There are various affordable or subsidized housing and rental assistance programs—sometimes called low-income housing—at the federal and state levels. Here is information on some of the primary programs available.
Housing choice vouchers (Section 8)
The federal housing choice voucher program—provided by Section 8 of the Housing Act of 1937—is a federal government program that provides assistance to very low-income families—helping them afford decent, safe, and sanitary housing. See 42 U.S.C. §1437f. Housing can include single-family homes, townhouses, and apartments, and is not limited to units located in subsidized housing projects.
Housing choice vouchers are administered locally by Public Housing Agencies (PHAs), which 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 on 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.
Under certain circumstances, if authorized by the PHA, a family may use its voucher to purchase a modest home.
Eligibility
To be eligible for Housing Choice a person must have low or very low income based on annual gross income and be in need of decent, safe, and sanitary housing.
Eligibility for a housing voucher is determined by the PHA based on the total 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 percent of its voucher to applicants whose incomes do not exceed 30 percent of the area median income. Median income levels are published by HUD and vary by location. The PHA serving a given community can provide the income limits for the area and a certain 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 to you a housing voucher.
How do I apply?
• If you are interested in applying for a voucher, contact the local PHA. For further assistance, please contact the HUD Office nearest to you.
Local preferences and waiting list—what are they and how do they affect me?
Since the demand for housing assistance often exceeds the limited resources available to HUD and the local housing agencies, long waiting periods are common. In fact, a PHA may close its waiting list when it has more families on the list than can be assisted in the near future.
PHAs may establish local preferences for selecting applicants from its waiting list. For example, PHAs may give a preference to a family who is (1) homeless or living in substandard housing, (2) paying more than 50% of its income for rent, or (3) involuntarily displaced. Families who qualify for any such local preferences move ahead of other families on the list who do not qualify for any preference. Each PHA has the discretion to establish local preferences to reflect the housing needs and priorities of its particular community.
Housing vouchers—how do they function?
• The housing choice voucher program places the choice of housing in the hands of the individual family. A very low-income family is selected by the PHA to participate is encouraged to consider several housing choices to secure the best housing for the family 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 it wishes to occupy and reaches an agreement with the landlord over the lease terms, the PHA must inspect the dwelling and determine that the rent requested is reasonable.
• 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. But the payment standard does not limit and does not affect the amount of rent a landlord may charge or the family may pay.
• A family that receives a housing 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 for 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 percent of its adjusted monthly 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 or 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, new voucher-holders may choose a unit anywhere in the United States if the family lived in the jurisdiction of the PHA issuing the voucher when the family applied for assistance. Those new voucher-holders not living in the jurisdiction of the PHA at the time the family applied for housing assistance 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 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 PHA—has obligations and responsibilities under the voucher program.
Tenant’s obligations
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, maintain the unit in good condition, and notify the PHA of any changes in income or family composition.
Landlord’s obligations
The role of the landlord in the voucher program is to provide decent, safe, and 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 agency'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 the 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.
HUD's role
To cover the cost of the program, the U.S. Department of Housing and Urban Development (HUD) provides funds to allow housing agencies 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 housing agencies to submit applications for funds for additional housing vouchers. Applications are then reviewed and funds awarded to the selected PHAs on a competitive basis. HUD monitors the housing agencies' administration of the program to ensure program rules are properly followed.
Additional Information and other subsidy programs
For additional information about the housing choice voucher program, contact either the local housing agency serving your community or the Office of Public Housing within your local HUD office. There may be a long wait for assistance under the housing voucher program. If the PHA also administers the public housing program, applicants for the housing choice voucher program may also ask to be placed on the waiting list for the public housing program. HUD also administers other subsidized programs and you may obtain a list of programs in your area from the Office of Housing at your local HUD office.
What regulations cover this program?
Regulations are found in the Code of Federal Regulations at 24 CFR §982.
Public Housing Program from the Department of Housing and Urban Development (HUD)
Public housing was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high-rise apartments for elderly families. There are approximately 1.2 million households living in public housing units, managed by some 3,300 housing agencies.
HUD administers Federal aid to local housing agencies that manage the housing for low-income residents at rents they can afford. HUD furnishes technical and professional assistance in planning, developing and managing these developments.
Who is eligible?
Public housing is limited to low-income families and individuals. A housing agency determines your eligibility based on: 1) annual gross income; 2) whether you qualify as elderly, a person with a disability, or as a family; and 3) U.S. citizenship or eligible immigration status. If you are eligible, the housing agency will check your references to make sure you and your family will be good tenants. Housing agencies will deny admission to any applicant whose habits and practices may be expected to have a detrimental effect on other tenants or on the project's environment.
Housing agencies use income limits developed by HUD. HUD sets the lower income limits at 80% and very low-income limits at 50% of the median income for the county or metropolitan area in which you choose to live. Income limits vary from area to area so you may be eligible at one housing agency but not at another. The housing agency serving your community can provide you with the income levels for your area and family size, or you can also find the income limits online at https://www.huduser.gov/portal/datasets/il.html.
How do I apply?
If you are interested in applying for public housing, contact your local housing agency. If you have trouble contacting the housing agency, contact the local HUD field office.
How does the application process work?
The application must be written. Either you or the housing agency representative will fill it out. A housing agency usually needs to collect the following information to determine eligibility:
(1) Names of all persons who would be living in the unit, their sex, date of birth, and relationship to the family head;
(2) Your present address and telephone number;
(3) Family characteristics (e.g., veteran) or circumstances (e.g., living in substandard housing) that might qualify the family for tenant selection preferences;
(4) Names and addresses of your current and previous landlords for information about your family's suitability as a tenant;
(5) An estimate of your family's anticipated income for the next twelve months and the sources of that income;
(6) The names and addresses of employers, banks, and any other information the housing agency would need to verify your income and deductions, and to verify the family composition; and
(7) The housing agency also may visit you in your home to interview you and your family members to see how you manage the upkeep of you current home.
After obtaining this information, the housing representative should describe the public housing program and its requirements and answer any questions you might have.
Will I need to produce any documentation?
Yes, the housing agency representative will request whatever documentation is needed (e.g., birth certificates, tax returns) to verify the information given on your application. The housing agency will also rely on direct verification from your employer, etc. You will be asked to sign a form to authorize release of pertinent information to the housing agency.
When will I be notified?
A housing agency has to provide written notification. If the housing agency determines that you are eligible, your name will be put on a waiting list, unless the housing agency is able to assist you immediately. Once your name is reached on the waiting list, the housing agency will contact you. If it is determined that you are ineligible, the housing agency must say why and, if you wish, you can request an informal hearing.
Will I have to sign a lease?
If you are offered a house or apartment and accept it, you will have to sign a lease with the housing agency. You may have to give the housing agency a security deposit. You and the housing agency representative should go over the lease together. This will give you a better understanding of your responsibilities as a tenant and the housing agency's responsibilities as a landlord.
Are there any selection preferences?
Sometimes there are. Giving preference to specific groups of families enables an housing agency to direct their limited housing resources to the families with the greatest housing needs. Since the demand for housing assistance often exceeds the limited resources available to HUD and the local housing agencies, long waiting periods are common. In fact, a housing agency may close its waiting list when there are more families on the list than can be assisted in the near future.
Each housing agency has the discretion to establish preferences to reflect needs in its own community. These preferences will be included in the housing agency's written policy manual. You should ask what preferences they honor so you will know whether you qualify for a preference.
How is rent determined?
Your rent, which is referred to as the Total Tenant Payment (TTP) in this program, would be based on your family's anticipated gross annual income less deductions, if any. HUD regulations allow housing agencies to exclude from annual income the following allowances: $480 for each dependent; $400 for any elderly family, or a person with a disability; and some medical deductions for families headed by an elderly person or a person with disabilities.
Based on your application, the housing agency representative will determine if any of the allowable deductions should be subtracted from your annual income. Annual income is the anticipated total income from all sources received from the family head and spouse, and each additional member of the family 18 years of age or older.
The formula used in determining the TTP is the highest of the following, rounded to the nearest dollar:
(1) 30 percent of the monthly adjusted income (monthly Adjusted Income is annual income less deductions allowed by the regulations);
(2) 10 percent of monthly income;
(3) welfare rent, if applicable; or
(4) a $25 minimum rent or higher amount (up to $50) set by a housing agency.
What is the role of the housing agency?
A housing agency is responsible for the management and operation of its local public housing program. They may also operate other types of housing programs.
(1) On-going functions: (a) Assure compliance with leases—the lease must be signed by both parties; (b) Set other charges (e.g., security deposit, excess utility consumption, and damages to unit); (c) Perform periodic reexaminations of the family's income at least once every 12 months; (d) Transfer families from one unit to another, in order to correct over-or-under crowding, repair or renovate a dwelling, or because of a resident's request to be transferred; (e) Terminate leases when necessary; and (f) maintain the development in a decent, safe, and sanitary condition.
(2) Sometimes housing agencies provide other services, that might include such things as: homeownership opportunities for qualified families; employment training opportunities, and other special training and employment programs for residents; and support programs for the elderly.
How long can I stay in public housing?
In general, you may stay in public housing as long as you comply with the lease.
At the time of reexamination, if your family's income is sufficient to obtain housing on the private market, the housing agency may determine whether your family should stay in public housing.
States also have affordable housing and rental assistance programs
States also have affordable housing and rental assistance programs—sometimes called low-income housing. These programs vary from state to state and are often administered by a governmental agency or department with a name such as Department of Housing and Community Development or Department of Housing and Community Affairs or Housing Authority.
In Texas, affordable housing and rental assistance programs are available to low-income individuals and families, with the primary federal program being the Housing Choice Voucher Program (Section 8). This program is administered by local Public Housing Agencies (PHAs) and funded by the U.S. Department of Housing and Urban Development (HUD). Eligibility for Section 8 in Texas is based on income, family size, and citizenship status, with a focus on assisting those with the lowest incomes. Participants must locate suitable housing, and the PHA provides a subsidy to the landlord while the family pays the remaining rent. In some cases, vouchers can be applied towards homeownership. There are often waiting lists and local preferences that affect program access. The Public Housing Program is another HUD-managed initiative that offers rental housing to low-income families, the elderly, and persons with disabilities, with rent based on income. Texas also has state-specific affordable housing and rental assistance programs, which are overseen by state housing agencies or authorities. These programs have their own eligibility criteria and application processes.
