Filling the Gap in HUD Funds

By Erika Mahoney

Filling the Gap in HUD Funds

November 7, 2012 Updated Nov 8, 2012 at 6:45 PM EDT

Endicott, NY (WBNG Binghamton) A lack of federal funding in one local town could hit those relying on low income housing hard next month.

Officials in the Town of Union are saying those in low income housing will only see about half of their funding for December.

Planning Director Paul Nelson said this is because of people moving out of the area, into more expensive places like New York City, are drying up the town's annual allotment of funds.

According to HUD officials, the town of Union's funding has increased over the past three years, from $1,231,521 in 2010 to $1,251,900 in 2011, to $1,364,518 this year.

Under the program, town residents can take their Section 8 assistance to other parts of the country.

But, HUD requires the town to make payments to those housing agencies, depleting the budget quickly.

Because of this gap, the town has reached out to federal elected officials for help.

"We have a conference call scheduled with Senator Gillibrand's staff tomorrow to try to get the ball rolling on finding out whether there are additional resources that HUD can make available to fill some of that gap," said Nelson. "[A gap] created by people using vouchers in other parts of the country where it costs us a lot more."

Nelson added this shortfall in funding also impacts town revenue, in the way the town earns administrative fees for the program.

Clarification: In an earlier version of this story, Action News incorrectly stated the shortfall was due to a cut in HUD funding. The story has since been corrected. Action News regrets this error.

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