Tuesday, January 28, 2014

Update--Oregon: Variable Impacts Result from Changing Extremely Low Income Definition for the Voucher Program.

I've received feedback that the XLI limits likely will not be allowed to exceed the lesser of the new calculation amount OR the 50% MFI limit.
This seems plausible, but I don't see any specific language in the legislation that provides that additional limitation, other than providing Secretary discretion.
Rather than changing my Excel worksheet calculations, I have added a row alerting the reader that is SUBJECT TO CHANGE once HUD publishes its Notice.

The 2014 Omnibus Appropriations bill  signed into law contains a provision (Section 238) that changes the voucher definition of Extremely Low Income to the higher of 30% of Median Family Income or the Poverty Limit, adjusted for bedroom size.  
  1. This change will ONLY occur AFTER HUD publishes a notice to implement this provision. 
  2. Not yet clear to me whether this definition will also be used for public housing or any other HUD subsidy programs.

I have put together an Excel workbook HERE and embedded below with MY calculations of the impact of this change for Oregon; all the user has to do is select the county of interest. 

Two observations:  

  1. Eligibility impacts increase as family size income increases. For the Portland metro area for example the new limit does NOT impact 1 or 2 person households but increases eligible income by 14.7% for 4 person households.
  2. Impacts vary by area. In Jackson county ALL household sizes see increases in eligible XLI incomes; 5.1% for a 1 person household, but 50.5% for a 4 person household. 

Originally created and posted on the Oregon Housing Blog

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