The Department of Housing and Urban Development is considering whether to kick thousands of families out of affordable housing, following a report that many earn too much to qualify for federal housing assistance.
“Some of those families significantly exceeded the income limits,” HUD wrote in a Tuesday notice of proposed rulemaking in the Federal Register. “At the same time, scarce public resources must be provided to those most in need of affordable housing.”
The agency’s notice of proposed rulemaking came shortly before the House passed legislation by voice vote on Tuesday afternoon that would have the same effect. The movement for reform follows a 2015 report by HUD’s inspector general that found more than 25,000 families earn too much to qualify for housing assistance.
Federal law does not require families to move out of public housing once they exceed the allowable income cap to receive vouchers. The OIG’s sample of 15 public housing authorities revealed that came at the expense of nearly 580,000 families who were left on waiting lists to receive assistance.
The OIG report found that nearly half of the families identified earned $10,000 or more than HUD’s 2014 income limit. An especially notable example was a Nebraska tenant who was approved to live in subsidized housing for 10 years, despite having $65,000 in annual income and assets of $1.6 million.
“An increase in income is a good and welcomed event for families, and when a family’s income steadily rises, it may be an indication that the family is on its way to self-sufficiency,” HUD wrote. “However, an increase in income may be minimal or temporary, and a minimal or temporary rise in income should not be the basis for termination of public housing assistance.”
HUD’s proposal would seek to head off legislative action, which would prevent the agency from having as much of a role in the process. The public has a period of 30 days from the date of the proposal’s publication in the Federal Register to provide additional input.
