Do
you want a more affordable living arrangement? With housing costs
rising all the time, more and more Americans of all ages and
backgrounds are looking for a good quality, less expensive option.
The
good news is that the federal government can help you reach this
goal. Through subsidized housing programs, they encourage affordable
housing options in the market. Here is what you need to know about
how to qualify for and use this housing solution.
What
Is Affordable Housing?
The
income-based housing programs designed by the federal government
operate in one of two ways. The first is a tax credit for developers
to build housing that will provide affordable rental units. Builders
create housing that qualifies and then receive a tax credit to repay
some of their costs. The goal of this program is to increase the
number of homes available in high-demand areas.
The
affordable housing programs that most renters then encounter come
into play after these or other homes have been built. The government
aims to keep such rental homes affordable. To do that, they offer
federal subsidies that pay a portion of the rent for qualified
consumers. Generally, most income-based housing calls for the renter
to pay 30% of their income toward rent — then the government will
pick up the remaining tab.
How
Do You Qualify for Affordable Housing?
Does
affordable housing sound like a good match for you? Then learn the
rules and requirements for qualification. First, you must
generally be able to prove that you are a U.S. Citizen or a legal
resident. Some people need extra time to gather this paperwork
together, so start early.
Secondly,
your income — based on family size — must be below a certain
threshold each year. The Department of Housing and Urban Development
(HUD) releases this information annually, and thresholds are based on
the area in which you want to live, among other factors. Income is
generally verified by your tax returns, income statements, or
paycheck stubs, so have these ready.
In
addition to income and residence requirements, you generally must be
able to pass a background check. While not all convictions would
disqualify you from subsidized housing, certain serious offenses like
violence and drug charges could be a problem. Finally, you may also
be asked about your past rent history to see if you're a good
tenant.
How
Can You Improve Your Chances?
Because affordable
housing is in such demand today, you may find yourself on a wait list
for an apartment. If this is common in your area, apply to be placed
on several wait lists just in case it takes some time for one to open
up again.
If
you are a senior citizen (over the age of 62) or have a disability,
you have extra opportunities to qualify for rentals that focus their
benefits on these groups. Take advantage of these options (often
called Section 202 housing) first, since you'll have a smaller pool
of candidates to compete with.
Another
way to increase your likelihood of finding a good home is to be
honest and upfront during the application process. If you have some
black mark on your history — such as an honest dispute with a
past landlord or trouble with stable employment — be open about it.
Landlords know that people's circumstances can sometimes be
complicated. They are more likely to work with you if you're honest
with them.
Where
Should You Start?
Ready
to learn more about how to find and qualify for top-quality and
affordable housing? Meet with an experienced landlord who works with
income-based homes. At Robert
Cottingham Property Management Company
,
we can help you find a great new home among our outstanding Illinois
properties. Call today to make an appointment.
