U.S. Sen. Mike Rounds (R-SD) joined his home-state colleague U.S. Rep. Dusty Johnson (R-SD) in urging the U.S. Department of Housing and Urban Development (HUD) to ensure affordable housing units in rural communities.
A newly implemented asset limit under the Housing Opportunity Through Modernization Act of 2016 (HOTMA) for Section 8 Project-Based Rental Assistance and Section 202/8 programs has raised significant issues, especially in South Dakota, according to a June 26 letter that Sen. Rounds and Rep. Johnson sent to HUD Acting Secretary Adrianne Todman.
“Since the implementation of HOTMA, property owners have reported potential adverse effects, including the eviction of long-term tenants who have been deemed eligible for many years,” wrote the lawmakers. “These tenants are now forced to reduce the value of their assets or find alternative housing, creating undue hardship.”
They pointed out that in South Dakota, there are 35 public housing authorities (PHAs), 26 of which have low-rent housing units directly impacted by the new asset limitation.
“Mandatory implementation of the asset limitation for all new tenants will impact the occupancy rates of PHA units in these rural communities,” the lawmakers wrote. “Increased vacancies will, in turn, affect the financial feasibility of these housing authorities.”
They requested that HUD consider waivers for low-rent housing units located in rural communities with populations of 5,000 or less that would allow the tenants to reside at the property while being charged market rent, provided there are no eligible tenants available to occupy the unit.
Such waivers also would allow PHAs to maintain a viable housing option in rural communities, according to their letter.
“By allowing these waivers or exceptions, we can make certain our rural communities maintain access to necessary housing resources, preserving the stability and viability of these critical housing options,” the Republicans wrote.