According to the U.S. Department of Housing and Urban Development, new Federal Housing Administration loans will continue to be endorsed during a shutdown and loans already in the pipeline will continue to be processed. While that’s welcome news for an industry rocked in the economic downturn, “this kind of disruption in the economy does not lend itself to a growing, expanding real estate market,” said Steve Brown, president-elect of the Dayton Area Board of Realtors. “The uncertainty in the marketplace is not welcome.”
In some cases, federal funding for current operations has already been appropriated. In others, fees generated by the services will keep the programs operating, at least for now.
The federal courts will continue to operate as usual, said John Hehman, clerk of courts for the Southern District of Ohio. He said the courts will be able to use funds collected in fees and in accounts not pegged to current appropriations to pay judges, court employees and federal public defenders for the first 10 business days of a shutdown. The U.S. attorney’s office will continue to be open to handle criminal cases, he said.
The Dayton VA Medical Center will not be impacted by a shutdown, according to Director Glenn A. Costie.
“The main message we need to get out to veterans is that we are open for all health care business,” he said in an email. However, the public will not be able to contact Veterans Benefits Administration regional offices, such as one in Cleveland, that process veterans’ benefit claims. Internments at VA national cemeteries will be conducted at “a modified rate,” according to the VA.
Universities and colleges also do not expect their operations or their students to be immediately impacted.
“If it’s a very short shutdown, there probably will be no impact,” said Kathy McEuen Harmon, assistant vice president and dean of admission and financial aid at the University of Dayton.
The length of time, she said, is her main concern. The U.S. Department of Education’s employees are almost entirely considered non-essential and eligible for furlough. The department said, however, that the Pell Grant and student loans will continue for the 14 million students who use those funds nationwide.
The federal government shutdown “would probably not have a major direct impact on our operations because we’re funded by student tuition, state funding and levy funding,” said Sinclair Community College spokesman Adam Murka.
Local research projects will also continue, said John Leland, director of the University of Dayton Research Institute. However, the uncertainty and people wondering about their jobs because of the shutdown and previous sequester “has to be negative not just on their morale, but on their productivity,” Leland said.
“These people haven’t done anything wrong. They’re pawns in the battle between the political parties,” he said.
Wright State spokesman Jim Hannah said, “We don’t expect there to be any immediate impact on research, in that researchers may continue to work on currently federally funded projects. But there would be no new awards, and support services from federal agencies would not be available.”
A government shut down will not immediately impact Head Start early learning centers and the 40,000 Ohio children enrolled in their preschool or infant and toddler programs, Barbara Haxton, executive director of Ohio Head Start said.
The fiscal year for most Head Start grantees vary throughout the year and aren’t tied to the start of the federal fiscal year on Oct.1.
“The shutdown is not a threat yet. As far as we know, doors will open tomorrow and stay open for a reasonable period of time,” Haxton said. “We think we will be okay for a couple of weeks. Our concerns would ratchet up considerably if a government shutdown extended on for a long period of time.””
About 308 students attend Early Learning Centers in Franklin, Carlisle, Lebanon and South Lebanon. Miami Valley Child Development Centers, Inc. in Montgomery County serve 388 infants and toddlers and 2,283 preschool children. Altogether, there are about 46 organizations providing Head Start services in Montgomery County; there are seven each in Greene and Miami counties and six in Warren County.
Staff writers Meagan Pant, Mark Gokavi and Barrie Barber contributed to this report.
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