Morrison County HRA reports 266-household waiting list and rising rent costs; HUD shutdown limiting new vouchers

Laura Lee, director of the Morrison County Housing and Redevelopment Authority, told the Morrison County Board of Commissioners on Oct. 7, 2025, that federal staffing reductions and rising local rents are restricting the agency’s ability to issue new housing vouchers and are increasing monthly housing costs for the program.

Lee said a U.S. Department of Housing and Urban Development (HUD) furlough — which she said has placed HUD staff at roughly 84% furlough status — has left some voucher functions on hold. “While the shutdown isn’t resolved, I can no longer add any vouchers,” Lee said, and she told the board that October and November obligations remain in place but December funding is uncertain.

The HRA director gave the board a breakdown of local voucher programs, wait lists and program pressure points. She reported 266 households on the HRA wait list and said the agency is serving roughly 107 households directly at present (including project-based vouchers), with program mixes that include mainstream and non-elderly disabled vouchers, project-based commitments, and shared vouchers with Todd County. Lee estimated the HRA’s monthly housing assistance payments at about $52,000 in October and an average payment of approximately $419.72 per household for that month. She said rising rents are producing an overspend of roughly $10,722 per month against the agency’s current budget allocation and that a HUD-held reserve for Morrison County totaled about $98,000.

Lee also described program changes at the federal level that could affect local operations. She said Emergency Housing Vouchers (EHV) are being phased into core Section 8 programs and described proposed federal changes under discussion that include shorter time limits and budget cuts. “Changes that they’re wanting for Section 8 are a two-year limit and proposed budget cuts,” she said, adding that some proposals would significantly reduce the program’s funding. Lee said Morrison County does not accept applicants with felony convictions for placement under its current rules and that the three EHV households in the county can transition to Section 8 because they do not have felonies.

The director described recent grant awards and local strategies to expand capacity. She said Morrison County was awarded $263,938 through a Bring It Home Minnesota grant, including about $58,800 for startup costs — an award she said could create roughly 10 additional vouchers if used for project-based placements. Lee said the HRA is trying to use project-based vouchers and grant funds to free up portability for other households on the county’s Section 8 ledger.

Board members praised Lee’s work and pressed for clarity about priorities. Commissioners asked about the county’s residency preference and wait-list point system; Lee said Morrison County and Todd County residents receive four preference points and that other preference points are given for elderly, disabled, veterans and victims of domestic violence. She added that residents must live in Morrison County for 60 days before qualifying as a county resident eligible to apply for vouchers. Lee said she inspects units — generally every other year for occupied units and annually for new participants — and that payments from the program are sent directly to landlords.

Why it matters: The HRA’s update outlines the local effects of federal funding disruptions, rising rents, and program changes that can reduce housing access for low-income, elderly and disabled residents. The board heard that the county’s ability to place households depends on HUD actions, landlord participation, and grant-funded project-based placements.

The HRA report was informational; the board did not take formal action on the HRA presentation during the Oct. 7 meeting.

Ending note: Lee said she is working with neighboring county partners and state/regional entities to seek mobile fingerprinting and other regional services and will return to the board later in the year with further updates.