Section 8 housing choice voucher program
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Section 8 Housing Choice Voucher Program. A Brief Introduction . The History of the Section 8 Housing Program. 1937 US Housing Act focused on PHAs building, owning and managing housing. By the 1970’s, the public housing stock stood at approximately 1.2 million units.

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The History of the Section 8 Housing Program

  • 1937 US Housing Act focused on PHAs building, owning and managing housing.

  • By the 1970’s, the public housing stock stood at approximately 1.2 million units.

  • Mid-1970’s, Congress pushes a new housing policy channeling housing resources to private owners to build and maintain affordable housing.

  • It becomes Section 8 of the US Housing Act and creates two forms of subsidy:

    • project-based with 20 year contracts

    • tenant based


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Program Today

  • Section 8 is the largest rental subsidy program in the country.

    • 2.1 million tenant based units authorized

    • 900,000 project based but decreasing

  • States with the highest number of units

    • New York- approximately 300,000

    • California- approximately 350,000


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Program Today

  • Who’s served in the tenant based program?

    • 64% are families with children

    • 15% elderly

    • 13% persons with disabilities

  • Majority live in non-poverty census tracts


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Eligibility - Who Qualifies

  • Income Eligible

    • Primarily based on income, adjusted for family size

    • The income of 75% of the new admissions into the program must be under 30% of area median income:

    • Alameda County

      • One person - $17,400

      • Two people - $19,850

      • Three people - $22,350

      • Four people - $24,850

      • Five people - $26,850

      • Six people - $30,800


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Partnerships and Controlling DocumentsVoucher, Lease and Contract

Property Owner

Housing Authority

Tenant


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Income Eligibility and Rent Calculation

  • Income based rent

    • rent is calculated at 30% of adjusted income

    • minus a HA established utility allowance

      Example-

      Adjusted monthly income $719 X 30% =$216

      Utility allowance is $46

      $216 - $46 = $170 tenant monthly rent


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Section 8 Reform Proposals

Housing Assistance for Needy Families (HANF) & Flexible Voucher Programs


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2004 HANF Program Components

  • Participation was optional

  • 2004 was to be the transition year

    • PHAs would continue to administer Section 8 program while States prepared to take over

    • $100M set aside for state capacity building

    • Program Administration

      • State housing agencies

      • PHAs, or

      • other entities (preference to faith based entities)

  • Administrative Fees capped at 10% of the budget authority


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HANF Program Funding $13.6B

  • Number of families served to be the “same” based on renewal funding

    • 2.077M vouchers authorized for FFY 2003

    • Renewal funding provided for 1.91M vouchers

  • $36 million for 5500 incremental vouchers for non-elderly disabled persons living in public housing units that are designated for the elderly (not an increase in units)

  • $72 million for Family Self Sufficiency Coordinators


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Program Specifics…few!

  • Housing was the only authorized use of $’s

  • Current participants would be grandfathered into HANF program

  • “Majority” of vouchers for ELI families

  • Modeled on CDBG (entitlement communities)

  • Earnings cap to transition families out of program

  • Annual Adjustment Factor amount unknown


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2005 Flexible Voucher Program Basic Design

  • Return to the dollar-based voucher approach –don’t cap number of families.

  • Simplify statutory and regulatory design.

  • Give much more flexibility to PHAs.

  • Continue the program as tenant-based rental

  • Continue homeownership option

  • Continue project-based option in a more streamlined fashion, e.g. PHA does not have to get HUD approval for location.


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Program Administration

  • Program to be administered by the current administrators/PHAs.

  • HUD to focus on measuring a few, basic performance measures --utilization of funds, number of families served, financial management --not processes.

  • In cases where the PHA fails to or is no longer willing to administer the program, HUD to select another entity to administer the program.


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Flexible Voucher Funding

  • Funding to be proportionate to funding received by the PHA in FY 2004

  • Subsequent funding to be adjusted by an inflation factor


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2006 Proposal

  • No details yet

  • Likely to be similar to the 2005 Flexible Voucher Program