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Housing manager warns HUD rule and voucher funding pose budget risk for Roseville housing programs

2714631 · March 20, 2025
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Summary

Roseville housing staff said a new HUD regulation and an impending end to emergency housing voucher funds could strain the housing authority’s budget, potentially reducing service capacity.

Trisha Isom, Roseville housing manager, told the Law and Regulatory Committee on March 20 that two federal developments threaten the city’s housing program budget and could reduce service capacity.

Isom said the Housing Opportunity Through Modernization Act, known as HOPMA, is a new HUD regulation scheduled to take effect in July 2025 that "significantly changes the way that the housing authority calculates resident income" and "increases the housing authority's portion." She said the change would benefit some residents by lowering their rent share but could enlarge the authority’s subsidy obligation at a time the local program already faces a shortfall.

Isom also reported that the Emergency Housing Vouchers (EHV) Roseville received during the pandemic—originally 50 vouchers—have declined to 37 active leases. She said HUD notified the city the program’s final tranche of funding will likely be received this April and that the funding will probably only sustain the program through the end of 2026. "We just received notification that more than likely the funding we're going to be getting our final tranche of funding this April and it will probably last us maybe if we're smart with our money through the end of 20 26," Isom said.

Isom told the committee Roseville has not been leasing new EHV vouchers since September 2023, when federal guidance restricted new leasing. "We have not been leasing since late 2023. So that's why instead of having 50 right now, we only have 37," she said. She said staff are exploring other funding options, including state sources, and that the housing authority will press HUD and federal representatives to preserve or stabilize funding levels.

Isom said continuing resolution action recently kept HUD funding near prior-year levels but that the housing authority is "still in shortfall already as of March 2025." She told the committee she will raise these concerns during the city’s April federal advocacy trip and seek clarification from HUD on HOPMA’s implementation timeline and provisions.

The committee asked whether Roseville can accept new applications for EHVs; Isom reiterated that leasing has been paused since late 2023. Committee members and staff discussed potential state funding sources and outreach to local partners to preserve housing placements.