Redefining Affordable
In order to redefine “affordable housing,” we must change one major item. Affordable housing rates must be based on the median income of low and medium-income families. “Affordable” for low-income families is not the same as for medium-income families. Therefore, the definition must be based on income levels for that group. They must never be combined and will not include anything else.
Next, the definition of affordable must be re-evaluated each year the census is taken. This allows for an adjustment of the definition in a periodic manner.
What’s Next?
Construction of low-rise affordable rental apartment buildings. These buildings will be constructed with recreational areas for children. It will also have outdoor seating areas. Apartments in the buildings will be a mix of low income and medium income units.
Income Verification
Tenant (s) income will be verified either on a yearly or bi-yearly basis. One reason is that a tenant’s income can fluctuate. Another reason is to verify the tenants eligible for the apartment.
Income would be verified through tax returns or pay stubs, if applicable. If not then the tenant must supply other documentation to verify income. Failure to verify income could result in removal from the apartment.
Low-income apartments must remain just that, low-income apartments. So an interactive review process must be in place. This guarantees that a tenant is not unjustly removed from an apartment.
Note: Income assessment is also performed during the application process for the apartment. This sets the baseline from which the review committee can work.
How The Income Review Process Works
The income review process looks at the verifiable income and expenses of all tenants.
- The tenant must be provided with the prevailing income range for their apartment.
- A prevailing income range statement must be presented 4 months in advance of the review.
- The tenant is given a list of acceptable income verification documents.
- If the tenant cannot supply the requested documents the review committee can accept other documentation. This could be a verification of employment letter stating yearly income. In any case, the documentation must be verifiable.
- A list of acceptable living expenses will be given to the tenant. This is used to calculate net income.
- The committee will provide instructions on how to present deductions.
- Deductions for expenses can be such things as child care, school cost, child support, food and more. Items such as cable tv, expensive phone plans, haircare, etc are not acceptable.
- Where there is no change in the income limit the tenant will be notified in writing. The notification will state that no review is necessary for that year.
The Parameters of the Review
- The Affordable definition is used to set an income range.
- During census years the old definition is used.
- The maximum rent a tenant can pay is 30% of their net income.
- The review committee will have 30-days to render its determination
- The tenant will receive a detailed determination.
- The Determination will be in plain language
- The Determination will explain its decision in detail.
- It will be in the tenant’s language.
- The tenant has 15 workdays to challenge the decision.
More than one wage earner
Households with multiple wage earners are required to show those income and expenses.
Unlike the method used to evaluate SNAP recipients, this method is more precise. It looks at all household member’s expenses, not just incomes.
Click here for an Income Verification example
The City Steps Up
Notification that a tenant must move does not mean the tenant is on their own. For example, a tenant in a low-income apartment may have to move to a medium-income apartment. This may be in the same building or a different building depending on availability. It is up to city housing to determine if such housing exists.
If no such apartment exists the city will assist the tenant in locating a suitable rental elsewhere. The same applies if the tenant was in a middle-income apartment.
In this case, the tenant has maxed out of the program. This leaves two choices. One is an apartment in a private home. The other is a private development.
Better than the alternative
So there you have it an alternative to dense packing and warehousing. Does this sound weird or complicated? Well, it’s no stranger than building a high rise for high-income people and reserving some apartments for lower-income people.
Complicated, so is our housing situation. There is and will never be a quick and easy fix. At least with this method, the city must work the tenant and change its mindset. It must establish truly affordable apartments. The city will also maintain a block of affordable apartments, not shelters. And when a tenant’s income exceeds the income range for an apartment the city must assist the tenant in obtaining another affordable apartment.
The plan…so far
First, we throw out the definition of “Affordable” based on Return On Investment. This includes whatever weird definition the city uses.
Next, we re-define affordable. We base it on the median income of low and medium-income individuals and families.
Then we build low-rise apartment buildings for both low and middle-income families. These developments will have recreational and seating areas.
We also build affordable private homes, not “increased density” developments.
Then we put in place a fair method of review for tenants. As well as a method of periodically reviewing the definition of “Affordable”. The definition will be specific to the income class of the tenants.
Lastly, we keep in mind the lessons from the past and never ever again warehouse and or dense-pack people.
Seriously Never Again…
You just read: The Redefining of Affordable Rents for NYCHA Apts
Next: The Problem With Dense Packing
Disclaimer: I am not a lawyer and nothing stated here is legal advice. This article applies to the five boroughs of New York. All information deemed accurate but not guaranteed. Always check the real estate laws in your part of the country.
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