Private industries may NOT assume control over federally assisted housing stock in NY, as has happened in CT, which was just made clear by a new law.
Instead, Section 8 housing contracts will continue to be administered by The New York State Housing Trust Fund Corporation ("Corporation") and Division of Housing and Community Renewal ("DHCR") in NY.
Section 8 of the US Housing Act is designed so landlords can rent housing at fair market rates to low income tenants, in which the federal government will pay a portion of the rent to a landlord through a Section 8 Housing Choice Voucher.
Private industry would want to take over Section 8 because of the tremendous amount of money flowing from the federal government and the availability to bring efficiencies that would create tremendous profit and innovation.
However, NY will continue to have its federally assisted housing stock controlled by the state and local governments.
Is state / local government better suited than private industry to manage our federally assisted housing stock? Isn't private industry more innovative and efficient? Or, is it that private industry only makes elites rich? Is this the type of thing that is the better domain of government or private industry?
Regardless, developers and landlords now have predictability into the future when they get involved in subsidized housing. Predictability is always a good thing in business.
