What is “affordable housing, " and is it all Section 8?
Affordable housing comes in a variety of public and private forms. Here’s a guide to the types of low-income housing available in Lebanon County, based on information from the county’s housing authority:
Public housing
Units in Lebanon County: 403
First created after World War II and changed to a fixed-rent system in the 1970s, tenants of public housing pay no more than 30 percent of their income in rent. In Lebanon County, all 11 public housing locations are run by the housing authority.
Section 202 housing
Units in Lebanon County: 422
Supported by funding from the Department of Housing and Urban Development (HUD), Section 202 housing is for low-income elderly tenants. Palmyra Interfaith Manor at 101 S. Railroad St. is an example of a Section 202 development.
Tax credit housing
Units in Lebanon County: 421
The vast majority of new affordable housing projects being created in the United States utilize HUD’s low-income housing tax credit program. Developers often obtain tax credits and then sell them to banks in exchange for financing to construct the development, allowing the developer to keep rental costs down, said authority executive director Bryan Hoffman. In exchange, the developer is required to keep rents at certain below-market rates.
In Pennsylvania, projects are approved for tax credits by the Pennsylvania Housing Finance Authority through a competitive process. In 2016, PHFA had just $29 million to award for $123.6 million in applications, according to a PHFA newsletter. The proposed Quentin Apartments in West Cornwall Township unsuccessfully sought 2016 tax credits.
Section 8 new construction
Units in Lebanon County: 395
Finally, we’re getting to the most famous term for low-income housing – but even the phrase “Section 8” gets complicated.
First, there’s Section 8 new construction: “project-based,” privately-developed housing also subsidized by HUD. There are three such developments in Lebanon County, all run by for-profit organizations and intended for general occupancy family use.
Section 8 housing choice voucher program
Unlike the other forms of affordable housing, section 8 vouchers follow the tenant. When Lebanon County landlords accept Section 8 housing vouchers, the tenant pays a portion of the rent and the housing authority pays part of the rent.
There are far more applicants for vouchers than vouchers available in Lebanon County, Hoffman said. Vouchers are awarded from the Section 8 waiting list by a periodic random lottery.