Changes in the federally subsidized Section 8 housing program could leave the Butler County Housing and Redevelopment Authority with less money to provide residents with affordable housing.

Beginning April 1, the U.S. Department of Housing and Urban Development will designate Butler County as small market and remove it from the Pittsburgh Metropolitan Market in the Fair Market Rent system.

Fair market rent is the subsidy the authority pays Section 8 landlords after tenants pay 30 percent of their income toward the rent.

Section 8 landlords in all six counties in the Pittsburgh market have been receiving the same fair market rent subsidies, but the market is one of 24 across the country being broken up. Each county, including Butler County, will be a small market with its own set of subsidies.

“The department is doing this as a way to deconcentrate areas of subsidized housing and open up areas of opportunity. HUD calls them opportunity neighborhoods,” said Edward Mauk, housing authority CEO.

Pittsburgh market subsidies range from $621 a month for an efficiency apartment to $1,214 for a four-bedroom apartment. The subsidies vary according to the number of bedrooms.

The Butler County small market subsidies are based on the 37 ZIP codes in the county.

Subsidies in 14 of the ZIP codes will be higher than the current Pittsburgh market subsidies and 23 ZIP codes will have lower subsidies.

Mauk said the possibility of current landlords dropping out of the Section 8 program because of the lower subsidies is less of a concern than a potential overall increase in the subsidies the authority will have to pay. An increase could result in less money available to assist low-income residents.

“I don’t think there will be a lot of problems with the landlords. The bigger concern is cost per unit goes up and we won’t be able to help as many people,” Mauk said.

“If our average costs go up and people move from Butler to Cranberry our costs go up. Tenants still pay 30 percent. If our costs go up we won’t have the funds to help as many people,” he said.

In the 16001 ZIP code in Butler City, where about 900 of the 1,441 Section 8 housing units in the county are located, and parts of Butler Township, the subsidies will be $580 for an efficiency and $1,130 for a four-bedroom apartment.

Subsidies in the 16046 ZIP code in Mars, the 16066 ZIP code in Cranberry Township and the 16059 ZIP code in Valencia will be the highest in the county at $930 for an efficiency and $1,820 for a four-bedroom apartment,

“In Cranberry those went up because it’s a higher priced market. Butler’s went down slightly at this point,” Mauk said.

Subsidies in 11 other ZIP codes will also be higher than the Pittsburgh market subsidy.

The lowest subsidies — $510 for efficiencies and $1,020 for four bedroom apartments — will be paid in ZIP code 16022 in Bruin, ZIP code 16030 in Eau Claire, ZIP code 16034 in Fenelton and ZIP code 16049 in Parker.

Subsidies in 19 other ZIP codes also will be lower than the Pittsburgh market subsidies, but three will be only $1 less.

The small market subsidies will be phased in over two years as each Section 8 tenant undergoes the annual recertification process, which ensures they are paying the correct amount of rent based on their incomes, Mauk said.

One primary safeguard built into the system allows authorities to not pay landlords the full fair market rent subsidy. Mauk said the authority started paying 95 percent of the fair market subsidy this year due to the increase from the 2017 subsidy.

The authority balances its overall fair market rent subsidy payments by lowering landlord subsidies when HUD raises them, he said.

“We’re using 95 percent of the FMR. There are some fail safes in the system. I just don’t see any major changes,” he said.

Another safeguard is HUD limiting subsidy reductions to 10 percent a year, he said.

There is no cap on increases.

“There’s no limit to how high it can go up, which is the intent of the thing,” Mauk said.

HUD requires the authority to conduct rent reasonableness studies comparing rent charged by Section 8 landlords to other rentals in the area to ensure the Section 8 rents fit the market.

“We make sure we don’t over pay,” Mauk said.