FAS exclusion from public housing hiked NMHC delinquency rate

A ruling that disqualified citizens of the Freely Associated States from public housing benefits two years ago pushed up the number of residents who are delinquent in their rental payment to the Northern Marianas Housing Corporation.

Executive Director Marylou S. Ada disclosed some eviction incidents had to be made in the past because of high delinquency rate among FAS families who were receiving public housing benefits before they were disqualified from the Section-8 Program.

“What really hurt NMHC a lot was that their rental payment went up and delinquency rate correspondingly went up because they had a hard time adjusting to their new rental fees. We noticed an eviction trend because of the higher delinquency,” she explained.

Ms. Ada pointed out that majority of FAS families, whose household includes a US-born citizen, were never disqualified from the federal housing program and have continued to stay in public housing units administered by the NMHC.

She explained that previous ruling guaranteed that FAS families that has a U.S. citizen household member continues to qualify under the public housing program although the computation for their monthly rental charges was also adjusted.

“It had to depend on how many U.S. citizens are there in a household. What we saw then was an increase on the number of delinquent residents because their rent has gone up since the number of household members who qualify to receive the benefit does not equate to the non-eligible household members,” she stressed.

While Ms. Ada admitted that NMHC was forced to evict some residents who were seriously and chronically behind in their rental payment, majority of FAS families chose to move out because they could no longer afford the rent at public housing units.

She emphasized that the only eviction that NMHC did were on clients who were chronically behind in their rental payment, adding that Department of Housing and Urban Development regulations allow the agency to evict delinquent residents.

“Under HUD regulations, we have the right to evict residents who are chronically and seriously behind in their payment. Other basis for eviction are poor housekeeping, truancy and involvement in drugs. We follow due process when we have to evict a tenant; before we do eviction, a case has to be heard first,” she said.

Ms. Ada said now that President Clinton signed a law making FAS citizens eligible to avail of the Section-8 benefits, NMHC will start accommodating residents of Palau, Marshalls and the Federated States of Micronesia although she underscored that they will not be given preferential treatment in the processing of applications.

“We have a waiting list and we will continue to implement the program on a first-come, first-serve basis. Whoever is next in line will be processed first. It will be business as usual, FAS citizens will be processed as if they were never disqualified from the program,” she said.

In fact, most of them have to join a big number of American families in the waiting list since the NMHC previously reported a significant increase in the number of CNMI families who have availed the Section-8 Housing Assistance Program during the last two years.

More than 200 families throughout the Northern Marianas are now enjoying the benefits of the federally funded Section-8 Program, which provides housing assistance to very low and low-income families.

More than 100 families are currently renting units at NMHC-administered subdivisions in Garapan, Mihaville and Koblerville on Saipan, and on Tinian and Rota. Over a hundred other families are enrolled under the Voucher and Certificate Program, wherein the beneficiaries are living in privately-owned apartments of their choice.

The amount shouldered by the U.S. Department of Housing and Urban Development depends on the income level of the family. The program assists in paying the fair market rent 30 percent of their adjusted income or 10 percent of their gross income, whichever is greater.

However, in cases when families do not have any source of income at all, the Section-8 Housing Assistance Program fully subsidizes them and pays the entire contract rent.

The Section-8 Housing Assistance Program earmarks housing funds for indigent local families who are sheltered in an apartment or for-rent houses of their choice on a specific amount.