Section 8 program gets a new name and look

Rules for federal rental housing assistance grants have beenliberalized by the U.S. Department of Housing and Urban Developmentto make the program more attractive to property managers and moreflexible for tenants.

Formerly called Section 8, the new program is now titled HousingChoice, said William Riley, executive director of CHAC. CHAC is theadministrative agency that manages distribution of $168 million inyearly rent subsidies for low income renters in the city of Chicago.

In the city, about 25,000 tenants and their landlords benefit fromcash supplements paid directly to landlords, Riley said. He addedthere is a waiting list for rent vouchers of 31,000 applicants - butless than 225 families per month move from the list and receive ahousing voucher.

"Even if there is funding for housing vouchers, there are notenough units," said Aurie Pennick, president of the LeadershipCouncil for Metropolitan Open Communities, a Chicago not-for-profithousing civil rights advocacy group.

Chicago's Fair Housing Ordinance requires landlords to considerrent subsidy payments as part of the income of the tenant. Rejectingan applicant because of the voucher can result in fines, penaltiesand damage awards - as ordered by the Chicago Commission on HumanRelations. A test case is now in the courts.

Under the HUD changes, landlords can screen and select tenantsusing the usual criteria, use their own leases, and cancel leases forcause. Rent limits set by a HUD capping formula allow property ownersto receive higher rents, as much as 110 percent of the market rate.

Tenants are given more leeway under the Housing Choice program.They may choose rentals that exceed the HUD rent-rate guides, and paythe difference, as long as their share does not exceed 40 percent oftheir combined household income.

Tenants with vouchers must find their own apartment or house.After the landlord approves the tenant, CHAC inspects the unit forfitness and sets a rent in compliance with HUD guidelines. When theunit is ready and the lease signed, the tenant moves in and CHAC andthe tenant pay their portions of the rent. Write mediator Ed Sacks atApartment Watch, Chicago Sun-Times, 401 N. Wabash, Chicago 60611 orhis Internet address: edsacks@aol.com