Tuesday, May 13, 2014

The rent (in the projects) is too damn high

Public housing residents in New Orleans could see their rents increase by as much as 35 percent in the coming months.
The Appropriations Act now requires as of June 1 that all new flat rent tenants pay at least 80 percent of fair market value.

In New Orleans, the fair market rent for a one-bedroom apartment is $765 and 80 percent of that is $612; a $948 two-bedroom will be $758; a $1,190 three-bedroom will be $952; a $1,440 four-bedroom will be $1,152; and a $1,656 five-bedroom will be $1,324.

Previously, there was no minimum rate set for flat rates though housing agencies were asked to base them on "annual rent reasonableness assessments," HUD spokesman Brian Sullivan said.

For those people already living in housing based on the old model, HUD will only allow housing agencies to raise their rent by 35 percent.

The current HANO flat rate for a one-bedroom is $254 and a 35 percent increase brings that to $342; a $299 two-bedroom could go for $403; a $373 three-bedroom for $503; a $418 four-bedroom for $564; and a $481 five-bedroom for $649.
At his inauguration festival last week Mayor Landrieu asked rhetorically (but only rhetorically)  "What will we have done to open the circle of opportunity and prosperity to all?"  So far, we're making housing less affordable. So that's a start.

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