LMHA changes will raise costs for Section 8 voucher households

LOUISVILLE, Ky. (WAVE) — Louisville residents receiving Section 8 housing vouchers will soon face higher utility costs and, in some cases, increased rent.

Louisville Metro Housing Authority (LMHA) Executive Director Elizabeth Strojan said the changes are necessary to avoid a major funding shortfall.

“Right now, our projected deficit could exceed $10 million,” Strojan said. “That’s roughly one month of payments to landlords from LMHA. Each month, we pay between $10 and $11 million in Section 8 assistance. Without these changes, we would have to terminate a significant number of vouchers.”

According to LMHA, about 3,300 households will begin paying more for utilities to ensure that none of the roughly 11,000 current voucher holders lose their assistance.

Louisville Mayor Craig Greenberg attributed the changes to cuts in federal funding.

“It’s incredibly unfortunate,” Greenberg said, “that due to federal funding reductions through HUD, LMHA has to implement these changes.”

The updates also include a new minimum monthly rent of $50 for some residents.

“That means individuals currently paying less than $50 may see a slight increase,” Strojan said. “Those paying no rent may now pay $50. This is a common policy, as most housing authorities already have a minimum rent requirement.”

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