House Hearing Focuses on Poverty
On May 24, the House Ways and Means Committee held a hearing titled “Moving America’s Families Forward: Setting Priorities for Reducing Poverty and Expanding Opportunity”. The purpose of this hearing was to examine how the welfare system in the United States can better assist more low-income families and allow them to climb out of poverty.
In his opening remarks, Committee Chairman Kevin Brady (R-TX) criticized the general national welfare system. He highlighted the numerous duplicative programs, and the federal government disregarding their effectiveness. He called for a system with more personalized paths for families to escape poverty with an emphasis on work in exchange for welfare services. In contrast, Ranking Member Sander Levin (D-MI) criticized Republican efforts to reduce federal assistance to needy families, such as cuts to food assistance programs.
In the written testimony provided by the four witnesses on this panel, the need for affordable housing access was discussed as a major pillar to alleviating family poverty. Olivia Golden, Executive Director for the Center for Law and Social Policy (CLASP) wrote in her testimony that struggling families face damage from past housing program cut and the threat of future budget cuts. She noted that from FY 2010 through FY 2016, out of the 164 programs tracked by the Coalition on Human Needs, 139 sustained cuts in funding. Nearly half (67) were cut by 15 percent or more, and nearly one third (54) were cut by 25 percent or more. Her testimony highlighted that these cuts have limited low-income families’ access to housing, and that housing instability is a both a cause and consequence of poverty.
Karin VanZant, Executive Director for CareSource Life Services noted in her testimony that Section 8 housing programs were never intended to be a lifetime housing solution but that too often, many families have relied on these programs for multiple generations. She stated that some low-income families have lived in the same housing units, and have perhaps unknowingly settled for a life of subsidy.
Much of the conversation was focused on other social welfare programs, but housing was discussed in passing during the witness questioning. This hearing is still important to note since Republicans in the House are set to release their official plan to reform welfare programs and address poverty in the US soon. On Monday, April 25, The Republican Study Committee’s (RSC) Empowerment Initiative released its recommendations for an anti-poverty agenda titled “Strengthening Our Safety Net to Empower People.” This plan was submitted as part of House Speaker Paul Ryan’s (R-WI) Poverty, Opportunity, and Upward Mobility Task Force.
NAHMA will continue to monitor Congressional efforts to reform federal assistance. As these plans become more concrete, NAHMA will advocate for reforms that continue federal support for affordable housing programs.
To vie an archived webcast of the hearing, please click here
Legislation Seeks to Prevent Over-Income Families from Residing in Affordable Housing
On May 17, Senator Jeff Flake (R-AZ) introduced the End Housing Subsidies for the Rich Act of 2016 (S. 2935). This bill would require a public housing agency (PHA) to terminate a family’s tenancy within six months if it determines that the tenant’s income is greater than 120 percent of the area median income (AMI) for two consecutive years.
However, a family may continue to occupy a unit month-to-month if the PHA charges the family the fair market rent, and there are no eligible families applying for housing assistance from the PHA for that month and the agency provides at least a 30-day public notice of availability. A PHA may not rent a unit to families with net assets exceeding $100,000 annually, or if they own property that is suitable for occupancy. This restriction does not apply to victims of domestic violence, individuals using housing assistance for homeownership opportunities, or a family that is offering a property for sale.
A similar provision to block families with 120 percent AMI from occupying affordable units was included in H.R. 3700, the Housing Opportunities through Modernization Act.
The End Housing Subsidies for the Rich Act currently has one cosponsor and has been referred to the Senate Committee on Banking, Housing and Urban Affairs.