A contract for federal assistance at a Chattanooga public housing complex is set to expire this week.
With the federal government shut down, staff at the U.S. Department of Housing and Urban Development haven’t been able to work on renewing the yearlong contract, said Curtis Lokey, finance director for the Chattanooga Housing Authority.
That means when the calendar turns to November, the gap left by those subsidies at Dogwood Manor will need to be covered with money from the housing authority’s central office, Lokey told members of the authority’s board Wednesday.
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“We hope this shutdown gets resolved so they can load in the money for the next year,” Lokey said at the meeting.
Tenants in the 136 units at Dogwood Manor shouldn’t feel any difference themselves, Lokey said, and will continue to pay the same amount of rent they pay with the subsidies. That’s typically 30% of a tenant’s income, according to federal guidelines.
Dogwood Manor is the only public housing facility in Chattanooga facing immediate effects from the government shutdown, Lokey said, since each property has a different timeline for its HUD contract.
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Contracts for subsidies at Mary Walker Towers, Boynton Terrace and the Fairmount Avenue Townhomes are set to expire at the end of November, Lokey said.
Money to cover the gap will come from revenue the housing authority has earned from things like property management, grants, administrative fees and developers’ fees, he said.
“Central office earns these fees annually, and it’s also accumulated cash over the years for this type of moment,” Lokey said.
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The cash on hand for specific properties includes three months’ worth for Mary Walker Towers, eight months’ worth for Boynton Terrace, 16 months for Greenwood Terrace and 17 months for Fairmount Avenue, Lokey said.
“Dogwood doesn’t have any months, which is something we need to look at during our budget process for next year,” he said.
Board members are set to talk about next year’s budget at their Dec. 9 meeting. On Wednesday, they reviewed a printed list of properties potentially affected if the government stays shut down.
“Hopefully we can throw this away in a couple weeks,” board chair Jim Levine said.
“I was hoping maybe before this meeting,” Lokey said.
Contact growth reporter Ellen Gerst at egerst@timesfreepress.com or 423-757-6319.