WASHINGTON,
D.C. – At a news conference today, U.S. Representative Jan Schakowsky (D-IL)
and other members of Congress applauded the announcement by Secretary of
Housing and Urban Development (HUD) Andrew Cuomo that will make housing
more affordable for many low-income families.
Because
of today’s economic prosperity, rents have surged by more than 15 percent
in Chicago over the past four years and, as a result, many families who
use Section 8 vouchers cannot afford to pay current market price. Secretary
Cuomo announced that HUD will increase the value of Section 8 vouchers
so that families will not be priced out of their homes in tight housing
markets like Chicago. This proposal will only apply to housing markets
where families are having difficulty finding housing that qualifies for
Section 8.
“Over
the past few years, we have seen what a booming economy can do: record
employment, budget surpluses as far as the eye can see, and homeownership
at an all time high. We’ve also witnessed the consequences of this
economy on low-income families: skyrocketing monthly rents, evictions,
and 5.4 million families with worst case housing needs,” said Schakowsky,
a member of the Banking Subcommittee on Housing and Community Opportunity.
“I
applaud Secretary Cuomo for this latest action because it will help ensure
that many families in Chicago will not be forced out of their homes and
neighborhoods. This proposal means that rental voucher holders can
afford to live in more expensive housing which, with today’s housing prices,
probably means their current residence,” Schakowsky added.
Specifically,
today’s rule would provide for targeted increases in the “Fair Market Rents”
that are used to determine the level of subsidy under Section 8.
HUD will calculate subsidy levels based on the cheapest 50 percent of all
rental units in Chicago and other areas instead of the cheapest 40 percent.
In Chicago, this means that the current subsidy of $788 for a two-bedroom
unit will increase to $848. As a result, the number of affordable
Section 8 housing could increase by 100,000 units in Chicago. Nationally,
the pool of housing could increase by 1.4 million units.
“As
the price of housing increases, we need to provide more assistance so families
are not kicked out of their homes. Today’s action is a significant
step that proves that we have the resources and the will to help families
live in safe and suitable neighborhoods,” Schakowsky said. |