At 4:28 today, about a half hour before the two meetings Housing Committee and Economic Development Commission were scheduled to discuss this very issue, the mayor sent out this email confirming what I was thinking might – and its still a might – happen:
Dear Colleague:
I’m writing to keep you abreast of fast-moving developments in the Section 8 funding situation.
Last Friday, July 31, HUD announced that $30 million would be made available to housing authorities nationwide to address shortfalls in the 2009 funding for Section 8. On Monday, CDA received a specific invitation from HUD to apply for up to $600,000 in “extraordinary administrative fees” to close the funding gap in Madison. CDA submitted a letter yesterday, August 4, to officially request that funding.
While we have learned not to count on funding before it is confirmed, the indication now is that CDA will receive funds from HUD to close the gap in this year’s budget. This news should allow the City of Madison to avoid using the Affordable Housing Trust Fund as a temporary stopgap for the program and preserve the integrity of the Fund.
CDA anticipates using the funds to restore subsidy levels to previous levels.
This represents a significant victory for the cause of affordable housing in Madison and it would not have come about without the efforts of Rep. Baldwin and her staff as well as the support of Sen. Kohl and Sen. Feingold. Please join me in thanking them.
I would also like to commend the CDA staff who have been working diligently to help solve this problem, and last but not least, a special thank you goes out to Alders Schumacher and Maniaci who have steadfastly worked to support the residents of Madison.
We will keep you informed of further developments as they arise. Committee Chairs, please share this important information with members of your committees who may not have access to email.
