The Housing Authority of the City of Los Angeles (HACLA) has paused processing housing applications for 3,300 families due to federal funding reductions in the Section 8 program, the agency announced.
The Section 8 program helps to keep rental housing affordable and to fight overcrowding and homelessness.
The decision comes amid ongoing financial uncertainties, though HACLA said it remains committed to ensuring that current voucher holders and families receiving housing assistance are not displaced.
“The economic and human impact of these funding gaps cannot be overstated. Without additional resources, Los Angeles could see increased housing instability, affecting thousands of families, property owners, and the broader community,” a news release said.
According to the agency, nearly $800 million is brought into the local economy through rental payments to private property owners and developers on behalf of the program participants.
HACLA warns that budget uncertainties could affect over 13,000 property owners who rely on these subsidies to maintain stable housing for tenants.
The local authority is funded by the federal government and told the L.A. Times that it doesn’t expect Congress to provide enough cash this year to maintain current operations.
HACLA continues to actively seek funding solutions with compassion and urgency to minimize the impact, knowing that housing stability is critical for the well-being of families and communities.
It also continues the progress that we have made as a region in reducing housing insecurity and homelessness.
