Rental assistance programs provide subsidies that reduce rents for low-income tenants who meet program eligibility requirements. Generally, households pay rent equal to 30 percent of their incomes, after deductions, while the federal government pays the remainder of rent or rental costs.
To qualify for a subsidy, an applicant’s income must initially fall below certain income limits. These income limits are program and location specific and vary by household size. These include special programs for designated populations such as families trying to reunite with their children, people with disabilities, people who are homeless, and people who are elderly. Applicants for rental assistance are usually placed on a waiting list until a subsidized unit or a voucher becomes available.
Since the passage of the U.S. Housing Act of 1937, the federal government has provided housing assistance to low-income renters. Over time, perspectives on best practices in funding and provision of affordable housing have shifted, resulting in a series of programs that have changed and evolved over the past 90 years. Historically, most of these housing subsidies were provided under programs administered by the U.S. Department of Housing and Urban Development (HUD) or predecessor agencies. Assistance provided under HUD programs falls into three categories: public housing, tenant-based rental assistance, and project-based rental assistance.
Public Housing
In public housing, local housing agencies receive direct allocations of HUD funding to build, operate, or make improvements to dedicated affordable housing developments. Developments (or projects) created through the public housing program are owned by the local public housing agencies (PHAs). Public Housing projects were primarily built between 1940 and 1973, largely ending with the moratorium on HUD spending in 1973. Public housing was further limited in 1999 when the Faircloth Amendment capped the number of apartments able to receive public housing funding, preventing any further development of apartments with this type of rental assistance. Since 2011, public housing developments are eligible to transition to modern rental assistance platforms through a program known as the Rental Assistance Demonstration (RAD), allowing these affordable apartments to continue to receive funding for maintenance and provision of rental assistance.
Project-Base Rental Assistance (PBRA)
With project-based assistance, the rental subsidy is assigned to a specific housing unit, and any eligible household who moves into that unit will receive assistance to cover the portion of the rent that it cannot otherwise afford. Project-based rental assistance is the most nebulous of the rental assistance types, as apartments that fall in this category were developed under a collection of programs created over the last four decades. Apartments with PBRA are owned by private landlords who enter into contracts with HUD in order to receive housing subsidies. The subsidy arrangement is termed project-based because the assisted household may not take the subsidy and move to another location. The single largest project-based program was the Section 8 program, which was created in 1974. This program allowed for new construction and substantial rehabilitation that was delivered through a wide variety of financing mechanisms.
Older project-based rental assistance programs
Section 236
The Section 236 program was active from the early 1960s through the early 1970s. It was designed to produce housing affordable by families with incomes above the public housing income limits. Almost all Section 236 projects now have project-based rental assistance assigned to them so that tenants don't have to pay more than 30 percent of their income for housing costs. Read about how rents are calculated for Section 236 funded properties (24kb; PDF). For more information contact the property manager directly.
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Section 202: Housing for the Elderly
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There are many housing options for people who are elderly, commonly defined as someone over the age of 62. The Section 202 Housing Program for the Elderly is specifically for the elderly and provides affordable housing for people who are over the age of 62. HUD provides long-term direct loans to private, non-profit sponsors who build, buy, or rehabilitate a housing project and then accept elderly housing tenants. Tenants of these buildings pay approximately 30 percent of their adjusted income for rent. For more information on Housing for the Elderly, visit HUD's website.
Sometimes if the person over 62 also happens to have a disability, then they can also qualify for housing designed for people with disabilities, which will include many accessible units. HUD also provides general housing information for senior citizens that covers a variety of programs and resources.
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Section 811: Housing for People with Disabilities
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There are several affordable housing options for low-income people with disabilities who are low-income. There are specific programs designed for people with disabilities and their families. The Section 811 Housing Program for People with Disabilities provides funding for non-profit organizations interested in building, buying, or rehabilitating a housing development for adults who have a disability. HUD provides long-term direct loans to the non-profit and residents of the housing pay approximately 30 percent of their adjusted income for rent. For more information: contact the management agent of the 811 property directly or read more about Housing for People with Disabilities on HUD's website.
Other projects, not specifically targeted to people with disabilities may be designated as accessible units which indicate that the apartments are designed to be barrier free. (It should be noted that the barrier free design will vary significantly from unit to unit and may not be compliant with current codes.) For more information on specific accessible units contact the management agent of the project directly.
Housing Opportunities for People with AIDS (HOPWA)
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There are several programs that are available for families and individuals where the head of the household or a spouse is living with HIV/AIDS. People with HIV/AIDS are eligible for any HUD housing program designed for people with disabilities so Section 811 or other similar programs are available. For information on other housing programs that someone with HIV/AIDS may be eligible for, go to HUD's website.
Also, the Housing Opportunities for People with AIDS (HOPWA) program is a HUD administered program specifically for the specific needs of persons living with HIV/AIDS and their families. HOPWA makes grants to local communities, states, and nonprofit organizations for projects that benefit low-income persons medically diagnosed with HIV/AIDS and their families. HOPWA funds are awarded as grants from one of three programs. To find out more about the specifics, go to HUD's HOPWA web page. For more information about a specific project, contact the management agent directly.
Section 8 Moderate Rehabilitation Program
Under the Section 8 Moderate Rehabilitation Program, funding was provided to private housing owners to rehabilitate their properties to meet HUD's Housing Quality Standards. Once the construction was completed, subsidies were provided for those units. For more information: contact the management agent of the property directly or contact the Vermont State Housing Authority, which administers this program.
Section 8 New Construction/Substantial Rehabilitation
Under the Section 8 New Construction/Substantial Rehabilitation Program, funding allowed housing developers to build new housing specifically reserved for low-income tenants. This funding could also be used to rehabilitate a building in need of repair or convert a building to housing. Housing units that were created through this program are given project-based rental subsidies that stay with the apartments they support. The income eligibility limits vary from county to county. For more information: Contact the project manager of the property directly.
Tenant-Based Rental Assistance (TBRA)
Currently, tenant-based rental assistance is the most prevalent form of housing assistance provided in the United States. Tenant based programs allow participants to find and lease housing in the private market, with the voucher administered by the local public housing agencies (PHAs). The housing must meet housing quality standards and other program requirements. Under tenant-based programs, assisted households may move and take their subsidy with them. Vouchers have no specific maximum rent; the low-income household must pay any excess over the payment standard, an amount that is determined locally and that is based on the local Fair Market Rent. Tenant based assistance began with the Section 8 certificate and voucher programs, created in 1974 and 1983, respectively. These programs were replaced by the current Housing Choice Voucher program in 1998.
Section 8 Housing Choice Voucher
The Housing Choice Voucher (HCV) program is a new combination of two programs that were called the Section 8 certificate and the Section 8 voucher programs. Under the Section 8 HCV program, a family or individual can apply to a Public Housing Authority (PHA) for rental assistance (called a "voucher") that would enable them to afford a privately-owned apartment of their choice within the PHA's jurisdiction. The vouchers are usually tenant-based and therefore if a household chooses to move after a period of time, they may do so without losing their assistance. Households pay approximately 30 percent — and no more than 40 percent — of their adjusted income for rent and utilities, and the PHA pays the balance of the rent directly to the owner.
Eligibility for the Section 8 HCV program is limited to applicants with incomes below 50% of the Area Median Income, although most of the vouchers assist households earning much less than that. Households receiving a voucher from a PHA must locate a unit that meets HUD's Housing Quality Standards, are within the PHA's jurisdiction, and has reasonable rent by local market standards.
In addition to its conventional Section 8 vouchers for any low-income household, PHAs may have applied to HUD for additional HCV vouchers targeted to a specific population. These include:
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Family Unification Vouchers
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These are regular HCVs that are used specifically to promote the reunification of families by providing rental assistance for whom the lack of adequate housing is a primary factor in:
- The imminent placement of the family's child, or children, in out-of-home care; or
- The delay in the discharge of the child, or children, to the family from out-of-home care
For more information about Family Unification Vouchers, contact VSHA. Read more about Family Unification Vouchers at the HUD site.
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Mainstream Vouchers
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Mainstream vouchers are HCVs but are specifically available to households where the head of household or spouse has a disability. The Burlington Housing Authority, Vermont State Housing Authority, and Winooski Housing Authority are the only PHAs in Vermont administering these vouchers. Read more about Mainstream Vouchers at the HUD site.
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"Designated" and "Certain Development" Housing Vouchers
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Households where an adult member is under 62 and disabled may apply for these HCVs that are available through certain PHAs. The Burlington Housing Authority is the only PHA in Vermont administering these vouchers. Read more about Designated Housing Vouchers and read more about Certain Development Housing Vouchers at the HUD site.
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Welfare to Work Vouchers
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These HCVs are specifically for families who are either receiving federal Temporary Assistance to Needy Families (TANF, previously known as Welfare), are eligible to receive TANF, or have received TANF assistance in the past 2 years. The vouchers are targeted to families who have a critical need for housing in order to obtain or retain viable employment. Read more about Welfare to Work Vouchers at the HUD site.
Section 8 Project-Based Vouchers
Project-based vouchers are a component of a public housing agencies (PHAs) housing choice voucher program. A PHA can attach a portion of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. PHAs refer families, who have already applied to a PHA for housing choice vouchers and are on the PHA's waiting list, to properties that have project-based voucher assistance when units become vacant. The PHA pays the owner the difference between 30 percent of family income and the gross rent for the unit. Read about how rents are calculated for this program. For more information on Section 8 Project-Based Assistance, go to HUD's website or contact the property manager directly.