Assistance provided under HUD programs falls into three categories: public housing, tenant-based, and privately owned, project-based.
In public housing, local housing agencies receive allocations of HUD funding to build, operate or make improvements to housing. The housing is owned by the local agencies. Public housing is a form of project-based subsidy because households may receive assistance only if they agree to live at a particular public housing project.
The Housing Choice Voucher program began in 1998. Tenant based programs allow participants to find and lease housing in the private market. Local public housing agencies (PHAs) and some state agencies serving as PHAs enter into contracts with HUD to administer the programs. The PHAs then enter into contracts with private landlords. The housing must meet housing quality standards and other program requirements. The subsidies are used to supplement the rent paid by low-income households. Under tenant-based programs, assisted households may move and take their subsidy with them. Vouchers have no specific maximum rent. The low-income household must pay any excess over the payment standard.
The third major type of HUD rental assistance is a collection of programs generally referred to as multifamily assisted, or, privately-owned, project-based housing. What these programs have in common is that they provide rental housing that is owned by private landlords who enter into contracts with HUD in order to receive housing subsidies. The subsidies pay the difference between tenant rent and total rental costs. The subsidy arrangement is termed project-based because the assisted household may not take the subsidy and move to another location. The single largest project-based program was the Section 8 program, which was created in 1974. This program allowed for new construction and substantial rehabilitation that was delivered through a wide variety of financing mechanisms.
Jefferson Village Apartments is privately owned, project-based Section 8 Housing. We are contracted with HUD and receive direct housing subsidies. When you leave Jefferson Village, you cannot take your subsidy with you.