Housing Choice Voucher Homeownership Program (via Section 8 Subsidies) in SE VA & US

Did you know that monthly section 8 subsidies are available for home purchases in some localities?

Eligibility/Requirements for Families/Individuals:

Where is it Available?

A dashboard has recently become available here showing people which localities active HCV programs are available throughout the US.

The ability to apply Section 8 subsidies toward a home purchase are highly dependent on the city/county & whether or not the local housing authority has gone through the steps to allow it as an option. The following are some SE VA localities where that's available with the local housing authority, in addition to it being available via the Virginia Housing Development Authority in at least some circumstances:

Hampton Roads:

Chesapeake

Franklin

Hampton

James City County

Newport News

Norfolk

Portsmouth

Suffolk

Virginia Beach

Greater Richmond:

Hopewell

Petersburg

Richmond

Eastern Shore:

Accomack-Nothampton Regional Housing Authority

Eligibility Basics for HCV

Voucher Eligibility:

• Current voucher program participants who are eligible to end their leases and move under the PHA’s policies; or

• Families who have been selected from the PHA’s waiting list for admission to the Housing Choice Voucher Program, and whom PHAs have determined eligible to receive a voucher.

"They must qualify as “first-time home buyers,” meet income, employment, and other

eligibility standards; and complete a homeownership counseling program."

"First-time Homebuyers

To meet the first-time homebuyer eligibility requirement, a family must be one of the

following:

1) A first-time homeowner;

2) A cooperative member; or

3) A family of which a family member is a person with disabilities and use of the

homeownership option is needed as a reasonable accommodation

A first-time homebuyer is a family of which no member owned any present ownership interest in a residence of any family member during the three years before

commencement of homeownership assistance for the family. The term first-time

homeowner includes a single parent or displaced homemaker who, while married, owned a home with his or her spouse, or resided in a home owned by his or her spouse.

A cooperative member is a family of which one or more members owns membership

shares in a cooperative."

per pg 10 (aka pg 9) of guidelines

Eligibility Basics for Section 8 Including Income Max Limits

Per HUD:

"Eligibility for a housing voucher is determined by the PHA based on the total annual gross income and family size and is limited to US citizens and specified categories of non-citizens who have eligible immigration status. In general, the family's income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. By law, a PHA must provide 75 percent of its voucher to applicants whose incomes do not exceed 30 percent of the area median income. Median income levels are published by HUD and vary by location. The PHA serving your community can provide you with the income limits for your area and family size.

During the application process, the PHA will collect information on family income, assets, and family composition. The PHA will verify this information with other local agencies, your employer and bank, and will use the information to determine program eligibility and the amount of the housing assistance payment.

If the PHA determines that your family is eligible, the PHA will put your name on a waiting list, unless it is able to assist you immediately. Once your name is reached on the waiting list, the PHA will contact you and issue to you a housing voucher."

Here are the 2023 Numbers for the Richmond MSA:

FY 2023 Income Limit Area	Median Family Income	FY 2023 Income Limit Category	Persons in Family
1	2	3	4	5	6	7	8
Richmond, VA MSA	$109,400	Very Low (50%) Income Limits ($)	37,350	42,650	48,000	53,300	57,600	61,850	66,100	70,400
Extremely Low Income Limits ($)*	22,400	25,600	28,800	32,000	35,140	40,280	45,420	50,560

Here are the 2023 Numbers for the Hampton Roads MSA:

FY 2023 Income Limit Area	Median Family Income	FY 2023 Income Limit Category	Persons in Family
1	2	3	4	5	6	7	8
Virginia Beach-Norfolk-Newport News, VA-NC HUD Metro FMR Area	$100,500	Very Low (50%) Income Limits ($)	34,650	39,600	44,550	49,500	53,500	57,450	61,400	65,350
Extremely Low (30%) Income Limits ($)*	20,800	23,800	26,750	30,000	35,140	40,280	45,420	50,560

Minimum Income Requirement

"At the time the family begins receiving homeownership assistance, the adult family members of a non-disabled family who will own the home must collectively meet a minimum, non-welfare, annual income requirement that is not less than the Federal minimum hourly wage ($7.25 in 2022) multiplied by 2,000 hours ($14,500).

For a disabled family (a family whose head, spouse or sole member is a person with disabilities), the adult family members who will own the home must have an annual income that is not less than the monthly Federal Supplemental Security Income (SSI) benefit for an individual living alone ($841 in 2022) multiplied by 12 ($10,092)..."

per pg 11 (aka pg 10) of guidelines

Minimum Employment Requirements

"One or more adult members of the family who will own the home must be:

• Currently employed on a full-time basis (meaning not less than an average of 30 hours per week); and

• Has been continuously employed during the year before commencement of homeownership assistance .

The PHA can set its own policies regarding what it considers continuous employment and may consider self-employment.

The employment requirement does not apply to an elderly or disabled family (head, spouse or sole member is elderly or disabled). Also, the employment requirement does not apply to a family that includes a person with disabilities, if other family members are unable to work on a full-time basis because they are required to care for the person with disabilities, and a reasonable accommodation is necessary.

The PHA may not establish an employment requirement in addition to the HUD established employment requirement."

per pg 11-12 (labeled as pg 10-11) of guidelines

No Prior Default

"A family may not receive a homeownership voucher if the family includes an individual who was an adult member of a family at a the time when such family received homeownership assistance and defaulted on a mortgage securing debt incurred to purchase the home."

per pg 12 (labeled as pg 11) of guidelines

Homeownership Counseling

"Families who wish to participate in the HCV Homeownership Program must first complete a pre-assistance homeownership and housing counseling program required by the PHA. Further detail on the counseling requirement can be found in Chapter 5 of this Guidebook."

per pg 12 (labeled as pg 11) of guidelines

Where to Find More Information

Here's the main page of HUD on the subject.

Here's their guidebook on the program.

Related:

• 10+ Types of No Down Payment Required Mortgages