A New Ruling Will Make Section 8 Housing Less Restrictive as of Jan. 1

Section 8 Housing: New Ruling Eases Restrictions

Low-income households in 23 metropolitan regions nationwide will have improved prospects for securing housing in wealthier neighborhoods in the coming year, thanks to a recent federal court decision.

According to the Washington Post, a federal judge has nullified the U.S. Department of Housing and Urban Development’s move to postpone enforcement of an Obama-era policy designed to broaden housing opportunities for families using Section 8 vouchers.

At present, for most recipients of Section 8 housing vouchers, the subsidy amount is calculated from average rental costs across an entire metropolitan area. Those payments often fall short, making it difficult for low-income families to afford residences in middle-class neighborhoods.

As a result, many households dependent on public housing assistance remain concentrated in “deeply segregated, high-poverty communities,” the Washington Post noted.

During the final weeks of the Obama administration, HUD determined that instead of basing voucher amounts on rental averages for an entire metro area, payments should reflect average rents in individual neighborhoods.

Under that approach, a Section 8 beneficiary seeking to move into housing in a more expensive neighborhood would qualify for a larger government subsidy than one moving into a less costly part of town.

However, the Trump administration’s HUD sought to delay implementing the new policy for roughly two years, citing a need for additional “time to fully understand its effects.”

Last week, though, a federal judge ruled that the postponement was unwarranted and ordered the department to put the rule into effect by Jan. 1.

The change will allow families holding Section 8 vouchers greater flexibility to find homes, including in more affluent neighborhoods that typically offer better employment prospects, lower crime rates and higher-performing schools.

Read the Washington Post piece for additional details, including the list of 23 metro areas where the revised rule will be applied.

Claire Bennett is a staff writer at Savinly.

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