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Sheridan Housing Authority flags possible HUD funding cuts; may pause new vouchers in 2025
Summary
At its Dec. 9 meeting, the Sheridan Housing Authority reviewed October financials and warned that federal budget proposals could reduce HAP and administrative funding in 2025; staff said they may stop issuing new vouchers next year and will tighten administrative spending if cuts materialize.
The Sheridan Housing Authority on Dec. 9 reviewed monthly financial statements and warned that proposed federal budget actions could reduce funding for housing choice vouchers next year.
Lindsay, the authority’s manager, told the board that October reports show about $90,000 in savings accounts but also an approximately $16,000 negative net position in restricted voucher accounts tied to an underpayment from the U.S. Department of Housing and Urban Development (HUD). She said the shortfall is a timing/reimbursement issue and that staff expects HUD will reimburse the program for overspent months.
Lindsay said the authority received a notice from an assistant deputy secretary at HUD indicating both the House and Senate budget proposals anticipate less HAP (Housing Assistance Payment) funding and smaller administrative fee allocations for 2025. “We’ve been warned,” she said, and staff plans to “tighten our belts” by cutting administrative costs where possible. She described dialing back vouchers already issued as a “very, very last resort,” but said the authority is preparing for scenarios that could include not issuing new vouchers in 2025 if funding is cut.
The board also reviewed program statistics: in September the authority leased up 154 of 181 vouchers (about 112% of the monthly budget) and year-to-date leasing sits near 101% of budget; October activity fell to roughly 96% because several vouchers ported out to other jurisdictions. Lindsay reported 948 households remain on the lottery list for vouchers.
Board members voted unanimously to receive and file the financial and program reports.
The authority also approved Resolution No. 7, Series 2024, to adopt a utility allowance schedule for the HCV (Housing Choice Voucher) program. Because the Department of Housing (DOH) had not yet published its annual utility schedules, members amended the resolution to adopt the DOH-published allowances ‘‘upon publication’’ and approved the resolution as amended unanimously. Lindsay said DOH typically uses a third-party analysis (Nelrod) to calculate allowances and that most local administrators borrow those tables; she offered to return in February with the published figures for comparison.
Next steps: Staff said it will continue monitoring HUD guidance, adjust budgeting and administrative spending plans for 2025, and report back to the board if DOH publishes utility allowance figures that materially differ from current estimates.
