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Local resources alone are not sufficient to meet local housing <br />need. Assistance will be required from the state and federal <br />governments. Because of the broad national policy to help <br />provide decent housing in a suitable living environment for <br />every American the federal government is the prime subsidizer <br />of lower and moderate income housing. <br /> <br />Currently Section 8 of the 1968 Federal Itousing Act is the <br />primary national lower.income housing subsidy program. It is <br />a direct cash assistance program with the subsidy paid directly <br />to the landlord. The two major aspects of Section 8 are "existing" <br />and "new construction." These programs are administered on the <br />federal level by the Department of Housing and Urban Development <br /> <br />(HUD). <br /> <br />Section 8 "existing" allows the tenant to secure housing on the <br />existing private market through the use of a "certificate of <br />participation." Once a landlord is found who will honor the <br />certificate, then an agreement is entered into where usually <br />a local housing authority will pay the difference between 25% <br />of the tenant's gross monthly income and the fair market rent <br />(as determined by federal guidelines) to the landlord. In other <br />words the tenant is obligated only to pay 25% of his/her/their <br />monthly gross income for housing. Generally the local housing <br />authority is allocated a certain number of units which it can <br />subsidize through the program. <br /> <br />-16- <br /> <br /> <br />