TribLIVE

| News


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Westmoreland housing authority seeks OK to use facilities as collateral for renovations

Monday, Oct. 21, 2013, 12:01 a.m.
 

The Westmoreland County Housing Authority could reclassify about 25 percent of its public housing inventory as part of a move to raise as much as $15 million to pay for renovations.

Authority board members last week voted to apply for participation in the Rental Assistance Demonstration Program, a new federal program that transfers public housing units to Section 8 subsidized housing.

The program run by the Department of Housing and Urban Development would reclassify 60,000 units throughout the country, a move that would enable local housing agencies to raise money for capital improvements.

For the authority, the move would affect 503 apartments in New Kensington, Arnold and Lower Burrell.

Authority Executive Director Michael Washowich said residents wouldn't experience direct impact from the bookkeeping maneuver because rents and other services should not be impacted.

The program would allow the authority to post the properties as collateral as well as leverage future rent payments from those apartments to secure bank loans that can be used for renovations.

The authority could receive as much as $15 million in loans, Washowich said.

“This would be an immediate infusion of capital money to make the renovations for a long period of time,” Washowich said.

The authority has more than 1,950 public housing units spread throughout the county.

Tenants in the public housing units pay rent based on their incomes. Section 8 housing tenants receive vouchers for reduced rents.

Tenants in apartments impacted by the potential switch would not experience a change in their rents, Washowich said.

It is unknown when HUD could approve of the switch, Washowich said.

Additional public housing units in other locations of the county could be added if the nationwide program is later expanded, Washowich said.

Rich Cholodofsky is a staff writer for Trib Total Media. He can be reached at 724-830-6293 or rcholodofsky@tribweb.com.

 

 

 
 


Show commenting policy

Most-Read Westmoreland

  1. Families welcome new members on Adoption Day in Westmoreland County
  2. Food drive volunteer in Westmoreland County has purse stolen
  3. Police on hunt for suspects in unrelated Penn Township, Manor cases
  4. Walker: Applebees to help Jacobs Creek Area Faith in Action
  5. Fall fly-by: Blue Angels stop in Unity to discuss 2015 show
  6. Westmoreland County, state AG to get funds from illegal lottery
  7. Man taken to hospital from scene of Hempfield house fire
  8. Grease in Youngwood sewer system prompts another look at rule
  9. Woman sought in robbery in Unity
  10. Clelian Heights parents rally to keep program put in jeopardy by new federal rule
  11. Jeannette man pleads guilty to attempting to entice child in Louisiana
Subscribe today! Click here for our subscription offers.