Subsidized Housing



Subsidized Housing

Introduction

The U.S. Housing Act of 1937 formed the U.S. Public Housing Program that funds local governments in their ownership and management of buildings to house low-income residents at subsidized rents (Olsen, 2001). Public housing refers to a specific type of low-income housing - properties developed, owned, and operated by a HUD-funded Housing Authority. Instead, HUD now supports housing for low income families primarily through two mechanisms: (1) vouchers awarded to low-income households to supplement what they can afford to pay towards rent or a mortgage payment, and (2) privately-owned housing, the construction of which is partially or completely financed with public funds (grants or low/no-interest loans), that is reserved for low-income tenants or purchasers at a rate deemed affordable.

Housing subsidized by the federal government

Housing subsidized by the federal government means the government pays part or all of their income. The part of your income the government pays is called the "subsidy". Unlike housing private rental, the owners of federally subsidized housing have many more rules to follow. These rules speak of who gets into the box (income), rents, leases, claims, and evictions. If you live in federally subsidized housing, you have more legal rights tenants in private rental housing (Olsen, 2001). These rights include the following:

• The owner must follow certain rules about who is admitted to housing.

• Your income is limited.

• Generally you do not pay more than 30% of their income for rent and utilities.

• The rent usually is not time limited. As long as you do not break the contract lease or the law, is allowed to stay.

• You can be evicted only for good cause.

• Generally, you must give notice and an opportunity to challenge the denial of admission.

• Before the grant can be terminated, you must ...