Sussex County is considering an amendment to the Sussex County Rental Program of Chapter 72 to provide much-needed rental assistance. But, as written, I find it neither fair nor transparent. Due to the wide range of household income eligibility, some families who do not need this program may win the jackpot, while others in dire need may be left out.
I submitted these concerns to the county as my public comments, but they have been ignored.
Lack of oversight in the tenant selection process
The code does not specify how the property management companies hired by developers select tenants. There is a mandated annual audit report, but no ongoing oversight exists. The question of fairness will always linger.
While Sussex residents are demanding the county adopt the ethics standards to rid the conflict of interest — to sign the petition, visit sussex2030.com — the rental program is assigning the burden of fair housing to private companies.
Lack of easy access to the information on the availabilities
The availability of rental units is to be advertised on delawarehousingsearch.org or similar sites, according to the draft ordinance. What are the “similar sites”? How often do these financially strapped families check these websites? When there are a limited number of units available, it won’t be easy to apply for those available units promptly.
Fixed rental rates for all eligible families making 30%-80% of area median income
Here is why the transparency and fairness of this program are essential.
The household size decides the area median income and the rental unit size for each family. Per the U.S. Department of Housing and Urban Development, Sussex County’s area median income for a household of four is about $84,000, and eligible household income for the rental program is between $25,000-$67,000. The unit size for this family can be one bedroom plus a den, two bedrooms or three bedrooms.
Rental rates for a family of four, which are about half of the market rates, are $10,500 — whether the family makes $25,000 or $67,000 and regardless of rental unit size — per draft ordinance from line 606.
Families making 80% of area median income make 2.66 times the families earning 30% of AMI. Yet they are paying the same fixed rent.
So what percentage of their income are they paying as rent?:
Troublingly, the ordinance allows families whose income grows up to 96% of AMI to continue paying the same rent. Thus, a family of four making $80,600 will pay only 13% of their income as rent; the market rent would be about 26% of their income.
Families making 40% of AMI might not get into this program and be forced to pay the market rate, while some lucky others earning up to 96% of AMI may pay the heavily discounted rate. This is simply not equitable.
I welcome discussion or corrections on this. My desire is to ensure the appropriate assistance to families in need.
Eul Lee
Lewes
