Another type of coupon, called a Tenant Protection Bond, is given to families who have already received support from another HUD housing program before being distributed. Examples of cases where families receive tenant protection vouchers are cases where social housing is demolished or where a lessor has terminated a project-based lease under Section 8. Families at risk of eviction from units based on Section 8 projects are entitled to a specific form of tenant protection cheque, called an “extended coupon”. The “expanded” function of the voucher allows the maximum value of the voucher to increase on the new rent calculated in the property, as long as it is reasonable in the market, even if it is higher than the PHA payment level. They are designed to allow families to stay at home. If the family decides to move, the extended function is lost and the voucher is subject to the normal PHA payment standard. To answer these questions, HUD commissioned three experiments: the request experiment to test how families would react to a housing allowance, the procurement experiment to test how markets would respond to subsidies, and the Administrative Agency`s experience to test the administrative capacity and means needed to run a housing allowance program. The first reports were published in 1973 and a final report was published in 1980. The main outcomes of the EAP are listed below: the local flexibility and independence allowed by MTWs seem to allow strong and creative SAHs to experiment with innovative solutions to local challenges and better respond to local conditions and priorities than is often possible when federal program requirements limit the possibility of variation.
However, the authorization of local variations carries potential risks and benefits. In the context of MTW, for example, some [P]HAs made mistakes that provided the resources available to meet low-income housing needs and some modifications implemented that disadvantaged certain groups of households in need that currently serve under the rules of the federal program. In addition, some might object to the likelihood that the eligibility of significant differences between [P]HAs inevitably leads to some loss of coherence between municipalities.15 Congress` interest in Section 8 programs – both the voucher program and the project-based rent assistance program – has increased in recent years, especially since the cost of the program has increased rapidly, the increase in costs in the voucher program. To understand why costs are rising so fast, it`s important to start by understanding how the program works and its history. This report gives a brief overview of this story and introduces the reader into the program. For more information, see CRS RL34002, section 8 Housing Choice Voucher Program: Issues and Reform Proposals; and CRS Report R41182, Preservation of HUD-Assisted Housing, by Maggie McCarty and Libby Perl. Owners of property receiving project-based rental assistance under Section 8 receive a subsidy from HUD called the Housing Assistance Payment (PAH). PAH payments are the difference between the tenant`s payments (30% of income) and a contractual rent agreed between HUD and the lessor. Contract rents are expected to be comparable to local market rents and are usually adjusted annually by an inflation factor determined by HUD or based on project operating costs. Section 8 project-based contracts are managed by contractual administrators.
While some HUD regional offices continue to serve as contract managers, the ministry aims to assign the function entirely to external bodies, including public housing finance agencies, PHAs or private institutions. . . .