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Section 8 Voucher Funding and Reform
|Section 8 Tenant-Based Rental Assistance (the “Housing Choice Voucher program”) is the primary program assisting extremely low-income people with the cost of housing. Ongoing efforts aim to streamline and enhance the program.|
In his fiscal year (FY) 2015 Budget Proposal, the President recommended providing a significant increase to $20.045 billion for Tenant-Based Rental Assistance, including $75 million for approximately 10,000 new HUD-VASH vouchers, $108 million for new mainstream vouchers provided by the Section 811 Program, and $1.705 billion in administrative fees. This increase to Tenant-Based Rental Assistance will allow the program to continue serving the approximately 2.2 million households already in Section 8 housing. Although the Administration further estimates that this funding level would be enough to undo some of the negative impacts of sequestration on the program, advocate groups think that serious cost-savings measures would need to be implemented in order to generate enough funding to achieve this. The budget proposal also includes a small decrease to the Project-Based Rental Assistance voucher program to $9.746 billion.
Since the Murray-Ryan Bipartisan Budget Act of 2013 set the topline spending levels, or 302(a) allocations, for both FY 2014 and FY 2015, Congress will soon work to determine 302(b) funding levels for each of the twelve House and Senate appropriations subcommittees to work within to fund programs under their jurisdictions. Then, the subcommittees, including the Transportation, Housing and Urban Development, and Related Agencies subcommittees, which set funding levels for the Tenant-Based Rental Assistance and Project-Based Rental Assistance programs, among others, will begin to draft their FY 2015 appropriations bills.
About the Section 8 Program
The Section 8 program provides rental assistance for low-income households, with 75 percent of funds being targeted at households living at or below 30 percent of area median income (AMI). Section 8 tenant-based rental assistance follows participating individuals and families, regardless of whether or not they move over the course of their subsidy. Participants in the program pay 30 percent of their incomes toward housing costs, with the program paying the remainder up to a set maximum amount. These vouchers are the leading form of low-income housing assistance, serving over two million households, including families with children, elderly households, and people with disabilities. For more information about tenant-based Section 8, also called the Housing Choice Voucher program, please see the Center on Budget and Policy Priorities’ webpage.
About Reform Efforts
Neither chamber of Congress has yet floated a draft of rental assistance reform legislation in the 113th Congress. This past October, national housing organizations sent a letter to the House and Senate appropriations committees urging them to include 11 key rental assistance program reforms in the final FY 2014 appropriations bill; however, many of these provisions did not make it into the final legislation. Due to the cost savings produced by reform legislation (as highlighted in the above letter), such legislation will likely be reconsidered in the future. The President's FY 2014 Budget Proposal also included a series of legislative changes to the programs intended to streamline and enhance them.
Reform of the Housing Choice Voucher program for the first time in ten years would help the program continue to provide affordable housing to millions of households, while using federal resources more efficiently. For a more in-depth analysis of proposals as they are available and other information, please see the National Low Income Housing Coalition's webpage.
Media Clips on Section 8 Voucher Funding and Reform