FHEPS Increases Tenants’ Contribution for Some Beneficiaries

One of the first things landlords look at when considering a prospective tenant’s application is whether the tenant’s income is high enough to afford the rent for the apartment.  Usually, the applicant’s income must be high enough that rent does not exceed 30 percent of the tenant’s monthly paycheck.  In other words, rent is considered affordable if it is less than or equal to 30 percent of the tenant’s income.  This is the basis of the rule, implemented by many affordable housing problems, that employed tenants whose income is below the qualifying threshold, must contribute 30 percent of their paycheck toward the rent, and the rental assistance program will pay the rest.  FHEP, one of New York City’s oldest and largest rental assistance programs, has proposed an amendment that would make some beneficiaries pay 40 percent of their paycheck toward the rent.  FHEP beneficiaries who could see their rent burden increase to amounts that are unaffordable by all reasonable metrics are understandably unnerved, but this change could cause a financial burden on landlords whose tenants received rental assistance through FHEP, too.  If you are a landlord whose tenants are FHEP beneficiaries, contact a Bronx real estate attorney.

In What Universe Is It Affordable Housing When 40 Percent of Your Paycheck Goes to Rent?

FHEP is a rental assistance program that helps tenants in New York City avoid eviction; qualifying beneficiaries would be homeless if they were evicted.  One of the motivations for the continued existence of FHEP is that providing temporary shelter housing for the beneficiaries would cost the city more than providing permanent housing for them through FHEP.  The program works so well that some tenants, with the help of their FHEP benefits, have remained in their apartments for many years.

The price of rental housing has increased, as has the price of almost everything else, and therefore, in order to continue providing rental assistance to as many beneficiaries as possible, FHEP has proposed an amendment whereby beneficiaries who have employment income would see their rent contribution obligations increase from 30 percent of their income to 40 percent of their income upon entering their sixth year of receiving FHEP benefits.

This is worrisome news to the tenants who will be affected immediately, if the proposed amendment passes, or who will see it looming on the horizon for a year or more.  Working people who qualify for FHEP are on tight enough budgets where they cannot easily redirect an additional 10 percent of their income to rent.  In the comments section of the NYC Rules website, beneficiaries lamented that, while their income and benefits had not increased, the price of necessities had.  They told of entire buildings where not a single neighbor had enough SNAP benefits left in the last week of the month to buy a dozen eggs.

Schedule a Confidential Consultation With a Bronx Real Estate Attorney

A real estate lawyer can help you if the proposed changes to FHEP will cause havoc in your rental property.  Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.

Sources:

rules.cityofnewyork.us/rule/cityfheps-and-pathway-home-rule-amendments/

nyc.gov/site/hra/help/fheps.page