Increase in Foreclosures and the HUD changes to rental assistance

Due to the many foreclosures and homeowners now becoming renters once again you may be interested to learn about some changes to the HUD rental assistance programs.

Hud submitted the preservation of, Enhancement and Transformation of Rental Assistance Act of 2010 (PETRA) to Congress this past MAY 2010. PETRA proposes modifications to the way in which HUD provides rental assistance.  Did you know this department offers more than 4.6 million households through varies programs?  The president’s fiscal 2011 budget is requesting $350 million for the first phase of the transforming rental assistance (TRA) initiative.  So what is the goal?  With the foreclosure epidemic continuing well into 2011 the idea is to consolidate and simplify the rental subsidy programs to three Sec 8 programs, they are:

(PBCs); project-based vouchers

(PBVs); and

(TBVs) tenant-based vouchers

For further details about these individual plans you can visit the HUD website and see in detail how these possible new changes will affect future new tenants and property owners.  Below will give you some idea on how these changes may impact you.

•Have a right to organize independent of owners/PHAs

•Be recognized by owners and PHAs; owners and PHAs could not impede resident organizing

•Continue to pay 30% adjusted income (no change in rent policy)

•Not have continued residency affected by conversions–no rescreening

•After conversion, evictions only for good cause

It is clear the government is struggling with their loan modification program HAMP and although the program is supposes to run till 2012, there is much talk about how the program is not working in helping enough homeowners.  Question will remain how many other new programs will spring up from the leaky HAMP program, we will only have to wait and see what 2011 brings.  In the meantime if you have been rousted from your home be aware there are MANY programs through HUD that will help you get on your feet.

Making informed decisions makes all the difference for getting on the right track and succeeding getting back on your feet.

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