About Housing Assistance

Housing assistance is used for people who have low to moderately low income levels and are considered to be living in or at the poverty level. Most assistance programs are funded by the state, which in turn receives money from the government. Hosting assistance helps people find safe and adequate housing until they can gather funds to purchase their own homes.

Function

Housing assistance combines programs funded by the government and is used by people who need help getting into a home or rental unit at little to no cost out of their own pocket. Assistance can also be used for people who are relocating from a natural disaster or single moms coming out of a violent situation. Many people whose financial situations have changed due to a loss of a job also benefit from housing assistance. Housing assistance is available in most states but funding is not always readily able to be withdrawn. Housing assistance generally does not have to be paid back; if someone's income increases, he may no longer qualify to continue to receive it. Some housing assisting programs are considered subsidized, meaning the government pays a portion of the house payment and the renter or homeowner is responsible for the remaining amount.

Types

Housing assistance can come in the form of a voucher available through the Department of Housing and Urban Development, which funds local public housing agencies and provides a set amount of funds per fiscal year. These funds are made available to the public by people who are on a waiting list and those with the highest need. The vouchers can be used to select a home that is or is not Section 8 or government-funded housing, but the amount of rent that is not covered by the voucher has to be made up by the renter.

Some programs offered by the rural housing development authority help new homeowners with an initial down payment, closing costs before the house is bought and payment assistance once the homeowner moves into the house---these programs are on a first-come first-serve basis and rely on government funds as well. When the funds are exhausted, a borrower has to wait or will have to apply through another source or a bank.

The Federal Emergency Management Agency also offers housing assistance to those who have been affected by a natural disaster or crisis that is uncontrolled by them. FEMA offers free housing as well as assistance money to help individuals rebuild their lives, find work and relocate if necessary. FEMA also works by helping someone out with a down payment on a home or rental property or by assisting each month with paying rent.

Time Frame

Most housing assistance money or grants are available for a limited time due to a shortage of funds from state to state. Often there is a waiting list of up to three to five years to be able to acquire a voucher for housing assistance. If one is in need of finding a place to live, he should contact their local housing authority as soon as possible to begin the application process. Most housing assistance grants do not have to be paid back as long as the homeowner or renter qualifies. For homeowners who live in Section 8 housing or subsidized units, they may have to continue to qualify according to their income to receive house payment assistance each month. Annual and quarterly reviews are often implemented to ensure the homeowner should still be receiving funds.

Considerations

One should call their local housing authority and make an appointment to go in and begin the application process immediately---candidate will need to bring copies of pay stubs, W-2s for the past year, birth certificates of all adults in the household and a valid picture ID. One should consider that housing assistance does not cover all of the costs of finding a rental home or apartment. Typically the assistance for down payment is only between 1 percent and 3 percent of the highest poverty level in that particular county of the state, meaning the renter may have to provide additional funding to be able to get into their new home.

Effects

Housing assistance should lead to an individual or family finding adequate safe and functional housing. For many people housing assistance gives them a second chance at being able to re-establish a homestead and establish a normal place to live. Having a home for many low-income families allows them to move out of shelters and to finally have a roof over their heads.

Resources

• Public Housing Information
• FEMA