Housing Authority receives line of credit

Source: The Business Journal

The Fresno Housing Authority plans to utilize a line of credit to maintain its programs in the event that Congress fails to pass a budget plan or continuing resolution prior to October 1 and a government shutdown ensues. The authority reports that it fully intends, to the best of its ability, to continue the core operations of providing services to residents, landlords and public partners. However, under a shutdown, primary funders may be unable to authorize normal funding distributions due to the suspension of operations at the federal level. While distributions will be released once legislation is adopted, there may be a need to utilize short-term alternatives to essentially cover the funds held in suspense due to federal closure. Fortunately, the Fresno Housing Authority is in a position that will enable the agency to cover funding delays for a short period if a government shutdown does occur. “Last night our Board of Commissioners authorized a line of credit that would enable the agency to continue operations in the event of a short term government shutdown,” said Preston Prince, CEO and executive director of the Fresno Housing Authority. “This is an unfortunate situation for all government agencies.” Meanwhile, the U.S. Department of Housing and Urban Development has informed some agencies that they should be prepared to cover any funding delays as a result of the end of the fiscal year and in the event that a continuing Resolution cannot be passed by September 30. HUD has already requested that the Fresno Housing Authority provide temporary gap funding in the amount of $1.7 million during the first week of October to cover housing assistance payments to landlords participating in the Section 8 program. While delays in the passage of the federal budget are not uncommon, they have not resulted in an actual government shutdown since the 1996 federal budget negotiations. Pressure on Congressional representatives is continuing to increase and many expect that legislators will pass a continuing resolution in order to avoid the fiscal and political implications of not acting in time.

URL to original article: http://www.thebusinessjournal.com/news/banking-and-finance/8937-housing-authority-receives-line-of-credit

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