Progra Subsidy Model: A Case Study

Section 4.1 above. However, income must still be calculated in order to determine the participant rent contribution.

In addition, to receive rental assistance for more than 12 months, the participant household must be certified (using the Section 8 income verification methodology) as having an annual income at or below 30% of the area median income (AMI) as published annually by HUD. This income certification must be conducted no more than 120 days prior to the end of the first year of assistance to determine eligibility for a second year of assistance. In no circumstance will the rental assistance for a household extend beyond 24 months.

Recipients may not establish a minimum income required for the program, and must accept households with little or no income.

8.4 Recertification
Recipients must document recertification of

Recipients can adjust model amounts or percentages based on individuals needs of households.
Decreased subsidy approach: This model is focused on decreasing the amount of subsidy the recipient provides. The recipient establishes a percentage of rent that will be subsidized for the household for a determined period of time. The recipient communicates with the household how the subsidy provided will decrease over time to support the household in preparing to take over the full rent amount when the subsidy ends.
Example: Recipient pays 50% of the rent for months 1-3. Ongoing subsidy need is reviewed at the end of month two and determined that the household is not yet ready to take on the full amount of rent. The recipient agrees to subsidize months 4-6 by paying 35% of the rent. In month five the Recipient revisits the need for ongoing assistance and it is determined that the household can take over the full rent amount after month 7. The recipient agrees to pay 20% of the rent in month 7. The household pays 100% of their rent in month