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About Section 8 Housing
Generally, the process of renting a property includes the tenant paying a deposit to the landlord signing a contract, and paying rent every month according to the agreement for the agreed tenure.
However, not everyone can afford to rent, especially individuals from low-income families. For such families and individuals, there is a program known as the Section 8 Housing Voucher Program.
In this post, we will learn what is section 8 housing program and how it works.
What Is Section 8 Housing?
The Section 8 Housing Program was established under the Housing Act of 1937.
The purpose of the program is to provide safe and sanitary housing for low-income people, the disabled, and the elderly.
This home program is done through Housing Choice Voucher Program.
Vouchers are used by low-income families, and eligible individuals as portable subsidies to lower their monthly rent.
Although the US Department of Housing and Urban Development (HUD) funds and oversees the program, the Public housing agency manages the Housing vouchers by itself.
Public Housing Agency determines section 8 housing program eligibility based on combined annual income and the size of the family.
Your gross annual income must not exceed 50% of the local median income. By law, 30 percent of the housing choice vouchers must go to families earning less than 30 percent of the median income in the specific area.
If you qualify for Section 8 housing, you pay 30% of your adjusted gross income monthly for rent and utilities.
The remaining 70% is paid directly to the homeowner by the public housing agency, which manages the vouchers for the specific family.
How Does Section 8 Housing Program Work?
The Housing Choice Voucher program puts housing selection in the hands of the individual family.
Very low-income families selected to participate in the program by Public Housing Agency are encouraged to consider a variety of housing options to find the home that best meets their family’s needs.
Depending on the family size and composition of the housing voucher holder’s family, you will be notified of the size of eligible units.
The housing unit chosen by the family must meet an acceptable level of health and safety before the Public Housing Agency can approve the unit.
Once the voucher owner finds a unit to own and agrees to lease terms with the homeowner, the Public Housing Agency must inspect the property and determine if the homeowner is requesting appropriate rent.
The Public Housing Agency sets payment standards commonly used to calculate the amount needed to rent affordable housing in the local housing market and the amount of housing assistance a family will receive.
However, these payment standards do not limit or affect the rent the homeowner can charge or the rent a family can pay.
Families receiving housing choice vouchers can choose units whose rent is lower or higher than the payment standard.
Housing Voucher families must pay 30% of their gross monthly income adjusted for rent and utilities, and families must pay an additional amount if the unit’s rent exceeds the payment threshold.
When a family moves into a new unit where the rent exceeds the payment threshold, the law allows the family to pay up to 40% of their adjusted monthly income as rent.
How To Apply For the Section 8 Housing Choice Voucher Program?
If you are eligible for the housing choice voucher Program, please follow these steps to apply for same.
1: Find your Public housing agency:
The first step is to find a public housing agency. You can find your local PHA by state, city, and zip code and get all the required contact information.
2: Check your eligibility:
Once you contact the PHA you would now work with the public housing agency to determine eligibility for this program.
Your eligibility depends on your family size and gross annual income. In general, your income should not exceed 50% of the local median income.
Sometimes local PHAs give priority to certain people who receive housing assistance first. For example, special consideration may be offered the homeless individuals.
If you are eligible, you must notify the PHA to keep wait times as short as possible.
3: Application Filling:
Assuming you qualify for this program, you’ll need to fill out the application for this program. The application is free and will be available online or by mail.
You’ll need to provide information about your eviction history, citizenship, criminal history, and income.
4: Check your waiting list status:
After you have submitted your application, you can see the status of the waiting list. If you live in an area with high demand for this program, you may be on a waiting list for several years.
Once your application has been processed, you can check your waiting list status through our online portal.
5: Find affordable homes:
Finally, after receiving the voucher, you can find affordable housing. The voucher that you receive is valid only for 60 days.
Accept your voucher and find a home that matches the requirement of the program.
Once you’ve chosen a home, you may need to sign a minimum one-year lease with the homeowner and pay a specific amount as a security deposit.
As a tenant, you need to pay 30% of your monthly income as rent and the public housing agency pays the rest directly to the homeowner.
Conclusion
If you fall under the low-income family group, section 8 housing could be one of the most affordable housing options that you may want to consider.
However, it may take more time than expected to get the housing choice voucher. If you are looking for renting and don’t have enough time to wait for approval, you may want to consider some other options.
