Affordable housing refers to various public- and private-sector initiatives aimed at helping low- and moderate-income individuals and families purchase homes. These programs often feature lower down payments, eased loan-qualifying rules, and below-market interest rates.
Below-Market Interest Rate (BMIR) is a government-driven program where property owners are charged a reduced interest rate with the stipulation that the savings from the reduced rate are passed on to tenants through lower rents.
The Department of HUD plays a pivotal role in American housing policy to ensure liquidity, stimulate economic development, and facilitate fair access to housing.
The FHA 235 program provides an interest-rate subsidy for lower-income families to become homeowners by reducing the required monthly mortgage payments through government assistance.
The FHA 236 program provides an interest-rate subsidy for apartment owners, who are required to pass the interest savings on to tenants through reduced rents.
Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise (GSE) that buys and securitizes mortgages to ensure a reliable and affordable supply of mortgage funds across the country.
A Housing Finance Agency (HFA) is a governmental organization, typically state or local, designed to provide affordable housing assistance through various means, including the issuance of tax-free bonds and funding low-interest mortgages.
The United States Department of Housing and Urban Development (HUD) is a federal agency created to address national housing needs and to improve and develop the nation's communities by providing access to affordable housing opportunities and overseeing fair housing practices.
Inclusionary zoning is a local law that requires housing developers to reserve a certain percentage of housing units for lower-income buyers in exchange for approval of their projects, aiming to increase the availability of affordable housing.
The Local Housing Authority (LHA) is a government entity that develops and manages public housing projects intended for qualified low-income residents.
Low-income housing that meets specific criteria and regulations, making it eligible for special tax credits. Stringent guidelines govern tenant qualification, certification, and project financing to ensure compliance with federal and state laws.
A Low-Income Housing Limited Partnership (LIHLP) is a partnership formed to fund and manage housing for low-income tenants. It offers investors potential returns primarily through tax deductions and credits rather than significant annual cash distributions.
A type of prefabricated housing that is largely assembled in factories and then transported to sites of use. Manufactured homes are built to the standards of the HUD-code.
Manufactured housing refers to homes that are built in factories and then transported to a specific site for use. These homes must pass federal inspections in contrast to mobile homes, which often have fewer regulatory requirements. Manufactured homes often include modular housing options.
A mobile home is a dwelling unit manufactured in a factory, designed for transport to a site, and semi-permanently attached. Upgraded standards in the 1980s rebranded them as manufactured homes.
A Mobile Home Park is a subdivision of plots designed for the siting of mobile homes. Plots are typically leased to mobile home owners and include utilities, parking space, and access to utility roads. Many parks also offer amenities such as swimming pools and clubhouses.
NAHRO is a professional membership organization that represents public housing agencies, redevelopment agencies, and housing authorities in the United States.
The National Association of Housing and Redevelopment Officials (NAHRO) advocates for adequate and affordable housing, contributing to strong and viable communities, especially for low and moderate-income Americans.
Public housing comprises government-owned housing units that are made available to low-income individuals and families. These units are either provided at no cost or for nominal rental rates.
Section 8 Housing refers to privately-owned rental dwelling units participating in a low-income rental assistance program established through amendments to Section 8 of the 1937 Housing Act in 1974.
A starter home is typically a modest-sized house designed for first-time homebuyers. These homes serve as entry points into the housing market, often featuring less than 1,500 square feet and existing within an affordable price range.
Subsidized housing refers to apartments, nursing homes, or single-family dwellings that receive a government subsidy to reduce housing costs for low-income individuals and families.
A Walk-Up (Apartment) Dwelling Unit is a type of apartment located in a multi-story building without an elevator. Often considered more affordable due to the lack of elevator amenities, these units are typically found in older buildings.
