top
East Bay
East Bay
Indybay
Indybay
Indybay
Regions
Indybay Regions North Coast Central Valley North Bay East Bay South Bay San Francisco Peninsula Santa Cruz IMC - Independent Media Center for the Monterey Bay Area North Coast Central Valley North Bay East Bay South Bay San Francisco Peninsula Santa Cruz IMC - Independent Media Center for the Monterey Bay Area California United States International Americas Haiti Iraq Palestine Afghanistan
Topics
Newswire
Features
From the Open-Publishing Calendar
From the Open-Publishing Newswire
Indybay Feature

Nonprofits in LIHTC program are restricted in raising rents above 10% on the poor

by Lynda Carson (newzland2 [at] gmail.com)
Some of the homelessness and the unhoused in Oakland is a direct result of the affordable housing developers demanding "minimum-income-requirements," of the poor to move into their projects.
Some of the homelessness and the unhoused in Oakland is a direct result of the affordable housing developers demanding "minimum-income-re...
Nonprofits in LIHTC program are restricted in raising rents above 10% on the poor

By Lynda Carson - April 9, 2024

Oakland - For years local nonprofit housing developers in Oakland and the Bay Area, have been excluding the poor from their so-called affordable housing projects with “minimum-income-requirements.” This has resulted in additional homelessness and the unhoused in Oakland, Berkeley, and the Bay Area as a direct result.

Additionally, the same nonprofit housing developers using Low-Income Housing Tax Credits (LIHTC) at their projects in Oakland and the Bay Area, have been sticking it to the poor with annual rent increases way above 10% at times.

According to the National Low-Income Housing Coalition (NLIHC) in a Memo to Members report released on April 8, 2024, HUD has capped the annual rent increases at 10% for renters residing in tax credit financed properties.

The rent increase cap will cover most of, if not all of the so-called affordable housing developments in Oakland, Berkeley, the Bay Area, including so-called affordable housing projects all across the nation.

According to the NLIHC, “HUD’s Office of Policy Development and Research announced in its annual income limits dataset a 10% limit to rent increases in rental properties financed with federal Low-Income Housing Tax Credits (LIHTC). In a statement, NLIHC president and CEO Diane Yentel called the decision “an important win for millions of renters living in tax credit-financed properties.” Under the LIHTC program, rents can increase annually by 5% or two times the percentage change in national median income, whichever is higher. HUD’s new cap limits such rent increases to no more than 10%, regardless of the median income change.”

Additionally, in a statement from Diane Yentel of the NLIHC, in part it states, “The National Low Income Housing Coalition (NLIHC) applauds the Biden-Harris administration’s decision to limit rent increases in rental properties financed with federal Low Income Housing Tax Credits (LIHTC) as a critical measure to ensure greater housing stability for the millions of low-income households living in these homes.

“The decision to prevent egregious rent increases is an important win for the millions of renters living in tax credit-financed properties,” said NLIHC President and CEO Diane Yentel. “The Biden-Harris administration is clearly listening to and centering the needs of renters in a way not seen with past administrations.”

Under the LIHTC program, rents can increase annually by five percent or double the percentage change in national median income, whichever is higher. The decision by the Biden-Harris administration would limit such rent increases to no more than 10 percent, regardless of the median income change.

The Biden-Harris administration has done more than any other administration in recent history to call for and take meaningful action to protect renters from egregious rent increases and other unfair practices by landlords. In his State of the Union address, President Biden pledged to combat egregious rent increases and other unfair practices that are driving up rents and to stop landlords from charging junk fees. The administration’s Blueprint for a Renters’ Bill of Rights included commitments from key agencies, including the Federal Housing Finance Agency, Consumer Financial Protection Bureau, and Federal Trade Commission to advance renter protections.

The Low-Income Housing Tax Credit is the nation’s primary source of financing for the construction and preservation of affordable rental housing, but apartments built with the Low-Income Housing Tax Credit are typically too expensive for extremely low-income households to afford. The majority (58%) of extremely low-income renters living in developments financed with the Low-Income Housing Tax Credit who do not receive additional support through rental assistance are severely cost-burdened, paying more than half their limited income on rent. Despite living in federally financed affordable housing, these households are often one emergency or unexpected expense away from the risk of homelessness.”

Making matters much worse for the poor, the “lottery” application fee scams used by so-called affordable housing developers in Oakland, Berkeley, and the Bay Area, make it much more difficult and expensive for the poor to move into so-called affordable housing projects.

Lynda Carson may be reached at newzland2 [at] gmail.com

>>>>>>>
>>>>>>>
Add Your Comments
We are 100% volunteer and depend on your participation to sustain our efforts!

Donate

$140.00 donated
in the past month

Get Involved

If you'd like to help with maintaining or developing the website, contact us.

Publish

Publish your stories and upcoming events on Indybay.

IMC Network