Rents could jump by 25% for Memphis’ poorest
A new plan from U.S. Housing and Urban Development Secretary Ben Carson would hike federally subsidized rents 25 percent for 10,600 households in Memphis, according to Marcia Lewis, executive director of the Memphis Housing Authority.
The preliminary version of the plan, meant to pressure low-income residents to work more, would strip away deductions for childcare, medical expenses and more, tripling the minimum rent for Memphis’ poorest families from $50 to $150, Lewis said. The proposal would also apply to assisted-living facilities and voucher-funded units.
As a result, more families would be at risk of eviction or homelessness, Lewis said.
“It’s unfair,” she said. “You’re targeting a vulnerable segment of the population. You’re targeting the poorest families.”
Raising the minimum rents could encourage families to become more selfsufficient, Lewis said — but raising them so much, so quickly, will make life “tough” for families.
Lewis’ statement came as agencies across the state try and determine the impact of HUD’s latest adjustment to rent subsidies. More than 200,000 people across Tennessee would see their rents increase under Carson’s proposed “Make Affordable Housing Work Act,” according to an analysis done by the Center on Budget and Policy Priorities.
For Daniel West, who lives in a fourbedroom apartment with his wife and their five kids at Cayce Place, an East Nashville public housing community operated by the Metropolitan Development and Housing Agency, the plan would likely mean cutting back on inessential items like clothing.
“If they’re going to raise the rent, they should raise the minimum wage too,” West said. “Food stamps keep going down. People can’t afford to get to work. We can’t get a break. We’re barely making enough as it is.”
West’s rent would rise from 30 percent to 35 percent of his income, under the proposal. The family would also lose credits that reduce their monthly payments.
More than 200,000 Tennesseans could see their rents rise
The Carson proposal, which needs congressional approval, is the latest attempt by the Trump administration to scale back the social safety net, under the belief that charging more for rent will prompt those receiving federal assistance to enter the workforce and earn more income.
“It’s our attempt to give poor people a way out of poverty,” Carson said in a recent interview with Fox News.
Tennessee would be hit especially hard by the new approach.
Households across the state would see their rents climb an average of $760 a year, or 24 percent. That’s the sixth largest jump among states.
In Nashville, the average household’s rent could go up by $840 a year, or 24 percent.
Kids would be some of the most deeply impacted by the change.
In Nashville, there are 24,200 children – nearly half the affected population – living in households that would see rising rents.
Rents in Knoxville would climb by an average of 22 percent annually.
Working families’ rents would balloon from 30 percent to 35 percent of their income. And they’d lose deductions for dependents, childcare expenses and medical costs. Currently, a household can deduct from its gross income $480 per child, significantly lowering rent for families.
New standards would raise elderly status age from 62 to 65
Elderly and disabled residents receiving rental assistance wouldn’t be spared by the law either. An estimated 314,000 households stand to lose their elderly or disabled status and see their rents go up, according to the outside analysis.
The age to be considered elderly would rise from 62 to 65, and households led by an elderly person would lose that status if a working-age person is living in the home.
Grace Smith, executive director of the Council on Aging of Middle Tennessee, said the changes would do more to tear apart families than anything. Caregivers could be forced to move out of their relatives’ homes, or they would have to be admitted into nursing homes, she said.
“I’m very concerned about this change because we know that about 20 percent of seniors are living solely on Social Security,” Smith said. “Many are struggling to make ends meet because it’s not increasing at the same rate as housing costs. Rather than increasing rents, we need to be focusing on the availability of affordable housing.
“I think there has to be some allowance for family caregivers because they’re the backbone of the care-giving infrastructure in the country.”
Rents are rising faster than wages
Overall, the analysis shows that in the nation’s 100 largest metropolitan areas, low-income tenants — many of whom have jobs — would have to pay roughly 20 percent more each year for rent under the plan. That rent increase is about six times greater than the growth in average hourly earnings, putting the poorest workers at an increased risk of homelessness because wages simply haven’t kept pace with housing expenses.
That trend holds true in Nashville as well. Home prices shot up a staggering 74 percent here since 2012, but the median income grew just 30 percent – from $38,797 to $50,484 – between 2000 and 2016.
Paula Daniels, a case manager with Mid Cumberland Community Action Agency who works with struggling Rutherford County families to achieve economic independence, said the change could increase homelessness.
People are increasingly seeking out food banks because of the recent decrease in food-stamp benefits from $17 to $19 per month, she said.
Most of the families she works with have part-time jobs making $10-to-$14 per hour, and get state-funded help with child care.
Lack of affordable housing and education are the biggest challenges many of her clients face, Daniels said. Many people struggle with learning how to access and navigate the Internet, where most employers accept job applications.
“Most elderly people receive $733 to $1,000 a month in Social Security, and their rent is $500 to $750 a month. They’re barely making it on what they have now,” Daniels said.
“We have families where the head of household doesn’t have a high-school diploma. I can’t say what the solution is, but maybe better education starting at the high-school level so that people can get better jobs and higher pay. That plays such an important part.”