Housing 101

Section 8 of the Housing and Community Development Act of 1974 Types of Section 8  New Construction and Substantial Rehabilitation  Moderate Rehabilitation  Vouchers

 At least 75% of households admitted each year must have incomes < 30% of HUD AMI.  Maximum is 50% of HUD AMI  Income limits apply at time of admission.

Amount of rental assistance is based upon:  Payment Standard 90 to 110% of the Fair Market Rent  Family’s Adjusted Income Includes deductions for dependents & child care costs, elderly and disabled households  Actual Rent and Utility Costs of Apartment

Example: A single parent earning minimum wage in Washington County with 2 children. Payment Standard = 110% of 2 BR FMR or $917 Adjusted Monthly Income = $1,265 [minimum wage] 30% of Adjusted Monthly Income = $379 Amount of maximum rental assistance = $917 minus $379 or$538

 If a family rents a unit with rent/utility costs that are exactly equal to the Payment Standard, Section 8 pays the landlord the Payment Standard less 30% of the family’s AMI.  Assistance is $538 in our example.

 If rent and utilities are below the Payment Standard, the family still pays 30% of the AMI and Section 8 pays the rest.  It is the Section 8 program which saves money when gross rent is less than the Payment Standard.

 The Voucher covers the Payment Standard minus 30% of the AMI and the family pays the rest.  In our example, the Voucher pays $538 and the family pays up to 40% of its AMI for rent and utilities.  The family pays more than 30% of AMI when the gross rent is more than the Payment Standard.

 Project-based Vouchers  Family Self-Sufficiency  Home Ownership  Targeted Funding Options:  Mainstream Housing Opportunities for Persons with Disabilities  Family Unification  Veterans Supportive Housing Program (VASH)