Housing Choice Voucher (Section 8) Program


Program & Impact

Housing Choice Vouchers (tenant based Section 8 vouchers) generally enable households to pay no more than 30% of their income for housing.

The HCV program, the country's largest low-income housing assistance program, helps fight homelessness and assists families in moving to lower poverty areas.
  • Vouchers follow tenants and allow them some flexibility in selecting an apartment.
  • About 30,000 MN households receive Section 8 vouchers.


Background

Despite substantial need, Section 8 has not seen a sizable increase in vouchers in many years.

Policy Issues

Federal:
  • Proposed Section 8 Voucher Reform Act (SEVRA) streamlines voucher program and authorizes 150,000 additional vouchers in 2010. In addition, SEVRA would:
    • Stabilize voucher funding for local program administrators, which has fluctuated in recent years
    • Improve the ability of families with vouchers to move from one community to another ("portability")
    • Streamline the rules for determining rents
    • Make landlord participation in the program easier by requiring inspections every two years, rather than annually; improve the project-based voucher option for landlords
    • Improve housing conditions and cost-effectiveness with new rules
    • Expansion of the controversial Moving to Work (MTW) program through SEVRA is under discussion. MTW would allow more flexibility for housing authorities, but might result in rent increases and time limits for tenants.
    • The Obama FY 2011 budget proposes Transforming Rental Assistance (TRA), an initiative to regionalize the voucher program and convert public housing and some assisted housing to project-based vouchers. TRA is meant to streamline public housing management and HUD oversight and increase mobility for assisted renters.
    • FY2011 budget proposal includes $19.6 billion in housing voucher funding. This includes $350 million for the first phase of TRA.


MN Federal Housing Action Coalition (MnFHAC) Positions:
  • Renters with vouchers should pay no more than 30% of income for housing.
  • Congress should expand the HUD budget to fund vouchers for all eligible renters.
  • Funding for vouchers must be based on current voucher costs.

Funding & Administration

Funding:
  • FY 2010 funding is $18.2 billion for rental vouchers, including $6.3 billion for renewal of existing vouchers and $75 million for 10,000 new vouchers.
  • Funding was $16.8 billion in FY 2009.

Administration:
  • HUD administers program federally.
  • In MN, 69 local housing authorities administer Section 8 vouchers.

Michael Dahl, HOME Line, is a contributor to MHP's coverage of this issue.


Updated March 22, 2010.