As a result of sequestration and other across-the-board cuts in the FY 2013 Agriculture Appropriations bill, there will be shortfalls in the Section 521 Rural Rental Assistance (RA) program. According to the Rural Housing Service (RHS), rental assistance is receiving a $65 million cut in FY 2013. RHS has told stakeholders that the impact of the RA shortfall will be limited to September 2013. The situation risks the solvency of rural affordable housing properties because if a contract runs out of money in August, no funding will be available in September, and RA not received in September will NEVER be received.
NAHMA is urging its members to contact their Congressional Representatives and voice support for Congress to take legislative action at the earliest opportunity to either restore funding in time to avoid the RA shortfall or to provide funds in FY 2014 to compensate owners for the lost RA in FY 2013. NAHMA has prepared talking points that members may use when contacting their Congressional Representatives:
Click here for talking points and more information on the RA shortfalls:
- Rental Assistance (August 13, 2013)
- Industry Fact Sheet: Implications of Inadequate Funding of Project-Based Section 8 Contracts and Rental Assistance Contracts for Rural Properties
Click here to view a draft letter intended for the RHS on RA Shortfalls: Draft Letter (June 10, 2013)