HCV Programs &
Section 8 FAQ
What is Section 8 Housing?
Section 8 Housing - This type of affordable housing is based on the use of subsidies, the amount of which is geared to the tenant's ability to pay. The subsidy makes up the difference between what the low-income household can afford, and the contract rent established by HUD for an adequate housing unit. Subsidies are either attached to specific units in a property (project-based), or are portable and move with the tenants that receive them (tenant-based). The Section 8 program was passed by Congress in 1974 as part of a major restructuring of the HUD low-income housing programs. Section 8 was created to permit federal housing assistance to go for construction or rehabilitation of new low-income housing or to subsidize existing housing.
Housing choice vouchers are administered locally by the McAllen Housing Commission's Section 8 Department. The MHC receives federal funds from the U.S. Department of Housing and Urban Development (HUD) to administer the voucher program. A family that is issued a housing voucher is responsible for finding a suitable housing unit of the family's choice where the owner agrees to rent under the program. This unit may include the family's present residence. Rental units must meet Housing Quality Standards as determined by the Section 8 Inspectors of the MHC. A housing subsidy is paid to the landlord directly by the MHC on behalf of the participating family. The family then pays the difference between the actual rent charge by the landlord and the amount subsidized by the program.
Eligibility for a housing voucher is determined by the MHC, based on the total annual gross income and family size and is limited to U.S. citizens and specified categories of non-citizens who have eligible immigration status. In general, the family's income may not exceed the income limits for the area. The Section 8 Department can provide you with the income limits according to your family size.
During the application process, the MHC will collect information on family income, assets, and family composition. The MHC will verify this information with other local agencies, your employer and bank, and will use the information to determine program eligibility and the amount of the housing assistance payment.
If the MHC determines that your family is eligible, the MHC will put your name on the waiting list. Once your name is reached on the waiting list, the MHC will contact you and issued to you a housing voucher.
Since the demand for housing assistance often exceeds the limited resources available, long waiting periods are common. In fact, the MHC may close its waiting list when it has more families on the list than can be assisted in the near future.
The MHC has established local preferences for selecting applicants from its waiting list. Families who qualify for any such local preferences move ahead of other families on the list who do not qualify for any preference.
The housing choice voucher program places the choice of housing in the hands of the individual family. A very low-income family is selected by the MHC to participate is encouraged to consider several housing choices to secure the best housing for its needs. A housing choice voucher holder is advised of the unit size for which it is eligible based on family size and composition.
The housing unit selected by the family must meet an acceptable level of health and safety before the MHC can approve the unit. When the voucher holder finds a unit that it wishes to occupy and reaches an agreement with the landlord over the lease terms, the MHC must inspect the dwelling and determine that the rent requested is reasonable.
The MHC determines a payment standard that is the amount generally needed to rent a moderately-priced dwelling unit in the local housing market and that is used to calculate the amount of housing assistance a family will receive. However the payment standard does not limit but does not affect the amount of rent a landlord may charge or the family may pay. A family, which receives a voucher, can select a unit with a rent that is below or above the payment standard. The housing voucher family must pay 30% of its monthly adjusted gross income for rent and utilities, and if the unit rent is greater than the payment standard the family is required to pay the additional amount. By law, whenever a family moves to a new unit where the rent exceeds the payment standard, the family may not pay more than 40 percent of its adjusted monthly income for rent.