When housing vouchers are defunded, everyone loses

A property manager in East County told me about a tenant who moved in using a veterans’ housing subsidy. Things went smoothly – until the subsidy expired after less than a year. Without it, the tenant couldn’t keep up with rent. The property manager had to absorb the loss and eventually find a new renter.

When people think about housing vouchers, they usually think about the renter. And yes, renters absolutely need support. Stable housing can mean everything for a family trying to get back on its feet.

But there’s another side of the story: someone has to provide that housing. When vouchers are unstable, underfunded, or mired in red tape, it puts both renters and landlords in a tough spot.

Now the federal government is talking about reduced funding and putting a two-year time limit on rental assistance through HUD programs like Section 8. It might sound like reform, but in reality, it’s a recipe for chaos: not just for families who depend on the help, but for the housing providers who rely on that income to keep their doors open.

We’re already seeing warning signs. In Los Angeles, cuts in federal funding are forcing the city to reduce how much its Section 8 vouchers cover. That means families may have to downsize or move out of their desired neighborhood. It could mean those with vouchers in-hand may have fewer housing options available. And with significant waiting lists for the program already, it could mean that new vouchers won’t be issued.

San Diego could be next – unless local leaders step up with their own funding to fill the gap.

If the changes to Section 8 happen, it will uproot tenants and destabilize the financing of rental housing for landlords across San Diego County. Local landlords with properties of all sizes could be impacted, but those with fewer units could find themselves facing severe financial hardship.

The bigger problem is that the whole program is becoming unstable and more difficult to navigate. If tenants lose their support, housing providers will be left with few choices. That’s not just a theory. Our most recent SCRHA survey found more than 40% of local housing providers have dealt with unpaid rent this year – and in many cases, the problem was delayed or disrupted voucher payments.

Rental housing vouchers and other forms of rental assistance should be a priority at the federal, state, and local level. This can mean covering shortfalls when rent is late, offering shallow subsidies to seniors, and giving bonus payments to owners who open their doors to voucher holders. Programs like these, backed by government and private organizations, are already showing results.

Most importantly, these voucher programs must be ongoing, consistent, and simple to access. In a word, stable.

Rental assistance is supposed to keep people housed. But it only works if it works for everyone: renters and landlords alike.
California’s housing crisis is hard enough. We don’t need more uncertainty. We need smart, stable programs that keep people in their homes and make sure the people providing those homes aren’t left holding the bag.

Alan Pentico, CAE, is the Executive Director of the Southern California Rental Housing Association.