I've experienced this first-hand...
The apartment complex where I live was built with HUD money; while HUD did not have
direct control of it, the landlord had to comply
with strict HUD guidelines for running a low-to-moderate income property, including a
strict background check of prospective
tenants.
In 1990-91 the landlord was talking about paying off the HUD mortgage, which would
result in HUD being taken out of the picture, and
the end result of rents being raised a substantial amount. We tenants organized, and
as we had done in the past sought to work with
HUD to come to a solution that wouldn't leave the tenants out in the cold.
Back in the early 1980s, HUD had been quite responsive to tenants...but it was still
full of people left over from the Carter
Administration years...
By 1990, they had all gone, and the department was now populated by Reagan and Bush
Administration cronies.
Since I worked just up the street from the local HUD office at the time, I was the one
who did most of the direct contact with them.
I was told point-blank that HUD's 'relationship' was with the owner/landlord of the
complex, and not with the tenants. It was
plainly obvious that they didn't give a damn if the owner paid off the mortgage and
raised the rents, resulting in most of the
current tenants having to move out because of inability to pay it.
As it turned out, we got a reprieve for a few years...HUD DID allow the owner to raise
rents, but by a relatively moderate amount.
And the owner held off paying off the mortgage.
But he finally DID pay it off in the mid-1990s, and since 1997 my rent has gone up 70
percent. Meanwhile, most of the decent,
albeit low-to-moderate income tenants have moved out, and the place is now populated
with drug dealers and prostitutes. The owner
doesn't care HOW someone makes a living, as long as they can pay the rent...
June
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