HUD Unveils Overhaul of its Rental Assistance Programs

Filed in Multifamily by on April 25, 2018 0 Comments

This post was updated at 4:10 p.m. ET on April 24

HUD today unveiled a major overhaul of its rental assistance programs — including Public Housing, Section 8 Housing Choice Vouchers and Section 8 Project-Based Rental Assistance.

HUD Secretary Ben Carson is seeking several changes that he believes will encourage work and increase households’ income. These include:

  • Increasing the amount that low-income households pay for rent.
  • Permitting public housing agencies and private owners to establish minimum work requirements for non-elderly and non-disabled families who are receiving rental assistance.
  • Establishing a “core rent” proposal where Public Housing Agencies and owners would only be required to verify income every three years rather than annually.

These programs currently help more than 4.5 million families, enabling them to keep their overall housing costs at roughly 30% of their income, with subsidies picking up the rest.

The Trump administration’s proposal would increase the typical rent contribution from 30% of adjusted income to 35% of gross income. Another measurement to calculate the minimum rent contribution would be 35% of earnings based on working at least 15 hours a week at the federal minimum wage.

HUD is also seeking to eliminate deductions for medical and child care costs when determining a tenant’s rent.

For qualifying households currently receiving assistance that are comprised of elderly persons or persons with disabilities, rent contributions would be set at the higher of 30% of monthly income or a minimum rent of $50. To implement new rent structures, HUD will phase in rent increases for these elderly and disabled families currently receiving assistance over two triennial recertification periods.

HUD’s legislative proposal to make all of these changes requires congressional approval.

NAHB continues to closely monitor the situation.

View HUD’s press release.

For more information, contact Michelle Kitchen at 800-368-5242 x8352.

 

 

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