Because the proposed $1 million cuts in federal funding from Section 8 could push hundreds of needy Montanans to homelessness, Gov. Judy Martz and others have journeyed to Washington, D.C., to meet with Montana's two U.S. senators and its representative in efforts to rally support to pressure the Department of Housing and Urban Development to not make the cuts.
Richland County Housing Authority Executive Director Paul Groshart is planning a trip to Washington in September to help urge officials not to further cut funding.
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With the proposed cuts, 250-400 Montana families will lose their rental assistance in October, and another 250-400 will lose assistance in January 2005. Of the voucher-receiving families, 90 percent of the families include a child, elderly or disabled member, according to the Montana Department of Commerce, Housing Division.
Funding cuts in the Housing Choice Vouchers Program, a component of Section 8, earlier this year have already impacted some of Richland County's residents. More cuts will increase the number of people on the voucher recipient waiting list, thus resulting in a much longer waiting period for those on the waiting list. While on the waiting list for rental vouchers, the families go into public housing, resulting in more people in public housing.
Section 8 vouchers help low-income families pay for housing. The vouchers pay for rent to private landlords.
In the voucher program, families pay 30 percent of their income to rent and utilities, the voucher pays the remaining amount.
Currently Montana receives funding for 6,537 vouchers.
Before funding cuts this spring, Richland County Housing Authority was distributing $17,700 in rental vouchers per month, which were paid to local landlords. Since the funding cuts in April, Richland County Housing Authority has been distributing $13,500 per month.
"That's less money going into our community," Groshart said.
On average, the housing authority spends $140 per month per family. "This could be the worst time for cuts in the voucher program here in the Sidney area because the demand has increased for housing due to the increase in oil activity. In the near future, we will be seeing more people in public housing as a result of these cuts," Groshart said.
In Richland County there are currently 86 public housing units; 74 of those units are occupied. There are 20 units in Fairview and 66 in Sidney.
In April, Richland County was assisting 92 families. Since the cuts earlier this year, 11 of those families have voluntarily left the program.
"Because of these cuts, we will have more people in public housing because the list is going to keep getting longer for the vouchers, and so will the wait," Groshart said.
The wait was six months before April, now it's up to 10 months to a year in Richland County. Funding for Section 8 has been on a decline since 2003, and the outlook for 2005's funding is grim.
"This will affect different areas differently. We won't see people on the street here, but you will in urban places like Billings," Groshart said.
Martz and Sen. Conrad Burns, R-Mont., both sent letters to Alphonso Jackson, the secretary of the federal Housing and Urban Development director, who oversees the Section 8 program, urging him to restore the funding that has already been cut to the program.
ellenr@sidneyherald.com
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