Navigating the world of affordable housing can be complex, especially when trying to understand the different types of available government subsidies. Two widely used subsidy programs are Housing Choice Vouchers (formerly known as Section 8) and Project-Based Vouchers. Both play a crucial role in helping low-income individuals and families secure stable, affordable housing, but they operate in distinct ways.
Housing Choice Vouchers (HCVs):
The Housing Choice Voucher Program, commonly known as Section 8, is a federal government program designed to empower low-income individuals and families to afford safe and stable housing on the private market. Unlike public housing, where tenants live in government-owned properties, Housing Choice Vouchers allow recipients to choose their own rental homes. This voucher covers a portion of their rent, which the government pays directly to the landlord, while the tenant pays the remaining amount, typically about 30% of their income. This program gives recipients the power to select housing that best meets their needs and preferences, thereby giving them control over their living situation. In Colorado, landlords with more than five rental units must accept Housing Choice Vouchers.
To qualify for a Housing Choice Voucher, applicants must meet specific eligibility criteria, primarily based on income. The program targets very low-income households, generally defined as those earning less than 50% of the median income for their area. Eligibility also considers factors like family size, citizenship status, and whether the applicant is elderly or disabled.
Housing Choice Voucher Programs are operated by local Public Housing Authorities (PHAs). Because there aren’t enough Housing Choice Vouchers to meet demand, PHAs use lotteries or waitlists to determine which eligible applicants will receive vouchers.
Lotteries are a standard method PHAs use to allocate Housing Choice Vouchers. The process is straightforward: Applications open when vouchers are available, and the exact dates are posted on the organizations' websites and in local newspapers. Once the application period closes, the organization randomly draws applicants throughout the year. Selected applicants will be notified and work with the organization’s admissions department to determine the next steps.
Waitlists: Generally, PHAs need more vouchers than they have available to meet the demand in any given community. Therefore, PHAs often put applicants on waitlists. The length of time on the waitlist can vary depending on many factors, and some applicants may wait years before receiving a Housing Choice Voucher.
Please be aware that in Colorado, it is common for the PHA to only open the waitlist to new applicants for two or three days per calendar year, and the list remains closed for the remainder of the year to avoid having more families on the list than can be assisted in the near future. PHAs may have waitlists opening and closing at any given time. Unfortunately, there is no central source of information for Colorado PHA waitlists, so you should track which lists you are on.
For many reasons, the demand for Housing Choice Vouchers far exceeds the available supply, leaving many families and households needing more assistance. It’s important for those in need to apply for vouchers directly through local PHAs in their area. For those in Colorado, you can find a comprehensive list of PHAs here.
Project-Based Vouchers (PBVs):
Project-Based Vouchers are tied to specific rental units within a property rather than to individual tenants. The subsidy remains with the unit, so if a tenant moves out, the voucher stays with the property for a new eligible tenant. PBVs help create or maintain affordable housing in specific developments, ensuring accessibility for low-income families, seniors, or individuals with disabilities, particularly in areas with high housing costs.
To qualify for a Project-Based Voucher, applicants must meet income eligibility criteria similar to those for Housing Choice Vouchers. Typically, households earning less than 50% of the area median income (AMI) are eligible, with a preference often given to those with even lower incomes, such as those earning below 30% of AMI. Additionally, eligibility may be influenced by factors such as family size, disability status, or elderly status, depending on the specific property and its designated purpose. Once qualified, applicants may be placed on a waitlist if there are more eligible applicants than available units. When a unit becomes available, the PHA will notify the next eligible applicant on the list, and they can move into the unit with the rent subsidy applied.
Unlike Housing Choice Vouchers, Project-Based Vouchers are tied to specific housing units in a particular building or complex. Tenants who receive a Project-Based Voucher can only use it to live in the assigned property. While this might limit mobility, it also ensures that specific properties remain affordable for low-income tenants, as the subsidy is attached to the unit itself, not the tenant.
Understanding the differences between Housing Choice Vouchers and Project-Based Vouchers is essential for anyone navigating the affordable housing landscape, whether as a tenant, advocate, or service provider. While both programs aim to provide safe and affordable housing for low-income families, they offer different levels of flexibility and stability. Housing Choice Vouchers empower recipients to choose where they live, offering greater mobility and access to diverse neighborhoods. In contrast, Project-Based Vouchers play a crucial role in preserving much-needed housing in high-cost or rapidly gentrifying areas. This provides a sense of reassurance about the stability of their housing situation, making it a vital resource for those in need.
Understanding how Housing Choice Vouchers and Project-Based Vouchers work is not just about knowledge, it's about empowerment. By understanding these programs, we can better support those who rely on them and advocate for policies that expand and strengthen these essential housing resources. Whether through greater access to Housing Choice Vouchers or the preservation of Project-Based units, these programs are vital in ensuring everyone has a place to call home.