Affordable housing advocates to discuss impact of budget cuts

10 Replies | Louisville, Kentucky

https://insiderlouisville.com/government/affordable-housing-advocates-to-discuss-impact-of-budget-cuts-on-low-income-families/

The assessment found that Louisville has a $3.5 billion gap in affordable housing. The situation is particularly bad in the city’s Northwest Core (Portland, Russell, Shawnee) and West Core (the remaining west Louisville neighborhoods), where more than half of all families earn 50 percent of the area median income (AMI), which is $71,500 for a family of four.

According to the study, Louisville is more than 31,000 units (apartments, houses or other living quarters) short of being able to house all its low-income households.

Part of this is due to the section 8 audit. Now, they are being too tight on things and investors are moving away from section 8. 

You're exactly right. It's not worth the hassle for investors to deal with Section 8's ridiculous anti-landlord policies and audits in Louisville. It's really sad, actually. The government that claims to be pro-tenant with their policies actually ends up hurting them in the end because they scare away all of the would-be housing providers.

Originally posted by @Brad Noe :

You're exactly right. It's not worth the hassle for investors to deal with Section 8's ridiculous anti-landlord policies and audits in Louisville. It's really sad, actually. 

 What sort of problems are you seeing with section 8?

Originally posted by @Greg Smith :
Originally posted by @Brad Noe:

You're exactly right. It's not worth the hassle for investors to deal with Section 8's ridiculous anti-landlord policies and audits in Louisville. It's really sad, actually. 

 What sort of problems are you seeing with section 8?

 Section 8 was super easy and lax and then there was an audit and they tightened up quite a bit. Now, they make it extremely difficult during inspections and keep finding things. 

I have a few section 8 houses and have seen both.  When I walk into a house and think “this is a nice place” I don’t have trouble but if I walk in and think, hmm... it’s been a while since I’ve XXXX, I get a few pages of repairs.  Most recently, I was dinged for a closet that didn’t latch when closed, peeling / cracked ceiling, loose floor boards and junk piled on the back porch.  All those things are things I’d expect them to be looking for.  What sort of things are you seeing?

Hi Rob,

Are you saying Louisville needs 31,000 units to house (for instance) each housing a family of 4 earning $35,750?

That would be 31,000 WORKING people making $17.85 hour currently with 124,000 living in the streets homeless (probably 3/4 children)? Wow!

This seems like a population that could benefit from living in rental mobile home parks.

Seems like you guys could set up some "Shabby" trailers on cheap vacant land somewhere at the edge of town (cheap taxes) and get the bus route to go out there to take them to work and shopping and fill a need.

Sometimes people in Texas give older mobile homes away for the hauling.

At $35,750 a year that's $3,000 a month Gross (with 3 deductions), they could afford to rent cheap trailers without Section-8.

All you'd need is septic, electric and propane out there.

A shabby rented mobile home at the edge of town is a lot better than living in the streets (supply demand),

And it might cash flow attractively (with Class-D management issues of course).

Just my 2 cents on this.

Good Luck!


@Brad Noe I completely agree!

@Greg Smith They failed me for a plumbing issue. The issue was a sink sprayer not working. So that delayed the process another month. I won’t ever do section 8 again because of the strict guidelines. I currently have 2 section 8 properties with great tenants but the program sucks. 

Originally posted by @Fredie Robinson :

@Brad Noe I completely agree!

@Greg Smith They failed me for a plumbing issue. The issue was a sink sprayer not working. So that delayed the process another month. I won’t ever do section 8 again because of the strict guidelines. I currently have 2 section 8 properties with great tenants but the program sucks. 

It seems like a sprayer is a reasonable thing to expect to be repaired.  One trick is to have the tenant reschedule the inspection right away... they are usually in a hurry to get in as well.  In my experience, section 8 didn't withhold money or hassle me... they just wanted broken things fixed.  I had an issue last year with a vent hood being installed incorrectly on a water heater.  It took me longer then my month to get the part and a plumber in.  That was a hassle because I had to be present for some reason... outside of that, it has felt more like an extra set of eyes inspecting my property than big brother mandating needless repairs.

@Greg Smith I'm going to have to disagree with you on that one. A sink sprayer in not a necessity. A lot of homes don't even have them. "Low income housing" has turned into high end rentals. I'm glad they are looking out for the tenant but I think they go a little too far. Unless it's a safety issue, hazardous condition, or a health risk, they should quit failing houses for silly stuff. 

That's just the tip of the iceberg for me on that program though. I hope you have better luck with it.  

Originally posted by @Fredie Robinson :

@Greg Smith I'm going to have to disagree with you on that one. A sink sprayer in not a necessity. A lot of homes don't even have them. "Low income housing" has turned into high end rentals. I'm glad they are looking out for the tenant but I think they go a little too far. Unless it's a safety issue, hazardous condition, or a health risk, they should quit failing houses for silly stuff. 

That's just the tip of the iceberg for me on that program though. I hope you have better luck with it.  

Gotcha.  I understand where you're coming from.  I figure if there's something broken I'll fix it.  That said, I try and avoid ceiling fans, garbage disposals and appliances more generally to minimize those sort of calls.

Originally posted by @Scott Mac :

Hi Rob,

Are you saying Louisville needs 31,000 units to house (for instance) each housing a family of 4 earning $35,750?

That would be 31,000 WORKING people making $17.85 hour currently with 124,000 living in the streets homeless (probably 3/4 children)? Wow!

This seems like a population that could benefit from living in rental mobile home parks.

Seems like you guys could set up some "Shabby" trailers on cheap vacant land somewhere at the edge of town (cheap taxes) and get the bus route to go out there to take them to work and shopping and fill a need.

Sometimes people in Texas give older mobile homes away for the hauling.

At $35,750 a year that's $3,000 a month Gross (with 3 deductions), they could afford to rent cheap trailers without Section-8.

All you'd need is septic, electric and propane out there.

A shabby rented mobile home at the edge of town is a lot better than living in the streets (supply demand),

And it might cash flow attractively (with Class-D management issues of course).

Just my 2 cents on this.

Good Luck!

It's really hard to find spaces that'll zone trailer parks here in Louisville.