Affordable Housing Hurdles
By Shanika Sealy
In New York City it can be harder for working residents to find an affordable apartment than it is for the unemployed. Affordable housing programs come in many forms in New York City. All are aimed at helping lower income residents find economical apartments. Each has its own unique set of qualifications, application process and convoluted logic.
Section 8 is a program of the New York City Housing Authority, NYCHA, which provides rental assistance for low-income tenants, seniors, and homeless families. However, some renters and landlords say that it can disadvantage working New Yorkers who don’t qualify for the program.
“Affordable housing in any community depends on the landlord,” said Bernie Fernandez, 54, a landlord and freelance photographer. Landlords, says Fernandez, appreciate the guarantee of the city Section 8 subsidy. “The landlords favor the Section 8 applicants over the working applicants.”
Applicants without a Section 8 voucher have to provide a substantial amount of paperwork to prove they are eligible for the apartment. After applying, people are called for an apartment within two to five years.
In addition, the waiting lists for affording housing are long. This allows landlords to be very picky. “Landlords get to pick and choose who they want,” said Sheila Santana, 64, a resident manager for Riverton Houses in Manhattan. “They don’t want to pick people who were in and out of housing court, disobey rules, play loud music, create floods and sell drugs.”
Affordable housing is so crucial in New York City because of the yearly rent increases, which can make rents prohibitively high. Building owners can increase the rent up to 18 percent on two-year leases. When the property owners renovate the apartments, they increase the rents. “On new vacancies, they come in with Major Capital Income, MCI. The landlord repairs the apartments, and he can charge fair market price,” said Santana.
The fair market price for a two-bedroom apartment in New York City is $1200, according to New York City Rent Guidelines Board website. The new housing laws give the owners leeway to raise the rents. For example, $1200 is the fair market price for a two-bedroom unit, but the landlord can charge the tenant $1500.
In order to market their new construction as affordable housing, which comes with city grant funds, landlords need to rent to tenants with lower incomes. The city sets limits on the amount tenants can earn in a year, based on family size. For example, applicants for newly constructed apartments, in the Belmont section of the Bronx must have yearly salaries of $35,555 – $51,540, for a family of two to four. A typical apartment advertised on the New York City Housing and Development site lists a two-bedroom for $977, with an income limit of $51,540 for a family of four.
Completing the application process and getting a place on the eligibility list for an affordable apartment is like pulling an elephant through a small needle. Besides the income eligibility, applicants must have perfect credit history, no criminal background, hold steady employment, pass a home inspection, provide bank statements for checking and saving accounts, and present various other sources like two to three years of tax and W2 forms along with school and employment letters.
Once a person is approved, keeping the apartment can be a challenge. Tenants must stay in the income bracket, or they can lose their apartments. Each year, they need to prove their eligibility.
“They wanted my whole life,” said Jessica Williams, 25, a customer service representative at JcPenney who resides in a high-rise apartment complex in Manhattan. “They needed my pay stubs for six to eight months to make sure I met the income requirement. Every year, the management does updates. If my income changes, I will have to vacate the apartment.”
Williams said that she applied for the apartment at the age of 18, and they called her four years later. Once she was called in for an interview, she was not prepared for the strict qualifications to get into the apartment. “I filled out 20 applications for affordable housing in Brooklyn, Bronx and Manhattan,” she said. “I was finally called for one studio apartment in Manhattan. I had to get a letter from my job and school because it was part of the application process. At the time, I was not attending school.”
In addition, she had to provide a year of bank statements along with tax returns and a home inspection from her previous residence that was her mother’s home. The home inspector determined if she qualified for the apartment. “They also did a home inspection to see if I needed the apartment. If the home inspector felt that I did not need the apartment, they give it to another applicant,” said Williams.
For two years, Williams struggled to maintain the apartment. She refused pay raises and promotions to stay inside the income brackets. “I feel like I am choosing the apartment over my career. There have been times when I didn’t take a new position because I was afraid of making too much money,and I might lose my apartment,” said Williams.
Renting through the affordable housing program can also be intrusive. The bank statements tell owners how the tenants manage their finances, and how much is in their savings. If tenants lose their jobs, landlords will know and demand to know if savings will cover the rent.
Some landlords request letters from the banks to ensure that the tenant has an account. “Different landlords want different information,” said Dan Shropshire, a call-banking representative at TD Bank. “Some want the accounts for billing, or to see if the person is a credit risk. They also call to follow up to be sure the account is still open and active.”
The process can vary by borough. One Bronx resident had an easier experience when it came to her application process. “I sent in a request for an application in November 2002,” said Ashley Mack, 33, an Accounts Receivable Representative who resides in an affordable housing unit in the Bronx. “They called me for the apartment in February 2003. I don’t know how it’s done today because I got the apartment 10 years ago.” Mack said that she renews her lease every two years, and submits in a deposit with her new lease. She does not have to provide proof of income every year to see if she qualifies for her apartment.
Credit history can also be an obstacle to finding affordable housing. Bronx native Selina Moore, 40, a customer service representative at MCU Bank, said she has been searching for an apartment since June 2008, but has been denied many times because of her credit history. “I’ve been looking for an affordable two-bedroom apartment in the Bronx and Manhattan for five years, “ she said. “I relocated from Pennsylvania.”
In order to be picked for an apartment in a good neighborhood with affordable rent, the applicant’s credit history must be in top shape. “The owners have tough restrictions and they want people with perfect credit. I don’t have perfect credit,” said Moore. “My income is not high enough to pay at the fair market price.”
All tenants agreed that affordable housing was worth the wait except for all the requirements and restrictions with some Manhattan buildings. “Yes, because it is affordable and the rent prices are based on your income. The apartments are small, but it’s good for someone starting out,” said Mack.
Williams said, “It’s a great opportunity, but it’s a headache. Don’t expect to keep the apartment. It’s momentarily.”