Wake Housing Authority Debt Reduction, Cash Shortage

by Marcus Liu - Business Editor
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Wake County Housing Authority Still Faces Challenges despite Progress

The Wake County Housing Authority (WCHA), the federally-funded agency managing Section 8 vouchers and public housing, has largely resolved a $1.9 million debt. However,it remains designated “troubled” by the Department of Housing and Urban Development (HUD) and is quickly depleting its funds.

At last week’s board meeting, interim director Michael Best reported the agency paid down approximately $1.3 million in overdue rental payments to local landlords this summer. This considerably reduces the initial $1.9 million debt Best inherited in April.

“You steered the ship away from the iceberg,” board member Thomas Gulisano told Best. “We’ve avoided disaster, and I thank you.”

Earlier this summer, landlords and tenants criticized the WCHA for failing to pay its portion of rent for Section 8 voucher holders. Best explained the agency previously failed to submit updated HUD paperwork for 260 voucher households relocating to Wake County from 114 other areas. Without this paperwork, the original housing authorities didn’t know where to send funds, or how much. Best began contacting each of the 114 authorities individually to resolve the accounts, and this effort is proving accomplished.

Despite this progress, the WCHA still struggles. best informed the board that public housing units are only 82 percent occupied, falling short of HUD’s 95.5 percent target. Furthermore, the WCHA has been locked out of HUD’s grant disbursement system (eLOCCs) since May, preventing access to federal funding.

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