Section 8 Voucher Program

The Section 8 rental assistance program, also known as the Housing Choice Voucher (HCV) program, was created by the Federal Housing and Community Development Act of 1974 to assist low-income families obtain a place to live at an affordable rent. It was created as an alternative to federally funded public housing which was owned and operated by state and city governments. It is now the largest low income housing program in the country. Apartments assisted under the Section 8 program are generally owned by private landlords; tenants with Section 8 vouchers rent from private owners. Tenants generally pay about 30% of their income in rent plus utilities. The balance of the rent due the owner is paid by a local Public Housing Agency (PHA), with money provided to them by the United States Department of Housing and Urban Development (HUD), directly to the landlord pursuant to a contract called a Housing Assistance Payment (HAP) contract.

There are two kinds of Section 8 housing assistance: Project-Based and Tenant-Based.

Project-Based Section 8 assistance covers all of the apartments in a given housing development or a designated number of apartments. The assistance is “tied to” the building, meaning that tenants who leave the building leave their assistance behind. Refer to Housing Programs and Services, Project Based Section 8 and Other Private HUD Subsidized Housing, for more information on Section 8 Vouchers.

The tenant-based assistance is provided in the form of housing vouchers. In general, tenants with Tenant-Based Section 8 assistance may leave the building and transfer the subsidy to a new apartment. In this sense, tenant-based Section 8 assistance is “tied to” the tenant rather than the project.

At the federal level, HUD administers the program. It distributes the funds and issues regulations and policy notices which the PHA’s must follow.

In New York City, three different agencies administer the Section 8 program: The New York City Housing Authority (NYCHA), the New York City Department of Housing Preservation and Development (HPD), and the New York State Homes and Community Renewal (HCR), formerly the Division of Housing and Community Renewal (DHCR).

NYCHA’s Leased Housing Department administers the largest Section 8 Program in the country. NYCHA is the only PHA in New York City which maintains a waiting list for which anyone can apply (although this waiting list has been closed for several years). NYCHA also administers some vouchers for tenants in buildings whose landlords have opted out of HUD subsidized housing programs, known as “enhanced” or “sticky” vouchers.

HPD vouchers are targeted to families who become homeless as a result of a government order to vacate unsafe housing, families living in buildings which HPD has decided to renovate, families living in buildings which were built or renovated with HPD financing, and tenants in certain buildings whose owners have opted out of HUD subsidized housing programs. This last type of voucher is known as an “enhanced” or “sticky” voucher.

HCR administers a small number of vouchers including vouchers for families living in buildings whose owners have opted out of HUD subsidized programs, known as “enhanced” or “sticky” vouchers. HCR periodically receives vouchers from HUD which it distributes through a lottery system.

Because HCR has a statewide program it generally contracts with Local Administrators (LA), but in New York City HCR administers the program directly through its Subsidy Services Unit.

All of the funding for the Section 8 Voucher Program comes from HUD and the funding is discretionary. Congress allocates funds annually. The funding level is not based on an assessment of the number of families which are eligible for the subsidy, but rather on political and fiscal considerations. As a result, there are many more families eligible for the program than families who have vouchers.

Families accepted into the program receive a voucher which allows them to search for and rent apartments in the private market. The voucher specifies the size apartment to which the family is entitled, depending on the family composition. The voucher also specifies the maximum amount of rent which a landlord can charge. Generally, families pay 30% of their income in “gross rent” (rent to the landlord plus a utility allowance if certain utilities are not included in the rent). However, in certain circumstances, they may pay more than that amount. The difference between the tenant’s share of the gross rent and the payment standard is paid directly to the landlord by one of three public housing agencies (PHA) – New +York City Housing Authority (NYCHA), New York State Homes and Community Renewal (HCR), or New York City Department of Housing Preservation and Development (HPD). The payment standard is the maximum amount of rent that the PHA will subsidize. The tenant enters into a lease with the landlord and the landlord signs a contract with the PHA, known as the Housing Assistance Payment (HAP) contract.

In order to qualify for a Section 8 voucher, a family must meet income, immigration, and conduct requirements.

Currently, the general public cannot apply to any Section 8 voucher program in New York City.

Note: Except for emergency applications, NYCHA’s waiting list has been closed for well over10 years. However, NYCHA announced that effective December 10, 2009 the waiting list for all applications is closed, including emergency applications. Exception: NYCHA is still issuing “enhanced” or “sticky” vouchers to tenants in buildings whose owners have opted out of a HUD subsidized program. See below, Enhanced or Sticky Vouchers.

Note: There are two kinds of Section 8 housing assistance: Tenant-Based, more commonly known as Section 8 Vouchers, and Project Based Section 8. Project based Section 8 housing covers all of the apartments in a given housing development. The assistance is “tied to” the building, meaning that tenants who leave the building leave their assistance behind. The tenant-based assistance is provided in the form of housing vouchers. In general, tenants with Tenant-Based Section 8 assistance may leave the building and transfer the subsidy to a new apartment. In this sense, tenant-based Section 8 assistance is tied to the tenant rather than the project. Refer to Housing Programs and Services, Project Based Section 8, for more information on Project Based Section 8.