HUD & Low Income Housing
The United States government recognizes housing is a basic need. Sadly, some individuals struggle to afford this basic necessity. HUD stands for the U.S. Department of Housing and Urban Development, the agency used by the government to offer affordable housing programs for those on low incomes.
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History
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In 1965, the newly formed Housing and Urban Development agency implemented its first program to make privately owed housing available to low-income families. Through the years, HUD has continued to develop programs to offer and insure home loans for certain lower-income families or subsidize rent payments for others. HUD provides money to state and local governments and nonprofit organizations to assist the homeless by moving them to temporary shelters or supportive housing services, with the aim to help them get back on their feet.
Significance
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HUD says a family that pays more than 30 percent of its annual income on housing is cost burdened. A family in this situation struggles to afford the necessities in life: food, clothing, transportation and medical care. According to HUD, more than 12 million families in the U.S. pay more than 50 percent of their annual income for housing.
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Types
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The Self-Help Homeownership Opportunity Program (SHOP) makes housing affordable for low-income families. The homeowner and other volunteers participate in the construction of the home, offering their own “sweat equity,” or labor. HUD distributes money through several agencies. Once the owner participates in the building of the home, the agency offers the home to them for sale at a greatly reduced price. The HOME program gives grants to state and local governments called participating jurisdictions. Government offices use these grants to fund programs that buy, build or rehabilitate affordable housing and offer it for rent or ownership to low-income families.
Eligibility
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Eligibility for a program funded by HUD varies based on where you live and which program you participate in. According to HUD, lower income limits are 80 percent to 50 percent less than the median income for the area that you live in. You must be a U.S. citizen or have eligible immigration status. You must have good references who can vouch for your credibility as a tenant.
Taking Advantage
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If you qualify, take advantage of HUD-funded housing by contacting your local housing agency. You can find the information at the HUD web page, “PHA Contact Information." You can also search for privately owned subsidized housing using the HUD low-rent apartment search. Find out about taking advantage of the SHOP program by contacting the nonprofit programs that dispense the benefits, such as Habitat for Humanity, Housing Assistance Council, ACORN Housing Corporation and Community Frameworks.
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References
Resources
- Photo Credit house image by Anton Chernenko from Fotolia.com
