MDHA cuts staff

Administration cuts to public housing funds mean fewer dollars for MDHA programs

Email | Print By Richard Lawson

You might say President George W. Bush hasn't been friendly to Nashville's Metropolitan Development and Housing Agency or its public housing residents.

Because of anticipated budget cuts at the federal level in public housing subsidies, MDHA this week laid off 31 employees in its public housing operations to help offset a nearly $5 million cut for the next fiscal year. The cuts become effective Sept. 1. MDHA currently has 317 employees.

"I can't raise rents enough to offset it," said Phil Ryan, MDHA's executive director. Ryan said the funding cuts affect the infrastructure and operations of the agency's public housing functions.

The agency is restructuring its administrative functions under a mandate from the U.S. Department of Housing and Urban Development to an asset-based model, in which management of properties is decentralized and each stands on its own. This change is meant to give property managers more authority.

In the current fiscal year, MDHA received $21.6 million from HUD. When the new fiscal year begins on Oct. 1, MDHA expects to receive $16.8 million.

Ryan said that the Bush administration has made steep funding cuts to public housing over the past few years. "Public housing is not a priority," he said.

Last year, the Bush administration had tried to eliminate the Community Development Block Grant program by consolidating 17 programs into one and cutting the combined budget by $1 billion. The grants were spared but with less money. Bush's budget for the upcoming fiscal year proposed slashing $1.6 billion from public housing.

MDHA has tried to minimize the cuts by reducing jobs through attrition and early retirement. Now, it came down to laying off people to help makes ends meet. The agency is also looking at other ways of boosting income and cutting non-personnel costs.

Nashville isn't the only city dealing with the cuts. Every public housing agency across the country is contending with cuts. Birmingham likely will slash more than half its 325-person staff. Philadelphia is looking at laying off 300 to 500 people.