Low Income Housing Information
Importance of Renter's Insurance
Section 8 Housing in Michigan
The Section 8 housing program is a federal one, applicable to all fifty states and operated by the U.S. Department of Housing and Urban Development (HUD, www.hud.gov). HUD works with local public housing authorities (PHAs) to provide a rental subsidy for people who qualify for the program. In general, to qualify a family or senior has to have an annual income that is at least fifty percent or less of the median income for the locality in question. The Section 8 beneficiary is then obligated to spend about thirty percent of their income on rent, while the HUD vouchers make up the remaining balance due on the rent each month. Section 8 housing can be both project-based - meaning that it is tied directly to a housing unit - or can be tenant-based, which means the qualifying person can get housing in the private market and still receive their vouchers to cover the balance due on the rent.
Although the Section 8 program is primarily administered by local PHAs, most states also have an agency or public company set up that helps to coordinate Section 8 housing with all of the other federal and state programs that may be available. Michigan is no exception to this rule, and the Michigan State Housing Development Authority (MSHDA, www.michigan.gov/mshda) performs basic oversight and administration on a statewide basis of PHAs. MSHDA not only provides oversight and administration, but also plays an active role in helping low income people find suitable housing through loans and other programs. Like many such organizations, MSHDA is an agency of the state government and though it does not receive funds from the state government, it does raise money through the issue of bonds and other securities with state and federal government approval.
As has been the case with many of the "rust belt" states that have faced serious housing problems since the decline of the region's manufacturing base, there are multiple programs available for low income renters, not just the federal Section 8 program. Most of these programs still use the basic information provided by HUD as the basis of its qualifying conditions, but not all of them are financed through federal funds. The MSHDA website provides a page specifically dealing with rental assistance programs available in Michigan. The MSHDA website also provides an online subsidized housing locator that allows visitors to search for affordable housing options in particular locations and areas throughout the state.
Like many "rust belt" states, Michigan also has a comprehensive array of nonprofit organizations, foundations, and charities designed to help people in need of housing assistance make sense of it all. Some of these organizations provide direct assistance on top of what is offered by the government, though many others simply help people find the right programs and show them how to apply for them. Unlike many states, there is no statewide housing coalition that pulls all of these different organizations together beneath one umbrella. Therefore, people that are interested in getting additional assistance from one of these nonprofits have to look in the area in question. However, the HUD website provides an online listing of housing counseling agencies that includes many of these same organizations.