Federal Government Shutdown
Federal Government Shutdown
The Housing Authority of Champaign County desired to provide an update on the effects of the US government shutdown. As a leader in the housing industry and a member of Housing and Community Development industry groups, we have called on our elected officials and HUD to protect low-income Americans by ending the government shutdown and passing the full year spending bills that provide strong funding for affordable housing and community development programs.
The Public Housing Operating Fund program has provided obligations for the months of January and February. These obligations are based on an initial estimate of 2019 eligibility and a 90% proration rate. HUD uses a conservative methodology for funding PHAs when using an estimate, and when funding is based upon a Continuing Resolution. Because Operating Subsidy funding is provided on a cumulative year to date basis, using a conservative methodology early in the year is intended to result in increasing funding amounts later in the year. HACC is developing a contingency plan in the instance that the government shutdown lasts through February and HUD funding is eliminated.
We are gravely concerned of the shutdown’s immediate and long-term impacts on these programs and the low-income people they serve. The government shutdown is stopping communities from pursuing development activities that will promote local economic growth through the creation of affordable and accessible housing for low-income families, threatening to destabilize over four million households that depend on HUD’s rental assistance programs and creating widespread uncertainty for affordable housing investors. The Campaign for Housing and Community Development Funding, led by the National Low-Income Housing Coalition, have outlined impacts on specific programs. See their fact sheet on the latest information of impacts of the government shutdown on affordable housing programs.
We are also concerned about the shutdown’s impact on the housing stability of low-wage government contractors who often live paycheck to paycheck. These employees, including janitors, security guards, and cafeteria servers, are currently receiving no pay and are at risk of
being unable to cover their rent, putting them at risk of eviction, if the shutdown continues. It is essential that both the Administration and Congress understand the important role that housing and community development programs have in supporting local economies and improving the lives of low-income households across the country. Congress should act quickly to open the government and pass full-year spending bills that robustly fund affordable housing
and community development programs administered by HUD and USDA.
I encourage you to reach out to your federal elected officials to express your concerns regarding the shutdown. Information pertaining to how to locate your officials and their contact information can be found at House of Representatives, Senate, and The White House. If you have any questions for the Housing Authority, contact HACC Office of Constituent Services.