Bacon's Rebellion

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Virginia Very Low Income Housing Voucher Waiting Lists are Closed

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sherlockj
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SeaView Lofts apartments in Newport News

by James C. Sherlock

Some things don’t change that should.

Or don’t change fast enough to keep up with markets.

Which means they will fail.

From Virginia Housing’s discussion of the Housing Choice Voucher Program

The Housing Choice Voucher Program is the federal government’s major program for assisting very low-income families, low-income families, the elderly, and the disabled to decent, safe, and affordable housing in the private market.

Housing assistance is provided on behalf of the family or individual, and allows you to find housing (single-family homes, townhouses, mobile homes, and apartments) that that [sic] fits your needs.

Or not.  From the Housing Choice Voucher Waiting List Portal

We are sorry, but none of Virginia Housing waiting lists are currently open.

That is the list for the entire Commonwealth.

The program is broken. So, what is going on?

This is not the first time I have written about this issue. One was bad. Another showed a promising innovation.

But for Virginia landlords, the light is not worth the candle. They do not sign up in sufficient numbers to fulfill demand. Not even close.

A review of the Resources for Landlords page provides a clue. Since it is a federal program, there are a lot of paperwork and inspection requirements, but that would not prove an issue if the prices were right.

The current prices paid are federal fair market rents. The effective date of those rents is listed as 10/1/2021.

Landlords make individual decisions about risk/reward. And clearly they won’t sign on in sufficient numbers to the program at those prices.

To get a feel for the Virginia rental housing market since October 2021, we need look no further than the Virginia Realtors Multifamily Market Report for Q1 2022.

Across Virginia, apartment vacancy rates have reached historically low levels and rents are increasing at double-digit rates.

The pace of new apartment construction has ramped up in many local markets, though deliveries have been slow since the middle of 2021. A growing renter population is expected to fuel a hot rental market in the year ahead.

Bottom line.

Rates fixed 18 months ago. Hot rental market.

Those add up to a federal program promise unfulfillable in Virginia. It offers to assist:

very low-income families, low-income families, the elderly, and the disabled to (find) decent, safe, and affordable housing in the private market.

It is the right program. Government housing has not worked. But rates simply cannot be 18 months old in a dynamic market. I will ask to interview the Virginia Housing leadership to see what ideas they may have.

The Virginia Housing Commission is holding its next meeting April 12. I have asked the Executive Director, Elizabeth Palen, to consider this matter for the agenda.

But it is a federal program administered by Virginia and Virginia local organizations.

Consider this.  All of the employees responsible for this program at the federal, state and local levels are getting paid, and no vouchers are going out the door.

Virginia has two U.S. Senators and eleven Representatives in the U.S. Congress.

A review of the Housing Choice Voucher program is worth their time. And ours.

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Comments

28 responses to “Virginia Very Low Income Housing Voucher Waiting Lists are Closed”

  1. WayneS Avatar
    WayneS

    But does Virginia Housing have a proof-reader?

  2. John Harvie Avatar
    John Harvie

    Back in the ’80s I worked for 10 years as a contractor for VA Beach dept of housing and the Section 8 list was almost always closed. Nothing new to see here.

    1. James C. Sherlock Avatar
      James C. Sherlock

      Something new to do here, though. “Always been that way” is not worthy answer.

      1. John Harvie Avatar
        John Harvie

        Agree. My post must have been misunderstood.

  3. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    As I understand it, housing starts have never recovered from the drop in construction during the Great Recession. Thus, demand greatly exceeds supply.

    It would be interesting to know the impact of illegal immigration on demand for low-income housing. On one hand, unauthorized workers are filing many construction jobs, especially on the lower skill side. But adding lots more poor people looking for cheaper housing has to be pushing up prices for those low-income people already living here.

    1. James C. Sherlock Avatar
      James C. Sherlock

      Good point on occupancy. But I must disagree on labor costs. The costs of skilled labor of any kind have soared.

    2. Eric the half a troll Avatar
      Eric the half a troll

      So labor for new construction is lower but prices are up. Who is pocketing the difference…?

      1. f/k/a_tmtfairfax Avatar
        f/k/a_tmtfairfax

        Costs of construction are only one factor in the price of homes. The largest builder in our new subdivision kept hiking prices last year as demand in the Triangle was strong. It’s had to reduce prices several times on a couple of homes that have not sold even though construction costs are still increasing. That builder has also stopped construction on two other homes due to slowing demand.

        1. Eric the half a troll Avatar
          Eric the half a troll

          There are many parallels between the oil and gas industry and real estate. Both (through their own greed) create great boom and bust swings which ripple through our overall economy to the detriment of everyone else. They are used to it (even plan for it) we are the victims.

  4. Paul Sweet Avatar
    Paul Sweet

    Unfortunately a lot of contractors, subcontractors, and suppliers went belly-up during the recession. More workers are reaching retirement age than new workers are being trained. I believe new housing starts are half what they were before the recession.

    Environmental and other regulations have tightened significantly, adding yet more cost to new units.

    1. James C. Sherlock Avatar
      James C. Sherlock

      That is also true. The federal vouchers need to pay sufficient prices to attract supply. Conversions of properties not previously residential need to be part of the solution, including failing shopping malls.

  5. vicnicholls Avatar
    vicnicholls

    Capt when you have these idiots who keep raising our assessments, the real estate property tax, the personal property tax rate, write > 34000 tickets in a year, and that’s not including other stuff, there is going to be no more housing for the middle class on down.

  6. Monica Wright Avatar
    Monica Wright

    My spouse and I own rental property. We would happily rent to a stable, low-income renter with a voucher *IF* the rent paid would be the equivalent of market rate in the area. Vouchers in the area max out $200 under market for the home.

    1. James C. Sherlock Avatar
      James C. Sherlock

      Thank you, Monica. My point exactly.

    2. f/k/a_tmtfairfax Avatar
      f/k/a_tmtfairfax

      Uncle Sam could also spur more rental properties by allowing small (and I mean small) owners to deduct real estate losses against other income. Make up the difference by taxing nonprofits engaged in influencing public policy.

      1. Eric the half a troll Avatar
        Eric the half a troll

        “…taxing nonprofits engaged in influencing public policy.”

        Start with The Church…

        1. f/k/a_tmtfairfax Avatar
          f/k/a_tmtfairfax

          Agree. If it were up to me, any nonprofit that spends money to influence public policy or public opinion would be subject to FIT. From the Chamber of Commerce to the AFL-CIO, to the Heritage Foundation, to the Ford Foundation, to the ACLU, churches, synagogues, mosques, temples and the like. And that should include any nonprofit that has an affiliate involved in influencing public policy or opinion.

  7. Eric the half a troll Avatar
    Eric the half a troll

    So we need more investment in so-called “welfare” programs if we are going to continue to improve our record against poverty in the US. Good. Of course, the so-called “free market” will just increase rental prices in response and we will be right back where we started with landlords pocketing more in profit.

    1. James C. Sherlock Avatar
      James C. Sherlock

      I don’t advocate for more welfare programs. I advocate for whatever programs the government offers to work. Progressives just want them to be and don’t enquire about their efficient and effective operation.

      This one is broken, and no one in the federal government who sponsors it cares. Consider this. All of the government employees responsible for this program at the federal, state and local levels are getting paid, an no vouchers are going out the door.

      Landlords, like everyone else, charge for what they have to sell at market rates.

      1. Eric the half a troll Avatar
        Eric the half a troll

        You agreed with Monica above that they need to increase the value of the vouchers. That is (according to the Right) an increase in “welfare spending”. Landlords charge as much as they possibly can get away with. Increase the vouchers, they will increase their rents in response. Freeze what they can charge in rent and it may help.

        “ …an no vouchers are going out the door…”

        I think there are vouchers going out the door. Just no new slots available.

  8. walter smith Avatar
    walter smith

    As Monica pointed out, the vouchers do max out $2-300 under market, and some utilities. But most/many can handle $300 monthly. As noted, the fed rate being set 18 months ago is “problematic,” and on purpose.
    Years ago in the double digit mortgage rate world, I had an adjustable and the interest rate world had finally cracked and rates were down. I was expecting a significant drop.
    Instead it remained flat, because while all of these adjustable were set by the rate of the FHLBB on April 1, the FHLBB did not adjust its rate until April 2. Govt can play lots of games. Maybe block grant the money and some authority to the States on sett8ng market rates. Or you could try less govt intervention in housing, and energy, and social programs…
    How about going back to married two parent family model…

    1. Eric the half a troll Avatar
      Eric the half a troll

      “How about going back to married two parent family model…”

      …and the associated higher poverty rates…?

      1. walter smith Avatar
        walter smith

        Uh huh. How about the associated higher incarceration rate. The higher drop out rate. The higher school behavior problem and costs. You and Larry are oblivious to reality. Actually, I think you may be paid to waste everybody’s time and plant deceptive lies…

        1. Eric the half a troll Avatar
          Eric the half a troll

          Drop out rates are down since 1970. Incarceration rates are off since 2010. Both counter to single parent household trends… https://uploads.disquscdn.com/images/7dec2aba8819a73de5713d06b247e9c779144d9bb5456c52db2b9e250eac36d8.jpg https://uploads.disquscdn.com/images/00e36d57494cf85acffe446b67c3f66a0a19f7b706729bac7e109ba3f74df96c.jpg

          1. walter smith Avatar
            walter smith

            As usual, meaningless stats. Could incarcerations be down because of the stupid people who advocate defunding the police? Or the DAs who reduce felonies to misdemeanors or just fail to prosecute? Dropout rates has what to do with illegitimacy? Maybe the dropout rate can go down while the illegitimate rate remains constant… And 2017 is forever ago in terms of relevancy. And, it is also possible of dropping out before 15. Let’s also not forget the possibility the stats are bad…

          2. Eric the half a troll Avatar
            Eric the half a troll

            Oh, there can be many explanations for the fact that there is negative correlation with single parent household trend and crime and poverty rates. I never claimed causation. You did however, wrongly apparently, with ample cognitive bias on display.

            Also:
            “Dropout rates has what to do with illegitimacy?”

            You are the one who brought them up:

            “How about the associated higher incarceration rate. The higher drop out rate.”

            … but apparently they have nothing to do with each other….

  9. f/k/a_tmtfairfax Avatar
    f/k/a_tmtfairfax

    Businesses that cannot recover their costs from revenue aren’t going to make investments.

    https://www.bisnow.com/national/news/multifamily/apartment-sales-plunge-as-depressed-values-cost-of-financing-stops-deals-in-their-tracks-118383?utm_source=outbound_pub_2&utm_campaign=outbound_issue_66296&utm_content=outbound_link_3&utm_medium=email

  10. Super Brain Avatar
    Super Brain

    Waiting lists have been closed nationwide for years. Vouchers simply do not turn over. Congress changed the Annual Contributions Contract to a fixed amount rather than fund x amount of vouchers. Nothing new except the new House wants to cut the program.

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