News

Virginia Landlord Settles Sexual Harassment Case

On September 29, 2020, the U.S. Department of Justice (DOJ) announced that Gary T. Price, a manager of rental properties in and around Harrisonburg, VA, together with owners of the properties, Alberta Lowery and GTP Investment Properties, LLC, will pay $335,000 to resolve allegations that Price sexually harassed multiple female tenants and discriminated in housing on the basis of race in violation of the federal Fair Housing Act. The case is U.S. v. Gary Price, GTP Properties, and Alberta Lowery. The federal government alleged that Price made unwelcome sexual comments and advances toward female tenants, offering housing benefits in exchange for sexual acts, and took or threatened to take adverse action against women who refused his sexual demands. The complaint also alleged that Price violated the Act by using racial slurs with respect to tenants and tenants guests, and by prohibiting or attempting to prohibit tenants from entertaining African-American guests in their homes because of the guests race. Alberta Lowery and GTP Investment Properties, LLC were named as defendants in the case because they own the properties at which the discriminatory conduct took place and Price was acting on their behalf as their agent when he engaged in the illegal acts. The properties involved were single-family homes and mobile homes. Under the Consent Decree, the defendants will pay $330,000 to compensate eight victims of discrimination already identified by the DOJ, together with any additional individuals who have been harmed by the defendants discriminatory conduct. In addition, the defendants must pay a $5,000 civil penalty. The decree also bars Gary Price from participating in the management of rental properties in the future and requires the defendants to take other steps to prevent future discrimination. Among the actions required of the owners it that all properties they own must be managed by a professional, independent property manager, and the owner and all employees of the owner will attend professional fair housing training. This case makes it clear that owners of rental properties may not escape liability for discrimination even when the discriminatory acts are perpetrated by an Agent of the owner. This is why only professional property management companies should be used for management, and all employees of both owners and management companies should receive regular, professional fair housing training and proper supervision.

New York Passes Comprehensive Anti-Eviction Law

The New York State Legislature convened an unusual special session just after Christmas to pass one of the nation s most comprehensive anti-eviction laws, which will ban landlords from evicting most tenants for at least another 60 days. Some studies show that as many as 1.2 million New Yorkers are currently at risk of losing their homes. In addition to protecting renters, the law will also protect some small landlords from foreclosure and automatically renew tax exemptions for homeowners who are elderly or disabled. Nationally, up to 14 million households are at risk of eviction and owe anywhere from $11 to $20 billion in rent. It is very possible that other states will follow New York s lead and pass similar laws in the weeks ahead. In order to use the protections of the law, tenants will have to submit documents outlining their financial hardships, and the hardship must be related to COVID-19. For eviction cases that are already working their way through the courts, the law will halt proceedings for at least 60 days. Landlords will not be allowed to begin new eviction proceedings until at least May 1. Some New York landlords opposed the measure, arguing that the law does not adequately distinguish between tenants with resources and those without. Also, the law provides little relief for landlords who are suffering from diminished financial resources, as tenants fall farther behind on rent and ground-floor retail tenants go out of business. The legislation tries to address those concerns by making it harder for banks to foreclose on smaller landlords who are themselves struggling to pay bills. This emergency action follows the $900 billion relief package enacted at the federal level, which included $1.3 billion in rental relief for New Yorkers and extended the CDC eviction moratorium until the end of January.

Trump Finally Signs Funding and Relief Bills

On December 27, 2020, President Trump finally signed the FY 2021 Omnibus Spending and COVID-19 Relief Bills. Passage of these two pieces of legislation will impact the affordable housing industry in some significant ways, primarily by setting the 4% LIHTC at a floor of 4 percent and providing $25 billion in emergency rental assistance. Highlights of the COVID-19 relief relating to housing include: $25 billion in emergency rental assistance;Extension of the CDC eviction moratorium to January 31, 2021 (it was set to expire on December 31, 2020);$600 stimulus checks for income-qualified single taxpayers and $1,200 for joint filers and an additional $600 per qualifying child (this should not be counted as income for affordable housing purposes); and$300 per week in enhanced unemployment insurance benefits starting after December 26 and ending March 14, 2021 (since this is temporary income, it should not be counted as income for affordable housing purposes). Rental Assistance The $25 billion in emergency rental assistance will be split among the states and territories, with no state receiving less than $200 million. Current estimates for unpaid rent are as high as $70 billion. The CDC eviction moratorium only delays the payment of rent - it provides no relief to renters or landlords. The only solution is actual money to assist with the payment of rent. The funds will be distributed to states, tribes, territories, the District of Columbia and local governments with population in excess of 200,000. Agencies that receive the funds must expend at least 90% to pay Rent;Rental arrears;Utilities and home energy costs;Utilities and home energy costs arrears; andOther housing expenses caused by the pandemic. The assistance may last up to 12 months, plus an additional three months if needed to ensure housing stability. The remaining ten percent of the funds may be used for other services relating to the pandemic (e.g., case management) and/or agencies administrative costs. To be eligible, tenant households must meet each of the following criteria: One or more individuals has -Qualified for unemployment benefits, orExperienced a reduction in household income, incurred significant costs, or experienced other financial hardship due, directly or indirectly, to the pandemic (the applicant must attest to this in writing).One or more individuals must demonstrate a risk of experiencing homelessness or housing instability, which may include -A past due utility or rent or eviction notice,Unsafe or unhealthy living conditions, orAny other evidence of such risk.The household income may not exceed 80% of the Area Median Income based on either -Total income for calendar year 2020, orConfirmation of monthly income at the time of application. When documented by tenant confirmation, the administering agency must re-determine eligibility every three months. This assistance will not count as income for purposes of determining eligibility under any federally funded program. Among eligible households, priority will be given as follows: Incomes less than 50% of AMI, orAt least one member of the household is unemployed as of the date of the application and has not been employed for the preceding 90 days. Agencies may add their own criteria. Agencies will make payments directly to landlords or utility providers on behalf of eligible households. Payments may be made directly to the household only if a landlord or utility provider refuses to participate. Landlords may either assist renters in applying for assistance or apply on behalf of the renters. If applying on behalf of the renters, the landlord must - Obtain the signature (wet or electronic),Provide a copy of the application to the tenant, andUse any payments received to satisfy the tenant s rental obligation. Agencies will be required to collect - and submit to Treasury - the following information: Eligible households receiving assistance,Acceptance rate of applicants,Type of assistance provided to each household,Average amount of funding provided per household,Household income level categorized as (1) less than 30% of AMI, (2) 30% to 50% of AMI, and (3) 50% to 80% of AMI, andThe average number of monthly rental or utility payments covered. Before beginning the collection process, agencies will need to establish data privacy procedures that provide - All information is used only for the purpose of submitting reports, andConfidentiality protections for survivors of domestic violence, sexual assault, or stalking. Agencies will also have to provide documentation of payments to households. 4% Credit After pushing for a floor to the four percent credit for many years, the passage of the spending bill makes a 4% credit a reality. This set 4% will apply to both acquisition credits and credits allocated with tax-exempt bond financing. This will make as many as 130,000 additional tax credit units feasible between 2021 and 2030 that would not otherwise have been built. The provision is effective for acquisition tax credits allocated after December 31, 2020, and for bond-financed properties placed in service and receiving allocations from private activity tax-exempt bonds issued after December 31, 2020. Guidance from the IRS will be needed to determine if properties that receive allocations or bond drawdowns prior to December 31 but receive subsequent allocations or drawdowns after December 31 will be eligible for the 4% credit. Disaster Relief The COVID-19 relief also includes $1.2 billion in ten-year credits in disaster LIHTCs for 11 states and Puerto Rico. These credits will be available for non-COVID-19 related disasters. Congress also granted LIHTC properties in disaster zones an additional 12 months to satisfy the 10% spending test and placed-in-service deadline, as well as providing more flexibility to allocating agencies by allowing disaster credits to be carried over to 2022. States and territories to receive the additional credit are: Alabama;California;Florida;Iowa;Louisiana;Michigan;Mississippi;Oregon;Puerto Rico;South Carolina;Tennessee; andUtah As noted above, the rental assistance component of the legislation will be the most complex. States and localities will have to designate the agencies to receive the funds. In most cases, this is likely to be state Housing Finance Agencies and large Public Housing Agencies. These agencies will already have the mechanisms in place for distributing the money and providing the required tracking and reporting. Landlords experiencing rent delinquencies should be proactive and reach out to state and local agencies to begin the process of obtaining the relief. There is not going to be nearly enough money to go around, so landlords who move quickly are likely to be those who benefit from the emergency funds. Landlords should also notify residents who may qualify for the relief and determine whether the residents will apply themselves or if landlords will make application on behalf of the residents. Again, moving quickly may be a key to obtaining relief under the bill.

HUD Takes Hard Line on Local "Nuisance" Policies that Target Affordable Housing

A recent compliance agreement entered into between the Department of Housing & Urban Development (HUD) and a California city demonstrates the aggressive approach HUD will take against localities that develop policies that penalize residents for excessive 911 calls or properties with frequent police responses. HUD and the City of Hemet, California have entered into a Voluntary Compliance Agreement relating to the City s "Rental Registration and Crime Free Rental Housing Program," and "Abatement of Chronic Nuisance Program." The agreement is the result of a compliance review of the City s CDBG program that was conducted by HUD s Office of Fair Housing and Equal Opportunity (FHEO). HUD s preliminary review identified potential non-compliance with Title VI of the Civil Rights Act of 1964. This Agreement clearly demonstrates HUD opposition to a trend among cities to create local ordinances that penalize property owners and residents based on the crime rate in an area or the number of 911 calls for assistance. The Agreement requires that the City of Hemet eliminate the "Rental Registration and Crime Free Rental Housing Program," and "Abatement of Chronic Nuisance Program." The Hemet ordinances required owners of rental properties to submit a "Crime Free Certification," utilize the City s "Crime Free Lease Addendum," pass special inspections, attend Crime Free Rental Housing training, and undergo annual code inspections. The lease addendum required owners to evict or non-renew the lease of tenants based on the number of 911 calls they placed and to evict tenants based on arrest records. By entering into the Agreement, the City will - Notify residents of the City that the two ordinances are no longer in effect;Not implement any future program that has the effect of replacing the two programs that are being eliminated;Submit to HUD for review any new programs relating to code enforcement;No longer limit the number of calls for law enforcement or code enforcement generated by or to a property without further inquiry into the nature, cause, or severity of the alleged nuisance or criminal activity;Notify all rental property owners and known occupants of rental property that the programs have been discontinued;Publish a Notice of Termination of the ordinances in at least two newspapers in the Hemet regional area, including a Spanish language newspaper;Provide $200,000 in financial assistance to property owners who rent to low or moderate-income households to proactively address or remediate potential code enforcement violations or otherwise improve housing conditions;Report to HUD every six-months on program compliance, including marketing materials and activities; andRequire all City employees involved with the enforcement of the programs (including Code Enforcement, Police Officers, and all members of City Council) to attend fair housing training. Local policies such as those that were implemented by the City of Hemet are popping up all over the United States. If you are the owner of a property in a locality that is imposing similar requirements on your property, you should contact the Office of Fair Housing and Equal Opportunity at HUD (https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint).

HUD Publishes Operating Cost Adjustment Factors (OCAF) for 2021

On November 27, 2020, HUD published in the Federal Register a Notice of Certain Operating Cost Adjustment Factors for 2021. These OCAFs may be used for eligible project-based assistance properties that have an anniversary date on or after February 11, 2021. OCAFs are annual factors used to adjust Section 8 rents for most Section 8 projects. HUD has used a single methodology for establishing OCAFs. These OCAFs vary among states and territories. Contract rents are adjusted by applying the OCAF to that portion of the rent attributable to operating expenses exclusive of debt service. OCAFs are calculated as the sum of weighted component cost changes for wages, employee benefits, property taxes, insurance, supplies and equipment, fuel oil, electricity, natural gas, and water/sewer/trash, using publicly available indices. To calculate the OCAFs, state-level cost component weights developed from state-wide data are multiplied by the selected inflation factors. For instance, if wages in Virginia comprised 50% of total operating cost expenses and increased by 4% from 2019 to 2020, the wage increase component of the Virginia OCAF for 2021 would be 2% (50% times 4%). This 2% would then be added to the increases for the other eight expense categories to calculate the 2021 OCAF for Virginia. For states where the calculated OCAF is less than zero, the OCAF is floored at zero. Examples of the 2021 OCAFs: New Jersey, Texas, and Wisconsin have the highest OCAFs, at 2.8%.Vermont has the lowest OCAF at 1.8%.The mean OCAF is 2.4% and the median is 2.5%. Owners of affected properties should review the November 27 notice for the OCAF applicable to their state or territory.

HIghlights of COVID-19 Relief Bill

President Trump is expected to sign the massive, year-end catchall bill Congress passed that combines $900 billion in COVID-19 aid with a $1.4 trillion omnibus spending bill and reams of other unfinished legislation on taxes, energy, education, and health care. Here are highlights of the measure with overall funding amounts and specific amounts for some but not necessarily all initiatives. COVID-19 RELIEF Unemployment insurance ($120 billion). Revives supplemental federal pandemic unemployment benefits but at $300 per week through March 14 instead of the $600 per week benefit that expired in July. This is considered temporary income and should be excluded for purposes of affordable housing programs. Extends special pandemic benefits for "gig" workers and extends the maximum period for state-paid jobless benefits to 50 weeks. Unless guidance from HUD states otherwise, this pandemic benefit should be counted as income and treated in the same manner as regular unemployment. Direct payments ($166 billion). Provides $600 direct payments to individuals making up to $75,000 per year and couples making up to $150,000 per year with payments phased out for higher incomes - with $600 additional payments per dependent child. Since this is a one-time, lump sum payment, this should not be counted as income for affordable housing programs. Paycheck Protection Program ($284 billion). Revives the Paycheck Protection Program, which provides forgivable loans to qualified businesses. Especially hard-hit businesses that received PPP grants would be eligible for a second round. Ensures that PPP subsidies are not taxed. Vaccines, testing, health providers ($69 billion). Delivers more than $30 billion for procurement of vaccines and treatments, distribution funds for states, and a strategic stockpile. Adds $22 billion for testing, tracing and mitigation, $9 billion for health care providers, and $4.5 billion for mental health. Schools and universities ($82 billion). Delivers $54 billion to public K-12 schools affected by the pandemic and $23 billion for colleges and universities; $4 billion would be awarded to a Governors Emergency Education Relief Fund; nearly $1 billion for Native American schools. Rental assistance ($25 billion). Provides money for a first-ever federal rental assistance program; funds to be distributed by state and local governments to help people who have fallen behind on their rent and may be facing eviction. This will be temporary (probably lump sum) and should not be counted as income. Food/farm aid ($26 billion). Increases stamp benefits by 15% for six months and provides funding to food banks, Meals on Wheels and other food aid. Provides an equal amount ($13 billion) to farmers and ranchers. Child Care ($10 billion). Provides $10 billion to the Child Care Development Block Grant to help families with child care costs and help providers cover increased operating costs. Postal Service ($10 billion). Forgives a $10 billion loan to the Postal Service provided in earlier relief legislation. ___ OMNIBUS APPROPRIATIONS ($1.4 TRILLION) The omnibus measure wraps 12 spending bills into one and funds agency operating budgets through Sept. 30 of next year. It combines Democratic priorities such as a $12.5 billion increase over existing budget limits for domestic programs while cutting Immigration and Customs Enforcement detention and removal costs by $431 million. COVID-19 has contributed to sharply lower costs. Republicans supported sustained defense spending, energy provisions and longstanding bans on federal funding of abortion. The measure also provides President Donald Trump with a last, $1.4 billion installment for a wall on the U.S.-Mexico border. ___ MISCELLANEOUS The measure also contains more than 3,000 pages of miscellaneous legislation, such as: Surprise medical billing. Includes bipartisan legislation to protect consumers from huge surprise medical bills after receiving treatment from out-of-network providers. Community health centers. Reauthorizes, for three years, funding for community health centers and extends a variety of expiring health care policies, including reimbursement rates for various health care providers and procedures under Medicare and Medicaid Tax extenders. Extends a variety of expiring tax breaks, including lower excise taxes on craft brewers and distillers. Renewable energy sources would see tax breaks extended, as would motorsport facilities, and people making charitable contributions. Business meals would be 100% deductible through 2022 and out-of-pocket health care costs would be deductible after they reach 7.5% of income. It would also extend favorable tax treatment for "look through" entities of offshore subsidiaries of U.S. corporations. One interesting benefit for the LIHTC program is that it appears that a permanent minimum 4% low-income housing tax credit rate will be included in the final bill, as will a $1.1 billion allocation of additional LIHTCs for 11 states and Puerto Rico. Water projects. Includes an almost 400-page water resources bill that targets $10 billion for 46 Army Corps of Engineers flood control, environmental and coastal protection projects. Clean energy. Boosts "clean energy" programs like research and development, efficiency incentives and tax credits. Phases out "superpollutant" hydrochlorofluorocarbons. Education. Includes a bipartisan agreement to forgive about $1.3 billion in federal loans to historically Black colleges and universities and simplify college financial aid forms. Boosts the maximum Pell Grant for low-income college students by $150 to $6,495. Offers "second chance" Pell Grants to incarcerated prisoners. Horse racing "doping." Adds bipartisan legislation by Majority Leader Mitch McConnell, R-Ky., to create national medication and safety standards for the horse racing industry as lawmakers move to clamp down on the use of performance-enhancing drugs that can lead to horse injuries and deaths. New Smithsonian museums. Establishes the Women s History Museum and the National Museum of the American Latino as new Smithsonian museums located near the National Mall. Pipeline safety. Folds in pipeline safety legislation reauthorizing operating grants and safety standards for oil and gas pipelines. Aircraft safety. Adds, after the scandal involving Boeing 737 MAX crashes, legislation to beef up the Federal Aviation Administration s aircraft certification process. Addresses human factors, automation in the cockpit, and international pilot training while authorizing nearly $275 million over the next five years to carry out the legislation. Intelligence programs. Reauthorizes intelligence programs for 2021. It is expected that the one-time payments and unemployment benefits will begin shortly after the New Year.

Minimum Wage to Increase in Many Areas in 2021

In 2021, 19 states will have new minimum wage rates. Affordable housing managers responsible for determining the income of applicants and residents need to be aware of state and local minimum wage laws in order to ensure the most accurate possible projection of income. States with Minimum Wage in Excess of Federal $7.25 per Hour (as of 1/1/21) - unless noted otherwise, the minimum wage for tipped employees is $2.13 Alaska: $10.34.Arizona: $12.15; $9.15 for tipped employees.Arkansas: $11.00; $2.63 for tipped employees.California: $14.00 - applies only to employers with 26 or more employees. Employers in CA with 25 or fewer employees have a minimum wage of $13.00 per hour. Note: the minimum wage for large employers will increase to $15 per hour in 2022.Colorado: $12.32; $9.30 for tipped employees. Colorado cities have the ability to set higher minimums.Connecticut: $12.00.Delaware: $9.25.District of Columbia: $15.00.Florida: $8.65; $5.63 for tipped employees. Note: the minimum wage will increase to $10 per hour on September 30, 2021, reaching $15 by 2026.Hawaii: $10.10.Illinois: $11.00; $6.60 for tipped employees. The youth minimum wage for youth working less than 650 hours per year is $8.50.Maine: $12.15; $6.08 for tipped employees.Maryland: $11.60 for small employers (14 or fewer workers); $11.75 for all other employers; $3.63 for tipped employees.Massachusetts: $13.50; $5.55 for tipped employees.Michigan: $9.87; $3.75 for tipped employees. Note: This increase has been delayed due to high unemployment numbers and will remain at $9.87 until further notice.Minnesota: $10.08 - this is the rate for large employers (employers with $500,000 or more gross revenue). Small employers have a minimum wage of $8.21 per hour.Missouri: $10.30; $5.15 for tipped workers.Montana: $8.75, for both tipped and non-tipped employees.Nebraska: $9.00Nevada: $8.25 for employees who are not offered health insurance. On July 1, 2020, the minimum wage for employees with health insurance increased to $8.00, and those without health insurance to $9.00.New Jersey: $12.00 (large employers - five or more employees); $11.10 (small employers); $4.13 for tipped employees.New Mexico: $10.50; $2.55 for tipped employees.New York: $12.50 statewide; $10.40 for hospitality, non-fast food, resort service; $8.35 for hospitality, non-fast food, general service; $14.50 for hospitality- fast food; ($15.00 in New York City).Ohio: $8.80 (large employers with $323,000 or more in gross receipts); $7.25 (small employers); $4.40 for tipped employees.Oregon: $11.25 (Portland, $13.25 on July 1) - effective July 1, 2020, the statewide minimum will be $12.00 ($11.50 for nonurban counties).Rhode Island: 10.50South Dakota: $9.45; $4.725 for tipped employees.Vermont: $11.75; $5.88 for tipped employees.Washington: $13.69.West Virginia: $8.75 Certain occupations are exempt from federal minimum wage laws, but states have their own exemptions. Anytime an applicant or resident reports or has a verification of income that is less than the federal or state minimum wage, managers should follow up with employers to determine the reason. That reason should be documented in the file.

The rise in Housing Prices Further Inhibits Affordability - But, May Offer Opportunities to Landlords

Affordable housing across America - whether ownership or rental - is growing scarcer than ever, as the wealthy bid up properties that might once have been considered "affordable." This is especially the case in the big coastal cities. It now appears that the COVID-19 impact on the housing market may turn out to be permanent - and will widen the gap between rich and poor. Renters and buyers alike face rising prices that outstrip income growth and favor people with cash savings. The median prices of a single family home in California has now crossed $700,000, setting a new standard for what the American Dream might cost. Housing experts say this is a trend that has accelerated over the last five months and is tied directly to the pandemic: Low-interest rates - which the Fed will almost certainly keep in place - are pulling people into the market at a time when everyone is craving more space to live and work. "Starter" homes in cities that attract young people are almost nowhere to be found. They are also growing harder to find in exurbs. People leaving San Francisco, where the median home price is $1.1 million, will have to pay nearly $500,000 if they move to Sacramento. While affordability was a crisis even before the pandemic, it has been accelerated by the crisis. While California provides the most extreme example of the problem, the story is the same everywhere. The cost of buying a house across the nation was up 7% in September alone, as shown by the Case-Shiller index. Case-Shiller is an index that is used by securities investors, mortgage banks, servicing operations, and government agencies to make property valuations, assess and manage risk, mitigate losses, and control appraisal quality. Phoenix, Seattle, and San Diego were the cities with the biggest price increases, and the last five months have seen frenzied real estate activity - not just in these areas, but across the Country. Even as many Americans have struggled to pay rent and mortgages, the wealthy have paid above asking prices for homes that used to be worth a lot less - basically hollowing out the low-end of the market. This leads to a chain reaction that keeps low and middle-income people in rentals and leaves fewer financial incentives for single-family developers to build anything but high-end homes. A recent report by the Harvard Joint Center for Housing Studies found that supply is tightest for low and moderate-cost homes. The best solution may be to build our way out - in other words, increase the housing supply to the point where the supply begins to match the demand. Mortgage rates are likely to remain low for the foreseeable future, encouraging home sales. The current lack of supply will continue to drive prices up. Single-family housing starts have remained under 1 million annually for over ten years, but given the current demand, there is hope for a rise in 2021. The only cure for a supply deficit is to build more homes and to make it cheaper to build those new homes. The cost of buying a house hit a six-year high in September, and prospective buyers are unlikely to find better deals anytime soon. A measure of home prices in 20 large cities rose at a 6.6% yearly pace in October according to the Case-Shiller price index. That s up from 5.3% in September. It should be noted that Wall Street economists had predicted a 5.4% increase. A broader measure by Case-Shiller that covers the entire country showed a similarly large 7% increase in home prices over the past year, marking the fastest 12-month gain since 2014. Home prices have actually risen faster during the worst pandemic in a century instead of going down - as would normally be expected. Rock-bottom mortgage rates and a high volume of people leaving cities during the pandemic for more space in the suburbs and beyond has boosted demand at a time when the supply of homes for sale is near historic lows. Prices rose in 19 of the 20 large cities tracked by Case-Shiller. The lone exception, Detroit, may have had higher prices as well, but Case-Shiller could not collect enough data because of rising COVID-19 cases in the area. The smallest increases were in New York and Dallas. New York has seen a particularly large outflow of residents after suffering a huge number of COVID-19 cases early in the pandemic. Dallas was another hard-hit area. In the end, home sales may slow a bit in the face of the current surge in coronavirus cases and a softer economy. But demand - and prices - are not likely to taper off significantly, especially if the newly released vaccines - with more to come - turn out to be effective and widely available. Sales are at the highest level in years and are likely to stay that way once the economic rebound picks up the pace. What impact will this have on affordable rental housing? According to studies done by the Federal Reserve Board, when sales prices are high relative to rents, rent increases during the three years following a price spike have tended to be larger. This indicates that owners of non-subsidized affordable housing (e.g., the LIHTC program), may see opportunities for a rent increase in the next few years - assuming their properties are not already charging maximum LIHTC rent.