Housing Subsidies 2 Flashcards
(16 cards)
What led to the creation of the HOPE VI program?
Dissatisfaction with public housing led to calls for the demolition of the nation’s most distressed public housing developments. In 1992, Clinton created the HOPE VI program with bipartisan support, aiming to demolish and revitalize these areas.
What was the primary purpose of the HOPE VI program?
HOPE VI provided grants to Public Housing Authorities (PHAs) for the demolition and ‘revitalization’ of distressed public housing sites, aiming to improve living conditions and reduce concentrations of poverty.
How many public housing units were affected by HOPE VI?
The HOPE VI program led to the demolition of more than 150,000 units of public housing.
Which cities received multiple HOPE VI demolition grants?
Large cities like Chicago, Philadelphia, Baltimore, Washington D.C., and Atlanta received multiple grants, dramatically changing the public housing inventory in these places.
What were the outcomes of HOPE VI in terms of housing design?
PHAs rebuilt smaller-scale, ‘mixed-income’ housing developments in place of the old public housing. These developments contained public housing units, Low-Income Housing Tax Credit (LIHTC) units, and market-rate units. Many designs followed a ‘new urbanist’ approach, aiming to be dense, walkable, and fit in with the surrounding character.
How has the public housing landscape changed today?
Today, there are fewer public housing units overall. Most existing developments, outside of NYC, are smaller in scale, and there are relatively fewer developments for families with children, with more focused on seniors and persons with disabilities.
What was the first housing voucher program in the United States?
The Section 8 Existing Housing Program, created in 1974, was the first housing voucher program, now known as the Housing Choice Voucher program, which provides vouchers to low-income households to rent apartments on the private market.
How did Section 8 Housing Vouchers change public housing policy?
Section 8 marked the beginning of a shift from government-managed housing projects to subsidizing housing on the private market. It allowed low-income households to access rental units from private landlords instead of relying on public housing managed by the government.
How many households are assisted by the Housing Choice Voucher program?
More than 2.3 million low-income households receive subsidies each year through the Housing Choice Voucher program, making it the largest rental assistance program operated by the Department of Housing and Urban Development (HUD).
What is the typical waitlist for the Housing Choice Voucher program?
Tenants usually face a lengthy waitlist before receiving a housing voucher. When first issued, they typically have around 90 days to find a landlord who will accept the voucher.
Are landlords required to accept housing vouchers?
No, landlords are not required to accept vouchers in most cities and states. About 70% of households issued a voucher are able to find landlords who will accept them.
What must a unit meet before it can be rented using a housing voucher?
The unit must pass a Housing Quality Standards (HQS) inspection to ensure it meets the minimum quality requirements.
How is the rent paid with a Housing Choice Voucher?
The Public Housing Authority (PHA) makes a ‘Housing Assistance Payment’ (HAP) to the landlord, and the tenant is responsible for paying the remainder of the rent.
How does the Housing Choice Voucher differ from public housing regarding subsidies?
Unlike public housing, where the subsidy is fixed to a specific unit, tenant-based housing vouchers travel with the tenant. As long as the tenant remains eligible, completes regular certifications, and can find a willing landlord, they can use the voucher for any qualifying unit.
How is the rent calculated for a Housing Choice Voucher?
The tenant must contribute at least 30% of their adjusted income towards rent. The PHA defines a ‘Payment Standard’ based on Fair Market Rent (FMR), and the Housing Assistance Payment (HAP) is calculated as the minimum of (Gross Rent - 30% of income, Payment Standard).
Can tenants rent units above the Payment Standard with a Housing Choice Voucher?
Yes, tenants can rent units that cost more than the Payment Standard, but they must pay the difference between the market rent and the Payment Standard, plus 30% of their income.
