About Industry Terminology
What does LIHTC mean?
LIHTC is an acronym for Low Income Housing Tax Credit. The LIHTC subsidizes the acquisition, construction, and rehabilitation of affordable rental housing for low- and moderate- income tenants. The LIHTC was enacted as part of the 1986 Tax Reform Act and has been used to create affordable housing across the nation.
What does workforce housing mean?
Workforce housing is a term used in development, real estate, banking, and urban planning to describe a housing need for the middle class who work professions like police officers, firefighters, teachers, health care workers, hospitality workers, and retail clerks. Due to a housing shortage or inability to afford available housing for this demographic, workforce housing is created. The area median income threshold is usually between 60% and 120%.
What are historic tax credits?
Introduced in 1979 by Congress, historic tax credits provide a critical indirect federal subsidy to help qualifying buildings rehabilitate projects without losing the historical nature of the building. These tax credits are issued for buildings and structures that are deemed historic by the National Park Service in an effort to protect and preserve historic and archeological resources.
What does the acronym RAD mean?
RAD stands for Rental Assistance Demonstration, an initiative of Housing and Urban Development (HUD) that seeks to improve and preserve specific affordable housing projects that are subsidized by HUD.
What does “affordable by design” mean?
In a market rate setting, it is an effort to keep rents and construction costs low so units are designed smaller, more efficient, and sometimes with fewer amenities.
What is AMI?
Area median income (AMI) is a metric used primarily in affordable housing. AMI is defined as the midpoint of a specific area’s income distribution and is calculated on an annual basis by the Department of Housing and Urban Development (HUD).
AMI benchmarks for renter eligibility is typically a requirement if your property benefits under the LIHTC program. For these programs, eligibility is generally set at a percentage of AMI, usually less than 100%.
What does homeless or houseless mean?
The Department of Housing and Urban Development (HUD) has defined homeless into four categories:
People who are living in a place not meant for human habitation, in an emergency shelter, in transitional housing, or are exiting an institution where they temporarily resided.
People who are losing their primary nighttime residence, which may include a motel or hotel or a doubled up situation, within 14 days and lack resources or support networks to remain in housing.
Families with children or unaccompanied youth who are unstably housed and likely to continue in that state.
People who are fleeing or attempting to flee domestic violence, have no other residence, and lack the resources or support networks to obtain other permanent housing.
In recent years, advocates and activists have begun to use the word unhoused or houseless to describe individuals without a physical address.