3. Subsidized Housing
Subsidized housing is a government-sponsored economic program. The primary goal is to alleviate the expenses and housing costs for the low-and middle-income persons. The program focuses on non-profit housing, direct housing subsidies, rent supplements, and public housing. The program also allows people to pay rent based on what they can afford as opposed to the type and size of housing they live in.
With subsidized housing, the amount of rent that an individual pays is determined by his or her monthly income. In most cases, the beneficiaries of this housing solution are required to pay approximately 30 percent of their monthly income. The rest is subsidized by a private organization or the government. Alternatively, if the subsidy doesn’t depend on monthly income it’s referred to as a rent supplement.
There are different types of housing subsidies. They include:
· Co-operative housing
Co-operative housing is run by members of a co-operative, and its main aim is to provide non-profit housing to impoverished persons. The rent or housing charges that the tenants remit are meant for the maintenance of the rental building instead of benefiting the landlord.
· Non-profit housing
Non-profit housing is owned and ran by private non-profit organizations like ethno-cultural communities or churches. It can also be owned and managed by various agencies of the government. The program relies on government subsidies and private funding to support the rent of low-income individuals.
· Public housing
Public housing comprises of real estate properties managed by the government. The tenants in such housings, however, are required to meet certain eligibility requirements.