Subsidized Housing Income Levels
- Subsidized housing income levels are a method used to determine eligibility of Americans for public housing projects and rent assistance. These levels were set up by the United States Department of Housing and Urban Development (HUD). According to information from HUD, the department administers aid to local housing agencies which manage low-income housing for residents at an amount the renters can afford. HUD also provides help in planning, developing and running these housing units.
- Subsidized housing income levels are defined by the amount of realized income earned in relation to the AMI (Area Median Income); an AMI is the average household income for a geographic area. The local AMI figures are recalculated each year based upon surveys of comparable households within a metropolitan statistical area (MSA). An MSA is defined as a geographic area set by the US Office of Management and Budget for use by federal agencies to collect, tabulate and publish federal statistics according to the US Census Bureau.
- Subsidized housing income levels are determined by annual gross income, qualifications in specific categories, and citizenship or immigration status. The specific categories include the elderly, disabled, and if the household qualifies as a family. HUD sets the moderate income level at a range of 80 to 120 percent of the local AMI. Low income levels range between 50 to 80 percent of the local AMI. Very low income levels are set under 50 percent of the local AMI.
- Some of the effects from the establishment of income levels has been creation of federal law, programs dealing with various housing issues and state or local governments using the income levels as part of public assistance program guidelines. A US federal law dictates that a public housing agent (PHA) must use 75 percent of it's available rental vouchers for applicants not exceeding 30 percent of their AMI; another federal law mandates that for a housing project to receive government funding it must provide for a certain percentage of units set aside for households within subsidized housing income levels. Various programs such as supportive housing, transitional housing and rent subsidies have risen to assist households that fall within these income levels; examples include Section 8, rental vouchers, tax credits and non-profit grants or loans.
- A significant gap between eligible households and available rentals has become evident. A study published by the Urban Institute in 2005 reported that there were 23.6 million households which fell into the HUD subsidized housing income levels; only 23 percent of this number received assistance. Households with children comprised 12.3 million or 36 percent of the total number of families that are on one of the three income levels. The Recession of 2008-2009 caused wide-spread unemployment and housing loss which caused a spike in households falling below poverty levels. As of 2009 an accurate number of households within subsidized housing income limits had yet to be determined.
