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Peekskill housing office reports high HUD utilization, disputes cost allocation method
Summary
Section 8 staff told the council 564 vouchers are leased and housing assistance payments are running at about 106.81% of budget, dipping into HUD reserves; staff and the city manager said a HUD cost‑allocation method reduced administrative reimbursement despite hiring a consultant.
Jessica Gannas presented the Section 8 program's annual report, saying the office serves hundreds of voucher holders across northern Westchester. "Currently, we have 564 vouchers on the program that are leased," she said, and added that rising market rents have pushed 2025 housing assistance payments above the planning budget.
Gannas reported budget utilization for housing assistance payments at approximately 106.81% and an actual ending HAP figure stated as $8,053,755 as of Oct. 1, 2025; she said the program was tapping HUD HAP reserves but that current reserves should carry the program to year‑end if federal appropriations proceed. She cautioned that a federal government shutdown created uncertainty about future HUD actions and that staff had received automated notices stating HUD could not respond to inquiries during the shutdown.
Council members asked about landlord outreach and staffing. Gannas credited outreach and realtor partnerships for growth in landlord participation (from 125 landlords in 2020 to 212 in 2025) and said the program has persistent staffing challenges, including vacant program‑specialist and housing inspector positions; some inspection work is contracted to CVR New York.
On cost allocation, Gannas and City Manager Matt Alexander described a dispute with HUD over how shared services and overhead were allocated. The plan used a 1.98412% allocation (based on five Section 8 employees divided into 252 city employees) and produced an administrative allocation the presenters said was far lower than earlier years. Alexander and staff said they had hired a consultant to analyze the method; the consultant and HUD staff advised the city that the adopted HUD methodology would stand for now, though staff continue to question whether it fairly reflects Section 8 overhead costs.
Council members expressed support for the program and asked staff to return with resolutions on the annual plan and cost allocation next week.
