Everything You Need to Know about Finding Affordable Housing

(DailyChive.com) – The United States Federal and State governments have established several agencies and programs to assist in affordable housing. The federal government oversights these programs through the United State Department of Housing and Urban Development(HUD) and local agencies, while states have their housing departments oversight their programs. Read on to learn about everything you need to know about finding affordable housing.

HUD Housing Option

The United States Housing and Urban Development (HUD) has different housing options that give homeowners money through state distribution to provide housing for low-income citizens. The three main housing options that it supports are:

Public Housing program
The Housing Choice Voucher Program
Private and Subsidized Housing Program

Here’s a detailed look at these programs:

Public Housing Program

HUD Public Housing Program provides affordable housing for eligible low-income people, the elderly, and people with disabilities. HUD distributes funds for this housing program to the local Public Housing Agency that operates these buildings and determines who gets the housing assistance.

Your family should fall under the low-income category to be eligible for the Public Housing Program. HUD defines low-income families as those earning below 80% of the local median gross house income. Besides income, PHA considers other factors, such as whether a family member qualifies as a disabled or elderly, has U.S. citizenship, or has an eligible immigration status. These requirements vary from one state to the other. Therefore, it’s crucial to contact your local PHA for more information.

Most tenants in this program pay 30% of their income to rent and utilities, but the local government and agencies in charge can require families to pay up to $50, even if it’s more than 30% of their income.

The Housing Choice Voucher Program

The Housing Choice Voucher program is a HUD program that assists low-income families, people with disabilities, and older adults to get decent housing through Public Housing Agencies (PHA). Families with a housing voucher should find a suitable unit from an owner who agrees to this program. The subsidy is then paid on behalf of the eligible family by the PHA. The family should then pay the difference between the actual rent and the amount paid through the subsidy.

Families participating in this program should have a household income below 80% of the local median household income. However, PHA is expected to award 75% of these vouchers to highly low-income households earning less than 30% of the local median household income. Other factors that determine your eligibility for this program include:

Must be an American citizen or an eligible alien
Meet HUD’s definition of a family, which includes meeting any of the following conditions:
- Have children
- Should be displaced from their home due to an eligible reason
- Have a family member whose disabled
- Have a family member that’s 62 or older
Have never been evicted from a home due to criminal or drug-related activities

Private and Subsidized Housing Programs

In this program, HUD provides subsidies to private homeowners in exchange for renting to low and moderate-income people. Homeowners may be landlords, non-profit, or profit organizations. Unlike the Housing voucher program, your local Public Housing Agency is not your landlord.

Homeowners usually agree to this program through rental subsidies, mortgage insurance, below-market interest financing, and other assistance from HUD in exchange for low rental rates. However, they should maintain their rental rates to the “market rate” that varies from state to state. Therefore, check the limit that applies to your state to avoid exceeding your income limit.

To qualify for this program, you must meet the local income limit, be an American citizen, and qualify as an older adult or someone with a disability or family.

Affordable Housing Financing Options

Besides the affordable housing program provided above, you can find affordable housing through financing options. This comes as loans to support your rental payment, buying a home, or constructing affordable rental properties. Some of the options you can pursue include the following:

USDA’s Rural Housing Service (RHS) that provides support for affordable rental units for low-income renters
VA loans that offer assistance to veterans, surviving spouses, and active-duty service members
Federal Housing Administration (FHA) loans that assist low-income home buyers

Regardless of the affordable housing option that you choose, evaluate the requirements for your preferred program or loan to determine your eligibility. You can also seek help from your local housing agencies to learn more about them and how to apply.