Individual rent assistance in the Netherlands

0

Individual rent assistance in the Netherlands

Mismatches
Policies and regulations
Financing
Ownership and tenure

Main objectives of the project

Date

Stakeholders

  • Promotor: Tax and Customs Administration of the Netherlands

Location

Continent: Europe
Country/Region: Netherlands

Description

The well-established Dutch scheme of individual rent assistance is based on a quality point system for rent-setting and is provided directly to tenants.
Unlike the United States system, the Dutch tax department assesses household incomes and makes direct payments to eligible households – being households with low to moderate income or reliant on social assistance. Unlike the United States, the scheme is not capped, but it is limited in other ways.

Importantly, rent assistance is conditional on households occupying moderately priced dwellings and it only pays part of the rental costs. As mentioned above, dwellings are assessed by an annually indexed government point system based on quality and space, and assistance is only provided to dwellings under a cost limit. Nevertheless, most modest rental dwellings fall below this and 33 per cent of households in the social sector can receive allowances.

Authors:

In the United States most rented dwellings are provided by private landlords and this sector has a small affordable rental housing segment

2

In the United States most rented dwellings are provided by private landlords and this sector has a small affordable rental housing segment

Mismatches
Policies and regulations
Financing
Promotion and production
Ownership and tenure

Main objectives of the project

Date

Stakeholders

  • Promotor: U.S. Department of Housing and Urban Development (HUD)

Location

Continent: North America
Country/Region: United States of America

Description

Housing vouchers (HVs), funded by the central government and allocated locally, are the most common United States mechanism to ensure rents are affordable. HVs aim to increase purchasing power and improve housing choices for very low-income renters, and more recently have used to encourage poor households to move to areas of greater labour opportunity. The voucher is provided to eligible tenants according to a waiting list maintained by city or county housing agencies, who are searching for housing of a defined quality and cost. When a suitable dwelling and willing landlord is found, the HV can be used to help pay the tenant’s rent[1]. This HV payment reflects the difference between a Fair Market Rent (FMR) which is calculated locally, and affordable rent defined as 30 per cent household income. If an HV recipient cannot find suitable housing within 60 days, the voucher must be returned to the issuing local housing authority.

The budget for HVs is capped and both demand and need outstrips availability. HVs are targeted strictly based on income – 75 per cent of recipients have a very low income.[2] It is estimated that only 25 per cent of eligible households are actually assisted by HVs due to limited supply, leading to long waiting lists and occasional government crises measures.[3] Voucher recipients also face discrimination when searching for suitable homes. Only a few local governments have passed “source of income laws”[4] to combat this problem.

Authors: