Tuesday, July 8, 2008

Housing Subsidy Payments To Go Up In 2009

I think most everyone is familiar with the fact that Dominion Virginia Power was granted an 18% rate increase. The consequence I have yet to hear discussed is that that means housing subsidy payments through the Section 8 program will go up in 2009.

One of the basic tenets of Section 8: rent plus utilities shall not exceed 40% of total household income. Thus, in calculating the subsidy payment for a tenant, the electric bill is deducted from income in figuring how large the subsidy will be. Therefore, when the annual recertifications come up late this year, the electric hike will force larger per household subsidy payments.

Before a couple of my readers scream, I'm simply pointing out an effect of the electric rate increase given Federal housing rules. Our local governments should begin planning on how to deal with the matter.

No comments: