Misclassification Of Temporary Cash Benefits Leading To Rent Increases At Multiple Properties

"Rx Kids has regular office hours, during which people can ask questions and get documentation to share with their housing complexes so that they won't have to pay increased rent."

Kalamazoo mothers receiving cash assistance from the Rx Kids program are being incorrectly charged higher rent because property managers are misclassifying the temporary funds as income, according to a coalition of housing advocates.

The issue affects mothers living at three subsidized housing properties in Kalamazoo: Interfaith Homes, Fox Ridge, and Hilltop. Fox Ridge and Hilltop are both managed by the same company, Integrated Management Services.

The Problem With Income Classification

Rx Kids is a program that provides new and expectant mothers with cash "prescriptions" to help them through the first year of their child's life. Now in its second year, the program gives enrollees $1,500 during pregnancy and $500 per month for the baby's first year.

The Housing Advocacy Collective (HAC) discovered the issue after mothers it assists reported being required to pay more for their subsidized housing. HAC is a coalition made up of representatives from Cradle Kalamazoo, the YWCA, the NAACP, and county and city commissioners.

The problem stems from how the payments are classified in the housing system. When treated as income, tenants' rents increase because they are required to pay a certain percentage of their income. However, the temporary funds are legally considered a gift and should not be counted toward income.

County Commissioner Takes Action

HAC members raised the concern with County Commissioner Tami Rey, who told them she has already addressed the issue at Interfaith Homes, requiring refunds and processing changes to prevent it from happening again.

"I will be getting a letter from MAM (Multifamily Asset Management) for Fox Ridge," Rey said. "MAM is the performance-based contact administrator for HUD project-based contacts."

Hilltop is on the outreach list as well. The commissioner has alerted HRI (Housing Resources Inc.), CoC (Kalamazoo County Continuum of Care), County Housing Director, and other officials so everyone is aware this shouldn't be counted.

"I have alerted HRI, CoC, County Housing Director, etc., so everyone is aware this shouldn't be counted and is on the lookout if any other issues pop up."

Public Housing Agency Responds

Chris Shepard, a housing agent for Pine Grove Housing Service, which operates as the local public housing agency, confirmed that while the Rx Kids funds should be recorded in the system, funds must be excluded from the tenants' total income amount, so as not to affect tenants' rent calculations.

Parents receiving Rx Kids funds are invited to attend ongoing information sessions to help them navigate the system and advocate for themselves if they are incorrectly charged. Sessions are held on the first and third Monday of each month at Cradle Kalamazoo's downtown office.

About Rx Kids

Rx Kids provides financial support to new and expectant mothers through cash "prescriptions." The program is now in its second year and aims to help families through the challenging first year of a child's life.

The program gives enrollees:

  • $1,500 during pregnancy
  • $500 per month for the baby's first year

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Comstock Public Schools Bars Trustee From Schools

Comstock Public Schools Trustee Richard Hathaway has been censured for a third time and now has a "no trespassing order" that will prevent him from accessing schools unless he is participating in board activities.

"Hathaway has a propensity to get involved with the operations of the district, which is far below the board level," school board President Pamela Dickinson said.

"As board members, we are not experts on education. We are civil servants."

County Picks Artist For Parking Garage Mural

After reviewing the top five artists to submit applications, a Kalamazoo County committee has decided to recommend Patrick Hershberger to design the murals that will adorn Kalamazoo's newest parking garage.

The garage is being built at 440 N. Church St. and will primarily serve county employees. Hershberger – aka Go Bonus Saves – is a muralist and Kalamazoo native who participated in the city's Brush the Block festival last year.

His design will wrap around three sides of the parking structure and feature depictions of notable Kalamazoo residents mixed with images of native flora and fauna.

The mural project is expected to cost about $50,000, most of which will go toward printing fabric panels based on the artist's designs.

County commissioners will vote on the recommendation at their next meeting in April.