What Do I Need to Qualify for Low Income Housing?
Simply put, renters need to have low income to qualify for low-income housing. While it sounds obvious, what one person considers "low income" might not jibe with the widely-used definitions provided annually by the federal government. Place also matters; the government classifies some households as low-income in one area, but not another. Generally, to qualify and apply for low-income housing, renters need to document family size and combined household earnings.
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Function
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The primary function of low-income housing is to bridge the gap between what low-income renters can afford to pay for rent and the reality of market rate prices. As the National Low Income Housing Coalition (NLIHC) indicates, housing experts generally agree that families should spend no more than 30 percent of their income on the cost of housing --- rent and utilities. If a household spends more, they might not have enough money left over to comfortably afford other day-to-day necessities, such as food and transportation costs.
Types
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The Department of Housing and Urban Development (HUD) offers the nation's two primary low-income housing programs, Section 8 and public housing. HUD bills Section 8, also known as the Housing Choice Vouchers program, as giving families "choice," by allowing them to rent market rate units from private landlords thanks to a government subsidy equal to the difference between a dwelling's actual rent and between 30 and 40 percent of the family's income. Public housing units are owned and operated by public housing agencies across America. Most are relatively large developments with rents set at affordable rates.
Some cities operate low-income housing programs other than Section 8 or public housing. While some provide direct subsidies, others use an indirect route by manipulating local urban planning and zoning code. Places like San Francisco and New York City, for instance, provide incentives or flat out require developers to include a certain percentage of low-income units in otherwise market rate construction.
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Eligibility
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While specific numbers often vary, HUD's Section 8 and public housing eligibility requirements are generally similar to those of locally-originated low-income housing initiatives. HUD, for instance, requires applicants to document family size and composition. This information provides income limits, which are based on location and household size. HUD only accepts public housing applications from families with incomes at or below 80 percent of their area's median income; for Section 8, the cutoff is 50 percent of an area's median. Other subsidized housing schemes use similar thresholds.
Example
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A family of four living in the Anchorage, Alaska metropolitan area, for instance, can apply for Section 8 housing as long as they do not earn more than 50 percent of the area's median which, as of 2010, is $41,800, according to HUD. For a three-person household that number drops to $37,650, while it rises to $45,150 for a family of five. Eighty percent of Anchorage's median income, the limit for public housing eligibility, is $64,400 for a four-person family, as of 2010. Of course, these numbers fluctuate alongside the relative affluence of a city or region.
Documentation
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To certify household size, which dictates the size unit a subsidized renter can seek in most programs, housing agencies generally require birth certificates or Social Security numbers from all household members. To verify income, HUD and other entities typically need to see tax returns, paycheck stubs and banking information. In most programs, families must recertify their income annually to maintain eligibility.
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