New subsidized housing rules were adopted by housing providers in 2024 — but they need to give you notice and a new lease first.

Do you have a Section 8 Housing Choice Voucher, or live in an apartment with subsidized rent? The Department of Housing and Urban Development (HUD) made several big changes to the subsidized housing rules. These rules change who is eligible for subsidized housing. They also change how a rental subsidy is calculated.

HUD wrote these rules to implement a law called the Housing Opportunity Through Modernization Act of 2016 (HOTMA). HOTMA made a lot of changes to the rules for subsidized housing, but this page will only summarize a few important rules. This information will be updated as HUD releases more guidance on how these changes affect applicants and tenants.

These new rules went into effect January 1, 2024. However, you may not see any changes for many months. This is because subsidized housing providers must update their policies, issue new leases, and give plenty of notice to tenants before they are affected by the new rules.

How they will figure out your income

If you are applying for subsidized housing, the new rules say housing providers may use income eligibility standards for other benefit programs to confirm your eligibility. They may look to see if you already get WIC, SSI, SNAP or Medicaid.

If you are already a tenant in subsidized housing, you must remain income-eligible to get the rental subsidy. If you earn too much income, you are considered “over-income” and not eligible for a subsidy. You are considered over-income if you earn about 120% of the area median income (AMI) in your county. Look for your county and 120% on this chart.

Some types of income are not counted towards the limit. For example:

• “non-reoccurring income,” like cash gifts for special occasions,
• certain types of student aid
• civil rights settlements or civil action judgements, or 
• inheritances.

If you are over-income for 24 months in a row, your housing provider may evict you because you are not eligible for subsidized housing. Your housing provider may also allow you to stay in the unit. Whether you can stay in the unit depends on your housing provider’s written policies. If your housing provider lets you stay in the unit, you must sign a new lease and pay a higher rent. You will not be considered a subsidized tenant.

Your housing provider needs to give you written notice if they:

• decide you are over the income limit
• decide that your rent will go up, or 
• decide you must leave the unit.

You will have the right to appeal any decision about being over the income limit.

How they will look at your assets and real estate

With the new rules, you may not be eligible for subsidized housing if:

• your family owns over $100,000 in countable net family assets, or 
• you own a home that is suitable to live in.

Assets are things that you own. “Net family assets” means the net cash value of all your owned assets, after deducting reasonable costs needed to sell the property or assets. It also includes the value of savings accounts, stocks, bonds, and other financial assets.

Retirement accounts, like an IRA or 401k, do not count towards the asset limit. Necessary items of personal property, like medical devices and your primary car, do not count towards the asset limit. Non-necessary items of personal property (coin or baseball card collections, artwork, or recreational vehicles) will not count towards the asset limit if the combined total value of all non-necessary items is less than $50,000.

Do you own a home and have the right to sell it? If your home is suitable to live in, you are not eligible for subsidized housing. However, there are exceptions. This rule does not apply:

• to a family that gets assistance under the Section 8 Housing Choice Voucher program for manufactured homes or gets help purchasing a home with mortgage assistance
• to property jointly owned with someone else not in your household and occupied by that person
• if a member of your household is a victim of domestic violence, dating violence, sexual assault, or stalking, or 
• if you are selling the property. 

If the property is not suitable for occupancy, it can be excluded from this rule. For example, it can be excluded if:

• the home cannot meet the disability-related needs of your family, 
• it is too small for the size of your household, or 
• the location of the property is a hardship (too far from work or school).

New rules also include the income you get from your assets, such as interest or rental income. If your assets generate countable income, all the income from each asset will count for the purposes of eligibility. If your assets generate income, but you cannot calculate that income, your housing provider may impute (estimate) the income from those assets.

More information

We will add more to this page as information becomes available. Follow this link for more detailed information from HUD about the new rules.

There are two basic kinds of subsidies: “site specific” and “tenant based.”

In “site-specific” subsidies, the unit itself is subsidized. As long as you live in that unit you have a subsidy. If you move out, you do not take the subsidy with you.

In “tenant-based” subsidies, you are subsidized and can use your subsidy to pay part of your rent to a private landlord. If you move, you can take your subsidy with you.

In both types, you generally pay 30% of your income, and the subsidy pays the rest of the rent.

Every program has its own application process, its own eligibility rules, its own program rules, and its own grievance and termination processes.

There are many types of federal site-specific subsidies. You apply to the housing authority or the owner/landlord. These include:

• Public Housing
• Section 202 Elderly/Disabled Housing
• Project-Based Section 8
• Section 8 New Construction
• Section 8 Substantial Rehabilitation
• Section 8 Moderate Rehabilitation
• Moderate Rehabilitation SRO (Single Room Occupancy)
• Permanent Supportive Housing
• USDA Rural Development 515/521
• HOME
• Community Development Block Grant (CDBG)
• Low-Income Housing Tax Credit (LIHTC)

There are also many types of federal tenant-based subsidies. You apply to housing authorities. These include:

• Section 8 Housing Choice Vouchers
• Section 8 Family Unification Vouchers
• Section 8 Non-Elderly Disabled Vouchers
• Department of Mental Health Section 8
• Shelter Plus Care Vouchers
• HUD-VASH Vouchers (for veterans)
• HOPWA Vouchers (for persons with AIDS)

Lastly, the State of Vermont offers its own rental subsidy program. Apply to the Vermont Department for Children and Families for the Vermont Rental Subsidy.

You may apply for tenant-based rental assistance (vouchers) with the Vermont State Housing Authority (VSHA) and with any local housing authority. Each housing authority only has a limited number of tenant-based subsidies to give out. Waitlists are often closed, so it is a good idea to contact the housing authorities to find out if or when their waitlist will be open. It often takes many years to reach the top of the waitlist.

Once you have applied for a subsidy, you should update your contact information and household information if there are any changes, including addresses or the birth of another child. It is also a good idea to update the housing authority if there is a change in your family’s housing status, such as loss of housing leading to homelessness.

To get a subsidy you must be financially eligible (low income). The housing authority or owner/landlord will decide based on your household size what size unit you are eligible for.

To apply for site-specific subsidies, you should apply to the Vermont State Housing Authority, local housing authorities and to any other available subsidized units. You need to file a complete application. A housing authority or owner/landlord may not make a decision about your application until it is complete. Be sure to ask for confirmation that nothing else is needed.

If your application for subsidized housing is denied, you will receive a written notice. The notice usually states the reason you were denied. The notice will say that you have the right to appeal the decision. Appeals must usually be received in writing within 10 days of the denial letter. Appealing a denial may be a good idea. The housing authority or owner/landlord has tenant selection guidelines, but also has discretion. You can look at the reason for denial and go to hearing with reasons why you shouldn’t be denied for that reason.

Applicants and recipients must get notice of a denial of application or other “adverse action.” They also have to get a notice of their right to have an informal conference and/or grievance hearing, and to have that hearing.

When you apply for a subsidy or a subsidized unit, you are called an “applicant.” If you get a subsidy, you are a “recipient.” Subsidized housing rules list the rights of applicants and recipients. Generally, if the housing authority or owner/landlord makes a decision that you do not like, you have the right to a grievance hearing.

An “adverse action” is an action by the subsidy provider that you do not want or like, including:

• rejecting your application or taking you off of the waitlist
• rejecting a request to add another person to your household
• raising the rent going forward or retroactively
• adding charges other than rent or security deposits (such as maintenance charges, damages, lock-outs)
• terminating your subsidy (voucher)
• terminating your tenancy
• denying your request for a reasonable accommodation due to disability
• denying your request to move or not to move
• denying your request to “port” (or move) to a different housing authority with continued rental assistance.

The housing authority or owner/landlord must give you written notice of any adverse action. The notice must:

• state the reason for the adverse action
• when it will take effect
• your right to respond
• your right to review documents related to the adverse action, and
• the right to ask for a grievance hearing or an explanation of why you aren’t entitled to one.

The notice will usually say that you need to ask for a grievance hearing in writing within a certain number of days. Exact grievance processes vary by program.

Use our form letter to ask for a hearing.

• Our PDF file does not fully comply with all applicable guidelines for accessible digital documents. For the most accessible experience, use the web page version of our form letter.
• Download the PDF version of our form letter. 

You need to give the form to the place that turned you down within 10 days of being denied.

Federally subsidized housing programs offer certain extra protections for some tenants.

Victims of violence

Victims of domestic violence, dating violence, sexual assault and stalking have the right to safe housing. 

• Applicants can ask to be approved if the reason for their negative rental history is related to domestic violence, dating violence, sexual assault or stalking.
• Tenants can ask that program violations be ignored because they related to domestic violence, dating violence, sexual assault or stalking.
• Tenants have a right to an emergency transfer to a different rental unit if they are in danger in their housing or were sexually assaulted there within the last 90 days.

Helpful forms:

• Here are links to the U.S. Department of Housing and Urban Development (HUD) emergency transfer form (HUD-5383) and HUD certification form (HUD-5382).
• Service providers may use our professional certification form.
  • Our PDF file does not fully comply with all applicable guidelines for accessible digital documents. For the most accessible experience, use the web page version of our professional certification form. 
  • Download the PDF version of our professional certification form. 
• Tenants who want their private information released may use our authorization form.
  • Our PDF file does not fully comply with all applicable guidelines for accessible digital documents. For the most accessible experience, use the web page version of our authorization form. 
  • Download the PDF version of our authorization form. 

We can help you understand your rights and assert them. Fill out our form and we will call you back. Your information will be sent to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont. You can also call us at 1-800-889-2047.

Tenants with disabilities

Tenants with disabilities have the right to ask for a “reasonable accommodation” in rules, policies, practices or services. A reasonable accommodation can be used as a defense to an eviction.

When your subsidy is terminated (ended), you are entitled to written notice and an explanation of your rights at an informal conference or grievance hearing. [See section above.]

This section explains the difference between losing your subsidy and losing your tenancy. It also gives you rules to follow to decrease the risk of losing your subsidy.

Subsidy and tenancy are two different things. Your rental subsidy depends on your household’s financial eligibility. Your tenancy depends on you following your duties as a tenant in your lease and in the Residential Rental Agreements Act (RRAA).

• If you have a site-specific subsidy, a termination of your tenancy is also a termination of your subsidy.
• If you have a site-specific subsidy, your subsidy can be terminated, even if your tenancy is not. If that happens, you have to pay “market rent” for your unit.
• If you have a tenant-based subsidy (voucher) your tenancy can be terminated, but your subsidy cannot be terminated without further action by the housing authority. Usually, the housing authority will keep paying its share as long as you live in the unit.
  • If the termination of tenancy is for non-payment of rent or for other cause, the housing authority may decide to end your subsidy, too. If so, you will get notice from the housing authority.
  • If the termination of tenancy is for no-cause, you have a limited number of days (usually 60) to find a new unit and lease up there. If you have a disability that makes it hard to find a new unit, you can ask for an extension of lease-up time as a reasonable accommodation to your disability.
• If you have a tenant-based subsidy, your subsidy can be terminated even if your tenancy has not been terminated. If that happens, you have to pay “market rent” for your unit.

If you lose a subsidy because you have not paid the rent or you have broken a program rule, it may make you ineligible for a subsidy in the future.

So, it is important to follow the financial eligibility rules in your lease. Here are some of the most important rules:

• Apply to the owner/landlord (site-specific) or housing authority (tenant-based) before you add an adult to your household.
• Promptly report changes in your income or the income of any household member. 
  • If household income goes down, the housing authority or owner/landlord can decrease your rent, but the decrease won’t start until your report. Use this form letter. If household income goes up, the housing authority or owner/landlord can increase your rent as of the date the income increased.
  • Do you live in Department of Housing and Urban Development (HUD) multi-family housing? If so, HUD counts unemployment benefits as income. But HUD will not count the 2020 and 2021 stimulus checks or the extra $600/week in 2020 unemployment benefits from the federal government.
• Also, your financial eligibility is “redetermined” each year. If your household size or income has changed, the amount of your subsidy can change. Sometimes, if your income has gone up, you may have to pay the “market rent” of your unit. If you lose a subsidy because you are financially ineligible, that does not count against you in the future.

If the housing authority or owner/landlord sends you a notice that your subsidy is being terminated, ask for an informal conference or grievance hearing. Try to work it out.

In most kinds of subsidized housing, you can ask for your rent to be recalculated if your income drops. To make it easier for you to ask for a rent recalculation, we have created a form letter that you can use.

Some people in subsidized housing, including people who get Section 8 assistance, can get Fuel Assistance. It's money to help you heat your home. If you receive food stamps (3SquaresVT) and are found eligible for Fuel Assistance, you may get an increase in your 3SquaresVT amount, too.

To apply, visit the Department for Children and Families (DCF) website to print a fuel assistance application, apply online or call or go to your local DCF district office. Help is based on your household income. After applying, you will receive a notice in the mail that tells you if you are eligible.

The Crisis Fuel Assistance program can help you with a heating crisis during the winter months. It is also a Department for Children and Families program. If you are elderly, disabled or have children under 6 years old living in your home, you can even call for help at night, on weekends and on holidays. See the Crisis Fuel Assistance website.

If you need help when applying for benefits, check this list of organizations.

Did you know?: Local Community Action Programs work with a program called the Housing Opportunity Program Grant (HOP) to help Vermonters who are homeless or at risk of not having a home. HOP may be able to help you pay:

• back rent
• first month's rent
• security deposits
• utilities
• moving costs, or
• short-term rental help.

Funds are limited and for rental housing only. Contact your local Community Action Program to see if HOP is an option for you.