'Seriously' delayed federal rental assistance payments jeopardizing affordable senior housing providers, group says - McKnight's Senior Living

In response to “seriously” delayed federal rental assistance payments, LeadingAge has asked the Office of Management and Budget and the Department of Housing and Urban Development to take immediate action.
HUD maintains rental assistance contracts with private multifamily housing communities, paying monthly project-based subsidies to support affordable senior housing and other housing for low-income individuals. Those communities rely on the HUD monthly rental assistance payments to cover staff, property mortgages, utilities and more, according to LeadingAge.
Approximately 1,000 monthly rental assistance payments to affordable housing communities were late for June, and delays are projected for July. Although most of the outstanding rental subsidies were paid in the middle of the month, the association said, some communities still are missing payments. According to LeadingAge, those payment shortfalls are affecting tens of thousands of affordable housing households, including affordable senior housing households.
LeadingAge called the monthly subsidy payments a “non-negotiable component” of the public-private partnerships that “undergird our country’s affordable housing system.” With continuing issues projected, LeadingAge urged HUD and the White House in a Thursday letter to act quickly to resume those payments.
“Any delinquencies on payable and mortgages by HUD-assisted properties will jeopardize housing stability for tens of thousands of residents across HUD’s portfolio, will erode confidence in HUD as a public-private partner for the housing industry, and will impact FHA lending receipts and other foundational pillars of our country’s housing system,” LeadingAge Senior Director of Housing Operations and Policy Juliana Bilowich wrote. “We ask that HUD and OMB commit to upholding contract agreements and pay the congressionally appropriated project-based subsidy in a timely way.”
Bilowich also asked for answers about what caused the large-scale payment delays, what issues remain, any actions HUD and OMB have taken to help housing providers plan for potential funding shortfalls, anticipated funding delays for the remainder of the fiscal year, and whether staffing capacity is affecting those payments.
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