The agency's initial proposal to cut rental vouchers by 15% to plug a $3-million budget gap was criticized by property owners who threatened to drop out of the program and tenants who feared they'd end up homeless if there weren't enough rental properties accepting the vouchers. The agency says a 7% reduction is in line with the market as shown in a study commissioned by the agency, which shows rents dropping.
While the 7% reduction doesn't plug the $3 million gap, it buys time for the agency, according to agency officials. The agency is shifting funds from such other initiatives as employment and homeownership programs to supplement the vouchers.
Between May 2003 and May 2004, the average rent for a two-bedroom apartment dropped from $809 to $784, down about 3%, according to a housing matching service.
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