HOUSING CHOICE VOUCHER PROGRAM

HOUSING CHOICE VOUCHER PROGRAM

What is the Housing Choice Voucher (HCV) Program? Who is eligible for the program? How does the program work?

Housing Choice Voucher Program The Housing Choice Voucher (HCV) program, formerly known as Section 8 Rental Assistance, was implemented through the U.S Housing and Community Renewal Act of 1974. Section 8 of this act authorized the federal government to provide a rental subsidy to extremely low, very low and low income families, so they would be able to afford decent, safe and sanitary housing.

Housing Choice Voucher Program 30% gross monthly income It makes it very difficult to find an affordable AND decent and safe place to live when your income is 34% of the Average Medium Income (AMI) for the area where you live Bridge the affordability gap

Housing Choice Voucher Program Issued by the United States Division of Housing and Urban Development (HUD) Administered Public Housing Authorities (PHAs). New York State s Housing and Community Renewal

Housing Choice Voucher Program 38,000 households receiving assistance Approximately 17,000 landlords receive payments

Housing Choice Voucher Program New York State s Housing and Community Renewal (HCR) administers their allocated vouchers to the communities through Local Administrators (LAs). For a complete list of Local Administrators, go to http://www.dhcr.state.ny.us/programs/section8hcv/s ec8admins.htm

Housing Choice Voucher Program There are over 170 other Public Housing Authorities (PHAs) in New York State which offer the HCV program directly to their local communities. For a complete list of PHAs, go to: http://www.hud.gov/offices/pih/pha/contacts/states/ny.cfm

Counties in Pink DHCR as PHA Counties in Yellow No DHCR presence

Who Is Eligible? To be eligible for the HCV program, the household must meet certain criteria (as determined by the PHA and/or LA). Eligibility is based on the household s gross annual income and household composition. The program is only available to US Citizens and non-us Citizens who have obtained eligible immigration statuses.

Eligibility Criteria Limited to 50% of the Area Median Income (AMI) Majority of the vouchers reserved for 30% of the Area Median Income (AMI.) To search for the Area Median Incomes for a particular county or MSA, go to https://www.efanniemae.com/sf/refmaterials/hudmedi nc/ and enter the appropriate search criteria.

Eligibility Criteria 3 year limit on drug conviction 3 year limit on violent criminal offense 5 year limit for eviction from public housing Permanent intelligibility..

Eligibility Criteria Not be in debt to any PHA No history of fraud No history of bribes No history of criminal activity to any federal housing program

Application Process Data collection / Intake form Waiting Lists

Waiting Lists High demand for housing Wait lists are long List can be closed to the public

Local Preferences homeless families people with disabilities households who are paying more than 50% of their gross income towards rent families that were involuntarily displaced

Local Preferences Households who meet the local preferences, will then jump ahead of the households who are also on the waiting list, but do not meet those preferences.

How does the HCV Program Work? Bedroom Standard Annual Adjusted Income. Utility allowance

Bedroom Standard Determined by the size and make up of the household. http://nysdhcr.gov/publications/section8adminplan/a dminplan_sec10.pdf

Payment Standard A household with one person is only eligible for a Zero Bedroom Voucher (Studio), or a One Bedroom Voucher A household with one adult and two children (opposite sex, and both under five years of age) is only eligible for a Two Bedroom Voucher A household with two adults (non spouse and non co-habitants) and two children (same sex), is only eligible for a Three Bedroom Voucher

Payment Standard Payment standard - amount needed to rent a moderately-priced dwelling unit in the local housing market. Maximum cost that should be paid Amount of assistance

Payment Standard Example The Smiths are a household that is comprised of the parents, Mr. and Mrs. Smith, a 10 year old daughter and an 8 year old son. Because their children are different sexes, they each are eligible for their own bedroom, so the Smiths are approved for a three bedroom voucher. HUD has determined (based on the FMR for their region) that a three bedroom payment standard is $1,182. This means that the Smith s monthly rent AND their monthly utility payments do not exceed $1,182 each month.

Annual Adjusted Income Proof of ALL income Verification process Exemptions eligible medical expenses child care costs (paid out of pocket) standard deductions for dependents ($480 per dependant) standard deductions for disabled household members ($400 per person with a disability)

Annual Adjusted Income Example Mr. Smith earns $22,560 working full time and Mrs. Smith has a part time job at the local supermarket and earns $5,712. Their total annual income is $28,272. They have two dependents and no other expenses so they are entitled to a total allowance of $960. The Smiths have an Annual Adjusted Income of $27,312.

Average utility costs Utility Allowance

Utility Allowance The Smiths have located a three bedroom unit on the second floor of an owner occupied house. The rent is $900 a month. The services of the unit are electric heat and hot water and natural gas is used for cooking. According to the above sample Utility Allowance Chart, the Smith s monthly utility allowance is: Heating - $165.00 Cooking - $14.00 Water Heating - $35.00 Other Electric Items - $28.00 Range - $3.00 Refrigerator - $5.00 Total Utility Allowance - $250.00

Calculation of Housing Assistance Payment Gross Rent - Utility Allowance + Contract Rent

Example Calculation of Housing Assistance Payment The Smiths and their future landlords have agreed to a monthly rent of $900. We already calculated their total monthly utility allowance for the unit is $250. Adding the utility allowance to the rent, we determine their gross rent for the unit to be $1,150. A three bedroom standard where the unit is located is $1,198.

Calculation of Housing Assistance Payment Tenant Rent = 30% of their income HAP balance of Gross Rent

EXAMPLE Calculation of Housing Assistance Payment Since the Smith s gross rent is below the payment standard, they will subtract their $250 utility allowance from their TTP of $683. Their tenant rent is $433. Since they are paying $433 to the landlord, the landlord will receive the difference of $467 in subsidy each month.

Calculation of Housing Assistance Payment Rent negotiation Tenant pays Total Tenant Payment PLUS the excess amount

Calculation of Housing Assistance Payment Gross Monthly Rent (rent + utilities) is limited to 30% (40% maximum) of the household s gross monthly income. The Lease must indicate if tenant pays the overage and how much is being paid. No under the table payments

Facts about the HCV Program Voucher doesn t expire Voucher follows the tenant Available nationwide Port In and Port Out

Household s Obligations Lease MUST be signed Must pay security deposit as required by landlord Must comply with all terms of the lease, and the program

Landlord s Obligation Unit must be decent, safe and sanitary Landlord must allow an annual inspection

PHA s and LA s Obligation Make payment to Landlord The PHA and LA enters into a contract with the landlord Termination Recertification Inspection

How To Apply for the HCV Program Contact the local PHA / LA. Determine if their waiting list is open. They are required to notify the public through local media outlets. If the waiting list is open, complete the required application procedures. While you re name is on the waiting list, be sure to keep your application active by submitting change of address information and changes in household size and household income and responding to any requests from the PHA/LA when received. Wait for the PHA or LA to contact you when you re name get s called to the top of the list.

For further information Add NYAIL staff contact info This document was developed under grant CFDA 93.791 from the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services. However, these contents do not necessarily represent the policy of the U.S. Department of Health and Human Services, and you should not assume endorsement by the Federal Government.