Ernst, Grassley Seek to Protect Affordable Housing Resources for Iowa

WASHINGTON – U.S. Senators Joni Ernst (R-Iowa) and Chuck Grassley (R-Iowa) are working to protect affordable housing resources intended for families in Iowa from being redirected to major cities, like Chicago, Ill., from voucher portability in the Section 8 Housing Choice Voucher Program. The senators are putting forward legislation, called the Rural Housing Accessibility Act, which would protect resources intended for low-income families in Iowa. The bill would require receiving Public Housing Authorities (PHAs) with available funding to financially absorb ported-in vouchers.

Some applicants for assistance from urban areas with long wait lists are moving to Iowa and other rural states to receive vouchers where the wait lists are shorter. These individuals often leave after one year to return back to the community where they previously lived while the PHAs in Iowa continue to cover the cost of the ported vouchers, effectually taking aid away from the constituency it was intended for. In fact, in Iowa in 2020, 12 PHAs found they lost 1,798 vouchers totaling $1,249,270 in a year due to Section 8 portability, according to the Iowa City Housing Authority.

“Resources intended for communities in Iowa should go to communities in Iowa – plain and simple,” said Senator Joni Ernst. “Our measure protects the affordable housing resources intended for low-income families in Iowa communities and those in other rural states so Americans in need have access to that support.”

“Affordable and accessible housing remains an issue in rural communities across the country, including in Iowa. Our Rural Housing Accessibility Act will help ensure low-income Americans, particularly in rural areas, have access to the resources intended for their communities,” Senator Chuck Grassley said.

The Rural Housing Accessibility Act has the support of the City of Sioux City, the Iowa NAHRO (National Association of Housing and Redevelopment Officials), the Upper Explorerland Regional Planning Commission, and the East Central Intergovernmental Association/Eastern Iowa Regional Housing Authority.

Robert E. Scott, City of Sioux City Mayor, said: “The City of Sioux City, Iowa supports Senator Joni Ernst’s proposed legislation, the Rural Housing Accessibility Act. Loss of vouchers through portability has reduced our local impact on community poverty and homelessness and created a loss of revenue for property owners that participate in the Section 8 Housing Choice Voucher Program. This bill would amend portability rules for the Housing Choice Voucher Program by requiring certain public housing authorities to absorb port-in vouchers and limit billing beyond 12 months to initial public housing agencies. This bill would keep administration dollars in the Iowa public housing agencies’ jurisdiction to operate the Housing Choice Voucher Program and serve our communities’ most vulnerable and disadvantaged households.”

Marty Ryan, Iowa NAHRO President, said: “As current Iowa NAHRO President and Executive Director of multiple Public Housing Agencies in Iowa, Iowa NAHRO supports Senator Joni Ernst’s proposed legislation, the Rural Housing Accessibility Act.  The Section 8 Housing Choice Voucher funding of Housing Assistance Payments (HAP) and administrative fees that each housing agency’s jurisdiction receives is impacted by the current portability rules and regulations that allows indefinite billing arrangements that sometimes are two to three times the average HAP costs of Iowa PHA's. With this bill, it would limit billing arrangements to a maximum of 12 months to Initial PHA's and require certain PHA's to absorb port-in vouchers. The reduction of available dollars within each PHA's jurisdiction impacts our most vulnerable population of the elderly, disabled and families with children.”

Rachelle Howe, Executive Director of the Upper Explorerland Regional Planning Commission, said: “Upper Explorerland Regional Planning Commission (UERPC) is in full support of the Rural Housing Accessibility Act. Our agency has been greatly affected by families and individuals temporarily moving to our jurisdiction and benefitting from our shorter wait list. In turn, the families are quickly eligible to request portability and transfer their assistance to a larger city where the cost of rental rates are double or three-times more than rural rental rates. At that point, the larger cities’ do not absorb these families and invoice UERPC for their rental assistance. Therefore, UERPC is not able to assist as many families that want to reside in our region. It directly takes away from the residents that want to work and live in Northeast Iowa.”

Michelle Schnier, Director of Housing and Support Services at the East Central Intergovernmental Association/Eastern Iowa Regional Housing Authority, said: “The receiving PHA housing assistance payments (HAP) are, on average, higher than the state of Iowa. An example of this is we currently have one family that has ported to Minnesota with a HAP of $1,983 per month. The net result is over 4 times higher than our average HAP, causing four less families in the state of Iowa to receive assistance per month. With over 3,800 families on the wait list, coupled with the lack of affordable housing, it causes a hardship for the families in the state of Iowa to receive assistance when they most need it. The EIRHA fully supports the Rural Housing Accessibility Act, sponsored by Senator Ernst, which would require certain PHA’s to absorb port-in vouchers and limit billing initial PHA’s beyond 12 months.”

The Rural Housing Accessibility Act directs the Department of Housing and Urban Development (HUD) to require receiving PHAs with adequate funding available to absorb all port-in vouchers. The bill mimics a 2012 HUD proposal, requiring PHAs that (1) utilize less than 95% of their available budget authority, and (2) have leasing rates under 95%, to “absorb incoming portability families until the percentage of available budget authority used or the leasing rate is at least 95 percent.”

It would also limit billing to initial housing agencies to a maximum of 12 months. Without imposing any new restrictions on portability for voucher recipients, this bill would protect resources intended for rural communities and help address some of the housing challenges facing rural America.

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