Ben Carson, secretary of the Department of Housing and Urban Development (HUD), has unveiled a proposal that would raise rents and open the door for new work requirements to be imposed on many families receiving federal rental assistance.
Outlining the plan in late April, Carson said the current rental aid system, which assists approximately 4.5 million families, is “unsustainable” and discourages people from earning more income. However, housing advocates say the proposed changes would only increase the burden on people with low incomes and push more families into homelessness.
Under the current system, most families receiving housing assistance pay 30% of their adjusted income as rent. Under HUD’s new plan, families, with some exceptions, would pay either 35% of their gross income or 35% of the amount earned by working at least 15 hours a week for four weeks at the federal minimum wage, whichever is greater. The poorest households could see their rents triple.
“With this provision, HUD would essentially set a new mandatory minimum rent of $150—three times higher than the current minimum rent that housing providers may apply to families,” reports the National Low Income Housing Coalition. “The bill would also increase rents for households with high medical or child-care expenses by eliminating income deductions, the impact of which would disproportionately fall on seniors, people with disabilities, and families with kids.”
Seniors over 65 and people with disabilities would be exempt from the rent hikes for the first six years.The proposal, which needs the support of Congress, would also allow local public housing authorities to establish minimum work requirements for individuals or families, excluding seniors 65 and older and people with disabilities.
In another move, HUD proposes verifying tenants’ incomes and eligibility every three years instead of every year, which would allow for residents to save more money if their wages increase.
