Section 8 Housing Choice Voucher Program
What are housing choice vouchers?
The Housing Choice Voucher program is the federal government’s major program for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.
The participant is free to choose any housing that meets the requirements of the program and is not limited to units located in subsidized housing projects.
Housing Choice Vouchers are administered locally by public housing agencies (PHAs). The PHAs receive federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program.
A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family’s choice where the owner agrees to rent under the program. This unit may include the family’s present residence. Rental units must meet minimum standards of health and safety, as determined by the PHA.
A housing subsidy is paid to the landlord directly by the PHA of behalf of the participating family. The family then pays the difference between the actual rent charged by the landlord and the amount subsidized by the program.
Am I eligible?
Eligibility for a housing choice voucher is determined by the PHA based on the annual gross income and family size and is limited to U.S. citizens and specified categories of non-citizens who have eligible immigration status. In general, the family’s income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. By law, a PHA must provide 75% of its voucher to applicants whose incomes do exceed 30% of the area median income. Median income levels are published by HUD and vary by location. The PHA serving your community can provide you with limits for your area and family size.
During the application process, the PHA will collect information on family income, assets, and family composition. The PHA will verify this information with other local agencies, your employer and bank, and will use the information to determine program eligibility and the amount of the housing assistance payment.
If the PHA determines that your family is eligible, the PHA will put your name on a waiting list, unless it is able to assist you immediately. Once your name is reached on the waiting list, the PHA will contact you and issue you a housing voucher.
Housing vouchers – how do they function?
The Housing Choice Voucher program places the choice of housing in the hands of the individual family. When a family is selected by the PHA to participate, it is encouraged to consider several housing choices to secure the best housing for the family’s needs. A housing voucher holder is advised of the unit size for which it is eligible based on family size and composition.
The housing unit selected by the family must meet an acceptable level of health and safety before the PHA can approve the unit. When the voucher holder finds a unit that he/she wishes to occupy and has reached an agreement with the landlord over the lease terms, the PHA must inspect the dwelling.
The PHA determines a payment standard that is the amount generally needed to rent a moderately-priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive. However, the payment standard does not limit and does not affect the amount of rent the landlord may charge or the family may pay. A family, who has received a housing choice voucher, can select a unit with a rent that is below or above the payment standard. The housing voucher family must pay 30% of its monthly adjusted gross income to rent and utilities, and if the unit rent is greater than the payment standard, the family is required to pay the additional amount. By law, whenever a family moves to a new unit where the rent exceeds the payment standard, the family may not pay more than 40% of its adjusted monthly gross income for rent.
The rent subsidy
The PHA calculates the maximum amount of housing assistance allowable. The maximum housing assistance is generally the lesser of the payment standard minus 30% of the family’s monthly adjusted income of the gross rent for the unit minus 30% of monthly adjusted income.
Can I move and continue to receive housing choice voucher assistance?
A family’s housing needs change over time with changes in family size, job locations, and for other reasons. The housing choice voucher program is designed to allow families to move without the loss of housing assistance. Moves are permissible as long as the family notifies the PHA ahead of time, terminates its existing lease within the lease provisions, and finds acceptable alternate housing.
Under the voucher program, voucher-holders may choose a unit anywhere in the United States but must initially lease a unit within that jurisdiction for the first twelve months of assistance. A family that wishes to move to another PHA’s jurisdiction must consult with the PHA that currently administers its housing assistance to verify the procedures for moving.
Roles – the tenant, the landlord, the housing agency and HUD
Once a PHA approves an eligible family’s housing unit, the family and the landlord sign a lease and, at the same time, the landlord and the PHA sign a housing assistance payments contract that runs for the same term as the lease. This means that everyone – tenant, landlord and the PHA – has obligations and responsibilities under the voucher program.
When a family selects a housing unit, and the PHA approves the unit and lease, the family signs a lease with the landlord for at least one year. The tenant may be required to pay a security deposit to the landlord. After the first year the landlord may initiate a new lease or allow the family to remain in the unit on a month-to-month lease.
When the family is settled in a new home, the family is expected to comply with the lease and the program requirements, pay its share of rent on time, and maintain the unit in goof condition and notify the PHA of any changes in income of family composition.
The role of the landlord in the voucher program is to provide decent, safe, sanitary housing to a tenant at a reasonable rent. The dwelling unit must pass the program’s housing quality standards and be maintained up to those standards as long as the owner receives housing assistance payments. In addition, the landlord is expected to provide the services agreed to as part of the lease signed with the tenant and the contract signed with the PHA.
Housing Authority’s Obligations
The PHA administers the voucher program locally. The PHA provides a family with the housing assistance that enables the family to seek out suitable housing and the PHA enters into a contract with the landlord to provide housing assistance payments on behalf of the family. If the landlord fails to meet the owner’s obligations under the lease, the PHA has a right to terminate assistance payments. The PHA must reexamine the family’s income and composition at least annually and must inspect each unit at least annually to ensure that it meets minimum housing quality standards.
To cover the cost of the program, HUD provides funds to allow PHAs to make housing assistance payments on behalf of the families. HUD also pays the PHA a fee for the costs of administering the program. When additional funds become available to assist new families, HUD invites PHAs to submit applications for funds for additional housing vouchers. Applications are then reviewed and funds are awarded to the selected PHAs on a competitive basis. HUD monitors PHA administration of the program to ensure program rules are properly followed.