HPD on SCRI/DRI enrollment and statutory limits on income-based charges
Phillips discusses SCRI/DRI enrollment efforts, the statutory cap on over-income surcharges preventing cross-subsidization, and the need for legislative action to raise the SCRI income cap locally.
We are committed to reducing the number of households impacted by helping them take advantage of SCRI and DRI and advocating for additional rental subsidies from the federal government.
We are also committed to reducing operating costs to minimize the necessary increases across the portfolio.
In addition to the sometimes erratic frequency of rent or maintenance fee increases, statutorily, Mitchell-Lamas cannot increase rents or maintenance fees for only those who can afford it.
Under the original bill text, higher income households cannot be charged a higher increase than their lower income neighbors.
This is a common practice used to equitably support the finances of mixed income buildings, but this is not an option available to Mitchell-Lamas.
While there is a modest surcharge for over-income households, it is capped by statute, meaning that we cannot use higher revenues from those who can afford it to cross-subsidize those who might not.
These challenges are not insurmountable.