Walton County HUD Housing Update

Walton County – 08/16/25 – The availability of long-term rental assistance to low-income families in Walton County has been impacted due to an Agency shortfall issue facing the U.S. Department of Housing and Urban Development. The Walton County Housing Agency received notice on August 1, 2025, that the Agency was being classified as a Shortfall Agency by HUD and the projection was that, locally, the shortfall was estimated to be $117,073 for 2025. HUD explained that this shortfall issue was a nationwide issue affecting the operation of over 600 Agencies in the United States.

At a meeting of Housing Directors in Florida on July 28, 2025, Tom Baker, Housing Director over the Walton County Housing Agency, was told that nationwide, HUD had a shortfall totaling 500 million dollars as it supports the Housing Choice Voucher Program, (Section 8). An explanation of the national shortfall was that HUD had underestimated rent requirements due to rent increased nationwide over the last few years.

HUD has advised the Agency to request additional funding to address the shortfall, and to make every effort to reduce spending for the remainder of 2025. HUD emphasized that all attention will be given to this matter to address this shortfall without removing families from the assistance program.

Baker explained that changes are underway on the federal level with HUD as staffing for HUD regional offices has been reduced. “If the shortfall issue is addressed for 2025, the shortfall issue may be on a larger scale in 2026. Open discussions about term limits for participants and work requirements may be forthcoming from HUD.”

The local Agency has two employees who are employed by Walton County. The administrative cost of the Agency is received from HUD and is determined by the

number of vouchers utilized each month. With over 100 vouchers not being utilized, the funding for administrative cost is also a shortfall issue.

Walton County supports the operation of the Agency by providing office space and computer support. The Clerk of Court of Walton County supports the Agency with financial issues such as payment of rents each month. In November 2025, Director Baker requested the Board of County Commissioners provide financial support for the Agency if additional administrative funds were needed. The Commission agreed to support the Agency for a period of two months. Additional funding from Walton County was not required.

A review of rents paid by the Walton County Agency over the last two years revealed that in July 2023, the Agency paid an amount of $199,000 to landlords for some 300 families. In August 2025, the Agency paid over $240,000 for the 307 families.

In 2024, the local Agency was notified that there was a shortfall of funding. By year end 2024, the shortfall had been addressed by HUD. Since July 2024, no applications for assistance have been accepted by the Walton County Agency. Limited vouchers have been issued to families since July 2024. Currently there are over 1,000 families on a waiting list for assistance. With the latest shortfall notice, no vouchers will be issued by the Agency for the remainder of the year 2025.

The Agency has trimmed its operation cost and is applying for additional funding from HUD. The absence of available assistance has impacted local low-income families in many ways, says Baker.

The Walton County Agency remains open Monday through Thursday each week from 7 a.m. until 5 p.m. The Agency plans to direct its focus on supporting the remaining 300 families on the assistance program. These 300 families represent 638 local citizens with 257 family members being under 18 years of age.

For more information, call Walton County HUD, 850-892-8185.