Durham Housing Authority Requests $1.5 Million Loan Amid Budget Shortfall

DURHAM, N.C. — Leaders of the Durham Housing Authority (DHA) are asking the City Council for a $1.5 million loan to help cover a projected $3 million budget shortfall. The financial strain, according to DHA officials, stems primarily from unpaid rent and past emergency spending.

Currently, about 1,200 households are behind on rent, with more than 100 considered at high risk of eviction. DHA Chief Operating Officer Ashanti Brown noted that Durham took a more compassionate approach during the COVID-19 pandemic compared to other housing authorities in North Carolina.

“There are likely housing authorities in the state with higher collection rates because they actively enforced leases during COVID-19,” said Brown. “Durham chose to prioritize helping residents and preventing evictions.”

Another contributing factor to the budget gap is the depletion of DHA’s reserve funds. In 2019, the agency used $6 million to respond to the carbon monoxide crisis at McDougald Terrace, which impacted hundreds of residents. The funds were used for food, temporary housing, and critical home upgrades, including switching from gas to electric stoves.

DHA CEO Anthony Snell said the agency is now struggling to stay current on its financial obligations, including payments to contractors and utility bills.

“I have outstanding utilities I have to pay that are somewhere in the neighborhood of $1.5 to $1.7 million,” Snell said.

Despite the current challenges, DHA’s new housing development projects remain on track and are not impacted by the budget’s issues.

The Durham City Council is expected to vote on the proposed loan on June 16.