U.S. Rent Subsidies for 60 Households

The city will use $653,350 allocated by the U.S. Department of Housing and Urban Development to subsidize monthly rents for about 60 very-low-income households over the next two years, officials said.

Recipients will be chosen from a waiting list of about 2,000 eligible renters. Although details have yet to be finalized, city officials are looking into two possibilities. One offers monthly subsidies to ensure that the renters spend no more than 30% of their income on housing; the other provides a monthly fixed amount of about $400 per household.

To qualify for the assistance, a one-person, very-low-income household must earn no more than $16,400 annually. For a two-person household, the ceiling is $18,750; for a three-person household, $21,100; for four, $23,450; for five, $25,350, and for six, $27,200. HUD sets the limits.

Approximately 35% of South Gate’s 86,386 residents are classified as very-low-income (those who earn less than 40% of the annual Los Angeles County median household income), according to a recent report by the Southern California Assn. of Governments.

The subsidy funds are part of a $769,000 package allocated by HUD in August. Following requirements of the agency, the city has reserved $115,350, or 15% of the total, for a nonprofit development organization to build additional affordable housing in the city. The organization has not yet been chosen.