Wednesday, September 28, 2016

Wyden's Middle Income Rental Housing Bill Draft Off Target- Would Increase PDX Subsidized Allowable Rents by 67%.

Senator Wyden has introduced a discussion draft HERE of a bill that would provide LIHTC like rental subsidies for renters with incomes up to 100% of median family income. 

In Portland this would mean new tax credit subsidies for units with (3 person) incomes as high as $65,970 per year, and monthly rents as high as $1,649 per month for a 2 BR unit. 

That would be $659/67% MORE in 2 bedroom monthly rent than permitted under the 60% income rent limit of $990 for the LIHTC program.

As drafted this proposal is misguided as:
A. The number of affordable and available units drops significantly as income decreases. 
B. The frequency of severe cost burdens drops significantly as incomes increase.  

A. NLIHC has come out in strong opposition to the bill with a statement HERE
(Their Gap report HERE shows that in Oregon there were only 22 affordable and available units for extremely low income renters, but 92 affordable and available units for those with incomes at or below 80% MFI). 

B. Using even more recent ACS 2015 1 year data I constructed the table below that shows: 
  1. For renters with incomes between $50,000-$75,000 only 1% have a severe cost burden. That compares to 60%-70% of those with incomes below $20,000 income.
  2. 99% of all renter severe cost burdens in Oregon occur among renters with incomes below $50,000. 

Originally created and posted on the Oregon Housing Blog

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