Subsidized housing, also known as “affordable housing” is meant for the people who have low or moderate incomes. It usually is a government supported economic income program providing housing solutions in the form of non-profit housing, rent supplements, housing subsidies,co-operative and public housing society.
Public housing: These forms of schemes provide houses to people who meet certain eligibility criteria.
Non-profit housing: These schemes are usually owned by governments or other non-profit groups. They provide low-geared-towards-income programs to support the tenants with low incomes.
Rent supplements: Governments also provides subsidies to help the landlords who are willing to have in tenants with low pays. The government here pays for the difference that arises between the market price and the rent the tenant is paying. This often has the adverse effect of increased market rates in that area.
Co-operative housing societies: Here most of the residents of the housing authority become members of the board of directors. The housing costs orrents here go back to meet the maintenance costs of the building instead of going into the pocket of the landlords. Most of these co-operative housing schemes are subsidized by the governments but the ones that are not are working on higher market rates. Most of these housing schemes provide affordable housing opportunities to old-aged people, people with disabilities and certain communities as well.
These co-operative housing schemes include the rental buildings, the college houses etc.
Housing subsidies: These are schemes that rely on government financial assistance to provide housing opportunities to the low-income people of the society. America provides largest housing subsidy in this regard. It provides the owners mortgages for the first home, second home and even boats with bathrooms to lower taxes that would have to be paid eventually.Some of these housing subsidies are provided to the low-paying tenants living in those houses as well. In such cases, 30% of a tenant’s rent is paid as a subsidy in the form of vouchers to the tenants where they can go for private housing. It can also be given to the landlord who is willing to have tenants with low-income in his house.
There are rare instances where non-profit organizations also step up to provide mortgages for the specific societies to create housing opportunities for them.
The governments of many countries are coming up with schemes that are there to help their needy citizens in finding good accommodation opportunities in reasonable rates. There are many ways of doing that but the most common ones are the ones mentioned above.