Duluth HRA: federal shortfall has closed Section 8 wait list, limiting new vouchers in Cook County
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Summary
A Duluth HRA official told the Cook County HRA board that rising rents and utilities have outpaced federal funding, leaving the HRA in shortfall status and closing its wait list; the agency is issuing vouchers only in verified emergency cases to preserve assistance for current participants.
Rachel Downs, representing the Duluth HRA, told the Cook County Housing and Redevelopment Authority board on Feb. 20, 2025, that the Housing Choice Voucher (Section 8) program is facing a funding shortfall that has forced the agency to close its wait list and halt routine voucher issuances for Cook County residents.
Downs said the voucher program helps “very low income households afford housing,” including families, seniors and people with disabilities. She explained the standard lease-up process: applicants pulled from the wait list submit a lease-up packet, the unit must pass a move-in inspection, and the HRA signs the housing assistance payment (HAP) contract with the landlord before subsidy payments begin.
The Duluth HRA applies a payment standard based on HUD’s Fair Market Rent (FMR) and household bedroom size, then adds a utility-allowance estimate to calculate a unit’s total cost. Downs noted the HRA’s utility-allowance worksheet is based on local rates and usage, is reviewed annually, and that the current schedule is effective July 2024 through June 2026.
On funding, Downs said rising market rents and utility costs, combined with higher payment standards needed to compete for units, have outpaced federal appropriations. “Federal funding has not kept pace,” she said, and the Duluth HRA is operating under HUD-directed shortfall management. The agency has received “additional shortfall funding” from HUD and maintains reserves, but is prioritizing payments to households currently under contract.
As a result, Downs said the wait list is closed and the HRA is “not issuing any vouchers except for verified extenuating circumstances such as the VAWA (Violence Against Women Act) or a reasonable accommodation that is specifically verified.” She added that the HRA can make limited exceptions but cannot resume normal voucher issuance until HUD and the HRA agree the shortfall status is resolved.
Commissioners asked whether Minnesota Housing provides supplemental funding. Downs replied that Minnesota Housing does not provide additional shortfall funds to offset HUD shortfalls; the Duluth HRA applied for and received HUD shortfall assistance and also can use reserve funds if necessary. On residency preference, she said the HRA maintains one pooled wait list serving Duluth, Lake and Cook County and currently does not apply a Cook County residency preference when issuing vouchers.
Board members pressed for operational details and local context: Commissioner Anne Sullivan asked whether dwellings lacking running water could pass inspection; Downs said they would not, explaining that utilities must be working to meet Housing Quality Standards. Commissioners also asked about Harborview senior housing, and Downs said 24 people received enhanced vouchers tied to a previous contract and remain housed there.
The Duluth HRA offered to share its inspection booklet and the HRA’s staff encouraged the Cook County board to provide any local data or context for future studies or policy work.
The presentation closed with board thanks to Downs and a request for the Duluth HRA to share inspection materials and other reference documents.
Ending
The HRA now faces limited ability to place new voucher holders in Cook County until HUD shortfall status eases; the agency recommended preserving assistance for current participants and coordinating closely with HUD and local partners for any reopening of the wait list.