On Wednesday, April 25, the Trump Administration proposed a new plan to raise rents on millions of low-income families and individuals receiving federal housing assistance. It's a plan that jeopardizes housing stability for households who, absent this housing support, could very well become homeless as Prosperity Indiana's Policy Director, Kathleen Lara shared with Fox 59 news.
Specifics:
Just how many households would be affected in Indiana? According to research from the Center on Budget and Policy Priorities, 79,100 Hoosier households would be affected, with an average annual budget increase of $760, draining $59,445,000 from the most economically strained households throughout the state.
The Secretary of the U.S. Department of Housing and Urban Development (HUD), Ben Carson, told reporters that the proposal was needed because "The way we calculate the level of assistance to our families is convoluted and creates perverse consequences, such as discouraging these families from earning more income and becoming self-sufficient."
Unfortunately, the data does not support claims that these households will become more self-sufficient under this plan. The legislation crafted around this proposal would require:
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most HUD-assisted households currently paying 30% of their adjusted income towards rent to instead have to pay 35% of their gross income or 35% of the amount earned by working at least 15 hours a week for four weeks at the federal minimum wage, whichever is higher. That would essentially set a new minimum mandatory rent of $150 (three times higher than the current minimum that may apply to families
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The bill would also increase rents for households with high medical or child care expenses by eliminating income deductions for those expenses, the impact of which would disproportionately fall on seniors, people with disabilities, and families with young children.
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The bill provides the HUD secretary with the authority to impose even higher rents through alternative rent structures and de facto time limits. And the proposal allows housing providers to broadly impose work requirements, without any resources to help people gain the skills they need for well-paying jobs.
This is not a plan that lifts Hoosiers in poverty, it sets them on a course for housing crisis, particularly single mothers and the disabled.
What's Next?
Advocacy.
Prosperity Indiana is proud to advocate on behalf of our member network and how this measure would impact our communities, so please contact Kathleen Lara at klara@prosperityindiana.org for questions and stories from clients who will be impacted so we can share those specifics with policymakers.
Raise your voice! Let both Senators as well as your Member of Congress know that this move would make it harder for low-income Hoosiers trying to become economically sufficient and could increase evictions and homelessness throughout our state.
To call your Member of Congress:
US Capitol Switchboard (202) 224-3121
Prosperity Indiana is also proud to be the state partner for the National Low Income Housing Coalition and hope you read their resources on the Administration's proposal:
