What is HUD’s Public Housing Program?
Public housing was created to provide quality rental homes for low-income families, the elderly, and people living with disabilities. There are various types of public housing options, such as single-family houses, apartments buildings and high-rise condos. The Department of Housing and Urban Development (HUD) manages Public Housing through the many Housing Authorities (HA) offices which are located through out the states.
What Is The difference Between Section 8 And Public Housing?
The differences between Public Housing and Section 8 programs are subtle. Public Housing Authorities (PHA) manage the Public Housing inventory (units) and distribute the properties to eligible low-income families. Section 8 provides eligible low-income families with a housing choice voucher. The voucher is then used to pay for most of the monthly rent. Section 8 applicants are free to locate privately owned homes or Public housing units. The distribution of housing choice vouchers are also distributed by the PHA. The application process is the similar for Public Housing and Section 8 programs. HUD funds both programs, however, States individually manage their own Public and Section 8 housing resources. HUD will use a slightly different income limit formula to determine the cost of rent for Section 8 applicants compared to Public Housing applicant.
What Is Low Income Housing Tax Credit? (LIHTC)
The Low Income Housing Tax Credit program is an incentive program created by HUD. The purpose of LIHTC is to attract real-estate developers and investors to build and renovate housing projects that are dedicated to the use of low-income housing programs. When real-estate developers provide low-income housing units, they can qualify to receive a tax credit. The incentive is mutually beneficial. To simplify, HUD wins by receiving more low-income housing units. Real-estate Developers win by lowering their financial costs by receiving a tax credit.
Who Qualifies For LIHTC Property?
LIHTC eligibility determined by an area’s median gross income (AMGI). HUD determines AMGI every year by analyzing a variety of factors, such as household growth and local economy. Typically, an applicant is eligible when their household income falls within 40-60% of the AMGI. AMGI, size of the household, income and size of the units are all factors local housing authorities (HA) use to determine the price of rent for a LITCH unit.
How to Locate Low-Income Housing Properties
The easiest way to find a LIHTC property in your area that will fit your needs is to contact a HUD sponsored Housing Counseling Agency. Click here and locate your state on the map. Then contact the nearest Housing Counseling Agency.
Can Section 8 Vouchers Be Used For LIHTC?
Both Section 8 housing choice vouchers and Public Housing programs can rent LIHTC units. Unit owners cannot isolate against housing choice vouchers. In other words, they are required to accept Section 8 tenants.
How Is LIHTC Different From Section 8?
A Low-Income Housing Tax Credit property is the unit that a low-income housing program uses as inventory. Housing Authorities (HA) use LIHTC properties for many affordable housing programs. Section 8, Housing Choice Voucher, Public Housing and many other affordable housing programs use resources created by LIHTC program. Click here to learn more about Section 8