What is the difference between Section 8 and Housing 42?

Surely you have heard about the Section 8 and Housing 42, but you’re not sure what they are, just that it’s something related to housing. As well, both terms refer to highly beneficial and important government programs for low-income residents, thanks to which decent and safe housing can be afforded.

Interested individuals may qualify for these types of programs if their income falls within a specific range. However, due to high demand and low rental availability, competition can be high.. Therefore, it is not uncommon for apartment complexes to have long waiting lists that can be one to two years.

Differences between Section 8 and Housing 42

But what exactly is income-based housing?

Income-based housing means that a tenant pays rent based on the amount of money they earn according to certain conditions established by a specific program. In this order of ideas, many factors are taken into account, such as the size of the family, the apartment community, and any other needs.

Income-based housing programs were first created by the United States Department of Housing and Urban Development, also known as HUD. In this sense, HUD’s mission is to provide decent housing for all Americans and includes:

  • Voucher Assistance
  • Community housing development, including low-income and elderly mortgage loans
  • Fair Housing Information

The programs are mutually beneficial to both residents and homeowners. As for these, they receive monetary incentives to help subsidize the cost of the low-income units they make available to HUD. These subsidies come in the form of tax credits for the first decade of your participation in the program.

What is Section 8?

Created under President Lyndon B. Johnson, Section 8 is one of the nation’s oldest and largest government programs targeting affordable housing. The program provides housing choice vouchers to eligible residents.

The rent for Section 8 apartments is distributed between the tenant and the government, so that the tenant allocates 30% of their income to pay the rent, while the government is responsible for the rest. Section 8 is funded entirely by the federal government, although it is managed at the local level by public housing agencies.

How to apply for Section 8 assistance

More of 2 million low-income families participate in Section 8, most of them earning less than $20,000 a year. In this order of ideas, 75 percent of the vouchers are awarded to those earning 30 percent of the median income in the rental area.

For Section 8 rentals, applications are generally made at local public housing offices, or at HUD offices. Here is a summary of what you can expect the application process to be like if you decide to apply for Section 8.

  • You have to provide your personal and income-related information.
  • Restrictions and requirements vary depending on where you apply.
  • The agencies that review your application will look at your finances (ie, income, inheritance, alimony, and scholarships).
  • All information must be verified
  • Approval of a voucher (which can take years)

Section 8 has long waiting lists

Different housing authorities maintain waiting lists for Section 8 applicants. Due to high demand, even if you are eligible and meet the requirements, you may not be accepted.

Once you apply, you will need to confirm that you are on the list, as it can take up to a few months for the office to process your application. You can confirm your enrollment on the waiting list by mail or by accessing an online portal.

When you finally receive approval, you will need to do the following:

  1. Locate a housing unit.
  2. If the landlord accepts you, you’ll need to take the proper steps for your application, such as a background check.
  3. Once the property is approved (possibly including a physical inspection), the local public housing agency will pay the remaining portion of the rent on your behalf.

What is Housing 42?

The House 42 it’s also known as the “Low Income Housing Tax Credit,” and like Section 8 it’s an income-based program, but it works differently.

Unlike Section 8 rentals, Housing 42 does not provide tenants with government assistance. Properties funded by this program must house a percentage of residents earning less than 60 percent of the area median income. That is, it limits the rental of eligible participants to a fixed amount.

Housing 42 is part of the federal government’s low-cost housing programs, which allows developers who build affordable housing in their projects to receive a tax credit.

How to apply for Housing 42 assistance

Applications for Housing 42 are typically made at the selected property office, and eligibility is based on income and/or student status.

Some properties require households to have a minimum rental-based income (for example, if the rent is $1,000 per month, the household income could be $3,000). This will also likely require an annual recertification in order to remain in the unit.

Also, it is often necessary to meet other requirements, such as having good credit and a criminal history, and you may even be asked for references.

Difference Between Section 8 and Housing 42

Section 8 should not be confused with Housing 42 or public housing, as the former refers to private housing whose owners have agreed to accept payments from the government, while Housing 42 encompasses entire government-sponsored housing developments.

While the Section 8 determines a tenant’s rent based on their income (30 percent), a public housing development bases rent on a percentage of income formula developed by the Department of Housing. Also, Housing 42 units are often inhabited by low-income, elderly, or disabled people.

The process can be long, but it’s worth it

Find out if you’re eligible for income-based housing programs like La Section 8 and Housing 42, it can be a tedious process. Understanding what to do and setting the right expectations is crucial to begin with, and in the end you will find that the entire process and wait was worth it.

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