Glossary
A B C D E F G H L M N O P R S T
A
Accessible: A definition used by HUD to denote that the unit is located on an accessible route and when designed, constructed, altered or adapted can be approached, entered, and used by individuals with physical `handicaps.' A unit will be deemed accessible if it meets the requirements of applicable standards that address the particular disability or impairment of the current or future resident, who is disabled.
ADA: Americans with Disabilities Act (42 U.S.C. 12101 et seq).
ADAPT: Persons with disabilities consumer organization: American Disabled for Attendant Programs Today.
Adaptability: A definition used by HUD meaning the ability of certain elements of a dwelling unit, such as kitchen counters, sinks, and grab bars to be added to, raised lowered, or otherwise altered, to accommodate the needs of persons with different degrees of disabilities.
Administrative Costs: Reasonable and necessary costs, as described by federal government, incurred in carrying out eligible program activities in accordance with prescribed regulations. Administrative costs may also include project delivery costs, such as new construction and rehabilitation counseling, preparing work specifications, loan processing and inspections. Administrative costs do not include eligible project-related costs that are incurred by and charged to project owners.
Affordable Housing: Housing where the occupant is paying no more than thirty percent (30%) of gross income for gross housing costs, including utility costs. Housing that is for purchase (with or without rehabilitation) qualifies as affordable housing if it: (1) is purchased by a low-income, first-time home buyer who will make the housing his/her principal residence; and (2) has a sale price that does not exceed the mortgages limit for single family housing in the area under HUD's single family insuring authority under the National Housing Act.
AMFI or MFI: Area Median Family Income, as defined by the federal government.
Assisted Household or Person: A household or person that receives benefits through the investment of federal funds, either alone or in conjunction with the investment of other public or private funds.
AHFC: Austin Housing Finance Corporation.
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B
Bond: An instrument which evidences a debt obligation between the issuer and investor.
Bond Proceeds: The amount of funds that an issuer receives from the underwriters in a public offering, or from an investor in a private placement, in exchange for the issuer's bonds.
C
Capacity Building: Educational and organizational support assistance to promote the ability of community housing development organizations and nonprofit organizations to maintain, rehabilitate and construct housing for low and very low-income person and families. This activity may include, but is not limited to: (1) organizational support to cover expenses for training, technical, and other assistance to the board of directors, staff, and members of the non-profit organization or community housing development organization, (2) program support including technical assistance and training related to housing development, housing management, or other subjects related to the provision of housing or housing services, and (3) studies and analyses of housing needs.
CDBG: Community Development Block Grant -- a flexible federal annual funding program that allocates monies to cities and participating jurisdictions by formula.
CHDO: Community Housing Development Organizations non-profit housing development organizations.
Colonia: An identifiable unincorporated area located within one hundred fifty (150) miles of the Texas-Mexico border that lacks infrastructure and decent housing.
Community Reinvestment Act: The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods. It was enacted by the Congress in 1977 (12 U.S.C. 2901) and is implemented by Regulation BB (12 CFR 228). The regulation was revised in May 1995. Evaluation of CRA Performance: The CRA requires that each depository institution's record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution's application for deposit facilities. Neither the CRA nor its implementing regulation gives specific criteria for rating the performance of depository institutions. Rather, the law indicates that the evaluation process should accommodate an institution's individual circumstances. Nor does the law require institutions to make high-risk loans that jeopardize their safety. To the contrary, the law makes it clear that an institution's CRA activities should be undertaken in a safe and sound manner. CRA examinations are conducted by the federal agencies that are responsible for supervising depository institutions, which may be the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), Office of the Comptroller of the Currency (OCC), and Office of Thrift Supervision (OTS). Interagency information about the CRA is available from the Federal Financial Institutions Examination Council (FFIEC).
Conventional Mortgage Loan: A mortgage loan which is not guaranteed by the federal government (HUD/Federal Housing Administration, Veterans Affairs, Agriculture/Rural Development) and which is either underwritten to conservative loan to value ratios or includes a Primary Mortgage Insurance Policy.
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D
Disability: According to the HUD, a person shall be considered to have a disability if the person is determined to have a physical, mental, or emotional impairment that: (1) is expected to be of long-continued and indefinite duration, (2) substantially impeded his or her ability to live independently, and (3) is of such a nature that the ability could be improved by more suitable housing conditions. A person shall also be considered to have a disability or he or she has a developmental disability as defined in the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6001-6006). The term also includes the surviving member or members or any said household who were living in an assisted unit with the deceased member of the household at the time of his or her death.
Disabled Household: A household composed of one or more persons at least one of whom is an adult (a person of at least 18 years of age) who has a disability.
Down Payment: The portion of the purchase price of a home which the borrower cannot borrow from the first mortgage lender.
Down Payment Assistance: Funds which are provided by the issuer or another third party which can be used to offset a portion of the borrower's down payment.
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E
Economic Independence and/or Self-Sufficiency Programs: Programs undertaken by public housing agencies (PHAs) to promote economic independence and educational opportunities for participating families.
Elderly Household: A family in which the head of the household or a spouse is at least sixty-two years of age.
Extremely Low Income: Household Incomes less than or equal to thirty percent (30%) of AMFI.
F
Family: A household comprised of one or more other persons living in the same household who are related by birth, marriage or adoption.
Fannie Mae: The Federal National Mortgage Association is one of two private corporations whose charter is authorized and guaranteed by (on an annual appropriations basis) the Federal Government. Their charge is to provide liquidity to mortgage lenders by providing a guaranty to mortgage loans which gives them liquidity in the secondary mortgage market.
Federal Housing Assistance: Federal rental assistance programs operate in three basic ways: in all programs, assisted households pay rents that are a percentage of their adjusted income-usually 30 percent. This formula allows even the poorest households to live in assisted housing.
1. Public housing. These units are owned by local public agencies. From 1937 to the mid-1980s, public housing was used extensively to produce additional assisted housing units. Today, there are 1.2 million occupied units of public housing.
2. Project-based assisted housing. These programs supported the construction and rehabilitation of 1.4 million rental units for low-income households. Deep rent subsidies are attached to projects owned by for-profit and nonprofit sponsors that must rent units to eligible households. These programs added large numbers of assisted units from 1974 to the early 1980s.
3. Tenant-based assisted housing. These programs provide direct rental assistance to 1.4 million renter households to enable them to find their own housing on the open market. The maximum subsidy is the difference between the tenant contribution and the local fair market rent (FMR), an average rent for standard quality housing in the area. Begun in 1974, this type of assistance has accounted for virtually all the incremental units, or additions to assisted housing, since the mid-1980s.
Other federal programs produce affordable housing. There are a number other federal housing programs in which renters are charged fixed or flat rents, with the maximum determined by program rules. Households pay the established rent rather than a percentage of their income. Without an additional subsidy, the poorest households often cannot afford this housing. These programs include:
· The Low Income Housing Tax Credit program. This tax credit program subsidizes the capital costs of units that must bear rents affordable to households with incomes at or below 60 percent of area median income. HUD estimates that this program has produced more than 600,000 units since its enactment in 1986. (Estimate assumes 100,000 units placed into service in 1996 and 1997.)
· The HOME Investment Partnership (HOME) program. This is a formula grant to States and local governments that can be used to assist existing homeowners, first-time homebuyers, or renters. Between 1992 and September 1997, HOME produced 126,000 affordable rental units. Qualifying rents must be affordable to households with incomes at or below 65 percent of area median income, or below local FMRs.
· Older rental subsidy programs. The Section 221(d)(3) below market interest rate (BMIR) program and the Section 236 program were active from the early 1960s through the early 1970s. They were designed to produce housing affordable by families with incomes above the public housing income limits. Over time many projects or portions of projects in these programs became "project-based assisted housing" rather than "rental subsidy" as deep rental subsidies were attached to the units. There remain 300,000 units subsidized by these older programs that do not have deep rental subsidies.
Federal Tax Law: The Section of Federal Law which provides the authority for the issuance of tax-exempt bonds and credits which specifies the rules for the various programs and features which programs financed by them can contain.
FHA: The Federal Housing Administration of the U.S. Department of Housing and Urban Development is an agency of the federal government whose charge is to assist in providing housing for underprivileged citizens of the United States.
First-Time Home Buyer: An individual or family who has not owned a home during the three year period preceding the HUD-assisted purchase of a home that must be used as the principal residence of the home buyer.
Freddie Mac: Federal Home Loan Mortgage Corporation is one of two private corporations whose charter is authorized and guaranteed by (on an annual appropriations basis) the Federal Government. Their charge is to provide liquidity to mortgage lenders by providing a guaranty to mortgage loans which gives them liquidity in the secondary mortgage market.
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G
Ginnie Mae (GNMA): The Government National Mortgage Association is a wholly-owned corporate instrumentality of the United States within the Department of Housing and Urban Development. GNMA is charged with providing a guaranty to mortgage-backed securities by a pool of mortgage loans insured by other federal entities (FHA, VA or USRD).
H
HOME: The HOME Investment Partnerships Act, which is Title II of the National Affordable Housing Act. Funds made available under HOME through allocations and reallocations, plus all repayment and interest or other return to the investment of these funds.
Homeless Family: Family without shelter that includes at least one parent or guardian and one child under the age of eighteen, a homeless pregnant woman, or a homeless person in the process of securing legal custody of a person under the age of eighteen.
Household: One or more persons occupying a housing unit.
Housing Development Costs: The total of all costs incurred in financing, creating, or purchasing any housing development, including but not limited to a single-family dwelling, which are approved as reasonable and necessary. The costs may include but are not limited to the value of land and any buildings on the land, cost of site preparation demolition, and development; fee paid or payable in connection with the planning, execution, and financing of the development, cost of construction, rehabilitation, reconstruction, fixtures, furnishings, equipment, machines, and apparatus related to the real property; cost of land improvements, necessary expenses in connection with initial occupancy of the housing development, including tenant relocation, if not otherwise being provided for, as determined by Federal Law.
Housing Development or Housing Project: Any real or personal property, project, building structure, or facilities undertaking, whether existing, new construction, remodeling, improvement, or rehabilitation, which meets or is designed to meet federal property standards for the primary purpose of providing sanitary, decent, and safe dwelling accommodations for rent, lease, use, or purchase by persons and families of low and moderate income and persons with special needs.
Housing Unit: An occupied or vacant house, apartment, or a single room (SRO housing) that is intended as separate living quarters (U.S. Census definition)
HTF: Housing Trust Fund. A dedicated source of funding to address housing needs.
HUD: The United States Department of Housing and Urban Development.
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I
Income Categories used in Housing Programs: For many HUD programs and housing programs administered by other Federal agencies, eligibility is restricted to households whose incomes do not exceed a specific percentage of the median family income for the area in which the household lives. HUD defines median income for each metropolitan area and non-metropolitan county, and the HUD-adjusted area median family income (HAMFI) varies by location and household size.
In contrast, poverty status is determined by comparing income with national poverty thresholds that vary only by household size but not by location. Because HUD's income limits vary with location and use smaller adjustments for household size, they cannot be compared directly with the Federal poverty line. Averaged across the United States, however, poverty thresholds correspond approximately with 30 percent of area median income.
The number of households below a specified percentage of HUD's area median income is not related to any break on the total income distribution, such as quintiles or deciles. For example, almost one-half (45%) of all U.S. households and 64 percent of all renters have incomes below 80 percent of their area median income. More than 26 percent of all U.S. households have incomes less than 50percent of area median income.
The upper limits of income categories used in housing programs [and in this report] are as follows:
80 percent of area median income: Defined as lower income by the U.S. Housing Act and used for many rental and homeownership programs.
60 percent of area median income: Used in Low Income Housing Tax Credit and HOME programs.
50 percent of area median income: Defined as very low income by the U.S. Housing Act and used form many rental programs.
30 percent of area median income: .Defined as extremely low income in pending (1995) housing authorization bills. Used as a proxy for households that, until 1995, would have received a Federal preference for rental housing assistance because they have worst case housing needs.
The table below shows how many U.S. renter households fell into different income groups relevant for housing programs in 1995. To suggest the overlap between the HUD income groups and poverty, it also shows the share of each income group whose cash income fell below the poverty line or below 150 percent of the poverty line, which is the approximate eligibility cutoff for the U.S. Department of Agriculture Food Stamp program. As is this exhibit, this report frequently refers to specific income groups as ranges of percentages of area median income because official terms are so complex. For example, incomes 51-80 percent of area median are officially "low but not very low" incomes.
| Income as % of HUD-adjusted area Median family Income (HAMFI) |
Share of U. S. Renters 1995 (%) |
Percent share of households in group below poverty level |
Percent share of households in groups below 150% of poverty level |
| 0 - 30 |
25 |
86 |
99 |
| 31 - 50 |
17 |
15 |
64 |
| 51 - 60 |
8 |
0 |
19 |
| 61 - 80 |
3 |
0 |
4 |
| Source: HUD -- 1995 American Housing Survey |
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L
Lease To Own: A home ownership program in which an Issuer or 501(C ) (3) purchases a home and rents it to a tenant until such time as the tenant can purchase the home.
Lender: An intermediary which is authorized to underwrite mortgage loans to either FHA, VA, USRD, Fannie Mae, or Freddie Mac standards, to fund such mortgage loans, and to sell them to a secondary market source.
Low Income Neighborhood: A neighborhood that has at least fifty-two percent (52%) of its households at or below eighty percent (80%) of the median income for the area.
M
Metropolitan and Metro: Refers to all areas outside those designated as metropolitan statistical areas by the Bureau of the Census in the most recent decennial census.
Mortgage: The instrument which secures a mortgage loan and creates a first lien on a residence subject to certain permitted encumbrances which shall be in the form permitted by FHA,VA, USRD, Fannie Mae, or Freddie Mac.
Mortgage Credit Certificate: A certificate provided by an issuer authorized to utilize Private Activity Bond Volume Cap which entitles a homeowner to take credit on their Federal income taxes in an amount equal to a certain percentage of the interest paid on their mortgage loan.
Mortgage Guarantor: FHA for an FHA Mortgage Loan, the Veteran's Administration for VA Mortgage Loans, USRD for USRD mortgage loans, a primary insurance provider, Fannie Mae, or Freddie Mac for conventional mortgage loans.
Mortgage Loan: A loan made by a lender on behalf of an issuer to finance the purchase of a qualifying home, evidenced by a note and secured by a mortgage, which meets the requirements of the program.
Mortgagor: The person or persons responsible for making payments under the terms of a mortgage loan.
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N
NIMBY: Not In My Backyard. Neighborhood organizations, other community groups and residents who organize effectively to stop the siting of land uses ranging from public facilities, social service providers, affordable housing (especially multifamily housing) and industrial facilities. This phenomenon is called "NIMBY" since residents often support the goal of affordable housing as long as it is not located near their homes.
Not-for-Profit Organization: Any public or private, nonprofit organization that 1) is organized under state or local laws; 2) has no part of its net earnings insuring to the benefit of any member, founder, contributor, or individual, and 3) is neither controlled by, nor under the direction of, individuals or entities seeking to derive profit or gain from the organization.
O
Overcrowded: A housing unit containing more than one person per room. (U.S. Census definition)
P
Private Activity Bond: A bond for which more than 10% of bond proceeds are to be used directly or indirectly in a trade or business carried on by persons other than governmental units, and for which more than 10% of the debt service on the bonds is directly or indirectly secured by a private business. Private activity bonds are taxable unless specifically exempted. As used in reference to single family housing issues, private activity bonds refer to exempted private activity bonds which are private activity bonds for which there is a specific exemption from the normal taxable rule. The Tax Reform Act of 1986 grouped mortgage revenue bonds with all other categories of exempted private activity bonds and set a cap on the amount of such bonds which could be issued in any one year. As a result of the intense competition for private activity volume cap, the availability supply of tax-exempt bonding authority is significantly exceeded by the demand.
Project-Based (Rental Assistance): Rental assistance provided for a project, not for a specific tenant. Tenants receiving project-based rental assistance give up the right to that assistance upon moving from the project.
Public Housing: Any state, county, municipality, or other government entity or public body (or its agency or instrumentality) that is authorized to engage in or assist in the development or operation of low-income housing. The term includes any Indian Housing Authority.
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R
Rehabilitation Housing: Housing that is to be rehabilitated, but may be rented or owned by a family when assistance is provided, qualifies as affordable housing if the housing (1) is occupied by a low-income family which uses the house as its principal residence; and (2) has a value, after rehabilitation, that does not exceed the mortgage limit for the type of single family housing for the area.
Rental Assistance: Rental assistance payments provided as either project-based rental assistance or tenant-based rental assistance.
Revenue Bonds: Bonds payable from a specific source of revenue and which do not pledge the full faith and credit of the Issuer. Revenue bonds do not permit the bondholders to compel taxation or legislative appropriation of funds not pledged for payment of debt service. Pledged revenues may be derived from the operation of the financed project, grants, and excise or other specified non-ad valorem taxes. Generally, no election is required prior to issuance or validation of revenue bonds.
RTC: Resolution Trust Corporation.
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S
Secondary Market: The market in which bonds are purchased after the delivery date.
Section 8 Certificate or Voucher: federal rental assistance programs. Participants pay 30 percent of their income for housing that meets HUD inspection and rent standards. A voucher allows the participant to rent a unit above allowable rents if they pay the difference.
Sheltered: Families and persons whose primary night-time residence is a supervised publicly or privately operated shelter, including emergency shelters, transitional housing for the homeless, domestic violence shelters, residential shelters for runaway and homeless youth, and any hotel/motel/apartment voucher arrange ment paid because the person is homeless. This term does not include persons living doubled up or in overcrowded or substandard conventional housing. Any facility offering permanent housing is not a shelter, nor are its residents homeless.
SF Loan Program: Single Family Loan Program.
Substandard Housing: A housing unit lacking complete kitchen or bathroom . (U.S. Census definition). By local definition, dwelling units that do not meet standard conditions but are both financially and structurally feasible for rehabilitation. This does not include units that require only cosmetic work, correction or minor livability problems, or maintenance work.
Substantial Rehabilitation: Rehabilitation of residential property at an average cost for the project in excess of $25,000 per dwelling unit.
Supportive Housing: A housing, including housing units and group quarters, that has a supportive environment and includes a planned service component.
Supportive Services: Services provided to residents of supportive housing for the purpose of facilitating the independence of residents. Some examples are case management, medical or psychological counseling and supervision, child care, transportation, and job training.
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T
Taxable Bond: A bond where the interest is not exempt from Federal Income Tax.
Tax-Exempt Bond: A bond where the interest is exempt from Federal Income Tax.
TCHFC: Travis County Housing Finance Corporation.
TDHCA: Texas Department of Housing and Community Affairs.
Tenant Assistance: Rental assistance payments provided as either project-based rental assistance or tenant-based rental assistance.
Tenant-Based (Rental) Assistance: A form or rental assistance in which the assisted tenant may move from a dwelling unit with a right to continued assistance. The assistance is provided for the tenant, not for the project.
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