The Section 8 Program Housing 101 Short History

The Section 8 Program Housing 101

Short History Lesson Section 8 of the Housing and Community Development Act of 1974 Types of Section 8 § New Construction and Substantial Rehabilitation § Moderate Rehabilitation § Vouchers

Section 8 Voucher Eligibility § At least 75% of households admitted each year must have incomes < 30% of HUD AMI. § Maximum is 50% of HUD AMI § Income limits apply at time of admission.

30% of HUD AMI

How Much Rent Do Vouchers Cover? Amount of rental assistance is based upon: q Payment Standard 90 to 110% of the Fair Market Rent q Family’s Adjusted Income Includes deductions for dependents & child care costs, elderly and disabled households q Actual Rent and Utility Costs of Apartment

Calculation of Assistance Example: A single parent earning minimum wage in Washington County with 2 children. Payment Standard = 110% of 2 BR FMR or $917 Adjusted Monthly Income = $1, 265 [minimum wage] 30% of Adjusted Monthly Income = $379 Amount of maximum rental assistance = $917 minus $379 or $538

When Gross Rent = Payment Standard § If a family rents a unit with rent/utility costs that are exactly equal to the Payment Standard, Section 8 pays the landlord the Payment Standard less 30% of the family’s AMI. § Assistance is $538 in our example.

When Rent/Utilities < Payment Standard § If rent and utilities are below the Payment Standard, the family still pays 30% of the AMI and Section 8 pays the rest. § It is the Section 8 program which saves money when gross rent is less than the Payment Standard.

When Rent/Utilities > Payment Standard § The Voucher covers the Payment Standard minus 30% of the AMI and the family pays the rest. § In our example, the Voucher pays $538 and the family pays up to 40% of its AMI for rent and utilities. § The family pays more than 30% of AMI when the gross rent is more than the Payment Standard.

Other Section 8 Elements § Project-based Vouchers § Family Self-Sufficiency § Home Ownership § Targeted Funding Options: § Mainstream Housing Opportunities for Persons with Disabilities § Family Unification § Veterans Supportive Housing Program (VASH)