HUD's FY 99 Budget
Key Programs and Initiatives: Averting a Section 8 Housing Crisis

Decent, Safe and Affordable Housing for Low-Income Americans

With passage of the historic, bipartisan Section 8 reform bill also known as "Mark to Market," in October of 1997, HUD averted a crisis in affordable housing that threatened 4.4 million Americans with homelessness. The legislation, contained in HUD's FY98 appropriations bill, brought financial soundness and stability to the Section 8 program, renewed funding for all expiring Section 8 contracts, and preserved 1.8 million units of affordable housing. In addition, the reform bill ended excessive rental subsidies to private landlords and will save taxpayers $1.6 billion dollars over the next five years.

HUD's Section 8 rental assistance program continues to be one of the Department's primary vehicles for helping eligible recipients find decent, safe and affordable housing. For FY99, the Secretary has requested $7.2 billion in funding to renew expiring Section 8 certificates and vouchers. This level of funding represents the Department's continuing commitment to maintain current levels of rental assistance to the elderly, the disabled and to low-income working families.

Section 8 rental assistance falls into two broad categories: tenant-based vouchers, which are issued to individuals, and project-based vouchers, which attach to a specific rental unit. Local public housing agencies administer the Section 8 program and issue vouchers to eligible, low-income families and individuals. To qualify, a recipient's income must be at or below 80% of area median. Participants contribute up to 30% of their income towards monthly rent and the remainder is covered by the Section 8 voucher. Rents must be reasonable and comparable to unassisted fair market rents in the local real estate market. Each dwelling unit must also meet minimum housing quality standards set by HUD and all landlords are required to maintain their units in good, livable condition.

• 4.4 million people live in Section 8 assisted housing
• 1.8 million subsidized units across the country
• $9,100 average income for a family of four receiving Section 8
• 4% of Section 8 recipients are disabled or age 62 or older
• 66% of Section 8 recipients have young children