Asset-Based Community Development (ABCD)
A form of community development that identifies and utilizes a place’s strengths rather than focusing on needs and/or deficiencies. The main benefit of ABCD is the ability to engage and mobilize the community affected by plans and future developments creating immediate buy-in from stakeholders contributing to the sustainability of projects.
Accessory Dwelling Unit (ADU)
A secondary residence located on a lot zoned for single-family residential. These can be attached to the primary structure, a separate building, or by converting spaces like basements, attics, or garages into additional living space. ADUs create indirect ways of creating affordable or attainable housing in a community by diversifying housing styles as well as creating higher density without the need to use or pay for more land to create.
https://www.buildinganadu.com/what-is-an-adu
Affordable Housing
Affordable housing is generally any housing that is made affordable for rent or purchase to households of low to moderate incomes. Typically, this includes some source of subsidy either for the developer to construct the housing unit, or to the tenant or purchaser in the form of rental assistance or downpayment or mortgage assistance. HUD’s definition of low to moderate income is any household income below 120% area median income (AMI). Low income is below 80% AMI and moderate income is between 80-120% AMI. See HUD’s income limits for your area’s restrictions; https://www.huduser.gov/portal/datasets/il.html
Area Median Income (AMI)
The middle-income level in a particular metropolitan area – 50% of the area’s households earn more than the AMI, and 50% of households earn less. (See also MFI Median Family Income.)
https://www.hud.loans/hud-loans-blog/what-is-area-median-income-ami/
Attainable Housing
Affordably priced housing that does not have subsidy sources connected to it. Put another way, attainable housing is housing on the market that a household of moderate income can afford on their annual income. The added benefit is the lack of rules and restrictions connected to it. Another term for attainable housing is market-rate affordable housing.
https://dallascityhomes.org/blog/what-is-attainable-housing-dch-explains
Brownfield
Property that is the site or potential site of a hazardous substance, pollutant, or contaminant from
previous development. Examples include gas station sites, dry cleaner sites, and some industrial land uses.
Community Based Development Organization (CBDO)
CBDOs are typically community development non-profits located in and working for specific communities focusing on low to moderate-income households. These organizations are certified by the local HUD granting agency. CBDOs are allowed additional flexibility when using HUD grants like CDBG and/or HOME.
https://duluthmn.gov/media/10363/community-based-development-organizations.pdf
Community Development Block Grant (CDBG)
A federal community development program supported by HUD. CDBG funds are administered by the local HUD granting agencies. Designed to help build stronger and more resilient communities, there is more flexibility to the uses of CDBG so that the community can properly use the funds for their unique needs as opposed to the community bending to the needs of the grants available. Although there is additional flexibility, there is still some rigidity. CDBG is best used for construction projects.
https://www.hudexchange.info/programs/cdbg/
CDC (Community Development Corporation)
Nonprofit organizations that support communities by identifying priorities, finding funding to address those goals, and helping to implement projects to accomplish the objectives. CDCs typically focus on low to moderate-income needs within communities, many times their work includes the development of affordable housing.
CDFI (Community Development Financial Institution)
CDFIs are lending mechanisms for community development projects that would otherwise not meet the underwriting requirements of a traditional commercial bank loan. This makes it possible for communities and CDC, CBDO, or CHDOs to access capital for community-based projects that might otherwise go unfulfilled.
CHDO (Community Housing Development Organization)
Private nonprofit organizations that seek to develop decent housing that is affordable to low-income and moderate-income persons. Non-governmental organizations that receive federal HOME funds must be CHDOs.
https://www.hudexchange.info/programs/home/topics/chdo/#policy-guidance-and-faqs
CDLC (Community Development Law Center)
An organization providing legal and technical assistance to nonprofits serving low-income individuals and neighborhoods.
Creative Class
A term popularized by urban studies theorist Richard Florida. The creative class consists of modern demographic trends around the progression of the workforce as processes become automated. This group of urban elites have shown to be a key driving force for economic, social, technological, cultural, and demographic trends of postindustrial cities in the U.S.
Community Land Trust (CLT)
A nonprofit that holds land for a community to ensure the longevity of priorities like affordable housing, gardens, or other specific assets that might otherwise be removed given market forces.
Co‐operative (co‐op)
A form of shared ownership housing where all residents own stock in the corporation that owns the property. They do not own their units, but co‐op share ownership entitles a resident to a long‐term lease on a unit and a vote in the governance of the property. Limited equity cooperatives are a form of affordable, resident‐controlled homeownership in which the individual share purchase prices are very low so that the resident does not need mortgage financing to buy in. Like rental properties, co‐ops may be syndicated to raise money for the construction.
https://www.investopedia.com/articles/pf/08/housingco-op.asp
Community Reinvestment Act (CRA)
A federal law, enacted in 1977, that incentivizes lenders to make residential and commercial loans in low- and moderate- income (LMI) communities.
https://www.federalreserve.gov/consumerscommunities/cra_about.htm
Down Payment Assistance
Grants or low-interest loans given to low to moderate-income (LMI) homebuyers to help fund down payment and/or closing costs.
https://www.bankrate.com/mortgages/down-payment-assistance/
Entitlement Community
Also called an entitlement jurisdiction is a city or urban county of at least 50,000 in population making it eligible for Community Development Block Grant (CDBG) funds directly from HUD. Non-entitlement communities below the population threshold must apply through the state apparatus.
https://www.hud.gov/program_offices/comm_planning/cdbg/entitlement-program
Expiration of Use Restrictions
In affordable housing projects where the restrictions on rents and/or incomes of occupants could or will expire if owners prepay their publicly assisted mortgages and convert the units to market rate housing close to the expiration date. The units were built using federal and/or state subsidies in exchange for keeping rents affordable over a set period. While mortgages and other assistance often have terms as long as 30‐40 years, many gave owners the option to prepay the mortgage after 20 years and thus remove use restrictions on the property.
https://www.huduser.gov/portal/pdredge/pdr_edge_research_081712.html
Extremely Low Income
Adjusted income that is below 30% of the area median income (AMI) based on household size and in the county or Metropolitan Statistical Area (MSA) based on HUD guidelines;
https://www.huduser.gov/portal/datasets/il.html
Fair Housing Act
Federal legislation, first enacted in 1968 and expanded by amendments in 1974 and 1988, which provides the Secretary of HUD with investigation and enforcement responsibilities for fair housing practices. The law prohibits discrimination in housing and lending based on race, color, religion, sex, national origin, handicap, of familial status.
https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
Fair Market Rents (FMRs)
Maximum rents allowed by HUD in the Section 8 rental assistance program. Updated and published annually, FMRs represent HUD’s estimate of the actual market rent for an apartment in the conventional marketplace. HUD sets FMRs by bedrooms per unit and regions within each state. The current FMRs are posted by HUD;
https://www.huduser.gov/portal/datasets/fmr.html
Federal Home Loan Mortgage Corporation (FHLMC) or Freddie Mac
Congressionally chartered agency established in 1970, and privatized in 1989, to buy qualifying mortgages.
Federal Housing Administration (FHA)
Part of HUD that provides mortgage insurance on loans by FHA-approved lenders. This insurance protects the lenders against potential losses and can therefore provide larger and more mortgages in exchange for lower risks. FHA loans reference a type of mortgage that allows buyers to put 3.5% as a down payment on a home while carrying private mortgage insurance (PMI).
https://www.hud.gov/program_offices/housing/fhahistory
Federal National Mortgage Association (FNMA of Fannie Mae)
Created in 1938 to purchase FHA, and later VA and conventional mortgages, Fannie Mae is now privately owned and managed, federally chartered corporation, the largest source of home mortgage funds in the United States. It buys qualifying residential mortgages from originating lenders and either keeps them in portfolio or packages and sells them as guaranteed mortgage-backed securities (MBS). Fannie Mae also offers programs with more flexible underwriting guidelines for lower income homebuyers.
Geographic Information Systems (GIS)
Computer system that spatially displays and analyzes data to produce maps and spatial models. GIS helps planners analyze and understand area issues in a way otherwise unavailable by spreadsheets alone.
https://www.esri.com/en-us/what-is-gis/overview
Greyfield Development
The redevelopment of already developed land that is not environmentally contaminated.
https://www.smartcapitalmind.com/what-is-greyfield-land.htm
Greenfield
Undeveloped land, sometimes referring to undeveloped agricultural land. Greenfield development typically moves some portion of the population away from the central business district and might include changing land uses like agricultural to residential. This is typically affiliated with suburban growth and/or suburban sprawl. It also typically has less challenges to development like a brownfield or a greyfield.
Habitat for Humanity (HFH or just Habitat)
A global organization that collaborates with churches, corporations, CDCs, social service agencies and volunteer groups to build houses for individuals and families meeting income requirements and other provisions of eligibility.
HOME Investment Partnership Program (HOME)
A federal HUD program that provides annual grants to states, large cities, and some smaller communities for affordable housing activities. Affordable housing development activities might include homeownership, rent subsidies, housing development and rehabilitation.
http://www.hud.gov/offices/cpd/affordablehousing/programs/home
HOPE
A series of HUD programs that provide grants to local governments, housing authorities, or nonprofit organizations to convert unused or HUD-owned rental properties to homeownership opportunities. Properties must be public housing or government foreclosed housing. The grant pays for some administration, but requires a local match. Applicants compete for funds in periodic requests for proposals.
HOPE I
HUD homeownership program that helps low-income households buy public housing units.
https://www.hud.gov/programdescription/hope1
HOPE VI
This program enables public housing authorities with severely distressed public housing units to demolish and revitalize those public housing sites. Rebuilt projects include one-third heavily subsidized units, one-third moderately subsidized units, and one-third market rate units to deconcentrate poverty; an issue identified with past public housing projects.
https://www.hud.gov/program_offices/public_indian_housing/programs/ph/hope6/about
Housing Choice Vouchers (Section 8)
Housing choice vouchers, also known as section 8 vouchers, allow very low-income households to lease privately-owned rental units that meet “decent, safe, and sanitary” standards. Housing Choice Vouchers is the main federal rental assistance program and are administered by local public housing authorities. Housing voucher recipients pay no more than 30 percent of their monthly adjusted gross income for rent and utilities. The remainder is covered by the program.
https://www.hud.gov/topics/housing_choice_voucher_program_section_8
Housing Trust Fund
Housing trust funds are grants for city, county or state governments that receive ongoing, dedicated sources of public funding. These funds are used to subsidize rents, preserve existing, or develop new affordable housing for extremely low and very low-income households.
https://www.hudexchange.info/programs/htf/
Inclusionary Housing
Local policies that integrate affordable housing into market rate developments. Municipalities will offer incentives like tax abatements, TIF financing, parking restrictions, expedited permitting, or higher density allowances to developers to make a portion of the project’s units affordable.
Inclusionary Zoning
A local zoning ordinance that either requires or encourages a developer to include affordable housing as part of a development. In other cases, it might require developers to contribute to a fund for affordable housing. The zoning provision also includes automatic incentives.
Infill Development
Developing buildings in empty parcels or land otherwise surrounded by existing developed areas.
https://www.planetizen.com/definition/infill-development
Land Trust
Generally, a land conservation organization that preserves certain uses of land through community-based organizations, and outside of the government structure.
https://landtrustalliance.org/
Land Trust (For Sale Housing)
A nonprofit organization that retains ownership of land, but sells affordable structures built on the land. Through a land lease, the land trust can maintain long term affordability in the structure. The lease ensures that the home is resold to a low-income household, sold at a below-market price, and/or sold with a share of the appreciated value going to the nonprofit.
Limited-Equity Ownership Condominium (Condo)
Residents own their individual units, but an association owns the land and common areas.
https://www.investopedia.com/terms/c/condominium.asp
Limited-Equity Ownership Cooperative
Resident households own a share of the cooperative housing association, not individual units. This maintains affordability at the time of purchase and when residents sell their shares.
Owner Occupied Repair Program (OOR)
A program that helps homeowners obtain necessary and/or emergency repairs. OOR is an eligible use of CDBG funds and is funded through that source among other private funding sources.
U.S. Department of Housing and Urban Development (HUD)
Created as part of Lyndon B. Johnson’s “War on Poverty”, became a cabinet department as part of the Housing and Urban Development Act in 1965. HUD addresses national policy and programs relating to housing, improving communities, and enforcing fair housing law. HUD’s mission is to help create a decent home and suitable living environment for all Americans. Major programs include mortgage insurance, CDBG, HOME, Section 8, homeless assistance, fair housing education and enforcement, and other subsidized housing for low-income households.
Low Income Households
Adjusted income that is between 50 and 80% of the area median income (AMI) adjusted for household size and for the county or Metropolitan Statistical Area.
https://www.huduser.gov/portal/datasets/il.html
Low‐Income Housing Tax Credit (LIHTC)
Federal tax credit for developers of affordable housing. States receive an annual dollar value of credits which they then allocate to projects based on priorities established in a state qualified allocation plan (QAP). There are two types of credits awarded to projects; 4% and 9% credits. 4% credits cover 30% of the hard costs and are non-competitive. 9% credits cover 70% of construction and are extremely competitive. The QAP determines which projects are eligible and how they score projects against one another in competitive rounds. Developers must keep the units affordable for a set number of years.
https://www.lisc.org/our-resources/resource/low-income-housing-tax-credit/
http://www.hud.gov/offices/cpd/affordablehousing/training/web/lihtc/basics
Metropolitan Statistical Area (MSA)
A core area with a population center that has a significant economic and social with adjacent communities. All of these connected communities jointly make up an MSA. This is a way to account for populations that might interact with, but don’t technically live in, a specific market.
https://www.census.gov/programs-surveys/metro-micro/about.html
Middle Income
Adjusted income that is between 80 and 120% of the area median income (AMI) adjusted for household size and for the county or Metropolitan Statistical Area.
https://www.federalreserve.gov/consumerscommunities/cra_resources.htm
Missing-Middle Housing
Coined by Daniel Parolek, a nationally recognized architecture, design, and urban planning professional, to describe buildings with multiple units, compatible in scale and form with detached single-family homes. Because this is typically infill development, missing middle housing is located in walkable neighborhoods featuring diverse housing options including duplexes, fourplexes, cottage courts, and multiplexes.
Mixed Income Housing Development
Development that includes housing affordable to various income levels. This can be a technique for communities and/or municipalities to diversify the labor and economic markets. This helps with economic integration and has been shown to benefit a local economy.
Mixed Use Development
Projects that combine different types of development such as residential, commercial, office, industrial and institutional into one project.
https://www.planetizen.com/definition/mixed-use-development
Moderate Income
Adjusted income that is between 50 and 80% of the area median income (AMI) adjusted for household size and for the county or Metropolitan Statistical Area.
https://www.federalreserve.gov/consumerscommunities/cra_resources.htm
Metropolitan Planning Organization (MPO)
A federally mandated professional planning body responsible for comprehensive regional transportation planning.
Multiple Listing Service (MLS)
Where Realtors post and search for real estate listings that they use to share with or service their clients.
https://www.nar.realtor/mls-online-listings/multiple-listing-service-mls-what-is-it
Neighborhood Revitalization Strategy Area (NRSA)
CDBG recipients with NRSAs are offered additional flexibility in funding activities with their CDBG funds. This flexibility is meant to encourage program innovation in strategic areas in need of revitalization.
Not In My Back Yard (NIMBY)
NIMBY is a term used to refer to an individual or a group that will oppose any new developments in their neighborhood. Justifications will include anything undesirable, but there are very few desirable developments to what would be referred to as a NIMBY.
https://www.britannica.com/topic/NIMBY
Neighborhood Stabilization Program (NSP)
Started after the 2008 foreclosure crisis, NSP stabilizes communities by purchasing and redeveloping foreclosed and abandoned residential properties.
https://www.hud.gov/program_offices/comm_planning/nsp
Participating Jurisdiction (PJ)
A PJ is a local or state government eligible to contract directly with HUD for HOME funds. Smaller cities must subcontract from state government agencies.
https://www.hud.gov/sites/documents/19787_CH01.PDF
Rent Control
Ordinances that limit the amount a landlord can raise the rent, typically by setting an allowable annual percentage increase. Some ordinances also limit the amount the rent can be raised between renters. Also known as first-generation controls apply to buildings built before 1947 where a tenant has continuously lived in a specific unit from before 1971. There is a 7.5% annual rent increase limit up to a maximum base rent.
https://www.investopedia.com/terms/r/rent-control.asp
Rent Stabilization
Control over rental pricing to insure tenants from unreasonable rent increases. Also known as second-generation controls, is less aggressive in its approach. This law applies to buildings built between 1947 and 1971 and rent increases are reviewed each year.
https://www.investopedia.com/rent-stabilization-definition-5204321
Rent Subsidies
The main form of rental subsidies is the Section 8 or Housing Choice Voucher (HCV) program. Other forms for rental subsidies include Section 811 vouchers for supportive housing for people with disabilities. Most other subsidies go directly to the developer to help defray the cost of construction in exchange for reduced rents.
https://www.hud.gov/topics/housing_choice_voucher_program_section_8
https://www.hud.gov/program_offices/housing/mfh/progdesc/disab811
Rural Housing Service
Part of the U.S. Department of Agriculture that provides housing grants and loans to projects in small cities and rural areas.
https://www.rd.usda.gov/about-rd/agencies/rural-housing-service
Section 3
Section 3 program requires that recipients of certain HUD assistance provide job training, employment and contract opportunities for low- or very-low-income residents in connection with projects and activities in their neighborhoods.
Section 502
A Rural Housing Service program that provides low-income borrowers with low-interest loans or loan guarantees to help purchase a home.
Section 8 (aka Housing Choice Vouchers)
Section 8 vouchers, also known as Housing Choice vouchers, allow very low-income households (below 30% AMI) to lease privately-owned rental units that meet “decent, safe, and sanitary” standards. Section 8 Vouchers is the main federal rental assistance program and are administered by local public housing authorities (PHA). Housing voucher recipients pay no more than 30 percent of their monthly adjusted gross income for rent and utilities. The remainder is covered by the program. The landlord will receive the difference between the fair market rent (FMR) and what the tenant can afford at 30% of their household income.
https://www.hud.gov/topics/housing_choice_voucher_program_section_8
Section 42 (aka LIHTC)
Federal tax credit for developers of affordable housing. States receive an annual dollar value of credits which they then allocate to projects based on priorities established in a state qualified allocation plan (QAP). There are two types of credits awarded to projects; 4% and 9% credits. 4% credits cover 30% of the hard costs and are non-competitive. 9% credits cover 70% of construction and are extremely competitive. The QAP determines which projects are eligible and how they score projects against one another in competitive rounds. Developers must keep the units affordable for a set number of years.
https://www.lisc.org/our-resources/resource/low-income-housing-tax-credit/
http://www.hud.gov/offices/cpd/affordablehousing/training/web/lihtc/basics
https://www.housinglink.org/SubsidizedHousing/Section42
Family Self-Sufficiency Program (FFS)
Helping tenants in HUD supported units find gainful employment towards economic independence.
https://www.hud.gov/program_offices/public_indian_housing/programs/hcv/fss
Special Needs Housing
Housing designed for people with special needs including those with mental illness, physical disabilities, substance abuse, the elderly, and households experiencing homelessness. Wrap around supportive services are typically included as part of these housing units.
https://www.ncsha.org/advocacy-issues/special-needs-housing/
Subsidized Housing
There are two types of housing subsidies: 1) development subsidies (supply side) to help construct or acquire housing, and 2) rental subsidies (demand side) that supplement the amount that residents must pay.
https://www.planetizen.com/definition/housing-subsidies
Subsidy
Financial assistance that fills the gap between the cost of affordable housing development/operations and income from price restricted rentals or sales. Often, multiple subsidies from various sources are needed, referred to as the “layering” of the “capital stack”.
https://www.investopedia.com/terms/s/subsidy.asp
Tax Increment Financing (TIF)
A public private partnership (PPP) that raises additional capital for a project by capturing future estimated taxes and using those values as a form of financing in the initial deal.
https://www.hud.loans/hud-loans-blog/what-is-tax-increment-financing/
Transitional Housing (TH)
Temporary housing combined with wraparound supportive services that helps households experiencing or at risk of homelessness with the aim of ultimately creating immediate stability while working towards permanent housing solutions.
X Business Enterprise; Minority/Woman/Veteran (XBE/MBE/WBE/VBE)
A business that is a least 51% owned by a minority/woman/veteran or who also controls and operates the business. These classifications can be certified by different government agencies. Many subsidy programs use these designations in selecting projects to award as part of their priorities. They may also have requirements minimums for XBE participation once awards, by vendors and/or contractors.
https://nmsdc.org/certifications/definition-of-an-mbe/
Yes in my Backyard (YIMBY)
A political movement born as a response to NIMBYism. YIMBYs are pro-development, and against restrictive building and zoning codes. They prefer higher densities in already existing areas as opposed to suburban sprawl.
https://www.planetizen.com/definition/yimbys
Other Sources
St. Pete Affordable Housing; https://www.sphousingdata.org/glossary
Multi-Housing News; https://www.multihousingnews.com/16-affordable-housing-terms-everyone-should-know/
HUD Archives; https://archives.hud.gov/local/nv/goodstories/2006-04-06glos.cfm
Harborlight Homes; https://harborlighthomes.org/advocacy-education/education/glossary-of-affordable-housing-terms/
MFCDC; www.mfcdc.org
City of Duluth; https://duluthmn.gov/
Dallas City Homes; https://dallascityhomes.org
Building and ADU; https://www.buildinganadu.com/what-is-an-adu
Depaul University ABCDs; https://resources.depaul.edu/abcd-institute/resources/Documents/WhatisAssetBasedCommunityDevelopment.pdf
HUD CDBG: https://www.hudexchange.info/programs/cdbg/
NACEDA; https://www.naceda.org/
Programs; http://www.hud.gov/offices/cpd/communitydevelopment/programs/
