The Town of Hempstead left $1.3 million in federal housing subsidies untouched in recent years, despite long waiting lists for the aid, according to Newsday.
The U.S. Department of Housing and Urban Development provided $19.7 million to Hempstead’s Department of Urban Renewal for Section 8, or “Housing Choice,” vouchers between 2014 and February 2020. The town is responsible for distributing the funds to low-income, elderly and disabled residents in need of assistance. Hempstead gave out $18.4 million.
In the meantime, the waiting list for housing subsidies grew to more than 3,500 households, according to Newsday.
U.S. Rep. Kathleen Rice (D–Garden City) called for a federal investigation last week into the town’s housing subsidy program.
Under the Section 8 voucher program, individuals or families find and lease a housing unit and pay a portion of the rent. Voucher amounts are based on fair market rents for the area, which are calculated by the Department of Housing and Urban Development.
Federal guidelines dictate that public housing agencies spend all of their funding in order to provide housing for as many people as possible. In 2019, the federal government cut the town’s Section 8 aid to penalize Hempstead for its large reserves pool, according to the department.
The unused money went into the town’s Section 8 reserves account.
Efforts to reach Hempstead town officials were unavailing.
