Low Income Rentals
The Federal government through the U.S. Department of Housing & Urban
Development -HUD has a wide variety of low-income housing programs
for all ages. All programs require income qualification. Some of
this low-income housing is owned and managed by the government while
other properties are owned and managed by the public sector with
the support of government low-income programs.
A good resource to learn about the variety of low-income housing
available is through the website of the U.S. Department of Housing & Urban
Development - HUD:
www.hud.gov
Ross Management Group
Here are some commons terms used for Low-Income Housing: *
About Federally Assisted Housing Programs
The U.S. Department of Housing & Urban Development - HUD has
a range of programs that deal primarily with rental housing and rental
assistance programs. Some of HUD's housing developments are exclusively
for the elderly and the handicapped while others are for one and
two parent low-income families. The actual sponsors/developers of
the housing may be non-profit or for-profit organizations, public
agencies, or consumer cooperatives. To qualify, an individual's income
generally must be within certain limits.
Housing Choice Vouchers
The housing choice voucher program is the federal government's major
program for assisting very low-income families, the elderly, and
the disabled to afford decent, safe, and sanitary housing in the
private market. Since housing assistance is provided on behalf
of the family or individual, participants are able to find their
own housing, including single-family homes, townhouses and apartments.
HUD 202
The Section 202 program helps expand the supply of affordable housing
with supportive services for the elderly. It provides very low-income
elderly with options that allow them to live independently but
in an environment that provides support activities such as cleaning,
cooking, transportation, etc. The program is similar to Supportive
Housing for Persons with Disabilities (Section 811).
HUD Section 8
Section 8 is a federally funded housing subsidy program that provides
low-income families the opportunity to choose and lease safe, decent
and affordable privately owned rental housing by supplementing
what they could afford on their own. Public Housing Authorities
apply to the U.S. Department of Housing and Urban Development (HUD)
for Section 8 funds, which are then provided to eligible families
in accordance with HUD rules and regulations.
Low-Income Housing (Qualified)
Low-Income Housing is eligible for special tax credits of up to 9%
of their cost (4% in certain situations) that can be claimed over
a 10-year period by the owner of the property. Strict rules must
be followed concerning tenant qualification, certification, and
project financing.
Low-Income Housing Tax Credit Properties
The Low-Income Housing Tax Credit (LIHTC) Program offers property
owners and investors a credit or reduction in their tax liability
that is based on the costs of development and the number of qualified
low income units in a newly constructed or rehabilitated development.
In exchange, the owners must offer quality units to low-income
tenants at fixed below market rate rents. The lower monthly rental
can be set at 30%, 40%, 50% or 60% less of the applicable Area
Median Income. Tenants must meet income eligibility requirements
to qualify for residency.
Market Rate Rental
The monthly rental rate for an apartment based on the local market
costs and supply and demand in that geographic area for apartment
rentals.
Project Based Section 8 Housing
Project Based Section 8 Housing also provides HUD-subsidized rental
assistance. Eligible low-income tenants pay a percent of their
gross adjusted income for rent. The rental assistance is attached
to the unit so tenants cannot "take" the assistance with
them if they move. Section 8 Vouchers are not accepted for project-based
units; however, Vouchers may be used at other units in the development
that are not part of the project-based program.
Public Housing
Government-owned housing units made available to low-income individuals
and families for nominal rental rates for those who cannot afford
decent housing at the market rate. These are commonly known as
Public Housing Projects.
Section 202
The Section 202 program provides direct, low-interest loans to non-profit
sponsors to finance the construction or rehabilitation of residential
projects and related facilities for those 62 or older and the handicapped.
Projects may be sponsored by private, non-profit organizations,
or consumer cooperatives. Section 202 housing developments may
be equipped with congregate dining facilities, and may provide
an array of supportive services, including health, transportation,
and referral services. Residents of nearly all Section 202 units
receive Section 8 rental assistance.
Section 8
The Section 8 Housing Assistance Program was created to help very
low-income persons of all ages secure decent, safe and sanitary
housing in the private rental market by helping to pay a portion
of the monthly rent. Income limits are determined by family size
and geographic area. Participants usually pay no more than 30 percent
of their adjusted monthly income for rent. The program pays the
balance of the rent to the landlord. The rent must be reasonable.
Section 8 Housing Choice Voucher Program
the Housing and Community Development Act of 1974 created this program.
Funds for Section 8 are provided by the U. S. Department of Housing
and Urban Development - HUD. If a community is interested in utilizing
Section 8, the local unit of government must adopt a resolution
agreeing to administer the program in accordance with all applicable
rules and regulations. The program provides financial assistance
for decent, safe and sanitary housing to eligible households whose
annual gross income does not exceed 50% of HUD's median income
guidelines. HUD requires 75% of all new households admitted to
the program be at or below 30% of the area median income. Eligibility
is based on several factors, including the household's income,
size and composition, citizenship status, assets, medical and childcare
expenses. Qualified households may select the best available housing
through direct negotiations with landlords to ensure accommodations
that meet their needs.
Social Housing
This is a term that refers to rental housing that may be owned and
managed either by the state or not-for-profit organizations, or
a combination of the two, with the aim of providing affordable
housing. Public Housing is therefore a subset of Social Housing.
*Source: July 2007 - www.hud.gov
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