On the Home Front

My name is Adelia Williams, and I am a Low-Income Housing Tax Credit (LIHTC) tenant and citizen advocate for securing permanent, affordable housing for America’s low- and fixed-income populations. LIHTC regulations are falling short of protecting the vulnerable tenants the program is meant to serve, in that hefty rent increases are pricing tenants out of their homes. Unlike Section 8, LIHTC rents are tied to units, not to incomes. Incomes are only relevant at application and recertification.

I am currently 58 years old and was approved for a LIHTC unit in the fall of 2021. Having experienced being priced out of condo ownership and market-rate apartments, I first called the LIHTC Compliance Director at the property management company to ask about rent increases. She said they hadn’t given increases for years – maybe one for $30. I was so relieved to sign the lease and finally have an affordable place to call home, near my elderly parents, adult children, and grandchildren. However, my relief turned to panic when I received notice of a 10% rent increase just prior to my annual recertification. The manager said they could have raised my rent even more. Apparently, California’s LIHTC contracts are exempt from rent control.

I researched to get a better understanding of LIHTC rent increase policies and learned that rents are based on the State’s Tax Credit Allocation Committee (TCAC) Income and Rent reports, which are posted on their website, per HUD’s annual, artificially-adjusted Area Median Income (AMI) notices. I compared California’s TCAC reports from 2019-2022 (the pandemic years) and found an incredible jump in the Income and Rent maximums (or ceilings) of 26.8%.  I looked up my county’s inflation-adjusted AMIs for that same period and found they actually decreased year over year. The 2023 reports show yet another 5% increase!

In my case, last year’s TCAC report deflated my income to 35%, but I was still given the 10% increase on my 40% unit. Ten percent annual increases compound to doubling rent in just seven years.

I contacted the State Treasurer’s Office and was told their hands are tied until rent exceeds 60% of income. They advised me to contact HUD at the federal level, which I did, but there’s been no response since October of last year. Indeed, such an egregious rent burden could happen within six to seven years. My property manager said I could reapply for a 30% unit should my income qualify in the future; however, I would have to go to the back of their waitlist (currently three years long and growing). During that time, I must continue to pay annual rent increases on my current unit!

Thankfully, three years ago, prior to finding this complex, I was placed on a waitlist for a project-based apartment in another city; however, that wait could take a decade with no guarantees. Section 8 applications have been closed in my county since 2019, and unfortunately I missed that six-day window to apply.  I recently called my local Housing Authority to see if they had any voucher resources and was told they only service immigrants.

I finally reached out to NLIHC and because of them, I was given a voice to speak to my representative’s legislative fellow in Washington D.C. Though I sent the requested documentation two months ago, the issue remains unanswered. I only received template emails from my representative, who ignored this critical issue. 

HUD’s website states that, effective May 15, 2023, “HUD encourages owners to increase [rents] no more than what is needed to keep pace with rising costs and recognize that to promote housing stability, incremental increases are easier for tenants to absorb than sudden significant increases.” Per Novogradac (an Affordable Housing Resource Center), whenever AMIs increase, landlords should “remember that rent limits are a ceiling and not a floor.” Encouraging and remembering is not legislating!

Please advocate with your representatives to prevent excessive rent hikes. You can find a template for your message here. If counties’ actual AMIs are applied or artificial inflation of AMIs are regulated, tenants could stay housed while waiting for Section 8/voucher approval. Likewise, legislation is needed to ensure current LIHTC tenants are prioritized when it comes to obtaining a more affordable unit, so they don’t get priced out of their homes in the interim.

In closing, California data shows that between 2018 and 2021, homelessness among people aged 65 and up grew by 98%. Grandparents are living on the street.  We have a homeless EPIDEMIC in this Country right NOW and, while LIHTC communities are expanding, legislating and implementing such critical regulations will keep more vulnerable tenants permanently housed. Thank you NLIHC for your advocacy!