'Roof over people's heads': Proposed cuts to HUD funding could impact local public housing programs
JOHNSTOWN, Pa. – President Donald Trump's proposed broad and historic cuts to the U.S. Department of Housing and Urban Development's discretionary funding could, if ultimately enacted, significantly transform the nation's public housing and Section 8 rental voucher programs that approximately 20% of Johnstown residents use.
Trump, in his 'skinny' budget, recommended slashing HUD's funding by approximately $33 billion, including $26.7 billion for rental assistance programs, compared to this current fiscal year.
For now, it is just an outline of a spending plan that, in its text, refers to the nation's 'dysfunctional rental assistance programs,' he said.
'The skinny budget and what I've seen, it isn't enough for us trying to make any kind of guess of what to expect,' JHA Executive Director Mike Alberts said. 'It's too early. There's been no good numbers coming out of the (U.S.) Senate and House (of Representatives) yet that would give us any kind of idea of where we might see cuts in specific programs. We just haven't seen anything to give us a good idea yet.'
Alberts continued: 'Really, the only thing that's going to matter in the end is the budget that they pass that is in effect for Oct. 1, which is the federal government's beginning of fiscal year.'
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Regardless of what budget changes may occur, Alberts said JHA's mission will continue to be helping people 'with the basic human need of housing.'
'With things being tougher than ever with the cost of living in general, affordable housing is absolutely needed, especially in Johnstown and Cambria County, where the poverty rates are traditionally so high,' Alberts said. 'It's important work, and we really rely on those federal dollars to keep the lights on and keep a safe roof over people's heads.'
'Where things stand'
JHA operates 1,504 public housing units – with 1,400 being in the city proper – that are used to assist people in poverty or economically disadvantaged conditions, the elderly, and disabled.
The dwellings are almost always filled to capacity.
Johnstown Housing Authority | Prospect Homes Blueprints
Johnstown Housing Authority executive director Mike Alberts with original blueprints for the Prospect Homes Housing Project. Photo taken at the Johnstown Housing Authority main office in the Cambria City section of Johnstown on Monday, May 8, 2023.
Meanwhile, as of the end of May, the authority had 764 of its 960 Section 8 vouchers leased up, as part of the nation's rental assistance program. JHA has left vouchers unused due to funding uncertainties.
For example, Alberts pointed out that JHA was told to expect $500,000 for the program in May, but only received $460,000 when the money showed up in its account.
'We've been extremely conservative with those vouchers because we don't know where the money is and what the value is, so we've been extremely conservative,' JHA Chairman Charles Arnone said. 'We probably won't be doing any more during the summer until we know where things stand.'
In total, JHA has a total budget of just under $20.3 million for fiscal year 2025.
The areas of spending are:
• Public housing: $8,642,000
• Section 8 landlord payments: $5,675,903
• Section 8 administration fees: $722,233
• Capital Fund: $4,673,514
• Family self-sufficiency ('On The Rise') program: $72,840
• Choice Neighborhoods grant: $500,000.
Alberts said the current situation is 'business as usual' with the next budget being 'a huge question mark.'
Last year, JHA was awarded a Choice Neighborhood planning grant to develop an outline for stabilizing and improving Coopersdale Homes. The 30-month process is still ongoing.
Alberts said the $500,000 grant is 'completely safe.'
'That (planning grant) money's already obligated to us and that's not in any danger of being taken away,' Alberts said. 'That's not all to us yet, since we have to kind of request it as we need it, but there's no danger of that going away.'
'More state control'
The Republican president's plan would transform the funding system 'into a State-based formula grant which would allow States to design their own rental assistance programs based on their unique needs and preferences.
'The Budget would also newly institute a two-year cap on rental assistance for able bodied adults, and would ensure a majority of rental assistance funding through States would go to the elderly and disabled.
'A State-based formula program would also lead to significant terminations of Federal regulations.'
'With respect to cuts to housing, one thing that I would view as a positive is it would put more state control on some of these issues,' said state Senate Majority Whip Wayne Langerholc Jr., R-Richland Township. 'I know when we exposed some of the issues within HUD in the past with the (Section 8 voucher) porting, with the wait list, with the influx of individuals from Philadelphia that could not get a voucher in that area but were coming here to Johnstown, our hands were kind of tied.
'There wasn't a lot we could do from a state perspective, as it fell on the federal government. So if that does in fact change and come back, it will give our state much more discretion in shaping that policy and ensuring that it is done appropriately, and we would be able to have an impact on a lot of those areas, specifically that porting issue and the loopholes that we exposed for residency requirements.'
Langerholc said the situation is currently 'in flux.'
'It's a fluid situation,' Langerholc said. 'I know it's something that we're watching very closely at the state level, what the federal government is doing across the board as well.'
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