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Glossary of Affordable Housing Terms

In the United States, homelessness is an alarming and ever-increasing problem. As it grows harder for families to make ends meet, more people seek out affordable housing options. While finding an affordable home to rent or buy can prove to be a challenging and slow process, it isn't impossible. Whether searching for inexpensive housing to reduce costs or trying to find a temporary place due to homelessness, it's important to understand some of the common terms that one may encounter.

Affirmatively Furthering Fair Housing (AFFH): Under the Fair Housing Act of 1968, state and local governments must outlaw housing discrimination while also taking action to decrease segregation and end discriminatory practices against people on the basis of race, national origin, color, sex, religion, familial status, or disability.

Affordable Housing: Housing in which a resident pays no more than 30 percent of their income in utilities, rent, or mortgage payments.

Building Code: National, state, and local laws that establish a minimum standard for construction in areas of safety, design, and structural integrity.

Community Planning and Development (CPD, HUD): A HUD office whose purpose is the development of viable communities. using methods in which low and moderate-income people have access to a suitable living environment, decent housing, and economic opportunity.

Cooperative: Housing in which ownership is shared by each resident. Through the purchase of shares, each member has the right to a specific unit and can participate in its operations.

Deed-in-Lieu: The transfer of a deed from the property owner to the lender to avoid foreclosure.

Discriminatory Effect: When a practice or action negatively impacts a group of persons or reinforces or supports housing segregation.

Earned Income Disallowances for Persons with Disabilities (EID): A program for persons with disabilities who are residents of public housing. EID prevents increases in rent for disabled tenants who are recently employed after a period of unemployment, or who have received a pay increase.

Emergency Shelter: A facility that provides temporary shelter for those who are homeless. An emergency shelter may serve a specific group, such as victims of domestic violence, or it may serve the general homeless population.

Emergency Shelter Grant (ESG) Program: This is a federal program that is meant to fund new emergency shelters and to assist and improve shelters that are currently open by covering operating costs. The program, which is administered by (HUD), also helps the homeless by providing social services and prevention programs.

Fair Market Rent (FMR): The average rent and cost of utilities for new moderately priced rental units with basic amenities in a local housing market.

Fair Market Value: The fair market value is the price of a property if both the seller and the buyer were willing and under no pressure. This value is determined during the property appraisal.

Housing Authority: A government agency that is authorized to administer (HUD) programs. It is also commonly known as a Public Housing Agency (PHA).

Housing Choice Voucher: Tenant-based rental assistance program formerly known as Section 8. It is administered by HUD to provide extremely low-income families with rental assistance in the housing of their choice.

Income-Based Rent: Rent that is set to no more than 30 percent of a tenant's adjusted income each month. This rent can change if there are changes to the income or number of people in a household.

Judgment: A legal decision that can include a property lien as collateral.

Livability: Livability is the measure of an area's affordability, safety, and residential access to transportation, schooling, and employment. The factors help determine a community's quality of life.

Low-Income Household: A low-income household is one in which the combined income "does not exceed 80 percent of the median family income in the area."

Moderate Income Household: A moderate-income household is one where incomes are between 81 and 95 percent of the area median income.

Non-Elderly Disabled Vouchers (NED): Vouchers that allow disabled, non-elderly households to lease the affordable housing of their choice.

Operating Subsidies: Operating subsidies are payments that help the owners of low-rent public housing pay for some of their operating costs. These payments help public housing cover utilities, maintenance, and additional operating costs. They were originally authorized by the U.S. Housing Act of 1937.

Oversubscribed: Oversubscribed is the condition when the number of eligible people for housing assistance exceeds the number of people who can actually receive assistance with the current funding levels.

Payment Standards: The maximum monthly amount of assistance that a family can receive from the Housing Choice Voucher program. These standards are determined by the local housing market.

Project-Based Housing Assistance: Government assistance that goes to the housing unit and not the tenant who is renting the property.

Qualified Mortgagee (HUD, FHA): A lending institution or other entity that is HUD approved to make FHA loans and service mortgages by collecting mortgage payments, for example.

Rent Reasonableness: This is a HUD standard that ensures rental assistance payments that are made by housing agencies are reasonable when compared to other rentals in the area.

Tenant-Based: Housing assistance that is tied to the tenant and not the unit. With tenant-based housing assistance, one can move and may not lose their benefits.

Transitional Housing: Temporary housing, which may be a room or an apartment, for families and individuals who are moving from homelessness to permanent housing.

Violence Against Women Act (VAWA): A federal law that provides protection and services, such as housing assistance, for both women and men who are victims of domestic violence and stalking.

Waiting List: A waiting list is a list of individuals and households who have applied for housing assistance. They are necessary when demand exceeds availability.

Waiting List Preferences: A system designed to give preference to certain individuals on a waiting list. People who commonly receive preference include elderly residents, disabled persons, veterans, and people who are currently homeless.

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