The Problem with Section 8 Housing
There are numerous entitlement programs that provide benefits to people in the United States, but one in particular seems markedly unfair. This program is Section 8 of the Housing Act of 1937. Typically referred to simply as Section 8, it authorizes the payment of rental housing assistance to private landlords on behalf of over three million low-income households in the country. It pays a significant portion (usually the majority) of the rents and utilities of most of those households. In fact, the program even authorizes owners of apartment buildings to reserve a specific number of apartments for Section 8. Sometimes a Section 8 Landlord can actually make more money off the Department Of Housing than just a normal tenant paying market rate. Other incentives to landlords include tax credits, special financing, zoning exceptions and other special treatments. The US Department of Housing and Urban Development (HUD) manages the Section 8 programs, the details of which can be seen their website.
While the program may be well intentioned, the result is something different than what many people—both private citizens and policy makers alike—expected. Howard Husock, a housing expert at Harvard University, believes that it’s time to end the Section 8 program altogether. He stated that “Our housing policy is now completely out of sync with our welfare policy. If your rent is paid forever, then you don’t have an incentive to improve your living situation.” This is another reason why the program is unfair to those who are working hard to earn a living; many people are having to work two jobs to be able to afford their rent, while those benefitting from Section 8 have no incentive to earn more money and many times live in more favorable locations. By earning more money, those on Section 8 would lose the benefit of having most, if not all, of their rent paid.
At the same time, while much of Section 8 housing is in poor repair, that is not always the case. In reality, many who benefit from the program live in housing that is better than what the average working class person can afford—since their rent is not subsidized.
Keen's Crossing
This problem is certainly experienced by the residents of the state of Vermont. I was shocked at the lack of availability of apartments when I moved to Burlington in June of 2011. Examples in Burlington include Keen’s Crossing and the brand new Avenue Apartments. For example, a 3 Bedroom, 2 Bath unit at Keen’s Crossing lists at $1,145 in the Affordable Program while a 2 Bedroom, 1.5 Bath Unit runs for $1,525 in the Market Program. The units for the two programs are exactly the same.
River adjacent to Keen's Crossing
According to the U.S. Census, the Average U.S. rental vacancy rate is approximately 10 percent. Burlington’s vacancy rate averages between 1 and 2 percent making it extremely difficult to find a apartment and inflating the price for hardworking families who pay full price. Often you’ll find only Affordable Condos on the available thus inflating the Market Program rent even more.
According to the Vermont Housing & Conservation Board (2005), housing costs in that state continue to rise faster than wages, putting more pressure on thousands of workers and their families. http://www.vhcb.org/housingandwages.html Indeed, that report shows that there is a growing inequality between the rising costs of rental housing and single family homes and the ability of low and median-wage workers to afford to rent or purchase a home in Vermont. In the meantime, however, those who are eligible for Section 8 subsidies do not suffer from these types of problems, since they will be able to afford their rent whatever the full cost may be—since they do not have to pay full cost. My family would be in a better condo if either my girlfriend or both of us quit our jobs and simply took on lower paying positions.
This entitlement program—which allows many to game the system—should be eliminated, since it is unfair to hard working citizens. As one report indicated, HUD makes little or no effort to verify Section 8 recipients’ income or to make sure that recipients actually pay their small share of the rent. (The Future of Freedom Foundation) In our country, people who work hard should be the ones rewarded, not those who choose to live off the system.
Across the country, the negative effects of the Section 8 program are becoming more widespread. The program is called “a catalyst in neighborhood deterioration and ghetto expansion.” by the National Housing Institute. That comment, while made in Baltimore, is repeated by others across the country. In effect, Section 8 has resulted in neglected properties, persistent crime and a continual influx of dysfunctional families, some of whom have never lived in anything except public housing and now are living as gypsies in a palace.
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