Housing Authority will test if rental subsidies disincentive employment

May 11—The Housing Authority of the County of Kern has been selected to participate in a rental assistance experiment that could alter a decades-old system.

Beginning in early 2022, the Housing Authority will change how it distributes aid to a portion of recipients. Called Moving to Work, the change will test whether the current system disincentivizes people to find better jobs or work more hours.

One of 10 authorities selected to test new aid distribution methods nationwide, the results will be used by the U.S. Department of Housing and Urban Development to potentially improve housing aid throughout the country.

"We've always felt locally that the needs that we have in Kern County are different than the needs in New York City," said Housing Authority Executive Director Stephen Pelz. "It's a completely different housing market, different workforce. So we have to be able to tailor to the local needs and Moving to Work gives us the tools to do that."

Under the current rules, a family must pay around 30 percent of their income to rent, with the rest covered by the Housing Authority. As their income increases, so too does the amount of rent the families have to pay each month, potentially creating a reason for some individuals to maintain their position indefinitely.

In Moving to Work, the Housing Authority will increase rent payments by 3 percent of the fair market value of the unit each year regardless of changes to employment. For most families, that will be a $22 to $41 a month increase.

The Housing Authority hopes the change will incentivize families to find better work before leaving the program completely.

"This cohort is really targeted toward those households to create a financial incentive to do what we would hope most people would want to aspire to," Pelz said, "which is to use this as kind of a stepping stone to something where (the families) can rely on their own support and own income."

Between 25 percent and 33 percent of Housing Authority participants will be randomly enrolled in the new system. Another control group will be established to compare outcomes. Elderly and disabled households will not be included in the program, and there will be a cap on the maximum rent a family can pay.

You can reach Sam Morgen at 661-395-7415. You may also follow him on Twitter @smorgenTBC.