Section 8 Generation

[Richard Brand]

Section 8 does not work! The money funneled into the public assistance program created by the Housing and Public Act of 1974 creates a cycle of dependence and debt instead of temporarily assisting people on their way to self-sustainability like it was designed to do.

                “On September 8, 2011 the  House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies, marked up and passed its initial legislation, which includes funding for Section 8 Vouchers for fiscal year (FY) 2012. The legislation passed by the Subcommittee includes approximately $18.5 billion” (www.endhomelessness.org/) This would seem like a worthy investment. Don’t get me wrong, spending money to help people have a roof over their head is a priority of all civilizations who can afford it. America can afford it! What we can not afford to do is create a debt slavery.

Under the current system there is no possible way for recipients to build equity, a integral component in building wealth. “Home equity is important because it gives the homeowner more negotiating power.” (www.banks.com/mortgage) This might sound like a far-fetched idea, a public housing assistance program that actually helps the renter in the long run. It has worked in other countries such as England. After World War II, many of the European nations had major damage and needed to rebuild. Many citizens homes were destroyed and their ability to rebuild wasn’t there. The country developed a help one another attitude, which led to a social democratic mentality. In Britain and France, the housing assistance program has evolved into a co-ownership system. The renter has the ability to gain ownership of the home after so many years of living in there. This system allows the renter to build equity, and eventually raise enough in the home to either own the it outright, or afford a home on their own.

                The American version of this has no reward for length of successful payments. After years of renting a home, the  renter has nothing to show for it, and no value when looking for another home. Section 8 works by subsidizing a portion of the monthly rent and the person meeting the difference. The renter pays a small amount for the home, but in no way pays the market value for living in it. Therefore if a person who is on the program was to attempt to raise his income, that person would lose the assistance benefits and would not be able to afford a comparable home on his own. The renter has no incentive. The family stays on assistance, which means the family stays below the poverty line. The system traps the renter and makes it difficult for him to get out of the program.