The Federal Government notified Olmsted that it would not fulfill its Housing and Urban Development fund obligation.

As a result, Olmsted Housing Authority was forced to create a plan to reduce the number of families that can receive housing assistance. The amount of funding loss is the amount to fund approximately 34 families.  In order avoid forcing families out of homes, the Housing Board moved funds which were designated to reduce homelessness to the housing assistance fund. Therefore, we cannot issue any new housing assistance for now;  this will avoid forcing people out of their homes.   The county projects that as families leave the housing assistance program and not replacing them with new families, the reduction of funds from the Federal government will be met.  The end result means that the Housing Board will not be able to help as many families.   This action used funds already raised by the housing levy.

The actions of the Federal government has created uncertainty regarding next year’s housing budget.