Definition of Subsidized Housing
Generally, subsidized housing usually is the term used to describe housing that is constructed and/or receives some manner of government assistance. Its purpose is to provide housing to individuals and families with low to moderate incomes. These are the people who traditionally have various social and economic obstacles that make it more challenging to find clean, safe and affordable housing.
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Significance
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As housing becomes more expensive, the number of people who rely on some of type of subsidized housing continues to grow. In the United States, subsidized housing is often called affordable housing. It takes the form of many types of housing units, including high rises, townhouses, walk-ups and single-family homes. These dwellings are often provided to people who have very low to moderate income levels.
There are different categories of housing subsidies, including rent assistance, cooperative, public, nonprofit housing and rent-based programs. Most people are familiar with the public housing that is usually owned by federal or local government; however, there are other types of subsidized housing as well.
Section 8
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The Housing Choice Voucher Program used to be known as Section 8. People, who meet the basic requirements for the program, including specific income limits, are issued a housing voucher. They are able to go out into the private market and find suitable housing within a pre-determined rent amount. The voucher holders must qualify periodically to remain in the program. They pay from 30 percent to 40 percent of their income toward the rent and the program pays the rest.
To participate in the program, landlords must agree to certain conditions, including inspections of the dwelling units. The units must meet heath and safety guidelines as spelled out by the Department of Housing and Urban Development (HUD). Upon inclusion in the program, property owners are required to maintain the unit and common area in exchange for a monthly rental assistance check from the government. The program is managed by public agencies at the local level.
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Cooperatives
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Another form of subsidized housing is cooperative (co-op) housing. Co-ops are typically controlled by the members of the organization and is run by a board of directors. People who become members are required to abide by the co-op's by-laws. Often, cooperatives are formed for the intent of serving an exclusive group of people, such as seniors or single mothers. Some co-ops may serve artists or people with disabilities.
Nonprofits
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Many not-for-profit entities are intricately involved in the ownership and management of subsidized housing. This group includes religious organizations, community housing groups and community development corporations (CDC). Many times, nonprofits may receive a combination of federal and local government assistance. They may construct housing units and rent them to Section 8 voucher holders as well as market-rate tenants.
Site-Based
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Site-based subsidized housing is also referred to as project-based housing. The subsidy is assigned to the private or public housing unit. Any person or family who meet the qualifications of the program can move into the dwelling, thereby receiving the subsidy. If they move out of the unit, unlike Section 8 voucher holders, the site-based tenant cannot take the subsidy (voucher) with them. They must reapply and move into another project-base housing unit in order to continue receiving the assistance. The HUD Section 202 program, which is a federal housing program for seniors, is an example of site-based subsidized housing.
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