How Does a Housing Voucher Work?
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What are Housing Vouchers?
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Housing vouchers provide an opportunity to many American families that would otherwise be unavailable to them: decent housing that is nonetheless affordable. Funded by the federal government, this program is designed to provide financial assistance to low-income households, as well as elderly and disabled individuals.
Who Provides Housing Vouchers?
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Housing vouchers are distributed by each U.S. county's public housing agency, or PHA. These organizations receive funds from the United States Department of Housing and Urban Development (also known as HUD), which are then used to secure housing vouchers. By law, 75 percent of these vouchers must go to residents whose incomes are less than 30 percent of the area's median income. The remaining vouchers are distributed to households with less urgent needs: those who make 50 percent or less of the area's median income.
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What are the Qualifications to Receive a Housing Voucher?
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In addition to meeting the income guidelines, a recipient must also have a prior rental history, be a U.S. resident or legal immigrant, and pass a criminal background check. If an individual meets these requirements, he may apply for a housing voucher. Once the PHA verifies the individual's information, he is eligible to receive the voucher. Although availability varies based on location, most areas have an extensive waiting list; it may often be a year or longer before the individual actually receives the voucher.
What Happens Once You Get to the Top of the Waiting List?
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Once an individual's name reaches the top of the waiting list, a housing voucher will be distributed. The recipient will have a specified number of days to secure appropriate housing. Typically, the time allotted is between 30 and 60 days, but most areas will provide an extension if it is requested. Although in some areas, residents are allowed to apply their voucher toward the purchase of a home, most are used for rentals.
How is the Rent Paid?
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To be covered by a housing voucher, a residence must pass federally mandated health and safety standards. Additionally, the owner of the residence must agree to participate in the public-housing program. Once the residence is inspected and the owner's participation is verified, the housing voucher may be redeemed. If the recipient's current home meets these guidelines, she may use the housing voucher for it. After appropriate housing is secured, the PHA will then pay a subsidized amount to the individual's new landlord. The recipient is then responsible for paying the difference between the actual rental cost and the subsidized amount.
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