Office for Civil Rights

Using the Section 8 Voucher Program for Rental Housing

Ann O’Hara

Technical Assistance Collaborative

www.tacinc.org

What is the Section 8 Voucher Program?

• Federal housing assistance program administered through HUD and Public Housing Agencies (PHAs)
• Helps assist low income families, elders, and people with disabilities to pay for decent and safe housing
• Provides financial assistance in the private housing market through a "subsidy" which is based on (1) household income and (2) the cost of housing

Benefits of Section 8

• People can rent/own housing of their choice in communities of their choice
• It is permanent, long term, and affordable – Tenants typically pay between 30% and 40% of their income towards housing costs
• It is independent housing which can be linked with – but is separate from – flexible services and supports

How Can Section 8 be Used?

• Rental Assistance
  • Tenant-Based
  • Project-Based
• Homeownership
  • Homeownership assistance
  • Down payment assistance

Who Manages the Section 8 Program?

Who Makes the Rules?

• Congress makes housing laws and appropriates Section 8 funds
• HUD develops the regulations that form the basic framework for the program
• PHAs establish discretionary policies that address the needs within the PHA’s jurisdiction

How Much $$ Does the Section 8 Subsidy Provide?

• HUD publishes Fair Market Rents for "modest" rental housing by locality
• Each PHA establishes a Section 8 voucher "payment standard" which is between 90%-110% of the Fair Market Rent*
• The Section 8 monthly subsidy is the difference between 30% of the household’s monthly adjusted income* and the Section 8 "payment standard" in #2 above

Example: Step 1

• HUD Publishes Fair Market Rents (FMRs) each year (based on size and location of housing)
• One bedroom FMRs
• Boston MA = $782
• Austin TX = $615
• Springfield IL = $393
• Spokane WA = $436

Example: Step 2

• PHAs establish voucher payment standard between 90% and 110% of FMR
• One bedroom "payment standard" based on 110% of FMR
• Boston = $860
• Austin = $676
• Springfield = $432
• Spokane = $479

Example: Step 3

• Calculate 30% of monthly Supplemental Security Income (SSI)
• 30% of SSI* in 2000 according to TAC’s publication of Priced Out in 2000
• • Boston = $175
  • Austin = $145
  • Springfield = $145
  • Spokane = $145

Section 8 subsidy

• For One Bedroom Unit
• Boston = $685
• Austin = $531
• Springfield = $287
• Spokane = $334

How does the Section 8 program actually work?

• Section 8 is not an entitlement! (Approximately 200,000 people with disabilities currently receive Section 8 voucher assistance)
• Households must apply to the PHA and get on the waiting list
• Once a Section 8 voucher is "issued", the household must identify housing that can be approved under the Section 8 rules
• For Section 8 rental housing, the Section 8 subsidy is paid directly to the owner by the PHA
• The Section 8 household pays their share of the rent (30% to 40% of their income) directly to the owner

Eligibility for the Section 8 Program

• Eligibility – Income below 50% of median (NOTE: SSI nationally is 18.5%)
• Other HUD/PHA eligibility/screening criteria
• Verification of income and disability status required
• Section 8 assistance is not time limited
• Assistance is continued until the cost of the unit equals the household’s share of the rent (30% of income) – unless assistance is terminated for non-compliance with program rules

Public Housing Agencies

• Over 2,500 PHAs nation-wide
• Governed by elected or appointed Board of Commissioners – run by an Executive Director
• Administer public housing units, Section 8, S+C, etc.

Public Housing Agencies and Section 8

• 2,600 PHAs operate a Section 8 program – More than 65% have <250 Section 8 vouchers
• PHAs control over 1.4 million Section 8 rent subsidies across the nation
• Average of 50+ PHAs administering Section 8 per state
• • Examples:
  • Texas has over 400 Section 8 PHAs
  • Massachusetts has over 150 Section 8 PHAs
• 22 non-profit organizations have vouchers through the Section 8 Mainstream program
• HUD Website (www.hud.gov) has a list of PHAs with their addresses and phone numbers

Tenant-Based Rental Assistance

• Two separate programs (certificates and vouchers) were merged in 1998 into the Section 8 Housing Choice Voucher Program
• Participants pay at between 30% and 40% of adjusted income towards rent and utilities at initial lease-up
• Participants locate housing of their choice in the community
• NOTE: In most states, landlord is not required to accept Section 8
• If the participant moves, the Section 8 subsidy moves with them

Section 8 Activities

• Outreach and Waiting List
• Screening and Eligibility
• Getting a Voucher and Obtaining Housing
• Section 8 Inspections
• Re-certifications
• Reasonable Accommodation
• Required Plans

Outreach and Waiting List

• PHAs are required to do outreach to the community to:
• Establish a new Section 8 waiting list
• To add names to an existing Section 8 waiting list
• PHAs are allowed to limit outreach to those households that are potentially eligible for the vouchers
• PHAs have "mixed" track record on outreach to people with disabilities

Outreach and Waiting List (2)

• PHAs accept applications to create the waiting list
• Randomly ordered list = via lottery OR
• Chronologically ordered list = date and time
• PHAs can also establish waiting list preferences
• Examples: people with disabilities, people with Medicaid waivers, homeless people, people living in substandard housing, people involuntarily displaced, victims of domestic violence etc.
• Many PHAs have closed waiting lists or lists that are very long
• Obtaining new vouchers from HUD set-aside for people with disabilities will help move the waiting list along. However, new vouchers must be offered to people already on the waiting list before they can be offered to new applicants

Getting a Voucher and Obtaining Housing

• Applicants at the top of the waiting list are "issued" vouchers
• Voucher holders can use the voucher in the housing they currently live in OR search for new housing
• Section 8 housing must:
• Meet HUD’s Housing Quality Standards
• Have a rent that is reasonable in comparison to comparable housing units
• Participant is given at least 60 days to search for appropriate housing – PHAs can establish extended housing search time
• Owner/manager must be willing to participate in Section 8 program

Program Responsibilities

• At least once a year a PHA must:
• Re-inspect the housing unit to ensure it passes HQS
• Re-certify the participant’s income, household size and composition and make subsidy adjustments as necessary

Reasonable Accommodation

• Federal fair housing laws required that HUD/PHAs make reasonable accommodations in their policies, procedures, and programs to ensure active participation by people with disabilities
• Examples:
• Allowing a Section 8 application to be mailed rather than delivered in person
• Exceptions to screening criteria
• Extending housing search time
• Granting exception for higher rents, including exceptions for accessible/barrier-free units

Project-Based Rental Assistance

• Subsidy is "tied" to a housing unit
• A participant can use the subsidy while residing in that unit
• If the participant moves, the subsidy stays with the unit to be used by the next participant
• PHAs can project base up to 20% of its tenant based vouchers
• Ensures long-term affordability of housing

Required Plans

• PHA Plan
• 5-year strategic plan updated annually
• Documents how PHA will use Section 8 and public housing resources
  • Applying for new vouchers?
  • Designating housing as "elderly only"?
  • Homeownership
• Contains Needs Assessment
• Developed in consultation with Resident Advisory Board
• Section 8 Administrative Plan
• Documents all Section 8 policies and procedures including HCVP, project-based rental assistance, homeownership assistance, and down payment

Next Steps for Olmstead Planning

• Create partnerships with PHAs, including state PHAs in order to:
• Improve utilization of vouchers in the PHAs Section 8 "portfolio"
• Apply for new vouchers set-aside for people with disabilities
• Negotiate Section 8 waiting list preferences that benefit people covered in Olmstead Plans

Section 8 Vouchers Set-aside for People with Disabilities

• Section 8 Mainstream vouchers - 1,600+ vouchers each year since 1995 (both non-profits and PHAs can apply)
• Section 8 "Designated" housing programs – 6,500+ vouchers each year since 1997 (Includes 400 Access 2000 vouchers )
• Section 8 "Fair Share incremental" vouchers – Set-asides within this program for people with disabilities including Medicaid HCB waivers
• PLUS – Poorly utilized vouchers already administered by PHAs

Key Actors

• State PHAs with Section 8 programs
• Large PHAs with good track records
• Medium and small PHAs with a history of innovation
• Council of Large Public Housing Authorities
• State chapters of the National Association of Housing and Redevelopment Officials (NAHRO)
• 22 non-profit organizations that have Section 8 Mainstream vouchers

Key Issues/Questions

• Has the PHA applied for any new vouchers for people with disabilities?
• When? How many?
• Are they being utilized?
• Is the PHA willing to discuss creating a preference in the voucher program for people covered under Olmstead Plans?
• Does the PHA plan to "project-base" vouchers?
• Does the PHA plan to begin a Section 8 homeownership program for people with disabilities?

Last revised: July 3, 2001

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