HUD Rules Regarding Section 8 Housing Participation in California
As the National Low Income Housing Coalition explains, consensus exists that families should not commit more than 30 percent of their income to the cost of housing. In California, a full-time minimum wage worker, earning $8 an hour, as of January 2011, is even with the 30-percent threshold when spending $416 on rent. The 2010 market rate rent for a two-bedroom in the state is $1,327. To afford this a full-time wage earner would need to take in $25.52 an hour. HUD's Section 8 program strives to help Californians struggling against this affordable housing crisis.
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Context
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Congress funds the Section 8 program. The U.S. Department of Housing and Development oversees it. Housing agencies across the country administer it locally. Bound by the Code of Federal Regulations, Section 8 generally uses uniform rules nationwide. While HUD gives housing agencies some leeway in certain areas, most programs deviate very little from the letter and spirit of federal guidelines. Typically, only specifics regarding Section 8 participation, such as income, market rate rent figures and waiting list preferences, vary from significantly from state to state.
Income Limits
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Like other states, HUD requires California housing agencies to only accept Section 8 applicants whose annual household income stands at or below 50 percent of their area's median income. California housing offices must designate 3/4 of their Section 8 vouchers to families with earnings at or below 30 percent of their area's median. These numbers change with household size as well as location. For instance, 50 percent of the San Francisco metropolitan area's median income equals $48,400 for a three-person household, but that number drops to $29,250 in the Riverside-San Bernardino-Ontario metropolitan area of Southern California, as of 2010.
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Fair Market Rents
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HUD uses fair market rents for metropolitan areas and counties across the nation to help determine the maximum amount a family can spend on rent. In most cases, if a family rents a unit up to their area's fair market rent, their share of the rent equals 30 percent of their income. HUD permits families to rent units above their area's market rate, however, they must pay the excess amount without spending more than 40 percent of their income on rent. The 2011 fair market rent for a two-bedroom in the Oakland-Fremont metro area is $1,393, but decreases to $905 in the Central California metro of Modesto.
Waiting List Preferences
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Housing agencies in California can set their own preferences when deciding where to place a family on their Section 8 waiting list. Some cities do not use local preferences. Among those that do, variation exists. In San Francisco, the housing authority operates a two-tiered preference system. Primary preferences include paying more than 50 percent of your income for rent and living in poor quality housing. Secondary preferences include U.S. military veteran status and participating in Welfare to Work initiatives.
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