LA Housing Authority stops accepting Section 8 applicants due to federal funding "uncertainty"
Due to federal funding cuts, the Housing Authority of the City of Los Angeles is not accepting new applications for the Section 8 voucher program and is pausing the application process for 3,300 families.
More than 13,000 property owners in Los Angeles could be affected as nearly $800 million in federal funding backs the rental subsidy payments made to private landlords, according to the Housing Authority. Under Section 8, these payments are made to property owners on behalf of very low-income households, people with disabilities and senior citizens facing high rent costs.
It's not clear when the department will resume accepting new applications and processing already submitted ones. A spokesperson for the Housing Authority said in an email that there is no set time frame for when that may happen. A waiting list for the program, which operates by lottery and opened in December 2022, has been closed and there is no time frame for its reopening yet either.
The Los Angeles Times first reported on the changes early Thursday, and later in the day, the Housing Authority formally announced them in a statement, saying the decision to halt new applications was "made with great difficulty and careful consideration of all possible alternatives." The department has said it will work to continue offering assistance to those already enrolled.
In an email, a spokesperson for LA's Housing Authority said "uncertainty with the federal budget" and the coming expiration of federal funding on March 14 has resulted in the halting of new and ongoing Section 8 applications. Congress would need to approve new funding if the federal cuts remain as the spokesperson said there appears to be no other potential sources for the money.
"The economic and human impact of these funding gaps cannot be overstated," the Housing Authority said in a statement Thursday. "Without additional resources, Los Angeles could see increased housing instability, affecting thousands of families, property owners, and the broader community."
Section 8 aims to cover high rents across the country and is funded by the U.S. Department of Housing and Urban Development (HUD), one of a number of federal agencies being targeted with firings and slashes to funding under the Trump Administration. Among the series of cuts and contract cancelations HUD is facing is the stalling of $60 million in funding intended for affordable housing developments, the Associated Press reported Friday, citing information and documents obtained by AP.
Los Angeles County has one of the most expensive apartment markets in the country, with an average rent rate of $2,502, according to a report released Friday by HUD's Economic and Market Analysis Division.
One exception to the new changes is the Housing Authority's continuance of funding for a program known as Veterans Affairs Supportive Housing, or VASH, which offers housing vouchers to U.S. veterans who are unhoused.
Meanwhile, the Housing Authority is working to find other solutions to keep assisting those currently in Section 8.
"Our guiding principle is to not terminate housing assistance to housed families and property owners participating in the program," a spokesperson said in an email. "HACLA is taking careful measures available to minimize the impact before we consider pulling back existing vouchers as this would be devastating to families."
"Right now, we have not seen the House or Senate budget proposals," the email continues, adding that if the federal government decides to "dramatically" reduce funding for Section 8 then the LA Housing Authority and other agencies like it "will be forced to consider all options to ensure program solvency, including terminating vouchers."
