Housing authority faces federal funding cuts
The Fayette County Housing Authority is staring at a 30 percent cut in federal operating subsidy that would force layoffs and short-circuit ambitious makeover plans, Executive Director Thomas L. Harkless said Tuesday. The FCHA would lose $1.7 million of its anticipated $5 million operating subsidy starting July 1 if across-the-board cuts enacted by the U.S. Department of Housing and Urban Development go into effect, Harkless said.
“This is a significant blow to this housing authority,” said Harkless. “You don’t see me doing this very often, but what I’m saying is that the sky is falling. This will slide us back tremendously.”
Harkless said that if nothing is done to restore at least some of the funding, the authority might have no choice but to pare its payroll. “We have 100 people that are employed here. Which 30 are going to be laid off?” he asked.
The proposed cut in operating subsidy, which is essentially money that HUD forks over to pay for the authority’s operation, including salaries and benefits, comes on top of last year’s 20 percent cut in the authority’s Capital Grants Program. Harkless said the FCHA’s share of that program, which basically pays for renovation and remodeling of public housing units, was already sliced by $700,000, to $3.2 million.
Additionally, Harkless said the authority has already lost more than $500,000 through abolition of HUD’s Drug Elimination Grant Program, which paid for prevention efforts, after-school programs and beefed up security measures.
All together the authority is looking at a $3 million loss of federal funding within the past year or so, said Harkless, who added that negative fallout is inevitable. He said the most recent cut could derail the authority’s ambitious plan to demolish 255 housing units and reconfigure others to make them more attractive.
“This is too close to the bone. This is devastating and it will affect everyone – the rich, the poor and everyone in between,” said Harkless. “We might not be able to do any more remodeling like we’re doing on Coolspring Street (in Uniontown).”
There, the FCHA is completely remodeling some of its buildings at an approximate cost of $90,000 per housing unit.
Harkless said the authority’s demolition/renovation plan, designed in part to help lower a persistent 23 percent vacancy rate that totaled 402 vacant units in December, could grind to a halt. He said that makeover plan could pump an estimated $50 million into the local economy in the next five to seven years.
Board Chairman Kenneth L. Johnson said that if the most recent cut becomes reality, the authority may have to rework its 5-year management plan to be more in line with the lowered federal operating subsidy.
Harkless said he’s authored a letter to U.S. Rep. John Murtha (D-Johnstown) asking for emergency supplemental funding to “avert an unprecedented financial crisis in public housing.” Board members suggested he send the same letter to U.S. Rep. Bill Shuster (D-Hollidaysburg), who represents part of Fayette County.
“This action will force every PHA (Public Housing Authority) in the nation, including Fayette County Housing Authority, to lay off workers, close units, reduce maintenance and/or cut services,” wrote Harkless.
Harkless added that the FCHA serves 4,684 residents, including 724 senior citizens and 980 families that have a disabled family member.