HELENA — Montana leaders have announced that due to a change in federal funding allocations, the state will need to close the waitlist for Housing Choice Vouchers, also known as “Section 8 vouchers,” later this month.
Cheryl Cohen, the executive director of Montana Housing, stated that there are currently around 3,000 households on the waitlist for the rental assistance program. Starting on August 15 and until further notice, no new applicants will receive vouchers, and no new households will be added to the list.
“As we receive calls, we have resources prepared for our staff to try to direct individuals or families to what would best meet their needs,” said Cohen.
The Montana Department of Commerce is sending out letters to notify people on the waitlist of the change this week.
Housing Choice Vouchers assist eligible recipients, including low-income families, older individuals, and those with disabilities, in paying for housing in the private market. Cohen mentioned that approximately 3,300 households are currently receiving vouchers through the state’s program, with an additional 4,000 receiving federal assistance through subsidies for specific properties.
State leaders were informed last month by the U.S. Department of Housing and Urban Development that Montana’s monthly budget authority for the voucher program would be reduced to less than $1.5 million, while the state is currently spending closer to $2 million per month.
In a recent release, Commerce stated that the state’s share of the budget was decreased due to shortfalls in other states’ programs.
Cohen noted that leaders are making a final effort to qualify some of the applicants on the waitlist for vouchers.
Michael O’Neil, executive director of the Helena Housing Authority, expressed concerns about the extended wait times on the list and the difficulty faced by voucher recipients in finding housing.
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A Washington Post analysis found that the average rent in Lewis and Clark County has risen by 3.7% since last year and a staggering 58.8% since 2019.
How much a voucher will cover is determined by the “fair market rent” calculated by HUD. O’Neil believes that current data on Montana rents is inaccurate due to the state’s low population, and the current “fair market” rates fall short of actual rental costs.
Gianforte recently approved a recommendation from a state behavioral health commission to conduct a $1 million study on fair market rents in Montana.
The waitlist will remain open until August 15, and Cohen stated that applications will continue to be accepted until that time.
“There’s no harm, and we would certainly encourage people to apply – just with the knowledge that we won’t be pulling names off the waitlist for lease-ups until we have a better understanding of the financial position and future HUD allocations,” she added.
