Low-income, subsidized renters may have to pay higher rent, beginning sometime this year, if proposed changes to federal income and housing legislation are signed into law.
The U.S. Department of Housing and Urban Development may raise the income threshold by 5 percent for elderly residents and others who live on public assistance. The change would also set a work requirement for younger aid recipients. These changes could be included in President Trump’s fiscal year 2018 budget.
For nearly four decades, most households receiving federal housing subsidies were calculated at 30 percent of recipients’ adjusted income, which is the gross income minus deductions for the elderly and disabled ($400 per year), dependents, child care, or medical and disability expenses, according to The Intercept.
The draft legislation would eliminate the deductions and recipients would pay either 35 percent of gross household income or 35 percent of their wages from 15 hours a week for four weeks at the federal minimum wage, whichever is higher. A 32-hour work-week would also be enforced.
These households, according to Diane Yentel, president and CEO of the National Low Income Housing Coalition, are particularly vulnerable, noting to City Lab that, “almost half include a preschool child or an older child or adult with a disability who needs the supervision of a caregiver.”