Through a variety of sources, cities and other jurisdictions strive to close the gap between the price of market rate housing and what a low-income family can afford. According to the National Low Income Housing Coalition, the disparity is so great that there is not a county in the country where a full-time worker earning the prevalent minimum wage can afford the fair market rent on a one-bedroom apartment.
Function
Low-income housing benefits amount to a subsidy that helps close the aforementioned affordability gap. In practice, these subsidies limit the amount of money a family spends on rent and utilities to no more than 30 percent of their household income. The National Low Income Housing Coalition explains that when families spend more than that on housing, they run the risk of not being able to afford other necessities like food and transportation.
Programs
Several types of programs provide housing benefits to an area's neediest residents. Often a city's most high profile offerings -- and sometimes the only ones -- come from the Department of Housing and Urban Development's Section 8 and public housing programs. The Section 8 program provides low-income renters with a direct subsidy they can use to pay the portion of their private market rent that is greater than 30 to 40 percent of their household income. Local public housing agencies own and operate public housing units with rents set at rates affordable to low-income families.
Some cities mandate low-income housing by manipulating local planning and zoning code. In San Francisco, for instance, the Mayor's Office of Housing notes that private builders must provide affordable units as part of certain market rate projects. Often, private builders, such as California's Bridge Housing Corporation, team with nonprofits to develop low-income housing. In these cases, the benefit a family receives is indirect; a builder, a nonprofit, a government or a combination of the three absorb the cost of subsidization.
Eligibility
Generally, families qualify for low-income housing benefits on the basis of need. HUD sets annual income limits that restrict Section 8 and public housing access and, usually, eligibility for other programs outside of HUD's purview. While HUD only allows families with incomes at or below 80 percent of their area's median income to apply for public housing, and families at or below 50 percent of the median to apply for Section 8 assistance, other programs, such as those stemming from public-private partnerships and zoning laws, often use different percentage levels.
Geography
Where a family lives impacts their eligibility for low-income housing benefits. For example, a family with combined household income of $40,000 a year qualifies for Section 8 housing, for instance, in some parts of the country, but not others. For example, 50 percent of the median for a family of four in Ann Arbor, Michigan, is $42,100, as of 2010. In Flint, that number drops to $28,250. Therefore, the family can receive Section 8 assistance in Flint, but not in Ann Arbor.
Considerations
Just because a family qualifies for low-income housing benefits does not mean they will receive them. A common obstacle is long waiting lists, which HUD indicates are "common" for the Section 8 program. The same caveat applies to and other initiatives. To ensure that the neediest families are served first, most initiatives, particularly HUD's, favor certain groups. For example, the HUD Housing Choice Voucher fact sheet points out that local public housing agencies must provide at least 75 percent of their Section 8 vouchers to families with incomes at or below 30 percent of their area's median income. Section 8, as well as other programs, often favor other groups as well, such as the homeless, the elderly, persons with disabilities and families living in poor-quality housing.
Tags: public housing, housing benefits, low-income housing, percent their,