Voucher Subsidy Cuts Approved as $11.4M Federal Shortfall Threatens 5,500 Families

The Contra Costa County Housing Authority board approved painful reductions to rental subsidies on Sept. 15 in a race to close a massive federal funding gap — one that could leave thousands of families without rent payments by December. The unanimous vote came after an unusually candid staff briefing that laid bare the scale of HUD's nationwide funding crisis and the agency's own diminished capacity to respond.

• Board approves voucher payment standard cuts to save $3.9 million, but $7.5 million shortfall remains

• Up to 5,500 families face non-payment of rent in December if HUD cannot cover the gap

• HUD has lost 60% of its staff, severely limiting communication with local housing authorities

• 38% of voucher holders will now pay more than 30% of their income toward rent

• Special November meeting planned to develop contingency plans

The Housing Authority of Contra Costa County has been in a Housing Choice Voucher funding shortfall seven of the last 10 years — but this year's gap is different in both scale and uncertainty.