Rent subsidies and homebuyer's assistance programs have many different names. Trying to determine which ones may help can be a challenge.
First, it is important to know that rent subsidies typically include financial assistance to help reduce your monthly rent payments. Homebuyer’s assistance programs can be educational or financial to help reduce your mortgage payments. There are also financial assistance programs to prevent evictions, foreclosures, pay utilities, rehab homes for accessible modifications, and more.
Basic facts to know:
1) Tenant-based (portable) – A subsidy that is attached to the tenant. Therefore, if the tenant moves, the rent subsidy moves (ports) with the tenant.
The federal government's Housing Choice Voucher (HCV), aka Section 8, is tenant-based (portable). For example, suppose a tenant has an HCV (Section 8) voucher, lives in D.C. and wants to move to Florida. In this example, the tenant can move (port) the federal voucher to Florida because it is tenant-based.
2) Project-based (not portable) – A subsidy attached to the property, not the tenant. When the tenant moves, the subsidy stays at the property. The tenant who moves out will no longer have a rent subsidy. The tenant who moves in will receive reduced rent because the rent subsidy is attached to the property.
3) Public Housing – A federal government program created to provide affordable housing for extremely-low to low-income households (families), senior citizens, and persons with disabilities. D.C. Housing Authority (DCHA) manages and operates the District of Columbia’s (D.C.) public housing. The US Department of Housing and Urban Development (HUD) helps fund and provides oversight. Public housing is project-based; therefore, if the tenant decides to move, the subsidy stays with the unit.
4) The District of Columbia (D.C.) Local Rent Supplement Program (LRSP) – A tenant-based or project-based rent subsidy program funded by the D.C. government. Tenant-based LRSP can only be ported by the tenant to another property in D.C. In contrasts to the federal HCV (Section 8), which allows the tenant to move (port), the tenant-based rent subsidy anywhere in the United States.
5) Shallow Rent Subsidy Program (SRSP) – This program's financial assistance is less than traditional rent subsidy programs. The SRSP helps low-income renters keep their housing by providing eligible seniors (ages 62 and older) up to $600 monthly in rental assistance. For more information on SRSP, contact D.C. Department of Aging and Community Living (DACL; ) see the Resource Section for more information.
6) Tenant Does Not Pay the Entire Rent Amount-- Most subsidized rent programs require tenants to pay 30% (percent) of their adjusted annual income towards rent and utilities. For example, let us review Ms. Smith’s case. Her adjusted income is $10,000 a year. Therefore, her monthly adjusted income is $833.33 ($10,000 a year divided by 12 months). Her monthly rent is based on 30% (percent) of $833.33, which equals $250.00. Ms. Smith's apartment rents for $1,250 per month. Therefore, Ms. Smith is responsible for paying only $250.00 per month. The remaining $1,000 monthly balance is paid by the subsidy to the landlord. If a tenant has no-income, the subsidy pays the entire rent amount to the landlord. The program determines its guidelines for calculating adjusted income.