The Discontinuation of Section 8 Voucher Programs

by Tyler Lorinser on July 29, 2014

In the City of Burnsville, at the apartment complex of Nicollet Ridge, 262 people, or 94 apartment households, have already lost, or will lose, their leases by the end of December this year. Nicollet Ridge, under new ownership by a Philadelphia-based real estate trust called Resource Residential, is ending  participation in the federal Housing Choice Voucher Program and is vacating more than a fourth of the households in the complex. This Sun This Week article exposes even more strain on the affordable housing market and how tenants are affected. Out of those 94 apartments; 42 households will have already left in June, while the remaining 52 households must be out by the end of December. Of the 262 renters facing displacement; 137 of them are children 17 years and younger, while the rest are either elderly or disabled.

Currently, the complex’s rates are $800 for an efficiency, $870 for a 1 bedroom, and $1,250 for a 3 bedroom, while Burnsville vouchers will only cover rents up to $651 for efficiencies, $790 for a 1 bedroom, and $1,295 for a 3 bedroom. As new ownership of the complex begins to assume responsibility and invest more money into the apartments, they will begin to make certain improvements–in-turn raising rental prices considerably higher than what they could have charged tenants with vouchers. Many local landlords have already been ending their participation in the Section 8 program, and with apartment complexes becoming more of an appealing target to out-of-state investors, we could possibly see even more Section 8 voucher sites becoming endangered as well.

While so many low-income residents are being displaced, it becomes harder to find more suitable and affordable places for them to live. In Dakota County there are more than 400 landlords that still participate in voucher programs, however 98 percent of all units are filled and unavailable for rent.


 

Meanwhile, at Victoria Townhomes in Brooklyn Center, the privately-owned project-based Section 8 family building’s owner will be opting out of the Section 8 program as of July 31st, 2014. There are 48 units at this residence under Section 8, mostly all of them housing families. Currently, these families are in the process of obtaining protections vouchers, also known as enhanced vouchers. Some residents plan to stay, under enhanced voucher status, while others want to move either immediately or within the next year or two.

Families that plan to relocate with their vouchers, however, could face unanticipated problems. The top rental payment that a voucher will cover in Brooklyn Center, or the voucher payment standard (VPS), is only $1,305–while rental prices in the Brooklyn Center area for 3 bedroom apartments usually range much higher than that.

In addition to the very tight rental market, voucher holders have three obstacles to meet when searching for an apartment. 1.) The landlord must be willing to accept the voucher. 2.) The rent must be at or below the VPS. 3.) The apartment must pass HUD’s Housing Quality Standard (HQS) inspection. Many of these renters could find it very hard to find a landlord who offers rent under the VPS limited amount, as well as a housing complex that meets HUD’s HQS criteria. If for whatever reason the landlord fails to meet HUD’s HQS, then the tenant must find a new place to reside within a specific amount of time until they must return their voucher.

With the displacement of 262 voucher renters in Burnsville, and another 48 new voucher holders in Brooklyn Center, there is a increase in voucher-holders in the metropolitan area that are searching for units that they can rent. The loss of numerous affordable housing properties just adds further pressure to a housing market that is already tight. So what options do these families have that cannot pay market rate rental prices? Where do these households that have children still in school send them if they are displaced? Where can the families that are removed find a new home, especially in the cold winter month of December? What does this mean for parents that now have to commute farther to work? This is a recurring problem. How can we help?

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Are good people always good landlords and tenants?

by Tracey Goodrich on August 12, 2013

drama theater masksAlthough life and people are really complicated and dynamic, I want to talk about them in terms of basic polarities or opposites. These two recent articles from WCCO and KSTP News present some familiar dichotomies: The rotten tenant vs. respectable homeowner and then: The capable and independent homeowner vs. invasive and controlling government. My contribution to the mix is: “Good” people vs. “Bad” people, and where they intersect with these other ideas.

Some people are good and nice, and others are not. Some happen to be landlords and others happen to rent. I suppose it’s possible, although very unlikely, for bad people to be good landlords or good tenants, but it does seem to be very common for bad people to make bad landlords and bad tenants. What also seems fairly common is for good people to be bad landlords or bad tenants.  What makes a good person a bad landlord or a bad tenant? Well, let us dig into that just a little.

While I admit that I am not a perfect tenant, I think I do a pretty decent job at it. Yes, I dare say that I am both a good person and a good tenant. I pay my rent on time. I tell my landlord when something needs attention, and I do my best to maintain the areas of the property that I am responsible for. I also try to be respectful, courteous, and even friendly to my neighbors. If I did not do all of these things, maybe I would still be a good person, as the Helmses claim of themselves in “Thinking of Renting…”, but like the Johnson/Machts claim of the Helmses in the same story, I would probably not be a very good tenant.

When I think of my neighbors, I (a renter) understand that I have a personal stake in whether or not my landlord (or even another one in my neighborhood) chooses good people as tenants, or even people who are just good tenants. Some people might be surprised to hear that it absolutely matters to me (and other renters) that the people living in my building are as courteous to me and my property as I am to them and theirs; that they take pride in our shared spaces by treating them with some care and attention. This matters to me because it directly affects my own sense of security and personal safety, as well as my ability to have peaceful enjoyment of the home and community I am part of. I think there are many renters like me, in spite of there also being those out there who are not. I can say with some degree of certainty, that we (renters), want to be surrounded by good people, regardless of whether they are homeowners, landlords, or renters. I can also say with some certainty that all people share this interest, not just renters.

While I share this same interest with my landlord, one important difference between us is that a landlord is the only person who has control over who he or she rents to.  In this case, it matters less to me whether or not my landlord is a good person, than it does that they are a good landlord. Also unlike my landlord, it takes far more work and creativity with far fewer resources for me (a renter) to research who I should rent from, than it does for the landlord to choose who to rent to.  Landlords have many tools and resources to choose from that assist with legally finding good tenants. The consequences that come from whether or not they choose to utilize these resources, stretch far beyond their own interests; they affect everyone in the surrounding community.

Mr. Brehm in “Anti-crime course required…” seemed pretty confident, in my opinion, that his only responsibility was to himself, and not to his property’s neighbors or to the city, whose job it is to protect both his self-interest as well as theirs. I have no clue whether Mr. Brehm is a good person or a bad person, but his perspective on landlording is one that demonstrates to me (a renter and neighbor) that he might not be a very good landlord.

Once a landlord (the only person who has control over who to rent to), begins to collect rent, he or she is operating as a business. Businesses are regulated by governments in order to protect a variety of interests, because the consequences of operating a business are far greater-reaching than the scope of the consumer and the service provider (the tenant and the landlord). The consequences of problems that arise between landlords and tenants can and do often spill into the larger community, affecting other renters, neighbors, and the localities that spend time and resources dealing with those often messy and persisting problems.

With shared interest comes shared responsibility. We all have a shared responsibility to be well-informed, to take every opportunity to learn how to appropriately and legally protect ourselves from “bad” people, knowing that we will inevitably have to deal with them and the fallout of their actions from time to time (no matter how responsible we may be).  Since none of us lives in a vacuum, the responsibilities that we each take (or do not take) in our own housing situation, no matter what our role is, absolutely matters to everyone around us. So, it is up to us to remember that our only responsibility is not just to “not be bad,” but we all also have a responsibility to be “good.”

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Minneapolis license revocations: Zorbalas & Folger properties

March 28, 2012

Earlier this month the City of Minneapolis won it’s Minnesota Court of Appeals case against landlord Spiros Zorbalas, resulting in rental license revocations for three of his properties. With these three licences set to be revoked, a city ordinance may be enforced that will bar Zorbalas from operating any other rental property in Minneapolis—affecting over [...]

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Preventative tools could curb slumlord cases

February 1, 2012

HOME Line Organizer, Eric Hauge, submitted a terrific opinion article to MinnPost (or click for PDF version) on needed prevention of disastrous living conditions that result from landlord negligence.  City governments are taking serious action against landlords who fail to address major repairs and infestations, allowing their buildings and tenants’ living conditions to fall into [...]

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What’s bugging Mid-west renters these days?

November 22, 2011

A group of low-income tenants in Iowa have taken collective action to sue the management of the properties they live in for damages caused by neglecting a long-term bed bug infestation.  The court has awarded the class action status the tenants sought, which is a positive step forward in helping all tenants in their building [...]

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Tenant Protections at Shingle Creek Survive HUD Final Auction

November 21, 2011

Viewpointe at Shingle Creek Apartments in Brooklyn Center was recently purchased by a local non-profit developer at HUD’s last foreclosure sale.  Read more details in this MN Public Radio story. Tenant protections (including the right to organize and protection from unlimited rent increases) were first threatened in early 2010, when HUD removed them in order [...]

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Winona’s rental restrictions experience growing pains

November 2, 2011

As many know, bursting housing bubbles, foreclosures, and ever-cautious mortgage lenders are all contributing to a tightening rental market. Fewer choices in apartments make those that are safe and decent less affordable. In its efforts to de-concentrate those ‘pesky college-aged renters,’ could Winona’s nimby-inspired rental limitations be failing to accommodate the growing need for decent [...]

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Lindahl Properties in the news again

October 21, 2011

Lindahl Properties own apartments across the metro area, almost all of which have faced scrutiny regarding poor living conditions. See previous coverage on them here. If you are living at an apartment owned by Lindahl Properties where conditions are bad, you have rights that protect your family in this situation. Depending on the circumstances, you may have [...]

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Affordable Housing Highlights in a Dim Recession

September 21, 2011

There is a major short-fall in the availability of rental housing people can afford.  This is not a new problem.  It’s been a growing one for at least a couple of decades, if not longer.  It wasn’t caused by today’s recession, but the country’s economic decline has made it far worse.  As job-loss continues, so [...]

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North Minneapolis renters still troubled by disrepair

August 2, 2011

In addition to many other concerns, many Minneapolis tenants affected by the May 22nd tornado are still facing problems with their housing. In this video posted by the Twin Cities Daily Planet, one resident shares his concerns and frustrations about government officials, non-profits, and the state of disrepair of his mom’s home. (Unfortunately, HOME Line [...]

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