Norfolk housing authority faces budget cuts

NORFOLK

The city's housing authority needs to overcome a roughly $4 million gap in funding to balance next year's budget, which is the smallest in years.

Reductions in federal funding - and the end to federal stimulus money - means the authority will have to make tough decisions that chief executive officer Shurl Montgomery said would probably result in cuts to services, programs and personnel.

"I can't see any bright spots," Montgomery said Friday after his staff presented budget projections to the authority's board of commissioners. "It's pretty tough this year, and the way it's looking, next year could be worse."

Norfolk Redevelopment and Housing Authority's projections for the 2011-12 fiscal year, which begins in July, call for $89.9 million in revenue. Most of that money comes from federal funding.

In the current budget year, which ends June 30, the agency's revenues will be roughly $102 million.

"We're containing our costs," said Brenda Benn, director of budget and compliance. "It's really just revenues are down."

More than $6 million received in the past year was in the form of stimulus funding that the authority used for renovations and road work in several apartment complexes. That was one-time revenue the agency didn't expect to receive again and wasn't counting on when it projected its expenses for the upcoming year, Benn said.

But other cuts, particularly in federal funds to operate public housing complexes, leave the authority short money it needs to operate at its current levels, she said.

It also puts into question the agency's ability to expand services such as its Housing Choice Voucher, or Section 8, rental subsidy program. The authority had hoped to offer vouchers to 300 more low-income families this year, Benn said.

More than 9,000 people applied for Section 8 last year when the authority opened its waiting list to new applicants. NRHA currently has about 2,800 voucher recipients.

"We do have a great need," said Donnell Brown, the authority's chief housing officer. "We're going to try to help."

For the fourth year in a row, the authority will offer no raises to its 225 employees, Benn said. It had hoped to create six new positions, including two to help administer the additional housing vouchers, but Benn said new expenditures would have to be scrutinized in upcoming weeks.

Authority leaders must decide within the next month where to make the $4 million in cuts before they present a balanced budget to commissioners May 11.

Meghan Hoyer, (757) 446-2293, meghan.hoyer@pilotonline.com