Sauk County Housing Authority looks to change funding classification for rental assistance properties

The Sauk County Housing Authority is requesting a status change for government-subsidized housing in the county.

The request would change the funding stream for the 40 subsidized units the county manages. The subsidies from the properties currently come in the form of capital fund grants from the Department of Housing and Urban Development. The requested change would transfer the properties classification to Section 8 of the Housing Act of 1937, making the subsidies come from collected rent, said Dwight Fenderson, Sauk County Housing Authority executive director.

The money from these subsidies is to be used for managing and upkeep for the 40 units throughout the county, a 25-unit apartment building in Prairie du Sac and single-family homes in Baraboo, Spring Green and Prairie du Sac, which are owned by HUD. Fenderson said this classification will allow the housing authority to manage the upkeep for the buildings, and budget that upkeep from the rental stream instead of needing grant money.

“The idea is that we are supposed to have more money coming in overall via the rents, than we did from the capital grants,” Fenderson said.

Fenderson said the reclassification will have very little impact on the current residents, as they will continue to pay 30% of their monthly income as their share of rent. The rest of the rent payments for the housing is subsidized by HUD.

Supervisor John Deitrich, of the city of Reedsburg and appointed member of the Housing Authority, said this reclassification will not cost the county any additional money.

The Sauk County Board approved a resolution on Wednesday allowing Board Chairman Peter Vedro to sign a letter supporting the Housing Authority’s application to request a change. Deitrich said the Housing Authority needed a letter of recommendation from an elected official to be included with its application for reclassification.