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Home > Policy Advocacy > Federally Subsidized Affordable Housing > Next Housing Crisis Looms

Next Housing Crisis Looms; 77,000 Families Face Rent Increases or Displacement 

Tens of thousands of low-income families face escalating rents if tenant and affordability protections are not extended to properties with maturing HUD-subsidized mortgages. Residents living in apartments not covered by project-based Section 8 contracts and financed through the HUD Section 236, Section 221(d)(3) below market interest rate (BMIR), and Section 202 Direct Loan programs do not qualify for continued rental assistance when the HUD subsidized mortgage expires.  

A National Housing Trust analysis reveals that over the next five years 77,000 families and seniors are at risk of rent increases or displacement because HUD-subsidized mortgages have recently matured or are due to mature.
 
The good news: there is strong, broad consensus within the affordable housing industry for extending existing tenant and affordability protections to these units now at risk. More than 45 organizations have joined the National Housing Trust in a letter urging Congress to act quickly to:
  • Provide enhanced vouchers or project-based assistance for low-income residents of buildings with maturing HUD-subsidized mortgages; and
  • Allow the project-basing of enhanced vouchers at the option of the owner to provide long-term affordability of apartments that otherwise lose their rent restrictions.
In addition, the letter called on Congress to take steps to preserve properties with Rental Assistance Payment, Rent Supplement, and Section 8 Moderate Rehabilitation contracts.  All of the provisions outlined in the letter are uncontroversial and were adopted by the House Financial Services Committee on July 27, 2010 as part of H.R. 4868, the Housing Preservation and Tenant Protection Act.

CLICK HERE for a one page fact sheet with state counts of at risk units in properties with maturing HUD-subsidized mortgages.
Additional Information

Committee Approves Preservation Legislation >>