Report to the Congress: Social Security Benefits and Assisted Housing Rent Charges

摘要

This HUD report presents the statistical findings of a study into the effects of excluding social security and other pension cost - of - living increases from eligibility or assistance calculations for elderly households in HUD - assisted housing. Data are also given on the income characteristics and housing and other costs of the elderly. The study found that the exclusion of social security cost - of - living increases from rent charges would result in a windfall for elderly beneficiaries. They would receive increased benefits calculated on the assumption that they were paying for housing costs yet have no such housing cost increases. It would cost about $129 million in 1982 to exclude these cost increases from rent charges for deep subsidy units. By 1985, this cost would increase to $448 million even if inflation was brought under control. However, excluding pension cost - of - living increases would have little or no impact. Almost 85 percent of elderly households receive social security benefits, and about 11 percent of all such households reside in HUD - assisted housing, with 6 percent living in deep subsidy units as of yearend 1980. The elderly served by HUD have considerably lower incomes and fewer sources of income than the elderly as a whole, although HUD - assisted elderly have similar average housing - cost - to - income ratios. Few elderly receiving Federal pensions reside in HUD - assisted housing primarily because their incomes are too high. HUD - assisted elderly households receiving social security benefits are better off in terms of disposable income than unassisted households with the same income. HUD is currently proposing legislative changes which would increase rent - to - income ratios and simplify program rent charge calculations. If HUD's proposal is enacted, revenue losses associated with the pension cost - of - living exclusion would be increased by about 20 percent. Supplementary data are appended. Numerous tables, a graph, and a few footnotes are supplied. (Author abstract modified).