Before the Louisville Metro Housing Authority can demolish downtown housing complex Dosker Manor, hundreds of residents will need to be relocated by next December.
Under federal guidelines from the Department of Housing and Urban Development, they can’t get relocation aid unless they work toward paying back rent along with their current monthly rent. LMHA records obtained by LPM News show residents owe hundreds of thousands of dollars in unpaid rent. Some Dosker Manor residents owe thousands of dollars.
Most Dosker Manor residents are low-income, seniors or disabled. Some say they’re relieved to leave after their apartments were plagued with pests, lack of security and maintenance issues like power outages and broken elevators.
LMHA is giving relocation assistance, by paying for moving expenses, offering alternative housing options and providing other support, as required by federal guidelines. Officials say the current phase of move-outs is voluntary, and they plan to relocate everyone by December 2025.
The housing authority is still seeking federal approvals of its demolition and redevelopment plans.
Residents who owe unpaid rent can’t get assistance until they get on a repayment plan to clear their debt. Without that help, they may be at greater risk of struggling to find new housing or even ending up living on the streets.
LMHA’s executive director Elizabeth Strojan said it can feel “overwhelming” for people who owe unpaid rent. Residents with unpaid rent need to get on a repayment plan, she said.
“What we want to emphasize to people is you need to start paying your rent now, enter into a repayment agreement and keep up with that repayment agreement. Even if it's a large balance, if it's a small balance, whatever it is, the policy is consistent for everybody,” she told LPM News last month.
Records show 272 accounts owe unpaid rent as of Nov. 22, totaling roughly $680,000. About 55% of those accounts are on repayment plans.
There were 456 occupied units at Dosker Manor, which has more than 600 units overall, as of Nov. 12.
About a third of the accounts owe less than $1,000. That includes about two dozen who owe less than $50.
But the majority of residents in this situation must pay back more than $1,000 – and in some cases, much more. There are 35 accounts whose debt is at least $5,000, including three who owe more than $10,000.
Until these residents get on a repayment plan, these residents can’t get relocation services. The plan requires them to pay their current monthly rent and a portion of their back rent, the total of which shouldn’t exceed 40% of their monthly income.
Strojan said the agency is working with residents on a repayment plan, and that they don’t have to get to zero before they move. These residents will have to continue paying toward their back rent for as long as the agreement lasts.
“There's no end date. Most of the repayment agreements are within a few years, but there are some that have a very long tail, because it's going to take a long time to pay that off,” she said.
If paying current and back rent would exceed 40% of a resident’s income, they can work with LMHA on a tailored plan to stay within the HUD-mandated cap.
"Residents who are not current on their rent are being offered case management services to identify and overcome any barriers to becoming lease compliant,” a spokesperson for HUD, the federal agency, said.
LMHA officials say housing navigators and specialists are working with residents to figure out which relocation option would best suit them.
Residents may be able to choose from Section 8 vouchers, LMHA public housing units including scattered sites like Avenue Plaza or Sheppard Square, Project Based Voucher units at partner sites, unsubsidized housing units.
There are many reasons people fall behind on paying rent. Strojan said challenges during the COVID-19 pandemic led to some people stopping paying rent.
“What we want to do is just teach people again to pay us their rent. So we have to change that behavior, get people back on track paying their rent the way everybody has to do in any rental situation,” she said.
Residents don’t have to get their balance to zero, Strojan said. But there isn’t a universal threshold at which the debt is forgiven, and Strojan said that’s determined on a case-by-case basis. Paying some amount of that unpaid rent is crucial because it helps LMHA maintain the buildings, she said.
“Our revenue that we have to operate our buildings is mostly federally funded, but tenant rents are a part of that operating fund as well,” she said.
Those who’ve lost income or their job need to reach out to LMHA to adjust their rent payment plan, Strojan said.
Strojan has said that residents have the right to return to the property once it’s redeveloped. But officials said the new development will have fewer units than Dosker currently has.
If a resident leaves the unit with unpaid rent but gives LMHA notice, they will be ineligible for any HUD-subsidized housing program until the balance is paid, LMHA spokesperson Jailen Leavell said. If a resident moves out without notifying LMHA and leaves belongings behind, one of the consequences could be an eviction filing. Having an eviction record can make it harder for someone to find a new place to rent.
HUD does not have a mechanism or process to forgive back rent, according to a HUD spokesperson.
Strojan said LMHA may submit a proposal to the federal agency, asking to partially forgive a renter’s debt after they’ve made at least some payments.
