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HUD abates Section 8 payments at Douglas Manor; city and local nonprofits coordinate tenant relocation
Summary
The council heard an update on HUD’s decision to abate Section 8 subsidies at Douglas Manor after inspections found conditions that threatened health and safety; HUD has placed relocation specialists on site and local faith groups and nonprofits are assisting tenants.
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Councilmember Hasselmeier used a new‑business slot during the April 15 meeting to brief the City Council and residents on the deteriorating condition at Douglas Manor, a 42‑unit property at 546 Elm Avenue that historically housed many tenants receiving federal rental assistance. "A letter from the US Department of Housing Urban Development, HUD, was sent to all residents in January 2025, informing them that the Section 8 housing assistance payments contract at the Douglas Manor Apartments is being abated or stopped effective 03/01/2025," Councilmember Hasselmeier said.
Why it matters: HUD’s abatement of assistance typically happens after repeated inspections find conditions the agency considers to threaten health and safety; abatement triggers relocation assistance for Section 8 participants and raises concerns about housing stability for low‑income tenants.
What HUD and local groups are doing - HUD has placed relocation specialists in the area and is using Webster Rock Hill Ministries for an office for counseling and relocation assistance. - Northwestern Neighborhood Coalition, Churches Together for Justice, and Webster Rock Hill Ministries are coordinating to help affected tenants with vouchers, moving deposits and temporary needs; the council was told some residents will receive relocation vouchers and deposit assistance.
Scope and timing - The building has 42 units and at least 36 residents were reported to be receiving HUD assistance — council remarks described the number as approximate. City inspection records and HUD determinations prompted abatement after property inspection findings that cited physical deficiencies. - City staff said municipal inspections have continued and the city will not issue new occupancy permits for units until code compliance is restored. The city attorney reported several matters regarding the property are pending in court.
Council and staff response Councilmembers asked whether the city could do more than citations to help tenants; staff described ongoing enforcement through building inspections and coordination with HUD and local nonprofits to assist residents. Dr. Peebles and staff committed to email updates to the council as the court and relocation processes progress.
Ending Councilmembers and community members expressed concern for tenants, and council asked staff and partner nonprofits to continue coordinating relocation and inspection updates. The city emphasized that HUD has responsibility for subsidized tenants’ relocation and that non‑assisted tenants can remain but may not receive the same support.

