The U.S. Department of Housing and Urban Development (HUD)is the federal agency responsible for:

• Creating and funding most affordable housing policy and programs
• Helping improve and develop local communities
• Enforcing fair housing laws

HUD's annual budget provides funding for most of the programs described on this page.  Depending on the program, HUD directs its funding to state governments; non-profit or private housing developers; Public Housing Authorities (PHAs) or other housing agencies.  Because housing programs are administered by a variety of agencies, they have different income and eligibility rules and different application and program regulations.

With project-based assistance, the rental subsidy is assigned to a specific housing unit, and any eligible household who moves into that unit will receive assistance to cover the portion of the rent that it cannot otherwise afford. Housing with project-based assistance is often built or developed with the purpose of accepting low-income tenants specifically.

Project-based rental assistance programs include:

There are several housing programs that offer project-based rental assistance to individuals and families who are low-income. These programs have a variety of income eligibility requirements and offer different formats of assistance. Some housing has been built that can offer assistance based on a household's adjusted income so that it only has to contribute 30 percent of its income towards rent and utilities. Other housing is designed so that rents are lower than other market-rate apartments in an effort to provide affordable options. For more information on the specific programs, read below:

Rural Development Rental Assistance

Rental Assistance is available in some rural housing developments that were built with Rural Development (RD) Section 515 funding. The RD 515 program is not administered through HUD and is instead run through the US Department of Agriculture. The rental subsidy may be for all or some of the units in the Section 515 development. A household receiving rental assistance pays approximately 30 percent of its adjusted income for rent. For more information: contact the management agent of the RD property directly or read more about the Rural Development Rental Assistance program on Vermont's RD website.

Section 236

The Section 236 program was active from the early 1960s through the early 1970s. It was designed to produce housing affordable by families with incomes above the public housing income limits. Almost all Section 236 projects now have project-based rental assistance assigned to them so that tenants don't have to pay more than 30 percent of their income for housing costs. Read about how rents are calculated for Section 236 funded properties (24kb; PDF). For more information contact the property manager directly.

Section 8 Moderate Rehabilitation Program

Under the Section 8 Moderate Rehabilitation Program, funding was provided to private housing owners to rehabilitate their properties to meet HUD's Housing Quality Standards. Once the construction was completed, subsidies were provided for those units. For more information: contact the management agent of the property directly or contact the Vermont State Housing Authority, which administers this program.

Section 8 New Construction/Substantial Rehabilitation

Under the Section 8 New Construction/Substantial Rehabilitation Program, funding allowed housing developers to build new housing specifically reserved for low-income tenants. This funding could also be used to rehabilitate a building in need of repair or convert a building to housing. Housing units that were created through this program are given project-based rental subsidies that stay with the apartments they support. The income eligibility limits vary from county to county. For more information: Contact the project manager of the property directly.

Section 8 Project-Based Assistance

Project-based vouchers are a component of a public housing agencies (PHAs) housing choice voucher program. A PHA can attach a portion of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development. PHAs refer families, who have already applied to a PHA for housing choice vouchers and are on the PHA's waiting list, to properties that have project-based voucher assistance when units become vacant. The PHA pays the owner the difference between 30 percent of family income and the gross rent for the unit. Read about how rents are calculated for this program. For more information on Section 8 Project-Based Assistance, go to HUD's website or contact the property manager directly.

Tenant-based assistance is a rental subsidy that moves with a household into any qualifying housing within a certain area. The housing can be — and is often — private housing that may not have been built or developed with the intention of accepting solely low-income tenants, but if the quality and cost of the unit falls within a certain range, then it may qualify.

Tenant-based rental assistance programs include:

Housing Choice Voucher program

The Housing Choice Voucher (HCV) program is a new combination of two programs that were called the Section 8 certificate and the Section 8 voucher programs. Under the Section 8 HCV program, a family or individual can apply to a Public Housing Authority (PHA) for rental assistance (called a "voucher") that would enable them to afford a privately-owned apartment of their choice within the PHA's jurisdiction. The vouchers are usually tenant-based and therefore if a household chooses to move after a period of time, they may do so without losing their assistance. Households pay approximately 30 percent — and no more than 40 percent — of their adjusted income for rent and utilities, and the PHA pays the balance of the rent directly to the owner.

Eligibility for the Section 8 HCV program is limited to applicants with incomes below 50% of the Area Median Income, although most of the vouchers assist households earning much less than that. Households receiving a voucher from a PHA must locate a unit that meets HUD's Housing Quality Standards, are within the PHA's jurisdiction, and has reasonable rent by local market standards.

In addition to its conventional Section 8 vouchers for any low-income household, PHAs may have applied to HUD for additional HCV vouchers targeted to a specific population. These include:

Family Unification Vouchers

These are regular HCVs that are used specifically to promote the reunification of families by providing rental assistance for whom the lack of adequate housing is a primary factor in:

1. The imminent placement of the family's child, or children, in out-of-home care; or
2. The delay in the discharge of the child, or children, to the family from out-of-home care

For more information about Family Unification Vouchers, contact VSHA. Read more about Family Unification Vouchers at the HUD site.

Mainstream Vouchers

Mainstream vouchers are HCVs but are specifically available to households where the head of household or spouse has a disability. The Burlington Housing Authority, Vermont State Housing Authority, and Winooski Housing Authority are the only PHAs in Vermont administering these vouchers. Read more about Mainstream Vouchers at the HUD site.

"Designated" and "Certain Development" Housing Vouchers

Households where an adult member is under 62 and disabled may apply for these HCVs that are available through certain PHAs. The Burlington Housing Authority is the only PHA in Vermont administering these vouchers. Read more about Designated Housing Vouchers and read more about Certain Development Housing Vouchers at the HUD site.

Welfare to Work Vouchers

These HCVs are specifically for families who are either receiving federal Temporary Assistance to Needy Families (TANF, previously known as Welfare), are eligible to receive TANF, or have received TANF assistance in the past 2 years. The vouchers are targeted to families who have a critical need for housing in order to obtain or retain viable employment. Read more about Welfare to Work Vouchers at the HUD site.