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August 6, 2013

Housing agencies ask landlords to cut low-income rent

Facing federal funding cuts, some local housing agencies are asking landlords to lower their rent for low-income Section 8 tenants, many of whom are seeing the value of housing vouchers reduced this year.

The Maine Public Broadcasting Network reported the automatic federal budget cuts, known as sequestration, are raising challenges for Section 8 tenants and landlords across the state. This year, MaineHousing, which covers areas without local housing authorities, lost $1.3 million as other agencies also have seen funding cuts.

Brit Vitalius, president of the 200-member Southern Maine Landlords Association, told MPBN that the Section 8 reductions have raised frustrations with landlords in the group, about a quarter of whom he said have or have had Section 8 tenants. Earlier this summer, landlords in Westbrook received a request to consider rent reductions for their tenants as a way of dealing with the cuts.

Vitalius said the cuts are placing pressure on landlords not to renew leases from Section 8 tenants. That’s because rising rental rates are making the share of Section 8 options smaller and also leading landlords to consider whether they can do better outside of the federal program.

But not all agencies are handling the cuts in the same way. Michael Myatt, of the Bangor Housing Authority, said his agency decided not to ask landlords to cut rent as a way to absorb the federal funding cuts.

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