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, also known as “Section 8 vouchers,” later this month.
Cheryl Cohen, executive director of Montana Housing, stated that they currently have approximately 3,000 households on the waitlist for the rental assistance program. Effective August 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 will be sending out letters this week to inform people on the waitlist about the change.
Housing Choice Vouchers assist eligible recipients, such as 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 received notification last month from 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 currently spends close to $2 million a month.
In a statement on Thursday, Commerce explained that the state’s share of the budget was reduced due to shortfalls in other states’ programs.
Cohen mentioned that leaders are working to qualify some of the applicants on the waitlist for vouchers before the closure takes effect.
Michael O’Neil, executive director of the Helena Housing Authority, noted that many people spend over a year on the waitlist. One of the primary challenges is the difficulty faced by voucher recipients in finding housing that accepts the vouchers.
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A Washington Post analysis found that the average rent in Lewis and Clark County has increased by 3.7% since last year and by 58.8% since 2019. Similar rent increases were reported in other counties in Montana.
The amount a voucher will cover is determined by the “fair market rent” calculated by HUD. However, O’Neil believes that current rent data in Montana are not accurately collected, and the current “fair market” rates are inadequate.
Recently, Governor Gianforte approved a recommendation to invest $1 million in a study of fair market rents in Montana by a state behavioral health commission.
The waitlist will remain open until August 15, and Cohen stated that applications will continue to be accepted until then.
