Section 8 or Housing Choice Vouchers Program arranges for affordable housing for low-income citizens of the U.S., including the disabled and the elderly. The assistance comes in the form of subsidized monthly rental fee in any apartment located in the United States. It is a primary program of the Federal Government. The residences are privately owned.
All the required information about the eligibility of both the tenant and the landlord can be determined from the U.S. Department of Housing and Urban Development.
Eligibility for the Section 8 voucher program takes into account:
The PHA reserves 75% vouchers area wise for those families whose incomes are not more than 30% of the median income for the area.
The Housing Choice Vouchers Program is administered by the public housing agencies in each municipality. It ensures that the residences and tenants meet the qualifying criterion.
The subsidy provided by the local municipal public housing agency has a correlation with the fair market rent in that area. It is calculated as the difference between 30% of the household income and PHA-defined payment standard which is equivalent to 80 to 100% of the fair market rent. This amount is paid to the landlord.
As a tenant if I choose a residence where the rental is higher than the fair market rent, then I have to pay the difference. If the rental is lower than the fair market rent, I can keep the difference.
The monthly rental must be at par with the unsubsidized rentals in the neighborhood.
It is 10% of the gross income of the tenant or that part of welfare assistance set aside for housing.
It is extremely important that the housing unit which wants to enlist for the Section 8 voucher program meets the HUD quality standards.
The process starts with the identification of the household that meet the income criterion. The voucher is then sent by the public housing agency to the income-qualified tenant who then has to identify the resident they want to rent. The PHA will pay the landlord only if the residence meets the quality standards laid out in the program.
The maximum allowance is calculated as the lesser of:
It is important for both the tenant and the landlord to study the qualifying criteria detailed by the Department of Housing and Urban Developing before applying for the Housing Choice Voucher or getting the property listed.
Know More About our Expertise in Accounting for Section 8 Properties: Call us at 1-646-367-8976, Email at firstname.lastname@example.org – CONTACT US
Contact us for a customized NO OBLIGATION proposal for outsourcing your accounting activities.