Understanding the Section 8 Program
Housing prices continue to rise and now nearly one third of Californians live at or near poverty. As a result, the need for accessible, affordable housing increases day by day. For residents experiencing a financial burden, searching for viable housing options can be disheartening, if not distressing. Part of a long-running effort to boost the availability of homes across all financial levels, the federal government has set certain programs in place that offer assistance to those in need. Section 8 is perhaps the largest of these programs, opening up direct access for low income renters to find the housing of their choice. In this article, we will explore what the Section 8 program is, how it works, where it can be used in California and how to obtain it.
What is Section 8?
In 1934, the Federal Housing Administration was established, and just 3 years later the Housing Act of 1937 was passed. The focus of this act was the construction of public housing in response to insufficient availability following the great depression. With the passing of this act, local public housing agencies (PHAs) were established, ownership of public housing projects was given to the PHAs, and responsibility for funding developments and vouchers was assigned to the federal government.
As mentioned in our Market Rate vs Affordable Housing blog, Section 8 of the Housing Act also goes by the title of the Housing Choice Voucher program. The federally funded program provides vouchers to qualifying households for housing assistance on the basis of their income level. The program primarily benefits individuals and families of very low income, the elderly and disabled adults. In the state of California, lower income is defined by the Department of Housing and Community Development as income between 0% to 80% of the local area median income (AMI). The intention of the Section 8 program is to assist qualifying members in obtaining safe and sanitary housing of their choice. This means the vouchers are able to be used for various forms of housing so long as they meet the program's standards.
There are two types of vouchers available through the program: project-based and tenant based. Project-based vouchers are specifically granted to housing developments. Tenants of the housing projects receive the voucher during their residence. When tenants leave the project housing, the voucher benefits pass to the subsequent household who resides in the unit after them, staying permanently at the development. Tenant-based vouchers, on the other hand, are granted to individual households. Voucher holders have the ability to take their voucher with them to search for housing on their own, instead of being required to apply for specific housing projects. Families in the program have the freedom to find the location and type of housing that suits their lifestyle. Additionally, the vouchers stay with the tenant in the future as they seek new housing, so long as they qualify.
How does Section 8 Work?
While the U.S. Department of Housing and Urban Development (HUD) funds the program, Section 8 vouchers are actually distributed by local Public Housing Agencies (PHAs). Across the nation there are nearly 2,400 PHAs available to provide housing assistance to individuals in the search process. To obtain a voucher, residents looking for assistance will need to research their local Housing Agency to apply. Generally, a housing agency will require applicants to first join a waitlist. Unfortunately, as funding for vouchers is limited, there’s often no telling when the waitlists will be open, nor for how long they will be. Wait times will vary county to county depending on how high the demand for vouchers is at the time. PHAs may also have special preferences for applicants, giving priority to households experiencing homelessness, displacement, or severe financial burden from rent rates. These preferences will also likely vary based on location.
The voucher is administered for a determined amount and usually for a recommended unit size and number of rooms based on the family size. In general, households pay up to 30% of the rent amount, with the local housing authority paying the owner of the property the difference. The rent of the unit is therefore fully paid while the cost burden is alleviated from the household, creating a mutually beneficial and incentivized system. The amount of the voucher is determined by the PHA through this simple formula: either the standard payment or the total rent of the unit with 30% of the households monthly income subtracted, whichever is less.
Where can it be used?
As its name implies, the Housing Choice Voucher program is specifically meant to allow families to choose the housing that best meets their needs. Voucher holders are usually advised by their PHA on what unit size is best suited for their family and income. From there, the household sets out on their home search. Vouchers can be used on any qualifying apartment, townhouses, and single-family homes, respective to the amount the voucher allows for. The only requirement for a home to qualify is that it must meet the local PHA’s standards for health and safety.
If families want assistance in finding a qualified home, California keeps a database of eligible affordable housing options for easy searching, but using the database is not required as not all home options are listed. Households can take their tenant-based vouchers to any property they are interested in to apply for housing. While not all landlords participate in Section 8, in the state of California, landlords are prohibited from discriminating against voucher holders, as section 8 vouchers are considered a valid source of income.
How to obtain Section 8 Vouchers
If you feel that you qualify for Section 8 Housing assistance, reach out to your local PHA to get started. HUD offers an easy access search tool for local PHA contact information. You will need to check if waitlists are currently open for your area. AffordableHousing.com provides a waiting list directory for local PHAs to assist applicants. Make sure to carefully monitor your waitlist application and update it regularly with any information that changes in your income, family, or contact. Be sure to provide the best contact information to reach you immediately, so that you are notified as soon as your number is called.
QRM Corp. manages 21 properties across Southern California. Our portfolio is mixed qualifying affordable housing and market-rate conventional housing. We proudly accept Section 8 vouchers at all properties, to offer our residents the best chance at finding the home they need!
References
“California Department of Housing and Community Development: California Department of Housing and Community Development.” California Department of Housing and Community Development | California Department of Housing and Community Development, www.hcd.ca.gov/. Accessed 23 Feb. 2024.
“Housing Act of 1937.” The National Plan to End Poverty, 9 Apr. 2020, nationalpovertyplan.org/timeline/housing-act-of-1933/.
“Housing Assistance Information.” City of Newport Beach, www.newportbeachca.gov/government/departments/community-development/planning-division/housing/housing-assistance-information. Accessed 23 Feb. 2024.
“Housing Choice Voucher Program Section 8.” HUD.Gov / U.S. Department of Housing and Urban Development (HUD), 11 Jan. 2022, www.hud.gov/topics/housing_choice_voucher_program_section_8.
“Income Limits.” California Department of Housing and Community Development, www.hcd.ca.gov/grants-and-funding/income-limits. Accessed 23 Feb. 2024.
Person, et al. “Poverty in California.” Public Policy Institute of California, Public Policy Institute of California, 26 Jan. 2024, www.ppic.org/publication/poverty-in-california/.
“PHA Contact Information.” HUD.Gov / U.S. Department of Housing and Urban Development (HUD), www.hud.gov/program_offices/public_indian_housing/pha/contacts. Accessed 23 Feb. 2024.
“Section 8 & Public Housing Waiting Lists | Affordablehousing.Com.” AffordableHousing.Com, www.affordablehousing.com/section-8-waiting-list/. Accessed 24 Feb. 2024.
“Section 8 Guide.” Affordablehousing.Com, www.affordablehousing.com/section8-guide/. Accessed 23 Feb. 2024.
Worstell, Christian. “Section 8 Housing Assistance: Who Is Eligible and How to Apply.” Section 8 Housing Assistance | Who Is Eligible and How to Apply, 6 Nov. 2023, www.helpadvisor.com/housing/section-8.
Worstell, Christian. “What You Should Know about California Section 8.” HelpAdvisor.Com, 11 July 2023, www.helpadvisor.com/housing/what-you-should-know-about-california-section#:~:text=The%20Section%208%20Housing%20Choice,obtain%20secure%2C%20sanitary%20private%20residences.