Section 8 Housing Choice Voucher (HCV) Program: Policy Issue

Overview

The Section 8 Housing Choice Voucher (HCV) program is the nation's most important tool for assisting low-income and moderate-income households to secure stable, affordable housing. Funded by the U.S. Department of Housing and Urban Development (HUD) and administered by local public housing agencies (PHAs), the program subsidizes the cost of rent for qualifying low-income families, providing them with the opportunity to access private, market-rate rental housing.

Rental housing providers across the country eagerly participate in this voluntary program and hope for its success. However, the HCV program's potential is limited by inefficient and duplicative requirements, which discourage many private providers from accepting vouchers. 

NAA Position

NAA strongly supports the Section 8 housing choice voucher program, which has long served as America's primary rental subsidy program. However, it is plagued with inefficiencies, burdensome regulatory requirements and a flawed funding system (see the difference between a standard leasing process and a housing voucher leasing process). Lawmakers should address these issues to attract private housing providers' participation and maintain the voluntary nature of the program.

As an Owner or Operator, How Does this Affect My Business?

Many private owner-operators may want to participate in the HCV program and a large share of participants find value by partnering with HUD and the local PHA. By working with these government agencies, a housing provider could find a ready supply of applicants, regular payments that are secured by the PHA and, in some jurisdictions, additional incentives like signing bonuses and security deposit guarantees.

However, a number of its requirements act as disincentives. For example, a mandatory HUD tenancy addendum that supersedes the owner's lease; repetitive unit inspections; resident eligibility certification; and other regulatory paperwork. Collectively, these often make it more expensive for a private owner to participate in the HCV program.

This application and approval process also adds significant time and uncertainty to the lease-up, undermining the housing provider's ability to properly manage risk for their community.

Moreover, in a well-intentioned, but self-defeating effort to combat local affordability challenges, some state and federal governments are enacting laws that make it illegal for a private owner to refuse to rent to a Housing Choice Voucher holder. 

Contact Information

To learn more about this issue, please contact NAA's Government Affairs team.

For more Information:

Section 8 Fact Sheet