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Rent Supplements
Rent Supplements
Rent supplement programs pay to a property owner or developer the difference
between the amount a low-income tenant pays for rent and the market or contract rent
amount.
Criteria
- Properties must provide affordable housing and must meet requirements for space and
bedroom configuration.
Use
- Rent supplements improve cash flow by increasing development project revenue.
Structure
- Rent supplements may be in the following forms:
- certificates are property-based payments to property owners for the difference between
what low-income renters pay and the market rate;
- housing vouchers are provided to tenants for use in paying rent on their choice of
qualified housing, and
- subsidies to property owners compensate for costs of property rehabilitation and
management.
- Rent cannot exceed 30 percent of a tenant's gross monthly income.
- Supplement amounts are based on the area median income and market rents.
- Some rent supplement programs are structured for use in conjunction with local
government and private sector funds.
HOME INVESTMENT PARTNERSHIP PROGRAM
HOME Program, U. S. Department of Housing and Urban Development (HUD)
Federal funds are granted to local jurisdictions and are used in working with private
partners to leverage funds and expand the availability of affordable housing through a
broad range of innovative approaches.
Eligibility
- Programs must develop or support safe, decent and sanitary affordable housing for low-
and very-low-income residents whose incomes fall at or below 80 percent of the median
income for the area.
- Eligible uses of funds include tenant-based rental assistance, assistance to home
buyers, property acquisition, new construction, rehabilitation, transitional housing, and
capacity-building.
- Jurisdictions receiving funding must have a HUD-approved Comprehensive Housing
Affordability Strategy (CHAS), or consolidated plan.
- Jurisdictions must provide a 25 percent match of funds received for rental assistance,
housing rehabilitation and acquisition, and a 30 percent match for new construction.
Contiguous units of local government may form a consortium to receive HOME funds.
- Funds are allocated to participating jurisdictions through a formula based on the
jurisdiction's vacancy rate for low-income renters, the amount of substandard housing,
housing production costs, number of units needing rehabilitation, number of families in
poverty, and fiscal capacity.
Program
- Model program areas include rental housing production, rental rehabilitation,
rehabilitation loans, sweat equity, home repair services grants, energy efficiency
conservation grants, and second mortgage assistance for first-time home buyers.
- Fifteen percent of funds are reserved for Community Housing Development Organizations
(CHDOs); 1 percent of funds appropriated are reserved for Indian tribes.
Contact
State Office of Housing or U. S. Department of
Housing and Urban Development (HUD)
RENTAL HOUSING CERTIFICATE PROGRAM
U. S. Department of Housing and Urban Development (HUD), Section 8
Rent payments are made to property owners for the difference between rent paid by a
tenant and fair market rent.
Eligibility
- Eligible families earn less than 80 percent of the area median income. Most assistance
is for very-low-income families earning less than 50 percent of the area median income.
- Any type of housing can be eligible as long as units are decent, safe and sanitary.
Program
- Eligible tenants receive a certificate from the Public Housing Authority (PHA) stating
the terms and conditions of their participation; they then find appropriate housing.
- HUD enters into contracts with local public housing agencies and Indian housing agencies
(IHAs) that administer the program. The PHA makes assistance payments to private owners
who lease their rental units to assisted families.
- Tenants pay 30 percent of their adjusted income toward rent.
- Tenants may move to another property and keep their certificate.
Contact
Local Public Housing Authority or
U. S. Department of Housing and Urban Development (HUD)
RENTAL HOUSING VOUCHER PROGRAM
U. S. Department of Housing and Urban Development (HUD),
Section 8
Low-income families are assisted in housing rent payments through vouchers for the
difference between a percentage of their income and market-rate rents.
Eligibility
- Eligible applicants are the very low-income tenants whose incomes do not exceed 50
percent of the median income.
- Preference is given to families who are occupying substandard housing, are involuntarily
displaced, or are paying more than half their income for rent.
Program
- Low-income families receive rental vouchers and then locate suitable rental units.
Vouchers cover the difference between market rate rental and the higher of 30 percent of
the tenant's adjusted income or 10 percent of gross income.
- HUD enters into contracts with local public housing agencies (PHAs) and Indian housing
agencies (IHAs) that administer the program. The PHA makes assistance payments to private
owners who lease their rental units to assisted families.
- Rents are negotiated between the owner and the tenant. Vouchers permit families to rent
units beyond the fair market value, but the PHA may disapprove a lease for rent that is
not considered reasonable and is not comparable to other rents in the area.
- The total level of HUD's annual contribution to a voucher program is based on review and
approval of a housing authority's request for funding.
- Rental housing selected by the eligible families must meet the specifications required
by the program.
Contact
Local Public Housing Authority or
U. S. Department of Housing and Urban Development (HUD)
RURAL HOUSING VOUCHERS
Rural Development (RD)
U. S. Department of Agriculture
Rural housing vouchers provide assistance to renters of rural housing.
Eligibility
- Assistance is available for very-low-income families.
Program
- Assistance is calculated using a payment standard based on the fair market rent
established for the area.
- The monthly assistance payment for a family is the amount by which the payment standard
for the area exceeds 30 percent of the family's monthly adjusted income.
- The subsidy cannot exceed the difference between the actual rent for the dwelling unit
(including utilities) and 10 percent of the family's gross monthly income.
RURAL MUTUAL AND SELF-HELP HOUSING
Rural Development (RD)
U. S. Department of Agriculture
Financial assistance is available for individuals and families who participate in
mutual and self-help programs to build or rehabilitate rural homes.
Eligibility
- Assistance is available for very-low-income families.
Program
- Assistance is calculated using a payment standard based on the fair market rent
established for the area.
- The monthly assistance payment for a family is the amount by which the payment standard
for the area exceeds 30 percent of the family's monthly adjusted income.
- The subsidy cannot exceed the difference between the actual rent for the dwelling unit
(including utilities) and 10 percent of the family's gross monthly income.
Contact
Rural Development (RD)
U. S. Department of Agriculture
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