SUBSIDIZED HOUSING EXPLAINED

Judith Cohen, Housing Advocate with Action for Boston Community Development, explained the realities of subsidized housing at the December CRC Info Session.

There are two types of housing subsidies: project-based (including Public Housing and Project Based Subsidies) and tenant-based. Though both types have long waiting lists, project-based housing is a more realistic option. Ms. Cohen pointed out that there is no quick solution to housing, despite the fact that most people who are applying for it are in crisis mode.

Public Housing

Public housing developments are made up of apartments built and subsidized by either the federal or the state governments and are managed by one of the 237 Local Housing Authorities (LHAs). Public Housing tenants typically pay monthly rent of about 30 percent of their net income.

Each year, the federal Department of Housing and Urban Development (HUD) sets an Area Median Income (AMI), and households earning at or below 80% of the AMI (currently $52,950 for a two-person household in the Boston area) are eligible for public housing. Each LHA determines the groups of people to whom they will give “preference,” such as homeless, elders, disabled, local residents, working families, victims of domestic violence, etc. It is necessary to contact the LHAs to find out. LHAs are listed in IRis under the keyword “Housing/Authority.” Public Housing developments that provide state housing give priority to people who are homeless due to natural disasters, public improvement, safety code enforcement, or other homeless emergencies (as defined by each individual LHA).

For state-funded public housing only, Massachusetts is one of only two states that have no immigration status restrictions. However, for federally funded public housing, at least one person in the household must be “legal,” meaning they are citizens, have a green card, or hold refugee status, and can provide documentation that they are in contact with Immigration Services. If there are people in the household without legal status, the household is still eligible but the subsidy will be prorated to cover only the legal resident(s).

To apply for public housing, contact the LHA and ask:

• Is the waiting list open? LHAs may periodically close either their state or federal waiting lists, and sometimes both will be closed at the same time. They are also often very long, so it’s important to apply to as many LHAs as possible.
• What are their preferences?
• Will they mail an application? Some LHAs require the applicant to obtain the application in person, while others will mail the application. Some also accept the universal housing application.

Ms. Cohen stressed the strict screening process used by the LHAs, including a credit check, eviction history, and criminal background check. She said some LHAs, such as the Boston Housing Authority, often try to work with an applicant’s problems. If someone has a criminal conviction, particularly involving drugs (especially “possession with intent to distribute”) or violence, they are likely to be denied. If someone is denied, the housing authority must provide written notice explaining their reason for the denial, as well as instructions for appealing. Ms. Cohen recommends utilizing the services of an advocate to navigate the process. An applicant’s chances for approval improve if their advocate can provide evidence of mitigating circumstances, such as documentation of a strong two- to three-year history of recovery, counseling, and job training, as well as positive references.

Project Based Subsidies

These developments are owned by private for-profit or nonprofit developers who receive funding from the state or federal government, or some combination of both, to build the housing. They must provide affordable housing for 20 years, at which time they can choose to convert the units to market rate, another factor contributing to the housing shortage since many of the developments were built in the 1960s and 1970s.

In Massachusetts, the main project-based subsidy developments are HUD Section 8 developments and the MassHousing Developments. Tenants typically pay 30 percent of their income in rent. Most developments are run by private management companies hired by the developers, and each has its own preferences. Applicants must apply individually to each development. A listing of HUD Section 8 apartments can be obtained by calling HUD’s New England Regional Office at 617-994-8200 ext. 3, or the website http://www.hud.gov/apps/section8. Contact the CRC at x6-8182 for a copy of the 2006 MassHousing book of developments, or call MassHousing at 617-854-1000.

Tenant-Based Subsidies: Section 8 and MRVP

Section 8 is a federally funded housing program, while the Massachusetts Rental Voucher Program (MRVP) obviously is state funded. Both are mobile voucher programs that offer tenant-based subsidies, meaning the voucher moves with the recipient, and can be used to rent private apartments from landlords who accept the vouchers. Unfortunately, Ms. Cohen explained that at this time tenant-based subsidies are not a realistic option due to severe funding cuts in recent years. Since 2003, Section 8 vouchers are essentially limited to those who already have them. Also, because of significant rent increases over the past several years, a person with a voucher may have a difficult time finding an affordable apartment.

Section 8

For Section 8 vouchers, rent is determined by the Fair Market Rent (FMR), which is an average rental price for a geographic area as determined by HUD. Typically, tenants with Section 8 vouchers pay 30-40 percent of their income towards their rent, with the voucher covering the difference between the FMR and the tenant’s share of the rent. Households earning less than 50 percent of the Area Median Income (AMI) are eligible, though 75 percent of the state’s vouchers go to households earning less than 30 percent AMI. Contact LHAs individually to inquire about their priorities, such as domestic violence, disabled, elderly, etc. Immigrant requirements for Section 8 vouchers are the same as for federal Public Housing – one member of the household must be “legal.”

The majority of Section 8 vouchers are issued through the local housing authorities (LHAs), but there are eight Housing Consumer Education Centers, a program of regional non-profit housing agencies, that manage part of the Department of Housing and Community Development ’s (DHCD) pool of Section 8 vouchers. The listing of agencies can be found in IRis under keyword Financial/Section 8. DHCD has a single, unified application system and waiting list, so anyone interested in applying need only apply to one regional non-profit agency. Their waiting list is always open. However, Ms. Cohen stated that there are currently more than 20,000 people on the list, and that number is unlikely to go down since no one is receiving vouchers.

MRVP

The value of a MRVP subsidy is determined by several factors, including the tenant’s income, household size, and geography. The tenant pays the difference between the amount of the voucher and what the landlord charges for rent, but not more than 40 percent of their income. A household’s income must be at or below 200 percent of the federal poverty guidelines to be eligible. There are no immigration restrictions for MRVP. Applicants should contact their LHA to apply.

Approximately 50 LHAs participate in a centralized waiting list that is open at all times, and administered by MassNAHRO. Obtain a pre-application by calling MassNAHRO at 617-367-0008 or visit their website at www.massnahro.org. Also, any of the participating LHAs can be called for an application. Those who applied to this already on this list prior to October 1, 2005, must confirm their wish to remain on the list should ensure by February 6, 2006, as MassNAHRO is in the process of purging the list (as detailed in story elsewhere in this edition of the MGH Community News) .

Handicapped Housing

LHAs must have a certain number of accessible, adaptable units, and some LHAs give preference to the disabled. The Mass Access Program is a statewide listing of accessible housing units. The searchable database includes information about and tracks the availability of state and federally assisted housing, public housing, and private market-rate housing. It can be accessed by going to the website www.massaccesshousingregistry.org .

Delaying the Eviction Process

Ms. Cohen also discussed preventing or slowing down the eviction process to allow a tenant to find an alternative living situation and prevent them from becoming homeless. Upon receiving a “Notice to Quit,” the tenant should call legal services or ABCD. An eviction proceeding can be delayed for extenuating circumstances as long as the client is not in the “execution” state, meaning they’ve been given 72 hours notice to vacate the property. However, Ms. Cohen stated that the process should never get that far.

Please attend the CRC Information Session on Tuesday, March 21, for a presentation about HousingWorks, an on-line service that matches people needing subsidized, affordable, and special needs housing with the available housing inventory.

- Thanks to Judith Cohen for her informative presentation and for her assistance editing this article.

01/2006