Over the past two years, the Minneapolis Public Housing Authority (MPHA) has experienced significant losses in revenue from both the United States Department of Housing and Urban Development (HUD) and the City of Minneapolis. In response to these shortfalls, totaling $6.2 million in the last 18 months, MPHA has 1) eliminated a number of its housing programs, 2) significantly cut its security guard budget, 3) utilized reserves to help fund its operations, 4) reduced staffing by 24 Full Time Equivalents (FTEs), and 5) frozen the salaries of all remaining employees. In addition, MPHA has frozen the Section 8 Housing Choice Voucher tenant based waiting list and will be unable to house any of the over 10,000 eligible families on that waiting list through at least the end of 2013.
These losses have been compounded by the sequestration requirements of the Budget Control Act (BCA) of 2011 which became effective when Congress passed a Full Year Continuing Resolution (CR) on March 29, 2013. On top of the cuts already anticipated and included in MPHA’s 2013 approved budget, the MPHA will experience an additional $3.9 million shortfall in funding due to sequestration.
Cora McCorvey, MPHA Executive Director/CEO stated, “MPHA cannot continue to meet its obligations with the current level of funding. We are working with HUD, our national housing organizations and our congressional office holders to improve the agency’s federal funding. We are also working with the City of Minneapolis to identify measures that will support the Agency’s efforts. We believe MPHA is the best vehicle for providing stable and affordable housing in Minneapolis. Download the Complete Press Release