House OK's Expanding Low-Income Housing Aid Program

Daily Real Estate News
House OK's Expanding Low-Income Housing Aid Program

The House voted this week to overhaul the Section 8 voucher program, the federal government’s largest effort to fund housing for low-income families.

The legislation seeks to make the aid program available to more families and make it easier for first-time home buyers to use the program. It also creates incentives for seeking education and employment.

Under the program, eligible tenants pay 30 percent of their income toward their rent, with the federal government paying the remainder.

Section 8 provides housing assistance for 2 million low-income families. It costs about $16 billion a year — about 60 percent of the budget of the Department of Housing and Urban Development.

The bill next goes to the Senate where it’s likely to encounter resistance. The main dispute is over how the proposed new formula allocates funds. The White House supports the status quo, while the new bill allocates money based on previous year’s spending.

Supporters say the new plan will eliminate a backlog that prevents many families from getting housing. The opposition, however, says the new plan wastes money.

Source: The Associated Press, Jim Abrams (07/12/07)