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Rental Assistance / Section 8

Section 8 tenant-based assistance is now known as the Housing Choice Voucher Program under Section 8 of the 1937 Act as amended by QHWRA. It is the largest U.S. housing subsidy program with more than 1.5 million households participating. The new voucher program was developed through a merger of the former Section 8 certificate and voucher program. Agencies have annual contracts with HUD to operate the Housing Choice program. These vouchers can be used to assist residents that must be relocated from public housing because of demolition, and are also used to support welfare reform program objectives, for welfare recipients who are working toward economic self-sufficiency. Congress will consider legislation in the fall of 2000 that would enable elderly persons to use a voucher toward their rent in an assisted living facility or nursing home, to supplement federal healthcare services assistance.

Tight rental markets due to the sustained economic expansion, low fair market rental levels and landlords who are choosing to opt out of the program are reducing the supply of available housing for program participants. Recently concerns have been expressed regarding program utilization and the efficiency of program administration. In response, NAHRO and our allied interest groups are seeking an increase in local fair market rent levels from the 40th to 50th percentile of area median prevailing rents to increase utilization rates.

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