Congress working on solution as USDA rental subsidies expire

Members of Idaho’s congressional delegation as well as officials with the U.S. Department of Agriculture tell Local News 8 they’re working on a solution as USDA rental assistance subsidies run dry at an Arco apartment complex.

Local News 8 first reported Tuesday that 24 families living in the Cimmaron Station apartments could have nowhere to live come November when rent more than doubles. Apartment managers say they’re running out of rental subsidies, and because of a federal law, won’t be able to receive new funds until they renew their contract with the USDA in March.

Representatives in Sen. Mike Crapo’s office said Thursday that the federal law in question prevents property owners from renewing USDA contracts twice in the same year. His spokesman, Lindsay Nothern, said the bill was poorly worded.

“We don’t know why the language was in there. The entire delegation’s going to work to take it out of the fiscal year ’16 bill,” said Nothern.

Nothern said there’s nothing Congress can do to prevent Cimmaron Station’s funds from running out this year.

A USDA representative told Local News 8 that property managers could dip into their own private cash reserves until March or could take out a loan with the USDA.

“It’s unfair to the residents and it’s unfair to the properties,” said Rachel Matcheson, vice president of Hope Property Management which runs Cimmaron Station.

Matcheson said the cash reserves are needed for repairs at the apartments.

“If we use the replacement reserves, we will run out by March and the apartments will have nothing,” said Matcheson.