Approximately 2 million HUD section 8 voucher recipients may have their monthly rental costs increased if the department of HUD gets its way from a new 2018 proposal known as The Making Affordable Housing Work Act. The federal government agency, and the Republican administration, would require able bodied adults to pay more money each month for their rental units. There would be two big changes as indicated below.
Note this is a proposal only. But it is a recurring theme from the Republican administration around able bodied adults either needing to work and/or volunteer to get government aid, or in this case, they need to pay more money for their home or apartment. The federal government is really trying to limit, and deter, the number of able bodied adults who get government aid or HUD housing assistance. Their argument is if you are able bodied you should be able to work and/or contribute to society somehow and not just live off of public assistance.
Gross income in rent – The current section 8 program requires that the low income family pay some of their income towards rent. The amount right now is 30% of their gross household income. That means if the families gross income is $1000 per month, they need to pay $300 of that for their home.
The new 2018 HUD proposal would increase that percentage to 35% for able bodied adults. Using the example above, the tenant would need to pay $350 per month if the proposal goes through, which is an increase of $50 per month.
Minimum rent – In the current system, there is a minimum rent payment due of $50 per month. How that works is if the families gross income is say $120 per month (yes we known unbelievably low….not even sure if that impossible). Anyhow, if the gross income is $120 per month, they would need to pay 30% of that for their property, or $36.
The 2018 Making Affordable Housing Work Act proposal would set the minimum as $150. Using the example above, if the families adjusted gross income is $120 per month, they would need to pay $150 for the property. This would in effect “force” them to increase their income as they would not be able to afford it otherwise.
Why is HUD proposing this? A few reasons. One is to of course to back on costs of the welfare type program, as the federal government is projected to have a one Trillion dollar budget deficit this year. Yes, that is trillion with a “t”. Add that shortfall this year on top of the 21 trillion current national debt and you can see that the country’s finances are in terrible shape. In fact, many experts say social security, Medicaid, Medicare, and other benefit programs will go bankrupt in a matter of years…so future generations may not benefit from them.
Another reason is the reduction of costs of the section 8 program from this HUD proposal, as well as the extra revenue (in the form of contributions) will hopefully free up homes for lease and allow more families to enroll. As there are terrible waiting lists currently in place fort section 8 housing as we enter calendar year 2018, and millions of people are eligible for can’t get a place to live. Read more millions eligible for section 8.
While the Making Affordable Housing Work Act is just a proposal, it goes into the theme of able bodied adults needing to work and contribute more. As we have reported on, this requirement may go into effect for almost any public assistance program put there, not just HUD section 8. What do readers think of all these new work requirements from the government?