News & Press: HUD

HUD Secretary Proposes Rent Increases For Low-Income Americans

Wednesday, April 25, 2018  
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Suggested rental reforms also include work requirements

U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today proposed raising the rent for low-income families and allowing public housing authorities (PHA) and owners to implement work requirements.

As expected, the so-called “Making Affordable Housing Work Act” seeks to increase the current monthly rent contribution for those in HUD programs from 30 percent to 35 percent. It would also triple the rent paid by the lowest-income families, which is currently capped at $50. That change would impact about 175,000 families, according to HUD.

The agency is also looking to eliminate deductions for medical and child care, which are presently considered when setting tenant rents.

PHAs and owners would have the ability under the proposal to impose work requirements – something just 15 authorities in a dozen states are already doing, HUD has indicated. They would also be given greater flexibilities regarding rent payments and calculations.

While older adults and persons with disabilities are entirely exempt from work requirements in the administration’s plan, they’d only be safe from proposed rent increases for six years.

Secretary Carson unveiled the much-anticipated details of the proposal ahead of a House Financial Services Subcommittee hearing were members examined Rep. Dennis Ross’s (R-FL) Promoting Resident Opportunity through Rent Reform Act, which includes similar provisions. Both proposals require full Congressional approval.