Section 8 Housing Choice Section 8 Housing Choice Voucher ProgramVoucher Program

A Brief Introduction A Brief Introduction

The History of the Section 8 The History of the Section 8 Housing ProgramHousing Program

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

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

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

It becomes Section 8 of the US Housing Act and It becomes Section 8 of the US Housing Act and creates two forms of subsidy:creates two forms of subsidy: project-based with 20 year contractsproject-based with 20 year contracts tenant basedtenant based

Program TodayProgram Today

Section 8 is the largest rental subsidy Section 8 is the largest rental subsidy program in the country.program in the country.2.1 million tenant based units authorized2.1 million tenant based units authorized900,000 project based but decreasing900,000 project based but decreasing

States with the highest number of unitsStates with the highest number of unitsNew York- approximately 300,000New York- approximately 300,000California- approximately 350,000California- approximately 350,000

Program TodayProgram Today

Who’s served in the tenant based Who’s served in the tenant based program?program?64% are families with children64% are families with children15% elderly15% elderly13% persons with disabilities13% persons with disabilities

Majority live in non-poverty census tractsMajority live in non-poverty census tracts

Eligibility - Who QualifiesEligibility - Who Qualifies Income EligibleIncome Eligible

Primarily based on income, adjusted for Primarily based on income, adjusted for family sizefamily size

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

Alameda County Alameda County One person - $17,400One person - $17,400 Two people - $19,850Two people - $19,850 Three people - $22,350Three people - $22,350 Four people - $24,850Four people - $24,850 Five people - $26,850Five people - $26,850 Six people - $30,800Six people - $30,800

Property Owner

Housing Authority Tenant

Partnerships and Controlling DocumentsPartnerships and Controlling DocumentsVoucher, Lease and ContractVoucher, Lease and Contract

Income Eligibility and Rent Income Eligibility and Rent CalculationCalculation

Income based rentIncome based rent rent is calculated at 30% of adjusted incomerent is calculated at 30% of adjusted incomeminus a HA established utility allowanceminus a HA established utility allowance

Example-Example-

Adjusted monthly income $719 X 30% =$216Adjusted monthly income $719 X 30% =$216

Utility allowance is $46Utility allowance is $46

$216 - $46 = $170 tenant monthly rent$216 - $46 = $170 tenant monthly rent

Section 8 Reform ProposalsSection 8 Reform Proposals

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

Voucher ProgramsVoucher Programs

2004 HANF Program Components2004 HANF Program Components

Participation was optionalParticipation was optional 2004 was to be the transition year 2004 was to be the transition year

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

$100M set aside for state capacity building$100M set aside for state capacity building Program AdministrationProgram Administration

State housing agenciesState housing agencies PHAs, or PHAs, or other entities (preference to faith based entities)other entities (preference to faith based entities)

Administrative Fees capped at 10% of the Administrative Fees capped at 10% of the budget authoritybudget authority

HANF Program Funding $13.6BHANF Program Funding $13.6B

Number of families served to be the “same” Number of families served to be the “same” based on based on renewalrenewal funding funding 2.077M vouchers authorized for FFY 20032.077M vouchers authorized for FFY 2003 Renewal funding provided for 1.91M vouchers Renewal funding provided for 1.91M vouchers

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

$72 million for Family Self Sufficiency $72 million for Family Self Sufficiency CoordinatorsCoordinators

Program Specifics…few!Program Specifics…few!

Housing was the only authorized use of $’sHousing was the only authorized use of $’s Current participants would be grandfathered into Current participants would be grandfathered into

HANF programHANF program ““Majority” of vouchers for ELI familiesMajority” of vouchers for ELI families Modeled on CDBG (entitlement communities)Modeled on CDBG (entitlement communities) Earnings cap to transition families out of Earnings cap to transition families out of

programprogram Annual Adjustment Factor amount unknownAnnual Adjustment Factor amount unknown

2005 Flexible Voucher Program 2005 Flexible Voucher Program Basic DesignBasic Design

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

Simplify statutory and regulatory design.Simplify statutory and regulatory design.Give much more flexibility to PHAs.Give much more flexibility to PHAs.Continue the program as tenant-based Continue the program as tenant-based

rentalrentalContinue homeownership optionContinue homeownership optionContinue project-based option in a more Continue project-based option in a more

streamlined fashion, e.g. PHA does not streamlined fashion, e.g. PHA does not have to get HUD approval for location. have to get HUD approval for location.

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

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

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

Program Administration

Flexible Voucher FundingFlexible Voucher Funding

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

Subsequent funding to be adjusted by an Subsequent funding to be adjusted by an inflation factorinflation factor

2006 Proposal2006 Proposal

No details yetNo details yetLikely to be similar to the 2005 Flexible Likely to be similar to the 2005 Flexible

Voucher ProgramVoucher Program