FY 26 Budget Q&A #030: What level of demand exists for adult rental relief above our 30% AMI cut-off? What would it cost to meet a 40% or 50% AMI cut-off?
Question: What level of demand exists for adult rental relief above our 30% AMI cut-off? What would it cost to meet a 40% or 50% AMI cut-off? (Mayor Gaskins)
Response:
Staff cannot quantify total demand above the 30% AMI threshold with existing data, given that applicants above the threshold are ineligible and as such do not regularly apply. At present, the program serves a total of 148 households, with assistance totaling to $776,000 annually. Expanding the program to serve 15 additional households would require an additional $90,000, budgeted at the $500/month tier.
DCHS conducts an annual (re)certification process to confirm participants’ continued eligibility, and collects data on all participants and applicants, including those who are ineligible due to being over income. This process is currently taking place for FY 2026. Since July 1, 2023, 201 households have applied for assistance; 17 applicants have been ineligible, and five have been disenrolled due to being over income. Eight of these households would qualify under the newly approved guidelines of at or below 30% AMI. Seven more households would be eligible at 40% AMI; the remaining two exceed all three income thresholds.
Additional Background:
Rent Relief for Older and Disabled Adults is a program that started in 1974 and offers monthly financial assistance for Alexandria residents who are 65 years or older and/or those living with disabilities. Eligibility is conditional on participants falling below a designated income threshold. In November 2024, Council adopted Resolution 3261, which updated the income eligibility to: At or below 30% of the Housing and Urban Development Area Median Income (AMI). This change, which will go into effect in Fiscal Year 2026, is significant as it increases the income threshold for eligibility and is not a static dollar amount. Currently, the 30% AMI limits for the Washington Metropolitan Statistical Area are as follows: for a 1-person household=$32,500; for a 2-person household=$37,150. This represents an increase of $6,900-$11,550 from the current threshold of $25,600 (roughly 24% of AMI for a one-person household).
For further context, below are the current HUD AMI guidelines by 40% and 50% AMI:
- The 40% AMI limits for the Washington Metropolitan Statistical Area are as follows: for a one-person household, it's $37,905; for a two-person household, it's $43,330.
- The 50% AMI limits for the Washington Metropolitan Statistical Area are as follows: for a one-person household, it's $54,150; for a two-person household, it's $61,900.
There is a lower $375/month tier that some households are assigned to based on need.