Affordable housing faces a shortfall as contracts expire

affordable housing
affordable housing

With the current recession coming to an end, housing is still one of the main topics of discussion. In particular, affordable housing faces a serious shortfall in the next four years.

Many existing Section 8 developments have government contracts that are approaching expiration, which allow the landlords to increase rent at market rate, forcing the poor and middle class to either stay and pay or go elsewhere.

According to the National Housing Trust, about 75% of these units in New York and Massachusetts are close to expiration, and in California, Texas and Washington, 85-90% are nearing Section 8 conclusion by 2014.

This is a very serious problem, and development can only last for so long (land will run out). We need to create incentives for the existing landlords as well. So the question remains – what do we do to prevent Section 8 landlords from opting out of their contracts upon expiration?