Valley could lose $16.2 million in low-income housing funds

Benjamin Grove and Timothy Pratt

Friday, Feb. 18, 2005 | 11:14 a.m.

The Las Vegas Valley stands to lose $16.2 million in federal low-income housing money by 2010 under proposed cuts by the Bush administration, according to a report released today.

That could mean nearly 1,500 fewer families would receive Section 8 housing, the report by the Washington-based Center on Budget and Policy Priorities says.

The report by the liberal nonprofit research and advocacy group caused immediate concern from Las Vegas homeless advocates.

"We're extremely concerned about the proposed budget cuts ... and think it is a formula for a real crisis," said Paula Haynes-Green, who became the valley's first regional coordinator for homeless services in February 2004.

The report assumes that if the proposals are approved housing authorities would cut the number of vouchers they give out. Section 8 vouchers help low-income residents pay for about two-thirds of their rent.

The federal government currently pays for 8,292 vouchers in Southern Nevada.

According to the study, in the current fiscal year, the Las Vegas Housing Authority lost nearly $1.4 million in Section 8 money, which reduced by 166 the number of families receiving vouchers in Las Vegas.

Clark County Housing Authority lost $770,000, meaning 108 less families are receiving vouchers from the federal Housing and Urban Development Department, the study said.

Local housing authority officials were immediately unavailable to comment on the study, which was released late this morning.

Kenneth J. LoBene, state coordinator for HUD, had no comment about the cuts.

Haynes-Green said the lack of affordable housing is a reason for homelessness.

"If these proposed budget cuts go through, we're concerned that there will be more people on the streets," she said.

The Bush budget proposal for the next fiscal year includes small increases in vouchers for low-income families with dramatic cuts after 2006, according to the report.

Bush aims to restore 83 vouchers for the Las Vegas Housing Authority in 2006 but estimates show that through 2010, Las Vegas will lose 733 vouchers, the report said. For Clark County, the Bush administration aims to restore 53 vouchers this year, but cut 488 vouchers by 2010, the report said.

The budget aims to cut vouchers nationwide to 370,000 seniors, low-income families and people with disabilities who receive Section 8 vouchers, the report said. The federal program now provides about 2 million vouchers.

Bush is asking Congress for 40,000 new vouchers in 2006, but those would only replace about half the number lost this year due to funding shortfalls, Center on Budget and Policy Priorities director for housing policy Barbara Sard said in a statement.

"And even if those 40,000 vouchers are funded -- which is by no means certain given the fierce competition that will take place in Congress for funds this year -- more than 370,000 vouchers could be eliminated over the next five years if Congress adopts the president's proposal," Sard said.

Haynes-Green said the proposed cuts would create a ripple effect in other agencies throughout the valley, "where there are already too few resources."