household income in excess of $1,000. All of these measures will increase the rent amount due from families in the program.
HOC held a series of public hearings in September and October 2004 to gather feedback from program participants and landlords before deciding how to address the funding cuts.
Interview Opportunities Available
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