Community Development

Mixed Income Housing

A development that is comprised of housing units with different levels of authority, typically with some housing that is available to low income occupants below market rate. Benefits include: performance & life opportunities of low-income pupils improve significantly when they are surrounded by middle-class classmates. Effective mixed income housing contributes to long term sustainability of affordable housing and is a safe investment.

Property Tax Abatement

A temporary reduction or elimination of property taxes used to promote economic development in areas designated as blighted, distressed, or in state enterprise zones. Defined as either tax forgiveness or tax deferral until a certain date; max time is 10-12 years. Unlike TIF, they do not directly divert spending from other programs so may be more politically feasible.

Special Taxing District

Defined geographical areas that vote to assess an additional tax to be used for improvements within the district. Examples include community improvement districts & transportation development districts.

Promise Neighborhood

Established under the legislative authority of the Fund for Improvement of Education Program (FIE). Provides funding to support eligible entities including: nonprofits (also faith-based nonprofits), institutions of higher education, & Indian tribes. The vision is for all children and youth growing up in these neighborhoods to have access to great schools & strong systems of family & community support to attain an excellent education, college & career. Purpose is to significantly improve educational and development outcome of children & youth in our most distressed communities and transform them.

FHA

Federal Housing Administration. Government agency established by the National Housing Act of 1934 to regulate interest rates and mortgage terms after the banking crisis of the 1930s. Sets standards for underwriting, construction, and insures loans made by banks and other private lenders for home building. Goals are to improve housing standards and conditions, provide an adequate home financing system through insurance of mortgage loans, and stabilize the mortgage market. Was used as a tool to segregate cities and the same time that they pushed suburban development.

Housing Choice Voucher program

Federal governments major program for assisting very-low income families, disabled and elderly to afford safe, sanitary housing conditions in the private market. Can be project based or individual. Vouchers that pay the difference between 30% of tenants monthly income and the "market rent" of the unit. The "market rent" is established by HUD.

Community Reinvestment Act

1977. Act that encouraged depository institutions to help meet the credit needs of the communities in which they operate, including low-moderate income neighborhoods- with safe and sound operations. Passed to reduce discriminatory credit practices against low-income neighborhoods (practice known as redlining).

ADA

Americans with Disabilities Act (1990). Prohibits discrimination against people with disabilities in employment, transportation, public accommodation, government activities and communications. It is unlawful for housing providers to refuse to sell or rent to a person with a disability. Requires housing providers to make reasonable accommodations for persons with disabilities and allow them to make reasonable modifications. Requires new covered multifamily housing to be designed and constructed to be accessible.

CDBG

Community Development Block Grant. Federal funding allocated to state and local governments. Flexible program that provides communities with a wide range of unique community development needs such as social services, demolition, home repair, economic development programs, and can be used to finance affordable housing. One of the longest running HUD programs and is formula based. CDBG funded activities must either benefit low-moderate income people or prevent/eliminate slum or blighted conditions.

CHDO

Community Housing Development Organization. Private, nonprofit community based organization that has, or intends to obtain, staff with the capacity to develop affordable housing for the community that it serves. May use HOME funds for all eligible HOME activities. Must act as the sponsor, developer, or owner of the project and those can include: the acquisition or rehabilitation of rental housing or home buying properties or the new construction of them.

Alinsky (Saul)

Community organizer and writer. Known as the "founder of community organizing". The idea that community organizing is the ability to "act effectively", moving from community disorganization to organization. Leads to the capacity to identify issues, creates motivation to improve conditions, and human nature is to improve self.

CDC

Complying Development Certificate. Fast track approval process for straightforward residential, commercial, & industrial development. Providing application meets specific criteria, then it can be determined by a council or accredited certifier without need for full development application. Examples of its use are: renovations of homes, demolition. It is not used for government buildings, political expenses, or income payment.

Welfare Reform Act

Comprehensive welfare reform plan signed by President Clinton to dramatically chance the nation's welfare system into one that requires work in exchange for time-limited assistance. Essentially to end dependence of welfare. TANF developed from this Act.

New Market Tax Credits

Created in 2000 to spur private investment in low-income urban & rural communities to provide capital to businesses and economic development projects in these communities. Incentivized community development and economic growth through use of tax credits that attract private investment to distressed communities. IRS and CDFI.

HOME Program

Federal funding allocated to state and local government which is formula based. Can only be used for affordable housing activities (such as home repair programs, acquisition or rehabilitation, new affordable housing development, or rental assistance). It is the largest federal block grant to state and local government to create affordable housing for low-income households. The objective is to strengthen private/public partnerships, expand the supply of safe, sanitary, and affordable housing with primary attention to rental housing for very low income and below 80% area medium income households.

Kretzman/ McKnight

Founders of the Asset-Based Community Development Institute. Challenges the traditional approach to urban problems (those which focused on service providers & funding agencies on needs and deficiencies of neighborhoods) to instead demonstrate that community assets are key building blocks in sustainable urban & rural community development efforts. The idea is to establish in each institution, organization, and business in the community a sense of responsibility for the neighborhood & its residents. Also to locate all the local abilities and assets & connect them in ways that multiply their power and effectiveness.

Affordable Housing

Housing deemed affordable to those with median household income as rated by country, state, region or municipality by recognized housing affordability index. Families that need it pay more than 30% of their income on housing and may have difficulty affording necessities (food, clothing, transportation & medical care).

Civil Rights Act of 1964

Landmark civil rights & US labor law that outlaws discrimination based on race, color, sex, religion. or national origin. Martin Luther King Jr. & Lyndon B. Johnson.

LIHTC

Low Income Housing Tax Credit- Single largest resource for creating affordable housing in the U.S. today. Created by the Tax Reform Act of 1986 as an alternate method of funding housing for low-moderate income households. Gives states and local LIHTC- allocating agencies the equivalent of $8 billion in annual budget authority to issue tax credits for the acquisition, rehabilitation or new construction of rental housing targeted to low-income households. Properties are required to stay affordable for 30 years. Tax credits are used to leverage private capital into new construction or the acquisition and rehabilitation of affordable housing.

Social Capital

Not set in people but in the structures, networks, and connections which facilitate action. Depleted unless used regularly. The higher the social capital, the greater ability to recognize common values & maintain social controls. Positively related to residential stability.

National Housing Act of 1934

Part of Franklin Roosevelt's New Deal which was created in order to make housing and home mortgages more affordable. FHA was created through this act which helped to solidify racial segregation that still exists today; the FHA handbook endorsed redlining which made African American neighborhoods ineligible for FHA mortgages.

Choice Neighborhood

Supports locally driven strategies to address struggling neighborhoods with distressed public or HUD-assisted funding through a c comprehensive approach to neighborhood transformation. Focuses on housing, people & neighborhood. Brings together local leaders, stakeholders & residents to create and implement a plan that transforms distressed HUD housing & addresses challenges in the surrounding neighborhood. Designed to catalyze critical improvements in neighborhood assets (schools, housing, services, vacant properties).

Historic Preservation Tax Credits

Supports the rehabilitation of historic and older buildings and encourages the preservation and revitalization of older cities, towns & rural communities. Rewards private investments in rehabilitating historic offices, rental housing, and retail stores. Offers a federal tax credit that is based on 20% of the eligible costs. Administered by the National Parks Service, IRS, and historic preservation offices.

TIF

Tax Increment Financing- Public Financing method used as a subsidy for redevelopment, infrastructure & other community-improvement projects. Uses the projected future increase in tax revenues to subsidize current improvements that are projected to create the increased tax revenues. Redevelopment projects can result in the increased value of surrounding real estate and generate added property tax revenue.

Foreclosure

The action of taking possession of a mortgage property when the mortgagor fails to keep up with their mortgage payments.

TOD

Transit-Oriented Development- Type of community development that includes a mixture of housing, office, retail & other amenities integrated into a walkable neighborhood and located within a 0.5 mile of public transportation. The goal is to create better access to jobs, housing, and opportunities for people of all ages & incomes.

HOPE VI

U.S. Department of Housing & Urban Development's efforts to transform public housing. The program is meant to revitalize the worst public housing projects in the U.S. into mixed-income developments. Largely based on New Urbanism and concept of defensible space. Any public housing authority with severely distressed public housing in its inventory is eligible to apply. Specific key elements of the program include: changing physical shape of public housing, establishing positive incentives for reside self-sufficiency, forging partnerships, & promoting mixed-income neighborhoods.

HUD

U.S. Department of Housing & Urban Development. Current Director: Craig Clemmensen, Future Director: Ben Cason. Has several programs that provide grants, loans & loan guarantees to support economic development including: Community Development Block Grants, Section 108 loan guarantee programs & Brownfields economic development incentive.

New Urbanism

Urban design movement that promotes environmentally friendly habits by creating walkable neighborhoods containing a wide variety of housing & job types. Offers an alternative to the single-use, low density patterns of Post WWII development which had negative economic, health, and environmental effects.

WIOA

Workforce innovation & Opportunity Act. President Obama's landmark legislation designed to strengthen and improve our nation's public workforce system & help get Americans, including youth and those with significant employment barriers, into high-quality jobs & careers and help employers retain skilled workers. The workforce system supports regional economics and plays an active role in community and workforce development.