Last week in Detroit at an industry event, Vox reported that HUD Deputy Assistant Secretary for Policy Development Brian McCabe announced that his agency is soon planning to solicit public comment on the prospect of a pilot in which eligible low-income tenants would receive cash to pay their rent directly, rather than use traditional housing vouchers.
HUD will seek input on whether landlords would be more willing to rent to low-income people if they could skip the government's red tape, and whether there would be higher-quality housing available to renters using cash.
McCabe also said that HUD plans to soon issue guidance to housing agencies on how they could run these sorts of cash pilot programs.
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McCabe has been talking about cash assistance for housing programs since at least 2023, reflecting an evolution on HUD's position on the policy.
He noted that voucher holders find it increasingly difficult to find suitable rental units on the private market because of source of income discrimination, lack of landlord participation in the HCV program, and tight rental markets. Approximately 40% of households offered a voucher are unable to find an eligible unit with a willing landlord, he said.
He also pointed out that for many of its pandemic-era assistance programs, the federal government made payments directly to households through economic impact payments, the expanded child tax credit, and emergency rental assistance. "HUD is spearheading an effort to learn from these pandemic-era programs and simplify the administration of the HCV program," he wrote.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
