The decision, to affect thousands of low-income residents, is made in part because of expected cuts in federal funding
Rob Fredericks, executive director of the Housing Authority of the City of Santa Barbara, says it has stopped issuing new Section 8 housing vouchers, in part because of the possibility of federal funding cuts for human services. Joshua Molina / Noozhawk photo
By Joshua Molina, Noozhawk South County Editor March 24, 2025 | 9:50 pm
The Housing Authority of the City of Santa Barbara has stopped issuing all new Section 8 housing vouchers, a move that will affect thousands of low-income residents.
The decision is based on a variety of factors, including the possibility of federal funding cuts for human services, officials said.
Right now, there are 7,732 households on the wait list for Section 8 vouchers. In 2024, the city’s Housing Authority issued 152 vouchers.
Going into March, the Housing Authority had 2,477 vouchers leased. Housing Authority agencies throughout the state are experiencing a shortfall.
“We will not be reissuing allocated vouchers for the foreseeable future until such time
as the agency brings the level of issued-leased vouchers in alignment with the funding allocated by Congress,” Executive Director Rob Fredericks said in a letter to tenants and others.
Fredericks told Noozhawk that no existing housing contracts will be canceled.
“Our primary responsibility is to ensure housing stability for the families we currently serve,” Fredericks said. “This pause will allow us to bring our issued voucher levels into alignment with our congressional allocation while also positioning us to apply for HUD’s supplemental shortfall funding.”
Santa Barbara County and many housing agencies across the nation are in similar situations after the Trump administration targeted the U.S. Department of Housing and Urban Development for potential federal cuts. Despite a congressional act to avoid a shutdown of the government, the agencies across the nation are still expecting a shortfall of funds amid the uncertainty.
Fredericks said the shortfall stems from a combination of factors — primarily inadequate federal funding, along with the mid-2024 federal recapture of $2.2 million from the Housing Assistance Payment reserves to help other agencies across the nation. There also has been an increase in per-unit housing costs for the Housing Assistance Payments.
With Section 8 vouchers, tenants pay a percentage of their income, about one-third, and the federal government pays the rest of the rent for the market-rate unit. Property owners get paid a combination of rent funds from the tenant and the federal government. The program assists low-income individuals, seniors and U.S. veterans.
“Rising rental costs have contributed modestly but are not the sole or primary cause” of the shortfalls, Fredericks said. “It’s important to note that many housing authorities across the country are facing similar challenges.”
Fredericks said the city is working closely with HUD’s Shortfall Prevention Team to implement a cost-saving plan.
The letter to tenants and property owners also states: “Our ability to approve rent increases will be constrained. We are asking landlords to work with our agency in finding a rent that will hopefully be reasonable for both HACSB and the landlord.
“We understand the significant impact these measures will have on our community, especially for those families awaiting housing assistance. These decisions were not made lightly but are necessary to maintain housing stability for those families currently receiving assistance.”
