In 2008, 29,785 Minnesota families received rent assistance through a federal subsidy called “housing choice vouchers.” Housing choice vouchers help low-income renters bridge the gap between the cost of privately-owned apartments and what is affordable for their income.
Unfortunately, even with a voucher many recipients actually have to pay more than what the federal government considers affordable. In addition, those eligible must wait on average 7 years before getting the help they need and finding a place to accept their voucher. Worse still, in recent years federal funding for vouchers has not filled the gap between what renters can afford and the actual cost of housing. So, some landlords and local housing authorities have stopped using or reduced their use of vouchers.
Minnesota affordable housing advocates propose that voucher holders should pay no more than 30% of their income for modest housing. Funding should expand so that anyone eligible can get a voucher. (In Minnesota, 220,000 renter households cannot afford their housing; nationwide, the shortage of affordable and available units was 5.5 million in 2007.) Lastly, vouchers should cover the gap in the actual cost of housing. As a step in that direction many national advocates have proposed that 200,000 additional vouchers be funded. Keep in mind that this would simply make up for vouchers lost over the past decade.
November ’09 Update: HR 3045, The Section 8 Voucher Reform Act (SEVRA), makes progress by authorizing (but not yet funding) 150,000 more vouchers (50,000 less than hoped for). Advocates also favor provisions in SEVRA that expand tenants’ right to move with vouchers, simplify rent and income calculations, and improve the funding mechanisms for the program nationwide. The SEVRA bill was voted out of the House Committee on Financial Services in July and may be taken up by the full House before the end of the year. SEVRA has not yet been introduced in the Senate.
Meanwhile, at the end of October, Congress approved a continuing resolution that funds the voucher program at its FY09 levels until December 18. Furthermore, advance 2010 funding is available to help cover current shortfalls that have threatened the stability of the program.
For more information, visit:
- Hsg Voucher Program Basics published by CBPP
- Shortfall in Funding Could Reduce Assistance published by CBPP
