Rent going up for Albany Housing tenants
Wed, 26 Mar 2014 02:05:15 GMT —
Rent will be going up for many people living in Albany public housing.
Notices will be sent out Wednesday alerting the public that the Albany Housing Authority is about to raise rent payments.
This action was mandated by President Barack Obama to generate income for public housing.
Those who pay a flat rate will have their rent increased to by 35 percent. The law goes into effect in June but rates won't increase until each tenant has their yearly evaluation.
Rates will be raised 35 percent each year until rent payments reach 80 percent of Fair Market Rent values.
Dan McCarthy, the Executive Director for the Albany Housing Authority, said this law may generate more funds, but it also may make people want to move out.
"One of the unintended consequences might be that residents choose to move out and the resident who comes in to take their place has a much lower income and as a result we have lower rent paid than we were getting before and it will actually cost the federal government more money," said Dan McCarthy.
This new rent increase will not affect those who make payments based on their income.
About 20 percent of Albany housing residents use the flat rate system.