Why It's Important to Protect Sources of Income in Michigan Federal rental assistance programs like the Housing Choice Voucher (HCV) program are critical to ensuring that all individuals and families have a safe place to live. HCVs provide affordable rents through vouchers that must be used in the private market. Landlords who rent to tenants with HCVs and other non-wage sources of income help provide more housing choices while ensuring their bottom line. In a 2021 survey by the Coalition for Expanding Housing Access (CEHA), 53% of landlords said they support a state level protection for tenants with HCV or source of income protections. Landlords are vital HCV partners. Targeted vouchers for veterans experiencing homelessness played a key role in reducing veteran homelessness over the last decade. (source footnote: 1) HCVs are the largest rental assistance program for people with disabilities, providing housing stability and its associated benefits to more than 1.2 million people with disabilities nationwide. (source footnote: 2) HCVs can help tenants on a fixed income age-in-place. As the U.S. population ages, the HCV program serves an increasingly elderly population. Michigan is aging faster than any other state. Today, nearly 1 in 4 Michiganders is at least 60 years old and people aged 85 and older are the state’s fastest growing population segment. (source footnote: 3) HCVs benefit landlords too. Renters with subsidies such as HCVs are reliable, long-term tenants, living in a unit for 7-8 years on average. In the 2021 survey, 40% of landlords agreed the HCV allows for steady lease renewal and low tenant turnover. (source footnote: 3) Low-income renters with vouchers owe less back rent than those without vouchers. 81% of landlords surveyed in 2021 said the benefit of accepting tenants with an HCV or other assistance was the guaranteed monthly payment. HCVs provide guaranteed income for landlords. Tenants who pay with vouchers owe less back rent than other tenants with low incomes. Support protecting sources of income like HCVs across MI? Add your name to the sign on letter using the QR code How Housing Choice Vouchers work The Housing Choice Voucher (HCV) program makes up most of the difference between the total rent cost of a rental unit and the portion of rent a tenant pays (set at 30 percent of their adjusted income). The difference is paid directly to the landlord. Vouchers provided can help low-income families afford rent even when they experience income disruptions. 66,106 HCVs help households in every Michigan county afford a safe place to live. (source footnote: 4) An owner who rents to a tenant with a voucher receives one part of each month’s rent directly from the tenant, and the remainder from a HUD-contracted Public Housing Agency (PHA) in their area. The amount of the subsidy available to voucher holders is based on the cost of moderately priced rental housing in the community, as determined by HUD. Michigan landlords earn over $816M annually from HCV households. (4) Many eligible families are unable to utilize the HCV once they are "pulled from the list.” PHAs often issue 4 vouchers for every 1 opening, as it is difficult for households to find a landlord willing to participate and a unit that meets the rent reasonableness criteria in an area of their choice. A chance to make a change In 2023 bills that will prohibit discrimination against voucher holders were introduced in the Michigan Senate and House. In October 2023 the three Senate bills passed. Now, the two House bills wait for a hearing in committee. Michigan is the closest it has ever been to passing this legislation! House Bills 4062 & 4063 Senate Bills 205, 206 & 207 If you have accepted HCVs for your rental property/ies please contact your representative to share how these vouchers benefited you by guaranteeing rent and long-term tenants. Find your elected House representatives at house.mi.gov/AllRepresentatives. For landlords interested in accepting HCVs or learning more visit michigan.gov/mshda/welcomelandlords. Join in the effort to protect Michiganders who use Housing Choice Vouchers. Sources Footnotes Below: 1. U.S. Dept of Housing & Urban Development (HUD), Point-In-Time Counts and HUD Voucher Management System: https://www.cbpp.org/homelessness-among-veterans-fell-as-targeted-voucher-program-expanded-3 2. Center on Budget & Policy Priorities analysis of HUD 2018 administrative data: https://www.cbpp.org/sites/default/files/9-15-21hous2.pdf 3. HUD, Length of Stay in Assisted Housing, October 2017: https://www.huduser.gov/portal/sites/default/files/pdf/LengthofStay.pdf 4. HUD, Subsidized Households, 2023 State Data: https://www.huduser.gov/portal/datasets/assthsg.html 5. "Section 8 Made Simple," Technical Assistance Collaborative, 2016: https://www.tacinc.org/wp-content/uploads/2021/01/S8MS_Full_Book.pdf rev. 3/2024