Should People in Government Housing Only Have to Prove They Need it Every 3 Years? (H.R. 233)

What is H.R. 233?

(Updated August 1, 2017)

This bill seeks to reduce the stress on families that rely on federal housing programs of proving their income to public housing agencies (PHA). 

It would do so by amending current housing law for families with fixed incomes. After the first review of their income, housing authorities would not have to check in with a family about it, providing that they confirmed that 90 percent of their income remained fixed, and that their economic situation did not change significantly in any other way. The public housing agency would, however, have to verify the family’s income at least once every three years.

Argument in favor

This bill reduces how frequently the government checks up on the incomes of people in public housing programs. By doing so, it also reduces the stress on people in these programs and the burden on government. Everyone wins.

Argument opposed

Federal housing programs are for the most vulnerable members of our society. But peoples’ economic circumstances change. Reducing how often officials check on incomes allow people to game the system long after they really need services.

Impact

People that utilize government housing programs, landlords, realtors, U.S. neighborhoods, and the Department of Housing and Urban Development and its employees.

Cost of H.R. 233

A CBO cost estimate is unavailable.

Additional Info

In Depth:

What’s a fixed income? Well, it’s pretty safe to say that this bill’s writers aren’t talking about investment banking. In most contexts, “fixed income” is preceded by “senior citizen living on a”—they’re talking about people whose only income is what they get from social security or a pension. But this bill refers to families with fixed incomes, and sponsoring Rep. Ed Perlmutter’s (D-CO) press release refers to “low-income families.” Thus, in this context, the “fixed” in “fixed income” appears to mean people with an income that is limited and probably won’t change.

This bill amends the Housing Act of 1937, which created the United States Housing Authority. Under its well-known Section 8, it provides low-income individuals with vouchers to pay rent. It finds sponsor, Rep. Ed Perlmutter (D-CO), working with two Republicans, Rep. Steve Stivers (R-OH) and Rep. Frank C. Guinta (R-NH).

Of Note:

While, in practice, it’s boring accounting work, verifying a public housing recipient’s income is a highly politicized act. According to the Washington Examiner, lax income verification practices have allowed some people to live high on the hog, buying sports cars and satellite dishes, while receiving housing vouchers. “Local authorities who are supposed to verify income and stop fraud often aren't interested making sure taxpayer money is spent properly,” alleges the writer.

Of course, some of this could be pinned as extreme examples that aren't indicative of the population of people that benefit from government housing programs — turning everyone into Ronald Reagan's “welfare queen.” And while she was a real person, the fear of welfare queens is considered by many to be largely misplaced. According to the Bureau of Labor Statistics, families receiving public food assistance spend much less than families that don’t. Because, y’know, they don’t have a lot of money. A lot of eligible low income individuals don’t even receive benefits.

Media:

Sponsoring Rep. Ed Perlmutter (D-CO) Press Release (Previous Bill Version)

Assisted Housing Insider

The Atlantic (Context)