(DailyAnswer.org) – Many low-income families cannot afford the long-term traditional mortgages that need large down payments and stellar credit ratings. Fortunately, there are other housing options available to these families. The U.S. Department of Housing and Urban Development (HUD) has helped low-income families get better rental housing for nearly half a century.
One of the most popular options offered by HUD is the Section 8 housing program which reduces the amount low-income families contribute toward rent. But Section 8 is not the only HUD housing assistance program.
Section 8 Housing
The Section 8 housing program offers safe and sanitary shelter to low-income, elderly, and disabled individuals. The program assists millions of households in the U.S. by paying house owners the difference between what an individual can afford and the rent for the unit.
Eligible persons get a voucher and subsidy that help them pay subsidized amounts in rent. The local public housing agencies (PHA) administer the vouchers, while HUD oversees and finances the program.
Individuals apply for the vouchers through their local PHA, and eligibility for the program depends on the family’s total annual gross income and size. For example, their gross annual income should be at or below 50% of the median income for that area. PHAs then determine whether the housing selection is suitable and the rent an individual should pay. The law provides that 30% of the vouchers go to families whose income is lower than 30% of the area’s median income.
If you qualify for Section 8 Housing, you’re expected to pay 30% of your monthly adjusted gross income toward rent and utilities. The remaining 70% is paid directly to the landlord by the PHA overseeing that family’s voucher.
Although Section 8 housing is a wonderful program assisting low-income families in getting quality housing, the volume of applicants for the vouchers is high across the country. Many cities have long waiting lists for the voucher application process. Fortunately, people can use other alternatives to get housing.
Other Federal Resources
HUD has other housing options offering alternatives to Section 8.
These include:
HUD’s Public Housing Program
Public housing offers affordable and safe shelter to qualifying low-income earning individuals, the elderly, and people with disability. HUD and government agencies finance the local housing authorities to run the program.
Eligibility for this housing program includes citizenship or immigration status, annual income, and whether one is disabled or elderly. The HUD sets the income limit depending on the state or city, and the local housing associations use that to determine eligibility.
After qualifying for the public housing program, the housing association does a background check to ensure the applicant and family do not have a recent criminal record. Individuals can apply for the program by contacting the nearest PHA office.
Subsidized Rental Housing
Subsidized rental housing is an assistance program in which the government pays landlords to reduce rent for tenants with low income. The government sets an income limit for eligible individuals, varying from state to state. Therefore, one must be earning below a certain amount to qualify. Applicants must check the income limits of the city or county they wish to live to ensure they do not exceed the limit.
Find Affordable Housing
Section 8 housing is a good fit for anyone looking for affordable housing. But considering that it takes longer to receive approval for the program, one may want to go for the other HUD housing options.
If you are 65 years and above, have special needs, or have a low annual income, you can seek government housing assistance through other HUD options, such as public housing and subsidized rental housing.
Copyright 2023, DailyAnswer.org
