July 18, 2007
Section 8 Reform Passes House
By Keat Foong, Executive Editor, Multi-Housing News Magazine
Washington, D.C. -- The House has passed the Section 8 Voucher Reform Act of 2007 (SEVRA) that will change aspects of the apartment unit inspection process to result in faster move-in of new residents.
The National Association of Home Builders (NAHB) said it is “very pleased” that the bill passed, by an overwhelming bipartisan vote of 383-83. “NAHB has been supportive of efforts to reform the Section 8 voucher program, particularly in areas such as unit inspections,” NAHB stated. The organization said Section 8 reform is one of its highest priorities for its multifamily members.
The Section 8 Housing Choice Voucher program provides rental subsidies to approximately two million very-low income households for obtaining housing in the private market. The program is meant to broaden the range of housing choices for families seeking affordable housing.
Claudia Kedda, director of multifamily finance at NAHB, said of top concern to the organization’s members is the provision to streamline the unit inspection process.
The inspection process under existing laws currently requires the Public Housing Authority (PHA) to inspect a unit when it is vacated before a new resident using a Section 8 voucher can move in. Problem is, units can sit empty for weeks while the unit is waiting to be inspected.
Under the new bill, the unit still has to be inspected before it is reoccupied, but if there is an issue and it is not life-threatening, a new tenant can move in. And the PHA pays the owner the rent retroactive to the date of the lease. Consequently, both the owner can cut down on the rent lost and the resident can find a home quicker.
The new bill also allows PHAs to inspect units ever other year rather than every year, Kedda explained. And if the unit has already been inspected in the past year under another federal program--for example, under the Low Income Housing Tax Credit or HOME programs--and meets quality housing standards, then under the legislation an additional inspection for the Section 8 program is not required, she said.
Other provisions under SEVRA require HUD to translate official HUD documents commonly used by property managers that are considered “vital,” and to set up an 800 hotline number for oral interpretations.
And the legislation provides for changes to the project-based voucher program to, according to NAHB, ensure its flexibility as a tool for preserving or expanding the supply of affordable apartments especially those with a tight housing market.
NAHB is currently working with the Senate to introduce a companion bill. The group said it appreciates the leadership of Chairman Frank, Chairwoman Waters and Ranking Member Biggert, “who worked so hard to bring the bill to the House floor.”
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