28-05-2025
Olmsted County plans 'major overhaul' for how federal housing vouchers are distributed
May 27—ROCHESTER — Olmsted County is revamping its waitlist process for federal housing vouchers, after the current system has left some households waiting years to find out if they'll be approved.
The current waitlist was developed in 2019 and had 1,500 applications in a single week. It was narrowed to 500 through a lottery, but around 30 households remain on that waitlist.
"We are exhausting our waitlist from 2019," Olmsted County Associate Housing Director Mary O'Neil said.
With the list's numbers dwindling, the county is planning a new approach this summer, once the remaining households are either provided vouchers or deemed no longer eligible.
Instead of creating another single waitlist that could take years to serve, housing officials plan to open smaller lists quarterly, capping numbers at 15.
"We are proposing a major overhaul to address the growing needs of our community and reach those populations that aren't being served in another manner," said Megan Dahling, the Olmsted County program manager overseeing the county's rental assistance team.
The federal Housing Choice Voucher Program, also commonly known as Section 8, provides assistance for individuals and families struggling with housing expenses. It typically covers rent costs that exceed 30% of a participating household's income.
While the program sets some requirements for counties approving vouchers, Dahling said local housing officials are largely left to determine how vouchers are distributed to eligible households.
Olmsted County oversees approximately 615 vouchers being used in Olmsted County, but new participants cannot be chosen until an existing voucher is released, often due to a participant no longer requiring the support.
Dahling said roughly 60 vouchers turn over a year, which is why it takes years to go through the hundreds of names on the local list.
The new county approach, which received Olmsted County Housing and Redevelopment Authority board support, will ask county agencies to identify people needing support in rotating categories quarterly.
Dahling said the four categories are being addressed are housing barriers, housing stability, transitions and being safe at home.
In the first year, those categories are expected to be met by finding eligible households in four targeted populations:
* People with criminal histories in the first quarter
* Elderly and disabled persons paying high rent in the second quarter
* People receiving services who are ready for independence in the third quarter
* Victims of domestic violence in the final quarter
"Where the variation can come into play is there might be a population that has different types of housing barriers, so we would base that more on what's going on locally," she said, noting individual targeted groups could change in following years.
When it comes to assisting people with criminal histories with the launch of the new approach, Dahling said it's a group facing the greatest barriers to securing housing.
"They have a much tougher time finding housing, and there really isn't anything out there to help them," she said.
To address the need, Dahling said Olmsted County corrections staff will identify 15 people needing housing help, who also qualify for vouchers under federal standards. Housing staff will then meet with the referred clients to help them find housing once a voucher is available.
Three months later, she said county staff from another county agency will provide 15 names in the elderly and disabled targeted population. If the first 15 applicants are not depleted, the two groups will be merged.
Along the way, Dahling said the county will also be required to add anyone who falls into specific federally mandated categories, which can include households using dedicated vouchers through specific housing facilities.
"We have three locations that currently have some project-based vouchers with us," she said. "After they've lived in that property for a year and they're in good standing, they can request a portable voucher (for use with other rentals)."
Dahling said county housing staff will continue to seek ways to connect others with available housing support programs, and the county plan leaves the option open to create a larger waitlist, similar to past practices. However, the larger lisy isn't expected to open for at least a year, since the goal is to evaluate the new approach.
"After the first year, that will give us a better idea about opening to the public," she said.
