Like most cities, Austin, Texas provides a mix of rental and home ownership assistance to its low- to moderate-income residents. Consistent with the rest of the nation, a vast majority of Austin's rental programs come via the Department of Housing and Urban Development, while the state spearheads ownership schemes. In both cases, the availability of resources and a household's income dictates if and when a family is eligible to receive housing assistance benefits.
Need
Most housing assistance programs aim to close the gap between market rate housing prices and what low- to moderate-income families can afford. Rental data from the National Low Income Housing Coalition illustrates this disparity. The 2010 fair market rent for a two-bedroom apartment in the Austin-Round Rock metropolitan area is $954. To afford this rent, a full-time worker must take in $18.35. As of 2010, Texas' minimum wage is $7.25. The average renter in the Austin metro makes $15.79 an hour.
Function
As the U.S. Census Bureau explains, consensus exists as to what is considered affordable housing. Housing is affordable if a family commits no more than 30 percent of their income to the cost of rent and utilities. If a family overextends their housing budget, they run the risk of not having enough money left over to meet other necessary expenses, such as groceries, transportation and health care. Most of Austin's housing assistance programs aim to help participants stay at or below the 30 percent threshold.
Programs
Most of Austin's rental assistance comes via Department of Housing and Urban Development (HUD) programs. The Housing Authority of the City of Austin offers both Section 8 and public housing. Through Section 8, families receive a federal subsidy that covers the portion of their private market rent that exceeds 30 to 40 percent of their household income. Austin's housing authority operates 19 public housing communities across the city, as of 2010.
Prospective homeowners in Austin can receive assistance through the Texas Department of Housing and Community Affairs. The state agency drives several initiatives, including a first-time home buyer program that offers down payment and closing cost assistance as well as mortgage loans with favorable terms.
Eligibility
To qualify for Section 8 housing, a family's combined household income cannot exceed 50 percent of the Austin metro's median income, which is $36,900 for a family of four, as of 2010. The eligibility cap rises to 80 percent, or $59,050 for an Austin metro four-person household, for public housing. Texas's housing programs also use HUD's income data, but with higher limits. For instance, the above-mentioned home buyer program accepts applicants with household incomes of up to 115 percent of their area's median. That number increases to 140 percent if an applicant is buying in certain areas "targeted" by the Texas Department of Housing and Community Affairs.
Considerations
The Texas Department of Housing and Community Affairs does not quantify a wait time for its mortgage assistance program, but does note that, as of November 15, 2010, the program has just over $17.2 million worth of funds at its disposal. Austin's Housing Authority reports that both its Section 8 and public housing programs are closed, as of November 2010. As for Section 8, the housing authority's website indicates that it does not anticipate reopening the program's waiting list for several years.
Tags: Department Housing, public housing, Austin metro, Community Affairs, Department Housing Community
