Real estate caught up with modern economics in the form of equal housing opportunity homes. Whether you are renting or looking to buy, the equal housing opportunity guarantees that individuals with low incomes and less than perfect credit will still have an opportunity to own a home in the United States. Below are some of the important questions to ask to see if you qualify for one of these special homes.
Am I looking to rent or to buy a home?
There are different equal housing opportunity homes available for rent and for purchase depending on your specific needs. The three major assistance programs include public housing, the Housing Choice Voucher Program, and privately owned subsidized housing. The United States Department of Housing and Urban Development (HUD) administers the majority of these programs and filters them into state programs and certain private lending and banking programs.
What is privately owned subsidized housing?
HUD works with the owners of apartment buildings to offer reduced rents for tenants who have a low income. The housing itself is owned by individuals, and part or all of the rent is subsidized by the government. The risk profile of the resident goes down because of the subsidy, and people who would otherwise not be able to qualify for quality housing can find a good residence.
What is public housing?
Public housing gives the same opportunity to low income and bad credit residents that privately owned subsidized housing gives; the difference in the two housing situations is in the ownership of the property. While private subsidized housing is owned by individuals, public housing is owned by the government.
What is the Housing Choice Voucher Program?
The Housing Choice Voucher Program is a government program that distributes vouchers to allow low income and and bad credit individuals to rent or own a home. The voucher allows the recipient to choose eligible housing and receive a subsidized payment that helps with the cost of residence.
How can I qualify for equal housing opportunity homes?
Your eligibility for any of the housing program is determined by the public housing agency (PHA) that is in your local area. The federal agencies that oversee the distribution of funds will have general guidelines for eligibility, but the final decision for eligibility for any of the housing programs is made by the local agency.
Citizens and lawful permanent residents have the ability to apply for any of the above mentioned housing programs. The eligibility for this housing is determined primarily by income and family size. The financial metric used is gross annual income, and larger families with children will receive preference in general from the local agencies. For the most part, the income of the family cannot go beyond half of the median income of the municipality of the family’s chosen property. The PHA will give 75 percent of its vouchers to the families and the individuals who make less than 30 percent of the median income of the municipality. Median income levels are determined by HUD and publicly noted.
Can I qualify if I have non-residents in my family?
Households with non-resident members and at least one citizen or lawful resident are known as mixed households. There are limitations on eligibility at the local level. However, having a mixed household does not automatically preclude that household from receiving subsidized housing benefits.
Who will receive preference on housing lists?
Although there is no hard and fast rule that all local agencies follow, PHAs usually prioritize homeless families, families paying more than half of their income in rent, involuntarily displaced individuals and families, and families who are in substandard housing in the local area.
Can I get voucher assistance if I move?
The Housing Voucher program allows individuals and families to move without losing any of the voucher privileges. People who hold a housing voucher from this program can choose to live in a house that is anywhere within the eligible bounds of the United States.
What are the obligations of the tenant once I qualify for housing?
After the family or individual chooses an eligible property, the tenant has several obligations for the contract to continue. If renting, the household is usually required to sign a lease with the landlord for a year. The tenant may also be required to forfeit a security deposit. After this initial lease, the landlord may choose to keep the household on a yearly lease after that or switch to a month-to-month program.
What are the obligations of the landlord?
The landlord may actually cause the tenant housing problems if the tenant is renting and the landlord does not continue to pass muster with the PHA. If the landlord cannot pass the standards of the local PHA, then the tenant may suffer the consequence of immediate displacement. It is in the best interest of the tenant to look for housing with a history of compliance with the local PHA.
2 Point Highlight
The federal agencies that oversee the distribution of funds will have general guidelines for eligibility, but the final decision for eligibility for any of the housing programs is made by the local agency.
PHAs usually prioritize homeless families, families paying more than half of their income in rent, involuntarily displaced individuals and families, and families who are in substandard housing in the local area.
