Federal sequestration – that grand game of “chicken” being played out in Washington – is finally having real world, destructive impact. Recently, HUD announced cuts to the rental subsidy program known as Section 8. The two agencies that administer vouchers for New York City – the Department of Housing Preservation and Development (“HPD”) and the New York City Housing Authority (NYCHA) – responded with their own program cuts.
To start, HPD and NYCHA will issue 6,000 to 8,000 less new vouchers this year. This translates to up to 20,000 residents who will either face eviction or not be able to escape the shelter system. But this is not the total extent of the bad news. Facing a $36 million cut in HUD funds, HPD also has decided to reduce monthly subsidies for families currently holding vouchers from $100 to $400 per month. To illustrate, let’s do the math. If a household is working full time and making minimum wage, income averages about $1100/month. If that same family has a housing voucher, they pay about $331 per month, or 30% of their income, as their share of the rent, with Section 8 covering the difference. When this family is asked to pay an additional $100 it will pay 40% of their income for rent. An additional $400 would cause that family to pay over 66% of their income for rent!
And so it begins. The sequestration we have been hearing about on the news for over a year will heighten the process of impoverishment of our residents to the point of destitution. Whether these cuts are necessary or the politicians in Washington are playing politics with sequestration, is for others to debate. For us it is past time to speak up, take action, and if Washington continues these dangerous games of chicken, then we have to make sure that those chickens are brought home to roost.
People are joining in this call to action. Read our colleagues post on ANHD’s blog, Sequester hits home(less) and watch the NY1 video NYCHA Eyes Layoffs a story on the budget cuts coming out of Washington.