Public housing authorities (PHAs) are local agencies that manage many of the programs in this article, including Section 8 and public housing. They are the first place you should go when you are thinking about applying for help with your rent. This page explains the basics of how to apply for housing benefits at public housing authorities. Later pages explain who can get these benefits and how they work.

How to Find Local Public Housing Authorities

The U.S. Department of Housing and Urban Development (HUD) oversees PHAs and has a list of Michigan public housing authorities. Most PHAs have waiting lists to get Section 8 benefits or to enter public housing, so it’s important to apply at more than one PHA.

The Application

Each housing authority has its own forms that you must fill out. Generally, these forms ask for the same information, like who lives in your household, how they are related, how much income you have, and if you have a disability.

If your disability makes any part of the application process hard for you, the PHA must give you reasonable accommodations during the application process. Reasonable accommodations could include things like:

• Help filling out application forms
• Braille application forms
• Extra time to fill out applications
• Help to find an apartment

Note: You should never have to pay to apply for Section 8. It is illegal for somebody to sell you a Section 8 application or voucher.

Waiting Lists

When you go to apply for Section 8 benefits, public housing, or any other program managed by a PHA, you probably won’t get help immediately. Instead, you might be put on a waiting list. A waiting list means you have to wait until it’s your turn to get a benefit.

The PHA tells you if they have an “open” waiting list or a “closed” waiting list:

• If the waiting list is open, you can apply and your name is added to the list. It may take years for you to get a benefit. How long it takes depends on the PHA. If you apply to more than one PHA, you are more likely to get benefits sooner.
• If the waiting list is closed, you can’t apply.

If you are on a waiting list, you must keep your information up-to-date. Tell the PHA if your contact info changes and reply whenever the PHA tries to contact you. Otherwise, they might take you off the waiting list and you won’t get benefits.

Benefit Approval

When your name reaches the top of the waiting list, the housing authority looks at your application and personal information to make sure you qualify for benefits.

If you qualify, the PHA then explains all program rules. The rules for some programs are explained in the rest of this article.

Voucher programs help people with low-income pay for rent in any privately-owned apartment that meets certain standards and where the landlord accepts payment from the voucher program. This means you find a place to live, and once you have one, you pay your landlord a portion of your monthly household income for rent, while the voucher program pays the rest.

Section 8 Housing Choice Voucher (HCV) Program

The Section 8 housing choice voucher program (also called “tenant-based Section 8”) is the largest voucher program. It is paid for by the federal government and managed by local public housing authorities (PHAs). The PHAs make sure that the housing you get is safe, decent, and affordable.

How Section 8 Housing Choice Vouchers (HCVs) Help

With Section 8, you pay about 30% to 40% of your monthly household income for rent in privately-owned housing, while the government pays the rest.

Note: You may end up eventually paying more than 30% to 40% of your income for rent if the landlord raises the rent after you move in.

Once you have a housing choice voucher, you can keep using it even if you move to another city or state, as long as there is a PHA that can manage the voucher in the area where you want to live.

Most people use their housing choice vouchers to get apartments or single family homes, but if you have a disability you can also use a voucher to pay for a group home, a shared place, a room, or an assisted living facility.

Who Section 8 Helps

To get any type of Section 8 benefits, you must:

• Have very low income (less than 50% of the area median income)
  • Not all income is counted. Example: The earned income of children under 18 and of dependents over 18 who are full-time students is not counted.
• Not own a home your family could live in
• Have less than $103,200 in countable assets (not all assets are counted)
  • ABLE accounts, Family Self-Sufficiency (FSS) accounts, retirement accounts, some types of trusts, and personal property with a combined value of less than $51,600 are not counted.
• Be a U.S. citizen or an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents.

You may be more likely to qualify for Section 8 if you:

• Have a disability
• Have children
• Are age 62 or older
• Are a U.S. Armed Services veteran, widow, or widower
• Are experiencing homelessness
• Are in a shelter

When you apply, the people reviewing your application take into account:

• Your history with federal housing programs
• Your criminal background
• Your credit history

Learn more about how to apply for Section 8 vouchers at public housing authorities.

Getting a Section 8 Voucher

After you apply, your name is put on a waiting list. When your name reaches the top of the waiting list, the housing authority reviews your application and personal information to see if you qualify for Section 8. They look at things like:

• How many people are in your household
• Their age, sex, and relationship to each other
• The medical conditions and disabilities of household members

For example, if you have a disability and need a live-in aide or overnight support staff, you may be able to get an apartment with a larger number of bedrooms.

Finding a Place

After the Section 8 briefing, you have to find a place quickly. The PHA usually gives you between 60 days (two months) and 120 days (four months) to find a place. In addition to the list of landlords your PHA gives you, the Michigan State Housing Development Authority (MSHDA) lists other resources for finding affordable rentals.

Tip: If you have a disability and need more time to find a place, try asking for extra time as a reasonable accommodation.

If it is hard to find a place within the price range given by your PHA, the PHA may increase your rental amount slightly. If you still can’t find a place, the PHA can submit a request to the federal Department of Housing and Urban Development (HUD) asking for a “specially approved payment amount” that lets you get a place with higher rent. Ask your PHA to help you in any way they can.

Landlords are not legally required to accept Section 8 vouchers and may turn you down if you want to use vouchers. However, it is illegal for them to refuse to rent to you because you have a disability. If you think a landlord is discriminating against you and refusing to rent to you because of your disability, ask the housing authority for help.

If you think you have been discriminated against, you can also use these resources:

• Disability Rights Michigan (DRM) represents the rights of children and adults with disabilities in Michigan
• The American Bar Association lists providers of free legal services
• U.S. Department of Housing and Urban Development (HUD) explains how to file a discrimination complaint

After You Find a Place

Once you find a place to rent that accepts your voucher:

• Landlords may check your credit history, criminal background, and rental history before approving your application.
• The PHA must inspect the rental unit before they start making payments to the landlord.

If the landlord accepts your application and the rental unit passes the PHA’s inspection, you can move into your place. You pay about 30% of your income as rent and the Section 8 program pays the rest.

Learn more about how your income and your earnings affect your rent.

Site-based housing programs can also help you live in an apartment you can afford. Unlike voucher programs, with site-based housing you do not get to choose where you live — you have to live in a specific unit at a specific location that has been set aside for people with low income.

This page explains the two basic types of site-based housing:

• Project-based housing programs are privately-owned apartments that are available only to people with low income.
• Public housing programs are government-owned apartments.

With both project-based housing and public housing, if you move out of your specific unit, you might stop getting help with your rent.

Project-Based Housing

There are different ways to get project-based housing:

• You may be able to apply for it directly at a privately-owned building that has set aside units for people with low income. For help finding the management for these units, speak with public housing authorities (PHAs).
• Section 811 is a project-based housing program for people with disabilities. The Michigan State Housing Development Authority lists Section 811 projects.
• Section 8 funds many project-based units that are managed by local PHAs. This section mainly explains how Section 8 project-based housing works, but the rules are usually similar for other project-based housing.

A local public housing authoring (PHA) is a good place to get help finding and applying for project-based housing. Learn more about the application process at PHAs.

How Section 8 Project-Based Housing Helps

With Section 8 project-based housing, the PHA works directly with a housing unit’s owner to make the housing available to people in the Section 8 program. When one of these privately-owned apartments is empty, the PHA offers it to someone on its waiting list.

Who Section 8 Project-Based Housing Helps

To get Section 8 project-based housing, you must:

• Have low income
  • Not all income is counted. Example: The earned income of children under 18 and of dependents over 18 who are full-time students is not counted.
• Not own a home your family could live in
• Have less than $103,200 in countable assets (not all assets are counted)
  • ABLE accounts, Family Self-Sufficiency (FSS) accounts, retirement accounts, some types of trusts, and personal property with a combined value of less than $51,600 are not counted.
• Be a U.S. citizen or an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents

You may be more likely to qualify if you:

• Have a disability
• Have children
• Are age 62 or older
• Are a U.S. Armed Services veteran, widow, or widower
• Are experiencing homelessness
• Are in a shelter

When you apply, the people reviewing your application take into account:

• Your history with federal housing programs
• Your criminal background
• Your credit history

Learn more about the application process, and waiting lists.

What You Pay in Project-Based Housing

In project-based housing, you pay about 30% of your income as rent. Learn more about how your income and your earnings affect your rent.

Note: If you move out of your project-based apartment, you may lose the help you are getting with your rent.

Public Housing

Public housing is rental housing for people with low income that is owned and managed by a local government agency. With public housing, you usually pay 30% of your household income.

How Public Housing Helps

With public housing, when you are at the top of the waiting list and a unit becomes available that matches your needs, the PHA offers to rent you that specific unit.

There are many types of public housing, ranging from single-family houses to large apartment buildings. Waiting lists for public housing may be very long and the type of housing you want may not be available for a long time. You should apply to several different public housing programs to get on their waiting lists. That way, you have a better chance of getting a place.

Who Public Housing Helps

To qualify for public housing, you must:

• Have low income
  • Not all income is counted. Example: The earned income of children under 18 and of dependents over 18 who are full-time students is not counted.
• Not own a home your family could live in
• Have less than $103,200 in countable assets (not all assets are counted)
  • ABLE accounts, Family Self-Sufficiency (FSS) accounts, retirement accounts, some types of trusts, and personal property with a combined value of less than $51,600 are not counted.
• Be a U.S. citizen or be an eligible immigrant. Eligible immigrants include permanent legal residents, refugees, asylees, and lawful temporary residents.

If your income is low enough for you to qualify, the local housing authority also checks:

• Your references, to make sure you and your family are good tenants
• Your credit history
• Your history as a tenant
• Your criminal background

If you have had problems with a housing authority in the past or owe money for rent or damages to a housing authority, you probably won’t be allowed to live in public housing.

When you fill out the application, be sure to mention your disability, because some units are reserved for people with disabilities.

Learn more about the application process and waiting lists.

If you have questions about public housing, you can also contact the U.S. Department of Housing and Urban Development (HUD) at 1-800-955-2232.

This page discusses the income rules for:

• The Section 8 housing choice voucher (HCV) program
• Public housing, and
• Many different project-based housing programs. Note: Some project-based housing has different rules than the rules described here. Make sure to check with the program.

Other programs may also use these same rules or rules that are similar.

Rent Based on Your Income

The key thing to know when you get help with rent from these programs is that how much you pay for rent is directly related to your total income, including earnings from work, benefits you get (like Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), and other unearned income.

When you get benefits from one of these housing programs and move into a place, you’ll have to pay about 30% of your household income in rent. For example, if you make $1,000 a month, you may have to pay $300 each month for rent. The program pays the rest of the apartment’s rent. You may end up paying a little less if you qualify for credits related to your disability or medical expenses, or if you have children and you pay for childcare costs.

Note: Any money earned by a child under age 18 does not count as household income, and will not affect the rent the family pays. However, unearned income is counted, including SSI, FIP, or child support.

Generally, you keep paying the same amount of rent as long as your income or other family circumstances don’t change. The only thing you have to do is keep your income, family information, and contact information up-to-date with the manager of your housing benefit:

• Each year, in a process called "annual reexamination," the housing agency looks at your income and family situation again and decides how much rent you must pay in the coming year.
• If there is a change in your income or situation between your annual reexaminations, you have to let the housing agency know. They may then do an "interim reexamination." Depending on the results of the interim reexamination, the amount you pay for rent could change.

After an annual or interim reexamination, you still pay about 30% of your income for rent, but if your income is higher than it used to be, your share of rent goes up and the housing program pays less. Note: The exact timing of when your rent changes depends on how your income changes and other factors.

Tip: If you get help paying your rent and you start making more money at work, ask your public housing authority (PHA) or your housing program if the Family Self-Sufficiency (FSS) program might help you. With the FSS program, when your rent goes up because your earned income went up, the increase in your rent goes into a special account that you can access later to pay for something you need. Learn more about the FSS.

Earning More

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With Section 8, public housing, and many different project-based housing programs, the more you make, the more rent you pay. Earned income is treated the same as unearned income, so if your earnings go up by $500 per month, your rent would go up by about 30% of that ($150 per month).

Note that if your income changes, the timing of when your rent changes depends on different things like:

• When your last annual reexamination was done
• If your income went up or down
• How much your income changed, and
• What type of income changed.

The bottom line: You’re better off if you earn more because your rent won’t go up as much as your earnings.

See How More Earnings Might Affect Rent

If you have subsidized housing and the amount you pay for rent is based on your income, use this tool to see how making more money could affect your rent.

This tool looks at rent, earnings, SSI, and SSDI. It doesn’t adjust for other benefits. If you have any questions, talk to a Benefits Planner.

Step 1: Your Subsidized Housing
Do you get help from a housing program?
Yes, the Section 8 Housing Choice Voucher program helps me pay my rent.Yes, I live in project-based housing.Yes, I live in public housing.Yes, the Housing Opportunities for Persons with AIDS (HOPWA) program helps me.Yes, but it is not listed here.No, none of these programs helps pay for my housing.
How much do you spend on rent each month?	$
Step 2: Your Current Income (per month):
Earnings from work now:	$
Supplemental Security Income (SSI):	$
Social Security Disability Insurance (SSDI):	$
Other unearned income:	$
Step 3: Your Future Work Plan (per month):
Earnings from work in your plan:	$
	$1,620
	$20
	$65
	$967
Submit

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Results

There isn’t enough information about your housing benefit to say if increased earnings might affect rent.

Use the Benefits and Work Estimator to get detailed results about how work interacts with other benefits.

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Results

This tool helps see how earning more might affect benefits that help with rent. Since you don’t get benefits that help pay your rent, this tool cannot help you

Use the Benefits and Work Estimator to get detailed results about how work interacts with other benefits.

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Results

This tool helps show how an increase in your earnings could affect your rent. The earnings in your plan are not higher than your current earnings.

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Results

There is not enough information to say if you will keep getting SSDI benefits and how your rent might change. Use the Benefits and Work Estimator to get detailed results.

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Results

If you earn $/month, we estimate:

Your monthly SSI benefit:	$
Your monthly SSDI benefit:	$
Your total monthly income:	$
Change in total income:	$
Your monthly rent:	$
Change in rent:	$

This is only an estimate. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

If you earn $/month, we estimate:

Your monthly SSI benefit:	$
Your total monthly income:	$
Change in total income:	$
Your monthly rent:	$
Change in rent:	$

This is only an estimate. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

If you earn $/month, we estimate:

Your monthly SSDI benefit:	$
Your total monthly income:	$
Change in total income:	$
Your monthly rent:	$
Change in rent:	$

This is only an estimate. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

If you earn $/month, we estimate:

Your total monthly income:	$
Change in total income:	$
Your monthly rent:	$
Change in rent:	$

This is only an estimate. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

Your subsidized housing has an Earned Income Disregard (EID). The EID helps during the first 24 months (two years) after you start earning more from work:

With the EID, If you earn $/month, we estimate:

Your monthly SSI benefit:	$
Your monthly SSDI benefit:	$
Your total monthly income:	$
Change in total income:	$

	Year 1: The first 12 months after your earnings go up	Year 2: The next 12 months after your earnings go up	Year 3 and later: 24+ months after your earnings go up
Your monthly rent:	$	$	$
Change in rent from what you pay now:	$0	$	$

These are only estimates. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

Your subsidized housing has an Earned Income Disregard (EID). The EID helps during the first 24 months (two years) after you start earning more from work:

With the EID, If you earn $/month, we estimate:

Your monthly SSI benefit:	$
Your total monthly income:	$
Change in total income:	$

	Year 1: The first 12 months after your earnings go up	Year 2: The next 12 months after your earnings go up	Year 3 and later: 24+ months after your earnings go up
Your monthly rent:	$	$	$
Change in rent from what you pay now:	$0	$	$

These are only estimates. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

Your subsidized housing has an Earned Income Disregard (EID). The EID helps during the first 24 months (two years) after you start earning more from work:

With the EID, If you earn $/month, we estimate:

Your monthly SSDI benefit:	$
Your total monthly income:	$
Change in total income:	$

	Year 1: The first 12 months after your earnings go up	Year 2: The next 12 months after your earnings go up	Year 3 and later: 24+ months after your earnings go up
Your monthly rent:	$	$	$
Change in rent from what you pay now:	$0	$	$

These are only estimates. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Results

Your subsidized housing has an Earned Income Disregard (EID). The EID helps during the first 24 months (two years) after you start earning more from work:

With the EID, If you earn $/month, we estimate:

Your total monthly income:	$
Change in total income:	$

	Year 1: The first 12 months after your earnings go up	Year 2: The next 12 months after your earnings go up	Year 3 and later: 24+ months after your earnings go up
Your monthly rent:	$	$	$
Change in rent from what you pay now:	$0	$	$

These are only estimates. Actual rent could be different based on your housing and program rules. Talk to a Benefits Planner.

Note: When your rent starts to go up due to your earnings, check with your public housing authority (PHA) to see if you qualify for the Family Self-Sufficiency (FSS) program. With the FSS, the increase in your rent might get set aside to help you buy something in the future, like a car or a home. Learn more about the FSS.

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Family Self-Sufficiency (FSS) Program

The Family Self-Sufficiency (FSS) program helps families who get help with their rent from programs funded by the U.S. Department of Housing and Urban Development (HUD).

It helps families whose income goes up because of work. When the family income goes up and the program starts paying less for rent, the FSS program takes the money that it saves on rent and sets that money aside for the family. The family can use these savings for purchases, such as the down payment on a home or a car.

The FSS program can help people who get help from programs like:

• Public housing
• The Section 8 housing choice voucher program
• Section 8 project-based rental assistance
• Some other project-based housing programs, and
• Some special purpose vouchers, including Veterans Affairs Supportive Housing (VASH), Family Unification Program (FUP), Foster Youth to Independence (FYI), and Mainstream.

Check with your public housing authority (PHA) or with the administrator of your housing program to see if the FSS can help you. Learn more about the FSS program.

Owning your own home might seem like an impossible dream, or you may own your home and worry about losing it — in both cases, there are programs that can help you with homeownership:

• Down payment and mortgage programs can help you buy a home.
• The Section 8 homeownership program can help you with mortgage payments on a home if you are currently renting using a Section 8 housing choice voucher.
• Foreclosure assistance programs can help you if you own your home, but are worried about falling behind on your mortgage payments.

Down Payment and Mortgage Programs

A mortgage is the type of loan used to buy a house or other real estate. A homebuyer typically has to come up with 20% or more of the sale price of the home as a down payment on the mortgage.

You might think that you can never save up enough for a down payment on a home, but there are programs that can help you with your down payment and mortgage so that you don’t need to save up as much as you may think. If you have a disability, the program may also help pay the cost of repairs or improvement to make the home more accessible.

The Michigan State Housing Development Authority (MSHDA) offers a Down Payment program that helps with a down payment of up to $7,500 for people buying a home for the first time and for repeat homebuyers in certain areas.

Here are some other ways you may be able to get help with your down payment and mortgage:

• Some cities and counties offer financial help that may cut your share of the down payment to as little as 1% of the purchase price. The rules are different for every program.
• The Federal Housing Administration (FHA) offers mortgages with down payments as low as 3.5%, low closing costs, and easy credit qualification.
• Department of Veterans Affairs (VA) Home Loans are available with a zero down payment.
• Some credit unions and other lenders offer zero-down-payment mortgages.
• Habitat for Humanity requires only a small down payment, and then you put in “sweat equity” hours helping build your own home or the homes of others in the homebuilding program; cleaning up construction sites, working in a Habitat ReStore, or doing Habitat office work or other tasks also qualify. Contact your nearest Habitat for Humanity chapter for more info.
• Your family may be able to help with your down payment. A cash gift to help with a down payment is allowed on most types of loans. The gift may affect the income taxes of the person giving the money, but there are usually no limits on the amount of the gift.

Individual Development Accounts (IDAs)

An Individual Development Account lets you save up money to buy a home, pay for higher education, or run your small business. To open an IDA, you must find an IDA program in your area and meet certain eligibility requirements. Once you open your account, the sponsor of your IDA program may match the funds you deposit, helping your account grow faster.

Note: There aren't as many IDA programs as there used to be. Some are still active, but it can take a bit of effort to find one that is accepting applications.

You can read more about IDAs and how to find an IDA program in DB101’s Building Your Assets and Wealth article.

Section 8 Homeownership Voucher Program

Some public housing authorities (PHAs) let you use a Section 8 housing choice voucher to buy a home or pay monthly homeownership expenses instead of paying rent. The amount of money that Section 8 pays for a home is the same as the amount it would pay for rent.

Read the DB101 page on How to Apply for Benefits at PHAs so you know how to get Section 8. There are waiting lists, and it can take time before you get a housing voucher.

The Key to Own Homeownership Program helps families with a rental housing choice voucher change it into a homeownership voucher. You have to:

• Be working at least 30 hours a week and earning at least $15,000 per year, but there are exceptions for elderly people and people with disabilities
• Be a first-time homebuyer or have not owned a home in the last three years
• Be in good standing with your Section 8 housing choice voucher program

You have to fill out an application with the Michigan State Housing Development Authority (MSHDA), and if you are accepted to the Key to Own program, you need to attend free Homebuyer Education and Financial Management classes. After you meet all the requirements, Key to Own staff can help you find a participating lender to get you pre-approved for a mortgage.

You can also check with your local housing authority to see if you can use your voucher for homeownership. If you want to buy a home and don’t have a voucher yet, apply for vouchers at housing agencies that allow homeownership.

Finding a Home to Buy

When you have a Section 8 voucher that you can use for homeownership, start looking for housing to buy right away. Like rental vouchers, there may be a time limit for buying a home. There may also be limits on the size and price of the home you can buy, and rules about the types of mortgage you can get. However, there are no limits on which neighborhood you live in.

Key to Own or housing authority staff can refer you to local realtors and lenders who can help you. If you are looking into this on your own, be careful about your lender and realtor. It is important to have a lender and a realtor who know how the Section 8 Homeownership Program works in your area, who have relationships with the local staff who handle the program, and who understand the paperwork. This helps the home-buying process go more smoothly; it also gives confidence to home sellers that you have the resources to buy their home.

Buying the Home

When you’ve found a home to buy, the housing authority inspects it to make sure that it is in decent condition and meets all safety and regulatory standards. It also has to be inspected by an independent inspector that you choose and pay.

If Key to Own or the housing authority gives the okay for you to buy the home you found, you can go ahead and buy it. Make sure to get a “contract of sale” and give a copy of it to the housing authority. Check with the housing authority about what must be included in the contract. If you don’t give your housing authority a copy of this contract, you won’t be able to get Section 8 support for your housing.

Once you have everything lined up and the sale actually goes through, your housing authority calculates how much you have to pay on your mortgage each month and how much Section 8 pays. As with Section 8 rental assistance, the amount you have to pay is about 30% of your income. As long as your income and family situations don’t change much, you can get Section 8 homeownership support for 10 to 15 years. And if you have a disability or are elderly, there is no time limit; you keep getting Section 8 homeownership support for as long as you need it.

Once your mortgage is fully paid off, you are the owner of the home and the government is no longer involved. You won’t get Section 8 benefits anymore, but that is fine because you’ll own your own home and won’t owe any more payments on it.

Foreclosure Prevention

If you are having trouble paying your mortgage, there are several programs that can help you. Be sure to open all mail from your lender, and call for help as soon as you receive a warning notice from your lender:

• The Michigan Foreclosure Prevention Project is a partnership of Legal Aid offices and housing counselors statewide, as well as the National Consumer Law Center.
• The U.S. Department of Housing and Urban Development (HUD) offers resources that can help:
  • Search for a housing counseling agency near you or call HUD's Counseling & Agency Locator Line at 1-800-569-4287.
  • Search for a foreclouse avoidance counselor.

These agencies have experts who answer the phone and give you information about what you can do to keep your home.

Here are some other resources that can help you prevent foreclosure:

• The Michigan State Housing Development Authority (MSHDA) lists financial and other resources for homeowners facing foreclosure, including where to get emotional and other support during difficult times.
• MSHDA also lets you search online to find a housing educator who can help you if you’re having financial trouble, need help finding local resources, or facing foreclosure.
• The Michigan Foreclosure Task Force (MFTF) lists basic information on mortgage foreclosure and strategies and resources.
• HUD offers Tips for Avoiding Foreclosure and also has a comprehensive guide for Avoiding Foreclosure.
• Some scam artists try to fool deperate homeowners. The Michigan Attorney General warns against possible foreclosure prevention scams and explains how to avoid them.

David's Story

David used to be an avid rock climber, until he slipped. He was lucky and survived the fall, but it caused damage to his spine and he couldn't walk anymore.

Before the injury, David was a construction worker, but after the accident, he couldn't do that anymore. So he decided to go to a community college and learn how to be a sound technician. He also applied for Medicaid to cover his medical expenses and Supplemental Security Income (SSI), so he'd have some money to live on.

He qualified for both, but SSI wasn't going to be enough to cover all of his expenses, especially rent. He was staying with some friends, but he knew that he couldn't stay with them forever. Not knowing what to do, David called up his local Independent Living Center and asked them if there were any programs that might help him with his rent. They told him to call the local HUD Public Housing Field Office. David called the HUD office and spoke with Barry. He and Barry set up an appointment for later that week.

Section 8

"David," Barry said, after reviewing David's info, "It looks like you qualify for Section 8 benefits. When you get Section 8 benefits, the federal government pays a portion of your rent."

David had heard of Section 8 but didn't realize he could get it. "That sounds great!" he exclaimed. "Where do I sign up?"

"Unfortunately," Barry said, "you'll have to sign up in several different places. Section 8 is funded by the federal government, but it's managed by many different local programs called public housing authorities."

Barry gave David a list of the housing authorities in the area, along with their contact information, and told him, "Each public housing authority has its own application form and there's no real way of knowing which one might give you a Section 8 voucher, which ones may turn you down, and which ones just put you on waiting lists. The best thing for you to do is to apply to all of the housing authorities in the area where you want to live and then see which one replies to you first."

David looked at the list and circled the ones that were near his community college. He set himself a goal of submitting an application to one public housing authority each week until he'd applied to them all. While he waited to hear back, he started school. His friends let him stay with them until his Section 8 was approved.

A couple of months later, David got a call from one of the public housing authorities. His caseworker at the housing authority, Ahmed, told him that because he had a disability, he had priority on the waiting list, and that's why they'd gotten back to him so quickly. David and Ahmed scheduled a screening interview so they could go over his eligibility together.

During the interview, Ahmed asked David questions to make sure that he met the eligibility requirements for the program, and then said that David would have no problem qualifying. At the end of the screening interview, Ahmed scheduled David for the following week for a meeting called the "Section 8 briefing." At the briefing, David learned how the Section 8 program worked and how to find an apartment that his Section 8 voucher would help pay for.

David was really happy. His friends helped him look for an apartment that weekend. He found one that was $800 per month and only a block away from his school. Once he found it, he told the public housing authority about it and they inspected it to make sure it was okay.

Once it was approved, they calculated how much of the $800 David would have to pay and how much the Section 8 voucher would pay. Since David's only income was $967 per month from SSI, he would only have to pay about $290 each month in rent! Section 8 would pay the rest.

David signed his lease agreement and moved into his own place.

Getting Work

After going to school for a while, David decided to get a part-time job. He was lucky to find a job as a cashier at the local music store. The job would pay him $500 a month, enough to pay his rent, with a little extra for his other expenses.

The day after he got the job offer, he called up Ahmed at the public housing authority.

"Ahmed," he said on the phone, "I got a job offer! If I take it, will it affect anything?"

"It might," said Ahmed. "Why don't you come in so we can talk? I've got an open appointment tomorrow morning if you're free."

The next day, they looked at David's new situation.

"Well, here's your good news David," Ahmed said. "With work, your income will go up. That means you'll have more money to spend on the things you want."

Rent

"What about my rent? Will having more income affect it" David asked.

Ahmed explained, "People who get help from Section 8, like you, pay about 30% of their income as rent. So if your income goes up, your rent will eventually go up too. Let's use DB101's SSI Quick Estimator to get an idea of what might happen."

Ahmed brought up the SSI Quick Estimator on screen, put in David's $967 per month in SSI benefits, and then added $500 per month in earnings from the job. The Quick Estimator said that after getting the job, David's total income would be about $1,260 per month.

Ahmed continued, "Your income will be higher, so your rent will eventually go up by about $88 per month. But that increase is a lot less than your increase in income, so you'll have more money."

David listened carefully and asked another question, "When will my rent go up?"

Ahmed explained, "It won't be immediate. In fact, when income goes up due to work, like in your case, your rent won't change until we do your next annual reexamination. Since your last reexamination was four months ago, your rent wouldn't go up until eight months from now."

"That's not so bad!" exclaimed David.

"Right," said Ahmed. "And when its time for your annual reexamination, we can sign you up for the Family Self-Sufficiency (FSS) program. With that, the $88 your rent goes up each month will get put into a special account that you can use for something you need, like the down payment on an accessible van."

David liked the sound of that. He quickly said goodbye to Ahmed, and went to accept the job offer.