Government Shutdown Threatens HUD-Subsidized Rental Assistance Payments for Landlords

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HUD Secretary Scott Turner wears a stern expression as he sits through tense discussions on housing assistance during the government shutdown.

The Docket

  • HUD rental subsidy payments will continue through October using previously obligated funds, but face suspension if shutdown extends beyond 30 days
  • Over 1,000 Housing Assistance Payment contracts went unrenewed during the 2019 shutdown
  • Property owners with expiring contracts face immediate financial risk as HUD operations freeze with skeleton staff only processing existing obligations

WASHINGTON — Landlords receiving rental payments through U.S. Department of Housing and Urban Development programs face growing uncertainty as the government shutdown that began last night threatens to disrupt subsidy payments that keep thousands of low-income tenants housed.

The shutdown, triggered by Democrats’ demands for expanded health-care tax credits, has placed HUD’s Housing Choice Voucher program and project-based Section 8 contracts in jeopardy. While payments are expected to continue through October using existing funding, housing policy experts warn that a prolonged impasse could leave property owners without federal rent payments by mid-November.

“The Radical Left in Congress shut down the government. HUD will use available resources to help Americans in need.” – Secretary Scott Turner, HUD.gov website

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