September 1, 2004
4 BEDROOMS?:
US plans to slash many rent vouchers (Scott S. Greenberger, September 1, 2004, Boston Globe)
The federal government is poised to dramatically reduce the value of publicly-funded housing vouchers in Boston and other Massachusetts cities, a move that would force many low-income families out of their apartments and might prompt some landlords to withdraw from the program.In a state already starved for affordable housing, the prospect of federal payments dropping by as much as a third has united housing advocates, landlords, and city and state officials, all of whom are planning to petition the US Department of Housing and Urban Development to scrap the change. In Boston alone, there are 9,000 households using the federal vouchers to pay part of their rent.
"This is the most significant change in rent levels we've seen in 30 years," said Aaron Gornstein, executive director of the Citzens' Housing and Planning Association, a Boston-based advocacy group. "It seems like an arcane technical change, but it actually has very serious implications for the program." [...]
The agency determines average rents in each of 19 districts and comes up with voucher rates for each. The system groups high-rent cities such as Boston with neighboring cities like Cambridge and Newton, where expensive rents have kept voucher values high. But under the proposed changes, set to go into effect Oct. 1 across New England, Boston would be grouped with lower-rent cities such as Revere and Quincy, bringing the rates down.
Voucher values for a two-bedroom apartment in Boston would drop 15 percent, from $1,409 to $1,203; vouchers for four-bedroom apartments would plunge 27 percent, from $2,084 to $1,516.
Move. Posted by Orrin Judd at September 1, 2004 9:11 AM
When I was growing up in the 50s, if we couldn't afford the rent, we moved where we could afford the rent. The vouchers probably helps to keep the rent in those areas so high anyway.
Posted by: JR at September 1, 2004 10:47 AMIn Boston alone, there are 9,000 households using the federal vouchers to pay part of their rent.
[V]ouchers for four-bedroom apartments would plunge 27 percent, from $2,084 to $1,516.
So, poverty is America is when your subsidy towards part of the rent on your four bedroom apartment drops down to about what my mortgage is?
[The article doesn't say this subsidy is monthly, but it seems to be. Also, isn't this really just going to give people a reason to move from high rent to low rent areas.]
Posted by: David Cohen at September 1, 2004 11:19 AMI see no problem with people moving to areas they can afford to live in.
Posted by: JR at September 1, 2004 1:04 PMHUD has a spreadsheet with proposed voucher values by county.
The national median for a 4-bedroom is $738 in Topeka. Boston's $1516 is the 98th percentile, but still a lot less than $2592 in San Jose.
Posted by: Tom L at September 1, 2004 3:43 PMThe only problem is that Boston has so artificially boosted the rental vouchers and thereby the rents so high and also the taxes so high that the landlords will be hard pressed to lower the rents enough. Poor landlords! Poor people in Massachusetts with their outrageously inflated housing prices! I had to pay more for a studio in a middle class Boston suburb than I did for a 3-BR apartment with utilities paid in Cincinnati and the apartment in Cincinnati was in a better neighborhood too. Boston and the rest of the overpriced cities need to take a look at what they have wrought in their economies and take action.
Posted by: dick at September 1, 2004 10:02 PM