Glossary of Affordable Housing Terms
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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A
Accessible Housing
New housing units covered under the Fair Housing Act Amendments Accessibility Guidelines [FHAAG] must meet the following specific accessibility criteria: 1] public and common use areas must be readily accessible to and usable by people with disabilities; 2] all doors "designed to allow passage into and within all premises are sufficiently wide to allow passage by handicapped persons in wheelchairs" [24 CFR 100.205]. These same properties must also meet additional features of adaptable design: accessible route into and through the dwelling unit; light switches, electrical outlets, thermostats and other environmental controls in accessible locations; reinforced bathroom walls to allow later installation of grab bars; and usable kitchens and bathrooms that allow enough space for wheelchair maneuverability.
Adaptive reuse
When a building is modified for a different purpose or use. For example, vacant office buildings can be converted to residential use.
Affordable housing
Rents are considered affordable when they are not more than 30 percent of the renter's pre-tax (or gross) income. Mortgages are considered affordable when they are not more than 35 percent of the home buyer's pre-tax (or gross) income.
Affordable Housing Investment Fund (AHIF)
This program, funded by both federal HOME money and local funds, provides financial assistance for the acquisition, development, or rehabilitation of affordable housing for low and moderate income households or for housing-related services assisting such households. This is a competitive program that requires matching funds.
Americans with Disabilities Act
Federal law prohibiting discrimination on the basis of disability in employment, programs and services provided by state and local governments, goods and services provided by private companies, and in commercial facilities.
Area Median Income (AMI)
Calculated on an annual basis by the U.S. Department of Housing and Urban Development (HUD) for all metropolitan areas and counties, this term refers to the middle value of all family incomes in an area, which is either a county or Census-defined metropolitan area.
See this table for current local definitions of Area Median Income: table
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B
Below Market Rate (BMR)
Housing that is offered at a price lower than the market price. Often a result of an Inclusionary Zoning Ordinance.
See also Area Median Income
By-right development
Development rights that a property owner can exercise under existing zoning conditions without seeking approval from the City.
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C
Committed Affordable Units
1. wholly owned by nonprofits, excepting any units planned to serve households with incomes above 80% of median family income;
2. are guaranteed by agreement with the federal, state or County government to remain affordable to low and moderate income households for a specific period of time through mechanisms such as site plan requirements, contracts with private owners or IRS regulations governing tax-exempt financing; or
3. owner-occupied units whose owner received County subsidy to assist with the purchase.
Community Development Block Grant (CDBG)
CDBG is a federal program providing localities with funds that may be used to address the needs of low and moderate income residents through a variety of housing, neighborhood improvement and economic development activities. Back to top
D
Density Bonus
A density bonus provision to a Zoning Ordinance permits higher densities in affordable units
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E
Extremely low income
A term used to describe individuals or families whose incomes are less than 30 percent of Area Median Income (AMI).
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F
Fair Housing Act
A law that prohibits discrimination in all facets of the homebuying process on the basis of race, color, national origin, religion, sex, familial status, or disability.
Fair market value
The hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.
Fannie Mae
Federal National Mortgage Association (FNMA); a federally-chartered enterprise owned by private stockholders that purchases residential mortgages and converts them into securities for sale to investors; by purchasing mortgages, Fannie Mae supplies funds that lenders may loan to potential homebuyers.
FHA: Federal Housing Administration; established in 1934 to advance homeownership opportunities for all Americans; assists homebuyers by providing mortgage insurance to lenders to cover most losses that may occur when a borrower defaults; this encourages lenders to make loans to borrowers who might not qualify for conventional mortgages.
First Time Home Buyer
An individual or family who has not owned a home during the three-year period preceding the assisted purchase of a home that must be used as the principal residence of the home buyer.
Fixed-rate mortgage
A mortgage with payments that remain the same throughout the life of the loan because the interest rate and other terms are fixed and do not change.
Freddie Mac
Federal Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders With funds for new homebuyers.
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G
Ginnie Mae
Government National Mortgage Association (GNMA); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders.
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H
HEART
The Housing Endowment and Regional Trust, the HEART of San Mateo County, aises funds from public and private sources to meet critical housing needs in San Mateo County. HEART has $4 million currently available for affordable housing development.
see the HEART website for further information.
HELP
Homebuyer Education Learning Program; an educational program from the FHA that counsels people about the homebuying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.
Homelessness
A person or family is homeless when they lack a fixed, regular, stable, adequate nighttime residence.
Housing Choice Vouchers
(Formerly Section 8 Rent Assistance) is a federally funded rent assistance program for low income households. Households must meet income eligibility criteria. Each pays a minimum of 30% of income for rent.
Household
One or more persons occupying a housing unit.
-Priority Households include families with children, elders and persons with disabilities.
-Non-priority Households are households with singles or related persons that include no children, no elders and no persons with disabilities.
HUD
The U.S. Department of Housing and Urban Development; established in 1965, HUD works to create a decent home and suitable living environment for all Americans; it does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.
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I
Inclusionary Zoning
Inclusionary Zoning is the practice of requiring a developer to cause some fraction of homes to be priced below market rate. These program are often called "BMR" programs. If not less than 10% of homes in a proposed development will be affordable to households earning not more than 120% of area median income, State law grants developers a 25% density bonus plus flexibility on other regulations. Also, California Redevelopment Law requires that 15% of homes built in a redevelopment area are BMR, regardless of whether the host city has adopted a general inclusionary zoning ordinance.
See also Below Market Rate
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J
Joint Use
Multi-purpose public facilities or facilities that share buildings or grounds. For example, a playground or ball field can be used as a school yard during school hours and as a public park after school and on weekends.
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M
Median Family Income (MFI)
The income at which half of the families of a particular household size have incomes higher and half have incomes lower. The California Housing Finance agency stimated the median family income for a family of four for San Mateo County for 2005 was $113,100.
See also Area Median Income
Mixed-income housing
Buildings or subdivisions that contain a mix of market-rate and affordable homes.
Mixed-use
The combination of residential, retail, office, schools or other uses are integrated in the same building or on the same block.
Moderate-Income
Income between 80 and 120 percent of area median by household size.
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N
New Urbanism
A set of interdisciplinary planning and design principles aimed at creating vibrant downtowns and walkable neighborhoods with a sense of place. New Urbanism has emerged as an antidote to the suburban sprawl model of development.
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O
Overcrowding
Housing is overcrowded when four or more people live in a one-bedroom apartment, or five or more people or more live in a two-bedroom apartment.
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R
Rent Assistance
Financial subsidies provided by government to assist households in paying their monthly rent. Rent assistance programs in Arlington include the locally-funded Housing Grants program and the federally-funded Housing Choice Voucher program (formerly Section 8) and Housing Opportunities for Persons with AIDS (HOPWA).
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S
Section 8 Vouchers (Housing Choice Vouchers)
Housing choice vouchers allow very low-income families to choose and lease or purchase safe, decent, and affordable privately-owned rental housing. The program provides rent subsidies, either rental certificates or vouchers, on behalf of eligible tenants. These subsidies usually equal the difference between 30 percent of the household's adjusted income and the HUD-approved fair market rent (for certificates) or a Housing Authority-approved payment standard (for vouchers).
Single Room Occupancy
A residential property that includes multiple single room dwelling units. Each unit is for occupancy by a single eligible individual. The unit need not, but may, contain food preparation or sanitary facilities, or both.
Smart growth
A more sustainable and holistic model for urban growth that aims to limit low-density development on the urban fringe while creating more livable neighborhoods in urban and suburban areas. A key component of smart growth is focusing new medium and high density development in compact areas near frequent and reliable public transportation, so that people who live, work, shop, or visit the neighborhood will have viable options besides a private car.
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T
Transit oriented development (TOD)
New pedestrian-friendly, mixed-use developments located near rail and major bus stops. TOD communities allow people to live near transit services and to decrease their dependence on driving.
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V
Very-Low Income
A household income of 50 percent of area median or less by household size.
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