Tuesday, July 19, 2016

Overhaul on HUD bill could find families ineligible for assisted housing vouchers, section 8

A bill was passed with sweeping reforms to the nations rental assistance programs known as section 8 or housing choice voucher programs.
New eligibility rules for HUD. Those with net assets of $100,000 or more adjusted each year with inflation would be considered ineligible for assisted housing, as would anyone who already has an ownership interest in property deemed suitable for their family to live in. Though enforcement of this new requirement would be left to local housing authorities. 
 (Sec. 104) A PHA(public housing authority) may not rent a dwelling unit to or assist families with net family assets exceeding $100,000 annually (adjusted for inflation) or an ownership interest in property that is suitable for occupancy. This restriction does not apply to victims of domestic violence, individuals using housing assistance for homeownership opportunities, or a family that is offering a property for sale. PHAs must require applicants to authorize financial institutions to disclose records necessary to determine eligibility for benefits. HERE 
Both the Senate and House of Representatives have passed a bill that seeks sweeping reforms to the nation’s rental assistance programs. The Housing Opportunity Through Modernization Act of 2016 received unanimous support in both houses. The House passed H.R. 3700 on Feb. 2, and the Senate approved the bill July 14, sending the legislation to President Obama for his signature. those with net assets of $100,000 or more — adjusted each year with inflation — would be considered ineligible for assisted housing, as would anyone who already has an ownership interest in property deemed suitable for their family to live in.


If a public housing tenant has income greater than 120 percent of the area median income for two years in a row, they would have to pay rent equal to either “fair market rent” or the public subsidy for the unit — whichever is greater — or leave their public housing unit. Under the Housing Opportunity Through Modernization Act (H.R. 3700), the Department of Housing and Urban Development (HUD) would be required to change certain aspects of its rental assistance programs by altering calculations of tenant income and rent, and making households that exceed new income and asset limits ineligible for assistance.

Specifically, the bill proposes to lower the amount of child care expenses as well as medical expenses that can be deducted for elderly and disabled families, but would increase the amount that can be deducted for dependents. In addition, households with more than $100,000 in assets would be ineligible for assistance, though enforcement of this new requirement would be left to local housing authorities. 
And public housing authorities would be allowed up allocate up to 20 percent of their assistance vouchers to units, rather than tenants, as well as an additional 10 percent of vouchers to units targeting specific groups-in-need, such as the homeless, veterans and elderly people with disabilities.

21 comments:

  1. Legislation does not take into account the unique make up of large orthodox families. what if you put away for collage and tuition for your children? This moves it away from an income program. Regarding owning a home, if one has an investment but cant afford to pay the mortgage is that considered enough to be thrown off the program?

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  2. Where is LRRC on this?

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  3. Is this for new applicants or anyone up for recertification?
    If you own a home as an investment does that disqualify you?

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  4. Im confused. Pple making 100,000 dollars are on HUD. I thought u can make very little to qualify.

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    1. Not income. You can't have $100k in total assets. So if your saving up for your children to go to college or for a down payment when you hope to be able to afford a home, you won't be eligible. You will than be forced to eat up your savings and when your on the street and can't afford to pay rent you once again can reapply and put your name on a waiting list to get hud/section 8

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    2. Is a family of 10 treated the same as a family of 3 with regard to this new asset limit? Shouldn't the asset limit depend on the household size?

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    3. It should but no one cares to stop and think.Its unfortunate but this provision was lobbied by some to specifcly target our community. They don't like or can't fargin that we have large families therefore if we have assets of 100k no matter the family size you won't be eligible.

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    4. if u have 100 grand, why shouldnt u just buy a house? why does the government and everyone elses taxes have to pay for HUD if someone has the money to pay rent or buy a house.

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  5. Looking at the bill another factor to keep in mind is the move to have a percent of project based vouchers. You won't be able to transfer the voucher as it only be applicable to the landlord yo lease the unit. If you move out you loose it zed it won't transfer with you.

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    1. Where in the bill did you see read this? Page & Paragraph please..

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    2. Read the entire bill not only what is posted here. It's not all vouches but a certain percentage will be allocated to landlords to have their units eligible for hud tenants. The ones who lobbied for this bill are the National association of Realtors.

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  6. There are loopholes and it's up to the administering agencies to decide. Some local ones understand the community others can't stand the community.

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    1. No one understands the community unless they are in the community. Not everyone in the community expects a handout - but let's face it - I work in social security office - and day in and out there are women there with their eight kids - claim single and get their SS money. It makes me sick to think of the greed some have. I really hope it ends - and the ones who take advantage lose their free ride and have to become honest tax paying citizens.

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  7. Hurry . the free gravy train is leaving for good.

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  8. If you have 100k in the bank, use it to buy a house. Maybe not a 500k house you feel like you need. Why should you be able to be on HUD and still have that kind of money to save while rest of us are paying insane taxes, I would like to save some money too, how about that.

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  9. It never made sense to start with. Someone in dire need would have to wait 10 years, & find a house that charges the right amount of rent & has enough bedrooms & meets inspection requirements. You sometimes get a few days too find the impossible & back to the bottom again. Others get their shvigas to swap brand new townhouses & get on netzach shebehod.
    If I would have designed it, I would never allow anyone to be on a program for ever, like unemployment has a time limit, & that is a paid insurance, a hand-out entitlement should have a time limit, be it what it may, no body should be on the waiting list, they should knock out those who have been there longest & put the new ones in. Those guys could apply again.
    If not for this crazy shnorrerei, Yiddishe housing would cost a fraction & so would rents, many more would be able to sustain themselves, and those really in need would get help, rather than those who have figured out how to play the system better.
    It is time for people to realize if they get something for free someone else is paying for it, and that person may one day be upset about paying others bills. So as long as you got it be grateful, but when it ends you cannot complain. You didn't pay for it.[ Not to say the government doesn't squander most of tax payers money, on select interest groups]
    "Socialism works until you run out of other people's money." Margaret Thatcher.

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  10. You may have some point's but today the prices are high regardless of any programs. There are too many outsiders plus many working people living here and buying ,so that his is not so much of a factor anymore.

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  11. It is about time that the gravy train is being cut off. My Husband and I worked very hard to get our home. We paid a mortgage for 30 years. There were times when all we had to eat was cereal or hot dogs and spaghetti but we did it. We never had more than $500. in the bank and we never asked for public assistance. Investment property? If one can afford that then one can pay for their own home with a mortgage.

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    1. People have wedding gift money or other savings that they put in real estate or other source. They rent it out but cant afford to live in it its an investment property for the future. The HUD waiting list is unpredictable when you get on sometimes its financially worth it to get on others take a pass..

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    2. If people have wedding gifts and savings then they need to learn how to live off of that in a more effective way. NOT to live off of others that may not have wedding gifts and no savings but work, pay taxes and a mortgage. There is nothing wrong with section 8 for those that really need it but there are families that make a job out of it. There are those that know how to work the system and bilk millions from it. My husband and I were not allowed because we were from a white middle class family. We had zero savings, we lived pay check to pay check working over 100 hours a week between the both of us. We had no wedding gifts because we could not afford the luxury of a wedding that so many have. We got married with no party afterward. Time has come to weed out the people that use this as a means to not have to pay and allow this for the ones that really need it. I know we did when we first started out. Now we live on a fixed income and I bet we still would not be eligible.

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  12. This is the awesome public housing authority blog it's really helpful...
    The Lincoln housing authority oversees both public housing and voucher programs, if available. The housing authority owns and manages 2 facilities which total 45 units across the city.

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