Would tenant payments for rents be limited to 30 percent of gross income under the block grant?
Only under limited circumstances. Mr. Liu said during his testimony that under the block grant, states could only require tenants to pay 30 percent of their gross income for rent. This is accurate, however, only with regard to the tenant s first lease term in most cases, a period of one year. After that period has ended, states would be permitted to raise rents to any level. This is a major departure from current law, under which the 30 percent limit (which now applies only to income after certain required deductions are made, rather than to gross income as it would under the block grant) protects families for as long as they use their voucher. 11. Would the minimum monthly payments that would be required under the block grant affect the poorest families? Yes. The minimum monthly payments that would be required of voucher holders under the block grant generally would be imposed on households with incomes below $167 a month. A household could have little or no income for a number of rea
