Sometimes people need some extra support in order to make it by. That is why the United States Department of Housing and Urban Development (HUD) has a variety of different housing assistance programs. These programs can help people get affordable housing so they can better manage their finances. This can keep families from needing to make tough decisions like deciding between paying rent or buying groceries.

Affordable housing is defined as being no more than 30% of a person’s income according to HUD. When tenants pay more than that, they can be cost-burdened. However, there may be supportive programs that can help like:

• Foreclosed Properties
• Section 8 Housing Assistance
• Public Housing
• Supportive Housing for the Elderly
• Supportive Housing for Persons with Disabilities

HUD Foreclosed Properties

Let’s dive into this affordable housing option from HUD. Foreclosed properties are homes that the lender has to deal with generally after the borrower:

• Misses loan payments
• Breaks other terms in the mortgage agreement
• Uses the property as collateral for another loan and the property gets repossessed

The foreclosure process varies depending on the state. However, the whole process of foreclosure typically takes 673 days. It is important to keep in mind that lenders do not actually want to foreclose properties. They will generally try to work with the borrower to avoid this from happening in the first place.

The foreclosed properties that HUD offers come from Federal Housing Administration (FHA) loans. These loans are government-backed so instead of the lenders dealing with the loss, the FHA does. That means that they are responsible for the properties after foreclosure. As a way to counteract the cost, the government will sell the homes at below market value. Even though there is a home appraisal in order to determine the cost of the property, they are sold in “as-is” condition. That means whatever condition the home is in, that is how the property will be sold.

How to Find HUD Foreclosed Properties

If you are interested in reviewing these housing opportunities, you can view listings on the HUD Home Store. When you review this site, you will see foreclosed listings. You can filter your search by price, location, number of bedrooms, etc. This can help you find a property that is best for your lifestyle and budget.

After getting a list together of properties you are interested in, you will want to get in touch with a local mortgage broker or realtor. They may be able to provide more information about the property and tell you about financing options.

Are There Risks with Foreclosed Properties?

It is important to understand that foreclosed properties come with some risks that a typical property generally wouldn’t have. Some concerns that you will have when it comes to these properties are:

• Underlying costs
• Competition

Underlying Costs

Since these properties are “as-is” there are no home improvements or home repairs that happen before the purchase. If the previous owner didn’t have enough money to keep up with their mortgage payments, the condition of the house is usually not the best. This can mean that your home may have more repairs than the property is actually worth.

Competition

These properties are generally less expensive than a normal home on the market. That means that many people in search of affordable housing will be looking at these properties as an option. With more people, there is more competition. More competition can make it harder for you to actually get the property.

Section 8 Housing

Another affordable housing assistance program that HUD offers is section 8 housing. Also known as the Housing Choice Voucher Program, this program can give housing vouchers to eligible recipients. Recipients can use these vouchers at properties that accept them as a form of payment. When using the vouchers, typically tenants will only pay 30% of their income towards rent while the housing voucher would cover the remaining amount.

Your local public housing authority (PHA) would be the one to manage the program. This means that eligibility requirements will vary depending on the area. Generally, you will need to meet:

• Income Requirements
• Family Status Requirements
• Citizenship Requirements
• Eviction History Requirements

What’s the Process of Getting Section 8 Assistance

If you are interested in this assistance option you will need to begin the application process with your local PHA. Once you fill out and submit your application, you will wait for a response. If approved, you will generally be placed onto a waitlist. These waitlists can take a long time and it may be years before it is your turn to receive vouchers. It is important to keep in mind that waitlists focus on prioritizing those in need of assistance.

Once it is your turn to get and use your housing vouchers, you will need to choose your property. The property you pick must not only accept these vouchers but also pass an inspection done by your local PHA. Your local PHA inspects the property to make sure that it meets safety and sanitary guidelines. Once the property is approved, you can sign the lease and move in! Your local PHA will pay the landlord with the vouchers on your behalf and you will be responsible for any remaining amount leftover.

Public Housing

Another popular HUD housing assistance program is public housing. Also sometimes known as “the projects”, this housing aims to give safe and decent rental housing to qualifying low-income individuals. Public housing can come in a variety of different types of properties like single-family houses, high rise apartments, and more. While this is a federal HUD program, it is managed by local housing agencies (HAs). HUD provides the funds to the HAs that are responsible for managing the properties that have rents which tenants can afford.

Eligibility Requirements

This housing assistance program is only available to those in need. Eligibility will be determined based on the following conditions:

• Income requirements
• Family status requirements
• Citizenship requirements

If you qualify, your local HA will confirm the references you provided on your application. This will ensure that you will likely be a good neighbor and tenant. However, local HAs have the discretion to deny an application if they feel that a potential tenant may have practices or habits that could negatively impact the housing project’s other tenants and environment.

Application Process

If you are interested in applying for public housing you will want to get in touch with your local HA. When applying, you can expect that you will likely need to provide information about the following:

• Family members in the household
• Contact details
• Rental history
• Income status
• Citizenship status
• Tax history

If eligible to live in public housing, you will need to sign a lease with your HA. In some situations, you may need to provide a security deposit. You will want to go over your lease with your HA to make sure you fully understand what you are signing. There will be tenant responsibilities, and you will want to know what to expect from the HA’s responsibilities. You can typically stay in public housing as long as you follow the lease agreement and maintain eligibility.

How Much Will Rent Be?

The amount of rent that a tenant will pay for public housing is known as the Total Tenant Payment (TTP). The formula that’s used to determine the TTP would be the highest option out of these choices:

• 30% of the monthly adjusted income
• 10% of monthly income
• The cost of Welfare rent
• A minimum rent set by the HA (between $25 to $50)

Supportive Housing for the Elderly

Also known as the Section 202 program, this assistance option can provide affordable housing with supportive services to qualifying seniors. It provides a supportive option for people to live independently while providing support with cooking, cleaning, transportation, etc. HUD will give funds (that are interest free) to private, nonprofit sponsors. These sponsors will use the funds to develop supportive housing for eligible recipients.

Supportive Housing for Persons with Disabilities

Also known as the Section 811 program, this affordable housing opportunity can help provide the funding needed to develop affordable housing with supportive services for qualifying low-income adults with disabilities. This program acts similarly to the Section 202 program which offers supportive housing for the elderly. However, besides providing interest-free funds to sponsors, it can also provide project rental assistance to state HAs.

Are There Additional Assistance Options

Besides housing costs, there are government programs that can help with other expenses like groceries, utilities, and more. Some of these programs includes:

• Low Income Home Energy Assistance Program (LIHEAP)
• Weatherization Assistance Program (WAP)
• Supplemental Nutrition Assistance Program (SNAP)

Low Income Home Energy Assistance Program (LIHEAP)

Countless Americans have utility bills that they need to deal with. In fact, the average family spends$562-$637 every month on utilities. However, LIHEAP may be able to help. This program can provide:

• Bill pay assistance
• Help with heating and cooling energy costs
• Energy crisis assistance
• Energy related home repairs
• Weatherization services

Besides these benefits, states may offer additional assistance as well. That is why it is important to remember that this program varies by state.

Weatherization Assistance Program (WAP)

The United States Department of Energy (DOE) can help eligible households save hundreds of dollars every year. While this may not be offered by HUD, it can still help. WAP is a program that can reduce energy costs for qualifying households by increasing a property’s energy efficiency. Even though they are improving a property’s energy efficiency, they do so in a way that maintains the health and safety of the household.

Supplemental Nutrition Assistance Program (SNAP)

SNAP is a program that can help people deal with the cost of groceries. Sometimes it is referred to as “food stamps”. If eligible to receive assistance from this program, SNAP recipients will get funds every month on an electronic benefits transfer (EBT) card. This card can be used at stores that accept it as a form of payment. The amount that a family will receive depends on information like their income level, family size, etc.

Bottom Line

There are a variety of housing assistance programs that can help qualifying households. Some of these options includes:

• Foreclosed Properties
• Section 8 Housing Assistance
• Public Housing
• Supportive Housing for the Elderly
• Supportive Housing for Persons with Disabilities

Besides these housing assistance programs, there are other government assistance options that can help with other bills like utilities and groceries. Some of these programs includes:

• Low Income Home Energy Assistance Program (LIHEAP)
• Weatherization Assistance Program (WAP)
• Supplemental Nutrition Assistance Program (SNAP)

Regardless of which assistance option you choose, it is important to know that there may be help for your situation. You just need to look into the right options!