Draft Legislation Suggests Trump Administration Weighing Work Requirements And Rent Increases for Subsidized Housing

Originally published in The Intercept on February 1, co-authored with Zaid Jilani.
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Draft legislation obtained by The Intercept suggests the Department of Housing and Urban Development is eyeing a proposal to overhaul the federal government’s administration of subsidized housing, through measures such as rent hikes and conditioning aid on employment.

This change would significantly impact those who rely on public housing and housing choice vouchers, often referred to as Section 8 in reference to Section 8 of the Housing Act. The news comes just weeks after the Trump administration announced that states could start imposing work requirements as a condition of Medicaid eligibility.

When asked about the document, Department of Housing and Urban Development spokesperson Brian Sullivan would not confirm its existence, but he suggested more would become clear when the Trump administration announces its budget later in February. “I think what you’re talking about is going to be expressed publicly in the budget coming up, so prior to that we would have nothing to say,” Sullivan said. He did not return multiple requests for further comment.

Document metadata reveals the name of the author of the document; she is listed as an HUD employee on a number of department web pages between 2013 and 2017.

It is unclear at this time whether the draft legislative language, dated January 17, will be proposed as a standalone bill or included within existing legislation. There are many parts of the 28-page document that are vague and even contradictory. However its text strongly suggests the administration is considering rent reform.

Under current regulations, most households that receive federal housing subsidies pay 30 percent of their adjusted income as rent. Adjusted income is a household’s gross income minus money taken out for four mandatory deductions: dependent deductions ($40 per month per dependent), elderly and disabled deductions ($400 per year), a child care deduction, and medical and disability expense deduction. This 30 percent threshold, which has been the standard for most rental programs since 1981, is based on a rule-of-thumb measure that estimates a household can devote 30 percent of its income to housing costs before it becomes “burdened.”

The draft legislation eliminates all four deductions, effectively making the changes most burdensome on households with children, the elderly, or people with medical problems.

If the draft’s proposals are enacted, those families would have to pay the higher of two figures: Either 35 percent of their household’s gross income, or 35 percent of what they earn from working 15 hours a week for four weeks at the federal minimum wage. A comment in the margins of the document notes that the latter would equal $152.25, something housing advocates say is effectively a new minimum rent floor.

Additionally, the draft legislation would allow public housing authorities to impose work requirements of up to 32 hours a week “per adult in the household who is not elderly or a person with disabilities.” According to the Center on Budget and Policy Priorities, more than half of all recipients who lived in subsidized housing in 2015 were elderly or disabled, and more than a quarter of all households had a working adult.

Diane Yentel, the president and CEO of the National Low Income Housing Coalition, expressed alarm at the possible changes.

“HUD’s proposals could raise rents on millions of low-income households that receive federal rental assistance, with some of the largest rent increases for families and individuals that have the greatest difficulties affording housing,” Yentel said. “By raising rents on some of the lowest income and most vulnerable families in HUD subsidized housing, HUD would jeopardize family stability by increasing the financial burdens they face through higher rents.”

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Ben Carson, the GOP, and Subsidized Housing

Originally published in T’he American Prospect on December 16, 2016.
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Last week, Ben Carson, Donald Trump’s nominee to lead the Department of Housing and Urban Development, gave a talk at Yale University. He told students that the rumors that he planned to end housing programs for the poor are “a bunch of crap” and there is “no way” he’d ever do that. But housing advocates shouldn’t relax just yet. Even if Carson and Trump decide not to axe entire programs, they could still implement policies that create all sorts of new hardships for the millions of low-income people who live in public housing and use federally subsidized housing vouchers.

Trump would not be the first president to go after federal benefits for the poor. In 1996, President Bill Clinton signed the Personal Responsibility and Work Opportunity Reconciliation Act, which dramatically upended welfare in the United States. The law mandated two significant changes: the imposition of time limits for cash assistance, and the requirement that welfare recipients seek employment.

The welfare reforms of the 1990s have decimated low-income families. Over the past two decades, the number of families living in extreme poverty increased by 159 percent, while the number of families receiving cash assistance plummeted. Though more single mothers entered the workforce, the low-wage jobs they managed to find did little to alleviate their poverty. Moreover, when the economy tanked during the Great Recession, roughly one-fifth of all poor single mothers could neither find work nor access welfare. In 2015, researchers Kathryn Edin and H. Luke Shaefer wrote that more than a million U.S. households with roughly three million children survive on less than $2 per day.

Carson, the retired neurosurgeon and failed GOP presidential contender who recently said that he felt unqualified to lead any federal agency, is likely to rely on congressional Republicans who have long sought to adapt Clinton’s welfare reforms to federal housing policy.   

In mid-November, Representative Jeb Hensarling, the Texas Republican who chairs the Financial Services Committee that oversees HUD, spoke at the Exchequer Club in Washington, D.C., and said the federal housing agency “symbolizes the left’s top-down, command and control, centralized planning approach” that measures compassion for the poor “based on how many programs Washington creates” and how much money it spends. He vowed to switch gears, and “bring new ideas to the table” to fight poverty.

Indeed, shortly afterward, in Dallas, he told the J. Ronald Terwilliger Foundation for Housing America’s Families forum that Republicans would “turn the page” on housing come January. “The new Congress will help lift the poor onto the ladder of opportunity by attacking poverty at its roots, starting with work,” Hensarling said. “We will reform our housing programs for the poor to reflect the value of work.”

He added that HUD rental assistance programs, such as Section 8 vouchers and public housing, while they may be helpful, “do not promote economic freedom” and actually stand in the way of upward mobility. He promised to align housing benefits with cash assistance for “work-capable” recipients in order to “encourage” individuals to move towards jobs, careers, and economic independence.

House Speaker Paul Ryan also endorsed these ideas in his “Better Way” policy agenda, released in June. He said the federal government should “expect work-capable adults to work or prepare for work” in exchange for welfare benefits. He also called for Temporary Assistance for Needy Families (TANF) benefits to align with housing assistance.

These conservative proposals would have a devastating impact on people who are unable to meet work-for-benefits requirements. According to the Center on Budget and Policy Priorities, more than half of all recipients who lived in federally subsidized housing in 2015 were elderly or disabled, and more than a quarter of all households had a working adult. Six percent had a preschool-aged child, or a disabled child or adult.

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While CBPP says there’s little evidence available on the effectiveness of work requirements in federal housing programs, there’s ample data to show that cash assistance work requirements have done little to increase employment over the long-term, and have even sunk families into deeper, more severe poverty. This is critical to note given the significant barriers low-income individuals face to accessing stable jobs. As CityLab’s Brentin Mock found, workplace racial discrimination, employment penalties associated with incarceration, entry-level jobs that go to college graduates, and increased automation have all made it even harder for the poor to lock down steady employment.

As Jared Bernstein, a CBPP senior fellow, told The Atlantic: “I cannot overemphasize the importance of this fundamental flaw in poverty policy, i.e, the assumption that there is an ample supply of perfectly good jobs out there that poor people could tap if they just wanted to do so.”

Diane Yentel, president of the National Low Income Housing Coaltion, took to Twitter last week to push back on Paul Ryan’s proposal to impose work requirements on public housing residents and federal voucher recipients. She urged the House speaker to invest his energy in devising strategies to make housing more affordable for low-income people. Only one out of four eligible low-income renter households even receive federal housing assistance, Yentel noted, and it’s those unassisted families in particular who are “one illness, job loss, or paycheck away” from homelessness.

Congressional Republicans’ interest in imposing work requirements and time limits on federal housing subsidies fit in well with the conservative rhetoric that Ben Carson has spewed over the past several years. During his presidential run, Carson insisted that welfare programs create cultures of dependency, harm poor families, and even “reward” people for having babies out of wedlock. Some have suggested that Carson’s lack of policy experience could mean he’d bring fresh blood and a “blank slate” to the housing agency. That’s doubtful. His dangerous ideas about welfare and work are already deeply ingrained, and, unfortunately, poised for prime time.