RRHA says it may need $600,000 loan

The Richmond Redevelopment and Housing Authority expects to need a smaller city loan than initially thought to prop up its housing-voucher program.

Anthony Scott, the authority's chief executive officer, told the City Council yesterday that the authority may need about $600,000 next year, including $400,281 by this Dec. 1, for the program that supports subsidized rental housing of low-income families.

Like similar agencies across the country, RRHA is facing a funding crunch that had prompted officials to explore a city loan of up to $1.4 million in 2010, including about $665,000 by this Dec. 1.

Scott said the figures have been revised through discussions with the U.S. Department of Housing and Urban Development, as well as the use of higher attrition rates for the 3,000 families in the program.

"We were being very conservative in our estimates," Scott said.

Last month, RRHA scaled back the program and withdrew the subsidies for 163 families that were on the verge of getting housing. The authority said it could not afford to pay for the vouchers after cutbacks in federal funding this summer.

In yesterday's briefing, Scott said it remains unclear how a loan might be repaid. He said one possibility is $200 million in federal funds that lawmakers are considering to address shortfalls in housing-voucher programs.

"This is not a RRHA problem. This is a national problem," Scott said. Federal officials "understand the situation that these housing authorities are in."

Scott said he expects to be able clarify RRHA's finances over the next several weeks so Mayor Dwight C. Jones and the council will be able to consider any loan request by Dec. 1.

Councilman Chris A. Hilbert, chairman of the council's Health, Human Services and Education Standing Committee, said the briefing was helpful even though questions remain.

"I think the issue is certainly making the loan itself, whatever that number happens to be," he said. "I'm really disappointed in the federal process. There's no objection from Congress . . . and yet, this is being held up. People are losing their housing."

Also last night, the council recognized outgoing 7th District Councilwoman Betty Squire with the council's Thomas Jefferson Award for Public Service.

Squire was appointed to represent the East End temporarily in February after then-Councilwoman Delores L. McQuinn resigned upon winning a seat in the House of Delegates. Squire will surrender her seat after a special election next Tuesday.

Contact Will Jones at (804) 649-6911 or .