HELENA — Montana leaders have announced that a change in federal funding allocations will result in the closure of the state’s waitlist for Housing Choice Vouchers, commonly known as “Section 8 vouchers,” later this month.
Cheryl Cohen, executive director of Montana Housing, stated that there are currently approximately 3,000 households on the waitlist for consideration in the rental assistance program. Starting on Aug. 15 and until further notice, no new households will be added to the list, and existing applicants will not receive vouchers.
“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 inform individuals on the waitlist of this change.
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 about 3,300 households currently receive vouchers through the state’s program, with an additional 4,000 receiving federal assistance through property subsidies.
State leaders were notified by the U.S. Department of Housing and Urban Development last month that Montana’s monthly budget authority for the voucher program would be reduced to less than $1.5 million. The state is currently spending closer to $2 million per month.
In a release on Thursday, Commerce stated that the state’s share of the budget was reduced due to shortfalls in other states’ programs.
Cohen mentioned that efforts are being made to qualify some of the waiting applicants for vouchers before the closure takes effect.
Michael O’Neil, executive director of the Helena Housing Authority, expressed concerns about the lengthy wait times on the list and the difficulties for voucher recipients to find housing.
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A Washington Post analysis revealed that the average rent in Lewis and Clark County has increased by 3.7% since last year and a significant 58.8% since 2019.
How much a voucher covers is determined by the “fair market rent,” calculated by HUD to reflect the cost of renting a moderately-priced dwelling in a specific area. O’Neil believes that current data on Montana rents are inaccurate due to the state’s low population, and he argues that the current “fair market” rates fall short of actual rental costs.
This week, Governor Gianforte approved a recommendation to allocate $1 million for a study on fair market rents in Montana.
The waitlist will remain open until Aug. 15, and Cohen stated that applications will continue to be accepted until that date.
