The Authority also manages an elderly housing project, Rochester Springs, under a contract with the Sheboygan Falls Housing Authority. This project was financed by WHEDA and receives HUD subsidy under the Housing Choice Voucher (HCV) New Construction Program. Under the HCV program, HUD sets a monthly rent for each apartment. Because tenant rents are based on ability to pay, HUD pays the difference between the HUD rent and what the tenant pays. This development is a $1,100,000 project financed by WHEDA under the same HUD program as Park Plaza. Federal assistance is about $95,000 annually. The building is 48 one-bedroom apartments and a two-bedroom apartment for the custodian. It was also built in 1977-1978.
HUD also provides assistance to the Authority to operate a Housing Choice Voucher Program. Under this program, the Authority contracts with a private apartment owner to pay a portion of the rent normally paid by tenants. The Authority determines the amount to be paid by the tenant based on 30% of their monthly income. The difference between the tenant payment and the rent allowed under a federal payment standard is paid by the Authority to the owner. Presently the Authority is authorized to contract for 186 apartments with a monthly Federal subsidy of $44,473.
Persons wanting to rent a Housing Authority apartment are placed on a waiting list and provided an apartment on a first-come first-served basis. For the elderly apartments, a person must be age 55 or over, but are eligible if they are under 55 and receiving Social Security disability benefits. Income limits for applicants are set each year by HUD.