Town Council Passes Flat Rents Resolution

But the move only will immediately benefit five of the town's 334 families residing in public housing.

In accordance with regulations set forth by the U.S. Department of Housing and Urban Development, public housing agencies must establish flat rents for their clients based on the reasonable market value of similar private housing units in the area.

Flat rents, as opposed to rents linked to household income, aim to encourage economic independence for families because the rate remains stable regardless of increases in income. Under HUD regulations, public housing families still retain the option of paying rental rates based on income.

"I think (flat rents are) an important reform," said town council member Bill Strom. "It's a significant change, and it highlights the need for, and the goals of, affordable housing.

The new flat rental rates, which will be effective Sept. 1, will start at $389 per month for a one-bedroom unit and will increase up to $736 per month for a five-bedroom unit.

But some members of the Chapel Hill-Carrboro Residents' Council say the rental figures passed are not low enough to allow families to save money for future home ownership. Members also are concerned because the current rates based on income are lower than the proposed flat rates, limiting the number of immediate qualifying families.

In March, town officials proposed a schedule of flat rates for the public housing program based on an analysis compiled by a private consultant of rental rates for private developments such as Estes Park Apartments and Abbey Court.

Joann Shirir, director of the residents' council, said the HUD formula used to establish these flat rents could not fairly be applied to Chapel Hill because the town's private rates were higher as a result of the University's presence.

She also said the private rental rates the town used to determine the schedule of flat, public housing rates provided for amenities, such as washers and dryers, that some public housing units do not offer. "Because Chapel Hill is a university town, the rates are much higher than say, Durham," she said. "The HUD formula will not allow families to move out of public housing. We are looking at what is needed to move more people forward into home ownership."

The residents' council also submitted a recommendation to the town council with the resolution passed Monday that called for a series of rental rates ranging from $300 to $600 per month.

Despite the residents' council's concerns, Tina Vaughn, director of the Chapel Hill Housing Department, said the rates established by the town using the HUD formula will not negatively impact families living in public housing.

"You have to remember that (families) still have the option to have rent based on their income," she said. "Because they still have that choice, (the flat rental rates) won't hurt them. The rates set forth by the consultant are in accordance with HUD regulations and I believe are reasonable."

The City Editor can be reached at citydesk@unc.edu.