The proposed Trump Administration Fiscal Year 2019 budget would not only make it difficult for housing providers to serve their current tenants, but new policies would also require residents to pay more and work for their housing. The Administration is preparing a legislative proposal that will increase tenant rent contributions in federally assisted housing and impose new work requirements. The cuts and new burdens will hit renters with the lowest incomes hardest, including seniors, disabled persons, veterans and families with children.
The draft legislation calls for raising tenant rent contributions in all federally assisted housing programs. This includes Public Housing, Section 8 Housing Choice Vouchers (HCV) and apartments with Section 8 Project-Based Rental Assistance (PBRA). Tenants in these properties typically pay 30% of their adjusted monthly income towards rent. If the current budget it passed, it would raise the tenant contribution to 35% of gross income or a new minimum rent of about $150, whichever is greater. The new minimum rent is based on a tenant paying 30% of the income earned working 15 hours per week at minimum wage. Additionally, this proposal would eliminate the income deductions for dependents, childcare, elderly, disabled and medical expenses.
The Trump Administration’s FY 2019 budget also sets a goal of requiring work from those who receive federal housing assistance. The draft legislation would allow PHAs to require up to 32 hours of work per week from tenants. Education and job training can count towards the work requirement, but not volunteer activities. Seniors 62 and older and non-elderly disabled residents would be exempt from the requirement. This move is consistent with Administration efforts to impose work requirements across a range of safety net programs. The Administration has already allowed states to impose work requirements on Medicaid recipients, with 9 states having waiver requests pending at the beginning of February.
Affordable housing supporters are already speaking out against the Trump Administration’s rent and work proposals. Raising rents will strain households with extremely low incomes. Seniors, disabled persons and families with children will be hit hard. They will lose their deductions and face a higher minimum rent. Work requirements drive people out of assistance programs but do not have a good record of moving people out of poverty. Low-wage jobs are often sporadic in nature, making it challenging to meet required hours each week. Income gains from work are offset by the loss of benefits. Losing affordable housing makes it even more difficult to maintain steady work.
These proposed policies coincide with the Trump Administration’s mission to greatly reform federal housing policy. The Administration’s FY 19 budget proposal would gut HUD funding by $8.8 billion, or 18.3%. The budget proposal explains that the Administration’s goal is to reduce the federal footprint in affordable housing. State and local governments need to bear more of the costs to maintain affordable housing and tenants need to make greater contributions. The budget document does not outline the specific program changes, noting that they will be included in upcoming legislation.
The Administration has not yet submitted these proposals to Congress. Low-income renters should let their Representatives and Senators know how raising rent and imposing work requirements will affect them.
You can see the effects of the Trump FY 2019 budget cuts in your area here.
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