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Unsourced material may be challenged and removed. The largest part of the section is the Housing Choice Voucher program which pays a large portion of the rents and utilities of about 2. Section 8 also authorizes a variety of “project-based” rental assistance programs, under which the owner reserves some or all of the units in a building for low-income tenants, in return for a federal government guarantee to make up the difference between the tenant’s contribution and the rent in the owner’s contract with the government. A tenant who leaves a subsidized project will lose access to the project-based subsidy. This program was created to pair HUD-funded vouchers with VA-funded services such as health care, counseling, and case management. In 1965, the Section 236 Leased Housing Program amended the U. This subsidy program, the predecessor to the modern program, was not a pure housing allowance program.
Housing authorities selected eligible families from their waiting list, placed them in housing from a master list of available units, and determined the rent that tenants would have to pay. The housing authority would then sign a lease with the private landlord and pay the difference between the tenant’s rent and the market rate for the same size unit. In the agreement with the private landlord, housing authorities agreed to perform regular building maintenance and leasing functions for Section 236 tenants, and annually reviewed the tenant’s income for program eligibility and rent calculations. Community Development Corporation and authorized larger outlays for housing subsidy programs and rent supplements for moderate-income households. In the Section 8 Program, tenants pay about 30 percent of their income for rent, while the rest of the rent is paid with federal money. The Section 8 program initially had three subprograms—New Construction, Substantial Rehabilitation, and Existing Housing Certificate programs. The Moderate Rehabilitation Program was added in 1978, the Voucher Program in 1983, and the Project-based Certificate program in 1991.
The number of units a local housing authority can subsidize under its Section 8 programs is determined by Congressional funding. Since its inception, some Section 8 programs have been phased out and new ones created, although Congress has always renewed existing subsidies. United States Housing Act of 1937. This new program combines HUD Housing Choice Voucher rental assistance for homeless veterans with case management and clinical service support which is provided by Veterans Affairs administration at its own medical centers and also in the community. The main Section 8 program involves the voucher program.
PHA operates a Section 8 program. 18 years of age, full-time students, disabled persons, or an elderly household, and certain disability assistance and medical expenses. There is an asset test in addition to earned income. Over a certain amount, HUD will add income even if the Section 8 tenant does not receive any interest income from, for example, a bank account. HUD calls this “imputed income from assets” and, in the case of a bank account, HUD establishes a standard “Passbook Savings Rate” to calculate the imputed income from the asset.
By increasing the amount of a tenant’s total income, the amount of imputed income from assets may affect a tenant’s assigned portion of rent. The PHA pays the landlord the remainder of the rent. The landlord cannot charge a Section 8 tenant more than a reasonable rent and cannot accept payments outside the contract. As a result, some landlords will not accept a Section 8 tenant. Depending on state laws, refusing to rent to a tenant solely for the reason that they have Section 8 may be illegal. PHA’s require that tenants not damage rental properties. Whether voucher- or project-based, all subsidized units must meet the HQS, thus ensuring that the family has a healthy and safe place to live.