The accountant for the Hoboken Housing Authority warned of serious budget pressures looming for the public housing agency after the U.S. Congress significantly underfunded its public housing commitments in this year’s budget.
At the July meeting of the HHA Board of Commissioners this past Thursday, accountant William Katchen warned that the agency, which manages around 1,300 low-income apartments mostly concentrated in the city’s southwest, was slated to be “funded at a level of 83 percent of what you’re entitled under the public housing program,” or a $1.25 million drop compared to last year.
The HHA is overseen by the U.S. Department of Housing and Urban Development and receives a major portion of its funding from HUD. Federal low-income housing vouchers used to subsidize rents in Hoboken were not hit directly this year, although the funding given for administrative costs pertaining to the voucher program was cut by around $40,000.
“I didn’t think the Housing Authority is really in a position to be giving out money to other people.”—Dana Wefer
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The 2015 fiscal year budget for the HHA, passed after interim Executive Director Robert DiVincent took control of the agency last October, was balanced, but DiVincent said the board had to be realistic and prepare for a modest loss this year, barring a change on HUD funding, which is not finalized until September.
“You’re really running uphill in terms of trying to generate at least a break-even budget,” echoed Katchen.
Already, the HHA Board has begun examining ways to keep the losses as low as possible. For example, the Authority typically gives an annual grant in the ballpark of $10,000 to the Jubilee Center, a local non-profit that provides afterschool programs and services for low-income children, but this year, HHA Board chairwoman Dana Wefer – who will be running for 4th Ward council this fall – said she was not in favor of giving that amount.
“In my view,” she said, “I didn’t think the Housing Authority is really in a position to be giving out money to other people when we’re in such desperate need of it ourselves. It’s a very difficult position to take because it’s obviously a cause we want to support.”
Wefer said she was open to discussing giving a smaller grant or providing non-material support, such as letters of support for applications for grants from other sources made by the Jubilee Center.
A grant to the Jubilee Center was not included in the budget approved Thursday, and would therefore increase the HHA’s deficit further if given.
Carlo Davis may be reached at cdavis@hudsonreporter.com.