MORTGAGES AND HOUSING SHOULD BE BASED ON NET OR TAKE HOME PAY, NOT GROSS PAY BEFORE TAXES
The way earnings are calculated for mortgages and rents for Senior Citizen and Disabled housing are calculated is inaccurate and needs to be changed
Mortgages and rents for subsidized housing are determined by a persons earnings, and are based on their gross pay, before taxes, health insurance, and other payroll deductions are made. This is inaccurate and misleading. It should be based upon a persons net pay, or take home pay; what they actually live on, after deductions.
Senior Citzens, handicapped, and disabled citizens who reside in subsidized housing, and FHA apartments, who pay rent based on a percentage of their income, are greatly affected by this. Because their rent is based on a percentage of their gross pay, rather than their net pay, they are forced to pay more rent than they can afford. This creates a financial hardship for these individuals, who are living on a limited income. If their rent was calculated on the salary they actually live on, or their net pay, it would be considerably less. This would give them more money for food and other necessities.
In addition, mortgage companies and banks base mortgages on a person's gross pay, instead of net or take home pay. This is a contributing factor to the housing foreclosure crisis, as mortgages are calculated on a higher rate of income, rather than what an individual actually lives on. As a result, their mortgage is higher than what they can afford.
Please introduce, and pass, legislation to correct, and regulate, the guidelines that calculate a person's income for mortgages and subsidized housing, so it is based on net pay, or take home pay.
Thank you for your immediate attention to this important issue.
Senior Citzens, handicapped, and disabled citizens who reside in subsidized housing, and FHA apartments, who pay rent based on a percentage of their income, are greatly affected by this. Because their rent is based on a percentage of their gross pay, rather than their net pay, they are forced to pay more rent than they can afford. This creates a financial hardship for these individuals, who are living on a limited income. If their rent was calculated on the salary they actually live on, or their net pay, it would be considerably less. This would give them more money for food and other necessities.
In addition, mortgage companies and banks base mortgages on a person's gross pay, instead of net or take home pay. This is a contributing factor to the housing foreclosure crisis, as mortgages are calculated on a higher rate of income, rather than what an individual actually lives on. As a result, their mortgage is higher than what they can afford.
Please introduce, and pass, legislation to correct, and regulate, the guidelines that calculate a person's income for mortgages and subsidized housing, so it is based on net pay, or take home pay.
Thank you for your immediate attention to this important issue.
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