What is Affordable Housing?
Understanding and finding affordable housing is hard to do in our current economy. Terms such as, ‘Section 8’ and ‘subsidized’ are used interchangeably when in fact, they are different programs with different processes for becoming eligible. Below are some definitions of low-income housing options in Dane County.
Section 8 Voucher Program – This program is administered by the Community Development Authority (CDA) within the City of Madison and the Dane County
Housing Authority. Individuals who have this benefit are given a voucher that allows them to pay 30% of their income as rent at any apartment in Dane County. The rest of the rent is subsidized by the federal government. This program is currently closed to new applicants.
Section 42 – This is a program where entire buildings offers a fixed lower rental rate for all residents who must qualify based on income. ‘Section 42’ buildings agree to offer low-income housing, and they get a reduction in tax liability that allows them to reduce rental rates.
Public Housing – The CDA owns 766 units (apartments and townhouses) in the City of Madison that they rent to low income individuals who then pay 30% of their income as rent. These individuals do NOT have a ‘Section 8’ voucher, but they must apply to live in one of the public housing units. People can sign up to be placed on waiting lists for public housing, however individuals can wait a year or more for a unit to become available.
Subsidized Housing – Privately owned apartments and townhouses can also contract with the federal government to provide low income units in which residents pay 30% of their income as rent. The entire building consists of subsidized units, and each resident pays a different rental rate. Individuals who live in subsidized housing do not need a ‘Section 8’ voucher to take advantage of the 30% of income rental rate.
Content from NESCO, North/Eastside Senior Coalition