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Arvada Housing Authority reports $925,000 shortfall and warns of possible cuts to assistance
Summary
At its July 1 meeting the Arvada Housing Authority approved administrative and annual plans and reviewed its 2024–25 annual report, which details rising rental-assistance costs, a projected $925,000 budget shortfall for 2025 and possible termination of assistance for up to 55 households without additional HUD funding or other mitigations.
The Arvada Housing Authority on July 1 approved updates to its Housing Choice Voucher administrative plan and its 2026 annual plan and heard an annual report showing increased rental-assistance spending and a projected budget shortfall for 2025.
The housing authority’s annual report, presented by Miss Espinosa, said the authority spent just over $8,900,000 in rental assistance covering 537 households in the year covered (July 1, 2024–June 30, 2025), and that the average amount the authority pays per household is about $1,406 per month. The report also said the authority is projecting “about a $925,000 budget shortfall come 2025 or December 2025,” and that staff are working with the local HUD office and HUD shortfall-prevention teams to seek remedies.
Why it matters: the voucher program is the primary tool the Arvada Housing Authority uses to keep low-income households housed. If additional federal funding does not arrive, staff said the authority’s options could include relying on attrition, asking landlords to accept no or limited rent increases, asking other housing authorities to absorb costs when vouchers transfer out, or, as a last resort, terminating assistance for some households.
Details from the report and discussion
Espinosa said the authority offers tenant-based Housing Choice Vouchers (HCVs), project-based vouchers (PBVs) and Main Street vouchers for people with disabilities. The authority committed its first seven PBVs to Vance Street Flats when it opened in March 2024 and an additional eight PBVs to Ralston Gardens in October 2024; staff said more PBVs may be offered to upcoming projects such as Marshall Pointe/Marshall Street Landing when those developments are complete.
On need and demand, Espinosa said the authority received just over 3,000 applications when it opened its HCV wait list in January 2025, and that the PBV wait list — opened in 2023 for set‑aside units — received about 900 applications.
On the shortfall, Espinosa cautioned that HUD’s formula ties funding to a fair market rent (FMR) inflation factor and that the October 2024 FMRs did not increase for the area. "The fair market rents published in October 2024 did not increase, and which means for us that we did not see that much of an increase in our budget for 2025 as we have seen in prior years," she said. Espinosa said the authority applied in June for additional HUD funding and that HUD has told public housing authorities to consider reducing the number of families served; she added, "We are optimistic that we will receive additional funding. We won't know for the next couple of months." (All quotes in this paragraph are from Miss Espinosa.)
When asked directly about program reductions, Espinosa said: "Worst case scenario is that we would look at terminating assistance for 55 households." She described that as the worst case and said staff are pursuing several mitigation steps before any terminations, including monitoring turnover (on average 3–4 vouchers free each month), negotiating with landlords, and seeking transfers to other housing authorities.
Commissioners and public officials who spoke at the meeting emphasized the program’s importance. "This is the area that I feel is the most impactful when you talk about homeless or soon-to-be unhoused," Commissioner Pfeiffer said, urging staff to return with updates in about 90 days before any final decisions. Other commissioners echoed the request that the authority revisit the board after HUD decisions and further local steps.
Program outcomes and pipeline
Espinosa noted the housing authority’s increased per-unit costs and reported completed and planned affordable developments: Cornerstone Legacy Senior Residences (expected opening moved from July/August to September), Habitat for Humanity Griffith Station (groundbreaking anticipated in late August), Marshall Street Landing (permanent supportive housing, 85 units, opening anticipated July/August), and Marshall Pointe Apartments (260 units; groundbreaking completed). She also credited the city's housing navigator, Alexa Urseta, and others for supportive services tied to PBV units, saying the combination of rental assistance and navigation services is improving housing stability for participants.
Board actions
- Commissioner Davis moved to approve the Arvada Housing Authority 2025 administrative plan updates; the motion passed 7–0. - Commissioner Mormon moved to approve the Arvada Housing Authority 2026 annual plan; the motion passed 7–0. - Commissioner Ambrose moved to approve the Arvada Housing Authority 2024–25 annual report; the motion passed 7–0.
Ending
Staff said they will continue to work with HUD and monitor federal developments and return to the board with updates. Commissioners requested a follow-up meeting in about 90 days to revisit the shortfall and to see what HUD provides before any decisions are made about reducing assistance.
