Public housing, home to over 36,000 low-income people Minnesota, is owned and operated by 124 local public housing agencies statewide. Residents pay 30% of their income for rent. The balance of the operating expenses (e.g. maintenance, utilities, salaries) is supposed to be paid for by the federal government. Capital costs (e.g. rehabbing or replacing units) are also, in theory, covered.
Advocates agree that Congress should provide public housing the operating and capital funds needed to operate and maintain quality public housing. Annual amount needed to operate the existing public housing nationwide is estimated at $5.5 billion. Unfortunately, this is the 5th year in a row that housing agencies have received less than 90% of their HUD-determined operating need. In addition, our nation’s aging public housing stock is in need of at least $22 billion in repairs; Minnesota’s public housing requires between $400 million and $500 million in repairs.
November ’09 Update: In a step in the right direction, legislation has passed the House and Senate that would increase funding for the public housing operating and capital costs. The House proposes $4.8 billion for operating funds – $345 million above the FY09 number. The Senate legislation proposes $4.75 million. Both the House and Senate legislation would provide $2.5 billion for the public housing capital fund which is $50 million more than FY09 funding levels.
For more information, visit:
- Public hsg program basics published by CBPP
- Challenges for Public Hsg in MN published by MN Housing Partnership
