Property Grunt

Friday, December 18, 2009

This is bad or good. Depending on who you are.

Snafu may overfill city shelters, rendering 3,000 subsidized housing vouchers worthless

NYCHA Chairman John Rhea Thursday blamed the move - which could push thousands into the city's already crowded shelters - on Congress, a lower-than-usual attrition rate in the program and unprecedented demand.

"NYCHA has had to make the tough decision," Rhea said.

The decision will not affect families who already receive subsidies, but the agency will "not be issuing any new vouchers, period," he said.

More than half the vouchers - 1,833 - had been given to families and individuals who were once homeless.

This is going to have some really nasty consequences. Expect a lot more homelessness and if they aren't stretched to their limits, shelters and other forms of aid are going to be overwhelmed.

If there is a bright side to this situation it shines on landlords who won section 8 housing. Although they are considered to be a difficult to manage, section 8 housing has the advantage of having an uninterrupted source of cash flow courtesy of Uncle Sugar. We are talking milk money straight from the teet.

A landlord with section 8 housing will probably have an easier and more profitable time cashing out.