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Editorial: HUD's flawed plan to raise rents on poor people

 
About 55 percent of residents at The Tampa Park Apartments in Ybor City receive rent subsidies through a federal program. Typically, they pay a maximum of 30 percent of their income on rent. The U.S. Department of Housing and Urban Development is proposing to raise that to 35 percent among a series of sweeping reforms that housing advocates say will put hurt the nation's poorest residents.    [JAMES BORCHUCK   |   Times]
About 55 percent of residents at The Tampa Park Apartments in Ybor City receive rent subsidies through a federal program. Typically, they pay a maximum of 30 percent of their income on rent. The U.S. Department of Housing and Urban Development is proposing to raise that to 35 percent among a series of sweeping reforms that housing advocates say will put hurt the nation's poorest residents. [JAMES BORCHUCK | Times]
Published May 18, 2018

Housing Secretary Ben Carson has a surefire way to reduce the waiting lists for public housing: Charge more to people who already live there. Hitting a family living in poverty with rent increases of $100 or more a month would force more people onto the street, clearing the way for those on the waiting lists. But that game of musical chairs is hardly a fix for the millions of Americans who cannot afford a roof over their heads.

The proposal by the U.S. Department of Housing and Urban Development would dramatically reshape the terms of subsidized housing for nearly 4.7 million low-income Americans. Families receiving assistance now pay about 30 percent of their monthly income on housing; that figure would increase to 35 percent. Families would pay a minimum of $150 a month in rent, or three times the current minimum. Seniors and the disabled would be exempt from rent increases for several years, then be required to pay at least $50 monthly. And families would no longer receive income credits for medical and child care expenses that help to keep housing easier to afford. The changes could cost families that already live on the edge an extra $100 or more per month. The Center for Budget and Policy Priorities, a liberal think tank, said the plan would result in a 44 percent rent hike for millions of Americans. That would include tens of thousands of families in subsidized housing in Pinellas, Hillsborough and Pasco counties.

Carson's proposal fails to recognize the reality of public housing and the larger forces that have constricted the availability of affordable homes. The Great Recession and the flood of millennials entering the workforce pushed many to enter the rental market at the same time, sapping inventory and causing rents to spike. Last year, about half of renters spent more than 30 percent of their income on housing. But most public housing residents don't have the extra cash within their budgets to absorb the increase. Many of these families already face the choice of spending money on child care, toiletries, bus fare or clothes.

Several proposals could help, such as simplifying the process for landlords to verify incomes. The current $50 minimum rent could be increased for families that could afford it. But the main problem is not families cheating the system but the system being under-funded to meet the need. Carson's proposal to require that residents obtain jobs or receive job training ignores that seniors and the disabled account for more than half of all households receiving federal assistance. Most of those who can work already do.

Carson acknowledged that only one in four households that qualify actually get housing assistance, and HUD's poor verifications process has caused nearly $250 million in improper rent payments every year, a HUD analysis shows. The department should focus first on collecting the right amount of rent it's due before seeking more from the very families for whom public housing is a last resort.