Navigating Public Housing: Government Shutdown Survey Results

FEBRUARY 2019 | ISSUE NO. 11

WE ASKED, YOU ANSWERED: HOW THE GOVERNMENT SHUTDOWN IS AFFECTING PHAs

NOTE AT THE TIME OF THIS ISSUE'S RELEASE, THE GOVERNMENT HAD TEMPORARILY REOPENED.

This month, we take a look at the longest government shutdown in history and how it is affecting the very thing the government requires of you: Providing housing that is decent, safe, sanitary and in good repair.

Navigate Affordable Housing Partners sent out an 11 Question, Three-minute survey. Unfortunately, only about 30 people responded. Still, what they have to say is very important. We thank you for participating!

The survey is still open and will be for another two weeks.

Maybe by then, the threat of another shutdown has passed.

How likely is your PHA to run out of funding if the shutdown is not resolved by the end of February?

Not At All Likely 20.7%

Extremely Likely 41.4%

Not So Likely 17.2%

Very Likely 10.3%

Somewhat Likely 10.3%

According to the National Low Income Housing Coalition, if the shutdown is not resolved by the end of February, the U.S. Department of Housing and Urban Development's Operating Fund will run out of money. This is a "critical program, which serves 1.1 million of the nation's lowest income households."

In essence, "PHAs may not be able to provide safe and affordable housing for residents." This is a central mandate for Public Housing Agencies, now on the verge of being unfunded.

Does your PHA have enough reserves available to fund operations through March?

66%

34%

"We are looking at the possibility of a loan from the City to pay March HAPs, but this most certainly could not continue for more than one month."

-anonymous PHA

Our PHA is concerned we may have to cut back on services if the shutdown continues.

Disagree 4.2%

Strongly Disagree 8.3%

Our PHA has postponed capital improvements until the shutdown can be resolved.

Strongly Disagree 14.3%

Strongly Agree 9.5% Agree 9.5%

Neither 16.7% Strongly Agree 54.2%

Agree 16.7%

Disagree 38.1%

Neither 28.6%

WERE YOU PREPARED? Some say they were prepared. Furloughs are on the horizon for others...

The Navigate Survey asked "How did your PHA prepare for the shutdown?" Here are some of the answers.

"Accumulating reserves over the years, a rainy day fund..."

"We contacted our HUD office to determine the number of months for which funds would be front loaded" "Having been fiscally conservative" "We have not" "Our PHA has prepared for the shut down by convening with local banks to discuss gap financing in the event that the shutdown extends beyond our capacity to fund programs" "We have had several meetings with employee's about funding, and have put together an action plan should this still be going on in March."

"We have always been a High Performing PHA and we put reserves away years ago for any type of emergency."

"We did not prepare."

"Adjust Spending" "Notifying staff and residents. Communicating with our banks and brokers" "We are starting furloughs of employees within a week and sending letters and emails to landlords and tenants."

"Nothing specific, we have reserves" "We didn't do any preparations."

"In the planning process."

#TuesdayTip: How the Government Shutdown Affects Multifamily housing

"Our priorities are tenants, landlords and employees" -anonymous

tips for Getting Through it

We also asked how PHAs were adjusting their priorities through the shutdown. One person's answer?

"Somewhat difficult to make adjustments on speculations" This displays the frustration many may feel right now.

Another agency says they are doing three things specifically: Examining the PHA's financial situation Preparing the Community for the "worst case scenario" Prioritizing the most essential programs for as long as possible

Communication is King It appears PHAs are making sure they communicate with their staff, residents, landlords, etc "We are making sure Landlords and participants are aware that if not funded by the end of February that all will be delayed but will be retro once back up" "We have let Section 8 landlords know that there will not be funding HAP for March" "We emailed the Section 8 landlords and put a notice on the Housing Authority website regarding the affects of the shutdown"

"How likely is it your PHA will be able to pay landlords in the Housing Choice Voucher Program on March 1 if the shutdown is not resolved?"

30

10

y nl ik

el

el y

y

U

ik Ve r

tU ha ew

So m

U nl

ly ik e nl

er /N th N ei

el ik tL ha ew

So m

or

y

y el Li k

Li ke

ly

0 y

Forty-eight percent say their PHAs will likely not be able to pay. Another 41.39% said that's unlikely to be the case for them. A little over 10% were in the middle.

20

Ve r

When you add it all up, close to half of respondents say paying HCV landlords is going to be an issue without some sort of resolution in Washington, D.C.

Comments from PHA Professionals: "We can keep the doors open and lights on but we can't pay landlords. We will begin to permanently [lose] those critical partners."

"We have funds to pay HAP in March.

Not in April."

"This process is out of our control. One day at a time."

ANXIOUS EMPLOYEES 70% SAY THEIR PHA EMPLOYEES ARE AFRAID THEY WILL LOSE THEIR JOBS ABOUT 70% OF YOU WORRY CUTBACKS MAY BECOME NECESSARY

Did you know most American workers live paycheck to paycheck?

"We are starting furloughs of employees within a week.."

-anonymous PHA A 2017 CareerBuilder survey found that 78% of U.S. workers live paycheck to paycheck.

"As an employer, your employees' financial problems become your financial problems," said Rosemary Haefner, chief human resources officer for CareerBuilder. "If workers are constantly thinking about their financial struggles, their quality of work can decrease, and it can take a hit on their morale and productivity."

The fear of losing income to the shutdown only compounds the anxiety. Haefner suggests doing things like hosting financial planning seminars to help employees keep their finances under control.

If your PHA is considering furloughs, look at putting together a list of resources to help your workers can take advantage of in the community like food banks and financial assistance.

TRANSPARENCY.. AND A PLEA We received an Auto-Respond Email from one PHA which included the following message.

"All concerns regarding the government shutdown; [redacted] has funding to pay housing assistance for 2/1/2019. Please feel free to contact your state representatives regarding your concerns."

This is a good example of providing information and offering peace of mind while also asking the recipient to take action.

residents are worried, too "Our residents have expressed concerns about how the government shutdown will affect their housing."

50

REMINDER 40

AT THE TIME OF THIS ISSUE'S RELEASE, THE GOVERNMENT HAD

30

TEMPORARILY REOPENED. 20

LAWMAKERS HAVE UNTIL FEBRUARY 15 TO REACH A DEAL AND AVOID

10

ANOTHER SHUTDOWN. 0

Strongly Agree

Agree

Neither/Nor

Disagree

Strongly Disagree

DIGITAL COMPLIANCE YOU CAN TRUST

Count on the Triple-Check Advantageâ„¢ Navigate has the technology and the expertise to keep your Compliance Department on the right track.

C O N TACT U S : EBONY HALL 888-466-5572 EXT. 2797 NAVIGATEHOUSINGCONSULTING.COM

HEADQUARTERS: Birmingham, Alabama

OFFICES: Connecticut, D.C., Mississippi, Virginia