Monday, September 19, 2022

Excel Tool to Compare Housing Choice and Costs for Metro Regional Long Range Rent Assistance Housing Vs. HUD Vouchers Starts with Income at SSI Level.

On several occasions I have pointed out that Metro Regional Long Range Rental Assistance can cost more than HUD vouchers and that higher RLRA rents mean fewer families served and disproportionately more housing choices for RLRA tenants.  

Earlier this month I pointed out that 1 bedroom RLRA tenants could bring as much as $8,800  MORE per unit per year if used in LIHTC units. 

And at the start of the month I said that because of an increase in HUD Fair Market rents effective October 1st, the highest gap between RLRA maximum rent and the lowest payment standard would be $496 per month. 

I have now constructed an Excel tool that allows users to compare side by side  HUD voucher and RLRA housing choices, tenant rent payments, and subsidy costs. for each of the PHA created 12 payment standard areas in the three county area.

The one page Excel spreadsheet  HERE requires only 3 simple inputs.

  1. A pull down of the location/zip code for the payment standard area
  2. The reasonable rent and the and owner requested rent. (For simplicity purposes these are identical).
  3. The tenant income. 
The spreadsheet then shows
  1. The voucher and RLRA tenant paid rents and the share of their income for rent. 
  2. IF the voucher tenant paid rent is more than 50%, a STOP MESSAGE indicating that the voucher tenant CANNOT rent the unit. 
  3. The subsidy costs for vouchers vs. RLRA. 

Note: Cells other than those requiring input are locked. 

Gresham SSI Examples

In the default entries I have selected the Gresham payment standard area and a tenant income of $11,000 (about the 2023 single person SSI level).

Example one uses a rent reasonable/owner requested rent of $1,610, the same as the HUD 1 Bedroom FMR for FY 2023.  

Example two uses a rent reasonable/owner requested rent of ,$1,962 (the maximum RLRA rent of 120% of HUD Fair Market rent for FY 2023).

DEFAULT RESULTS For Gresham, Gresham / Fairview / Troutdale, Zip Codes 97019, 97024, 97030,97-60,97080. (Details pasted below).

In example one, rent at the HUD FMR, RLRA subsidy cost is $16,020

  • For the voucher holder the total tenant paid rent is $449, 49% of monthly income. 
  • For the RLRA tenant their share of rent is $275, 30% of Income.
  • For the voucher tenant subsidy totals $13,932 per year
  • For the RLRA tenant subsidy totals $16,020 per year, $2,088 /15% MORE subsidy than the voucher tenant. (and the RLRA tenant pays only 30% of their income for rent).

In example two, rent at the RLRA Max, RLRA subsidy cost is $19,844

  • The voucher tenant CANNOT rent the unit as their share of rent would be $771, 89% of income. NOTE that for the Gresham default payment standard area at $11K income, any rent level beyond the $1,610 FMR would push tenant rents higher than 50% since the $1,610 rent burden was at 49%.
  • For the RLRA tenant their share of rent is $275, 30% of Income.
  • For the RLRA tenant subsidy totals $19,844 per year,
Frame of Reference: Current Average Voucher Per Unit Costs Vary from $10,296 to $11,916 Annually.
HUD's voucher dashboard indicates that for the year through June voucher per unit cost annualized averages for the three PHA's are: 

Clackamas     $11,472/ $956 per month
Multnomah   $10,296/$858 per month
Washington  $11,916/$993 per month

1. If larger bedroom sizes were used they subsidy difference would be HIGHER than shown here if income remained constant. 
2. If a lower than 30% share of tenant income for rent were used the subsidy costs would also increase from those shown here. 

Originally created and posted on the Oregon Housing Blog

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