<P> The 2008 Consolidated Appropriations Act (Public Law 110 - 161) enacted December 26, 2007, allocated $75 million funding for the HUD - Veterans Affairs Supportive Housing (HUD - VASH) voucher program, authorized under section 8 (o) (19) of the United States Housing Act of 1937 . This new program combines HUD Housing Choice Voucher rental assistance for homeless veterans with case management and clinical service support which is provided by Veterans Affairs administration at its own medical centers and also in the community . </P> <P> The main Section 8 program involves the voucher program . A voucher may be either "project - based"--where its use is limited to a specific apartment complex (public housing agencies (PHAs) may reserve up to 20% of its vouchers as such)--or "tenant - based", where the tenant is free to choose a unit in the private sector, is not limited to specific complexes, and may reside anywhere in the United States (including Puerto Rico) where a PHA operates a Section 8 program . </P> <P> Under the voucher program, individuals or families with a voucher find and lease a unit (either in a specified complex or in the private sector) and pay a portion of the rent . Most households pay 30% of their adjusted income for Section 8 housing . Adjusted income is a household's gross (total) income minus deductions for dependents under 18 years of age, full - time students, disabled persons, or an elderly household, and certain disability assistance and medical expenses . </P> <P> There is an asset test in addition to earned income . Over a certain amount, HUD will add income even if the Section 8 tenant does not receive any interest income from, for example, a bank account . HUD calls this "imputed income from assets" and, in the case of a bank account, HUD establishes a standard "Passbook Savings Rate" to calculate the imputed income from the asset . By increasing the amount of a tenant's total income, the amount of imputed income from assets may affect a tenant's assigned portion of rent . </P>

Where does the funding for section 8 come from