Councilman Greg Stanton's
Business Journal of Phoenix Column

However, federal housing regulations prohibit apartment owners from charging low-income tenants more in gross monthly rent – a combination of rent payments, utility costs and taxes – than a maximum amount set by the government. In cases where the tax pushed the gross rent over the limit, the owners had to absorb the difference.

The tax added a few dollars to the amount the tenants had to put out each month, burdening their already tough financial situations. And the restriction on the total amount landlords could collect from low-income tenants meant the landlords had to pay out a little more each month, too. That discouraged them from offering more low-rent units.

With the tax gone, low-income residents and apartment owners are saving money. And the disincentive that made apartment owners think twice about offering more low-rent units has been removed.