SHA adopts new rent policies for the
Low-Income Public
Housing program
Background
In 2000, SHA established a rent policy
with the following goals:
-
Reward resident employment
-
Generate enough revenue to
supplement federal dollars
-
Reduce unnecessary administrative
procedures
After several years of monitoring and
evaluating the policy, SHA drafted proposed revisions to address current funding challenges and to
support the goals of the program more effectively.
After a monthlong community feedback
process and the May 19, 2005 public hearing, SHA staff drafted a
recommendation for the Board of Commissioners’ vote. On June
20, 2005, the Board of Commissioners approved proposals to make
changes to the rent policy.
What are the changes in rent policy?
Most of the changes set forth in the
original proposal are included, except for allowing student
financial aid and income from caring for foster children to
be available for rent.
The changes will go into effect October
1, 2005 and will be implemented over a six to 12 month
period. Employed residents will be most affected, while disabled and elderly residents on a
fixed income will be impacted little. Below is a summary of
the changes:
-
All households will be required to report increases in
income within 14 days of receiving
the income. Rent may be increased between annual reviews.
-
If a household fails to complete annual recertification,
their housing subsidy will be removed and they will be
charged the market rent for their unit as of the effective
date of the household’s annual recertification.
-
Employed households on a rent step (paying $260 and $390)
will see their rent calculated as 30 percent of income.
These households will likely pay more rent. They will have
six month’s notice of the change.
-
Households earning more than $15,000 a year from
employment will be eligible for a Tenant Trust Account, in
which a portion of their rent is set aside in an account
they can use for self-sufficiency purposes, such as
education, starting a business or buying a home.
-
Families on TANF will most likely see a reduction because
SHA will calculate rent on 30 percent of adjusted income,
instead of 25 percent of gross income.
-
Households reporting zero income may have to pay rent
based on TANF or unemployment benefits for which they appear
to be eligible until they can show that they are not.
For questions about these policy changes, please contact
Cindy Sribhibhadh, SHA Property Management Administrator, at
615-3302.
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