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Monday, June 24, 2024

Frequently Asked Questions

What is affordable housing?

"Affordable housing" is a broad term used to describe decent, safe housing which is affordable for individuals who, generally, earn less than 80% of the Area Median Income (AMI).

What is subsidized housing?

"Subsidized housing" is a term used to describe housing which is financed in whole or in part with government funding. What is HUD? "HUD" is the U.S. Department of Housing and Urban Developent. HUD is the U.S. government agency responsible for delivering the vast majority of the nation's affordable housing programs.

What is Section 8?

"Section 8" is a HUD program which provides rental payment assistance to qualifying tenants. To make rents affordable, Section 8 pays any rent which exceeds 30% of a tenants adjusted monthly income. For example, if your landlord charges $500 per month for rent and you make $1,000 per month, you would pay $300 (30% of your monthly income) and Section 8 would pay $200 (the difference between what you can afford and what your landlord charges). The Section 8 program is overburdened and it is now difficult to get the subsidy. Many people wait for years to receive the subsidy.

What is the difference between very-low income, low-income and moderate income?

The meaning of these terms can vary from program to program and institution to institution but generally, ver-low income persons refers to persons at or below 30% of the Area Median Income (AMI), low-income persons refers to persons at or below 50% of the AMI, and moderate income persons refers to persons at or below 80% of the AMI.

What are Low Income Housing Tax Credits?

The Low Income Housing Tax Credit is an incentive for individuals and corporations to invest in affordable housing. By investing in affordable housing, investors can reap great savings on annual income tax liabilities. The LIHTC is the most widely used, most productive, and most sucessful affordable housing program in the country.

What is a "tenant certification"?

"Tenant Certifications" are forms that you, as a resident in an affordable housing community, must complete on an annual or periodic basis disclosing all your sources of income. The purpose of the certification is to assure that only thos who meet the income restrictions of the housing receive the benefits of the housing.