For more than four decades, the Housing Choice Voucher (HCV) program has made New York City rental rates more accessible for thousands of individuals and families. However, only 85,000 of the city’s 5.4 million residents utilize the program, so landlords and brokers may not understand its logistics.
Also known as Section 8, the HCV program provides eligible residents with subsidized housing and rent subsidies for market-rate housing.
While the program exists nationwide, its New York City version operates under the oversight of the NYC Housing Authority (NYCHA), the New York State Homes and Community Renewal, and the Department of Housing Preservation & Development (HPD).
The Public Housing Authority (PHA) determines how much tenants will contribute toward monthly rent, usually about 30 percent of the household’s adjusted monthly income. Residents receive the remaining portion of the rent as a subsidy.
For a family of three, the qualifying income level is $60,050 or under. If a family loses income during their tenancy, they may report the change to the PHA for an adjustment to their share of the rent. High demand for the program means long waitlists and only a few vouchers issued each year. Currently, the NYCHA is not accepting applications except for specific categories such as survivors of domestic violence.
Emergency Vouchers
When unemployment increased during the pandemic, the federal government’s American Rescue Plan Act aimed to protect individuals experiencing homelessness and individuals at risk of homelessness. The Emergency Housing Voucher (EHV) Program was one of several rental assistance programs. On September 1, 2022, all EHV voucher holders received 300 days from the date of their voucher’s issuance to find an apartment.
If a landlord or broker encounters an EHV voucher, they must adhere to the same guidelines as the HCV program. Throughout the pandemic, the Department of Housing and Urban Development issued 7,788 emergency vouchers.
Landlord Regulations
Both city and state laws forbid discrimination against tenants based on their income source, whether it is child support, alimony, or housing vouchers. Since 2009, the law pertained to landlords of six or more units, and in 2021 it expanded to include most NYC rentals. If landlords or brokers refuse tenants who wish to pay with housing vouchers, they may be subject to penalties of up to $250,000 per violation. To avoid fines, landlords should consider all sources of income as valid. This includes not discriminating against certain types of vouchers.
Once a landlord has accepted a tenant, they must request permission from the Section 8 office to increase rent. On the application, they must state the current rent, the proposed rent, and the date of the change. Additionally, landlords must certify that they are not charging Section 8 tenants a different rate than comparable units on the property. They cannot apply to increase rent more than once a year.
What Rents Are Affordable for Voucher Holders?
If a rent applicant has a housing voucher, they can pay a minimum of 30 percent of their income and a maximum of 40 percent to the landlord, with the government voucher covering the rest. This amount is informed by the annually updated HPD’s Subsidy and Payment Standards. In 2023, for example, the payment standard for a one-bedroom apartment increased to $2,387.
Tenant Responsibilities
In addition to outlining rules and regulations for landlords, the housing voucher program involves responsibilities for the tenant. Voucher holders are required to maintain Housing Quality Standards, which include paying for electricity and gas, avoiding illegal gates on fire escapes, keeping a double cylinder lock on the exit door, paying rent on time, and more.
Landlords and brokers may be concerned about voucher holders’ timely rent payments. Even if the tenant loses income or encounters other financial hardships, landlords will receive a rent subsidy from the PHA. The voucher program plays a key role in broadening access to safe, affordable housing in New York City.
Application Process
To lease a unit to a voucher holder, a landlord must first complete the Landlord Package and return it to the PHA. The rental packet must also include supporting documents such as the certificate of occupancy, a copy of the deed, and the last rent-stabilized lease.
Next, within five days of receiving the rental packet, the PHA schedules an inspection to ensure that the unit and the building’s public space comply with all health, safety, and quality standards. If the unit does not comply with all the PHA’s performance standards, the landlord must remedy problems within a designated period, then be re-inspected before move-in.
After the PHA approves the unit and the owner, the owner will receive a Housing Assistance Payment (HAP) contract to sign. Additionally, the owner and tenant must sign a lease agreement and return it to the PHA. After processing both the HAP and the lease, the PHA will issue subsidy payments.
Each time the tenant is up for renewal, the PHA will schedule another inspection. If at any time the unit fails to meet Section 8 standards, the landlord must address the problem to remain approved for Section 8 subsidy payments.
Leave a Reply