Affordable Housing Glossary

Section 8 Program

HUD-funded voucher program. It works to encourage the private sector to construct affordable homes, and subsidizes affordable housing. Section 8 assistance can be "project-based" and subsidize properties or "tenant-based" and provide tenants with a monetary bond to help them pay rent to their landlords.

Settlement Sheet or Closing Statement

HUD1 Statement also known as the "settlement sheet," or "closing statement" it itemizes all closing costs; must be given to the borrower at or before closing. Items that appear on the statement include real estate commissions, loan fees, points, and escrow amounts.

Heating, Ventilation, Air Conditioning

HVAC A home's heating and cooling system

Metropolitan Area

MA A large population nucleus, together with adjacent communities that has a high degree of economic and social integration with that nucleus.

Mortgage Backed Security

MBS Mortgage Backed Security is collateral provided by credit enhancers that is used to guarantee the bonds.

Mortgage Credit Certificate

MCC Homebuyer assistance program designed to help lower income families afford home ownership, allows for credit of $2,000/year

Minimum Set-Aside Test

The minimum set-aside test is generally used to determine if a building is a qualified low-income housing project. There are three different minimum set-aside tests with varying applicability. The tests are 20-50 test, the 40-60 test, and the 25-60 test. (See 20-50 test, 40-60 test and 25-60 test).

Florida Keys Area

the "Keys"

Mortgage Interest Deducation

the interest cost of a mortgage, which is a tax - deductible expense. The interest reduces the taxable income of taxpayers.

Debt Service

Required payments for principal and interest made with respect to a mortgage secured by housing.

Subarea

SA Designation placed in front of those areas where only the counties or towns of the subarea are used in calculating income limits and FMRs.

State Apartment Incentive Loan Program Development

SAIL Development

State Apartment Incentive Loan Program Minimum Set-Aside Requirement

SAIL Minimum Set-Aside Requirement

State Apartment Incentive Loan

SAIL Provides low-interest loans on a competitive basis to affordable housing developers

State Apartment Incentive Loan Program Rent-Restricted Unit

SAIL Rent-Restricted Unit

Statistical Analysis Software

SAS software that allows users to perform a range of statistical analyses. Some of the HUD USER data sets are available in SAS.

Small Difficult Development Areas

SDDA Metropolitan Difficult Development Areas (DDAs) are desginated by ZIP Code Tabulation Area (ZCTA). Although the geographic extent of ZCTAs is very similar to current 5-digit ZIP codes, ZIP Code Tabulation Areas (ZCTAs) remain fixed over time while the U.S. Postal Service (USPS) occasionally alters specific ZIP code boundaries. The data from which SAFMRs and SDDA designations are derived, however, does not immediately shift with the USPS definition of ZIP Codes, but remains defined by the ZCTAs as established by the Census Bureau. Therefore, for purposes of determining whether a property is located in a SDDA, users should refer to the SDDA (ZCTA) address locator at http://www.huduser.gov/portal/sadda/sadda_qct.html rather than the USPS-assigned 5-digit ZIP Code of the project.

Single Family Mortgage Revenue Bond

SFMRB Tax-exempt bonds that states and local governments issue through HFAs to help fund below market interest rate mortgages for first time homebuyers that qualify

Special Housing Assistance and Development Program

SHADP

State Housing Inititatives Partnership

SHIP Provides funds to local governments as incentive to create partnerships that produce and preserve affordable homeownership and multifamily housing

State Housing Trust Fund

SHTF Federally administered, state managed funds that produce and preserve affordable housing for extremely low income households

Fair Market Value

FMV the hypothetical price that a willing buyer and seller will agree upon when they are acting freely, carefully, and with complete knowledge of the situation.

First Time Homebuyer

FTHB Purchasing home for the first time

Average Income test set-aside

"March 23, 2018 - The Consolidated Appropriations Act of 2018 added a new, third minimum set‐aside option beyond the 20‐at‐50 and 40‐at‐60 set‐asides. The third option creates an Average Income test as follows: -At least 40% of a project's units have to be "both rent‐restricted and occupied by individuals whose incomes do not exceed the imputed income limitation designated by the taxpayer with respect to the respective unit" IRC §42(g)(1)(C)(i)-The average of the imputed income limitations designated cannot exceed 60% of AMI."

Annual Income

(1) Annual income as defined in the Code of Federal Regulations (24 CFR 5.609); (2)Annual income as reported under the Census Long Form for the most recent decennial census; or (3)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual federal annual income tax purposes.

Rent-Restricted Unit

A rent-restricted unit is a unit for which the rent charged to tenants is limited to 30 percent of the income limitation applicable under the elected minimum set-aside test.

Commitment (As used in the HOME program)

1. Executed a legally binding agreement with a state recipient, subrecipient, or contractor to use a specific amount of HOME funds to produce affordable housing or provide tenant-based rental assistance; (2) Executed a written agreement reserving a specific amount of funds for a Community Housing Development Organization; or (3) Met requirements to commit to a specific local project as defined below.

Section 3

: A provision associated with HUD funding. It is intended to ensure that when employment or contracting opportunities are created as a result of HUD funding, preference must be given to low- and very low-income persons or business concerns residing in the community where the project is located.

Intermediate Term Mortgage

: a mortgage loan with a contractual maturity from the time of purchase equal to or less than 20 years.

Discount Point

: normally paid at closing and generally calculated to be equivalent to 1% of the total loan amount, discount points are paid to reduce the interest rate on a loan. In an ARM with an initial rate discount, the lender gives up a number of percentage points in interest to give you a lower rate and lower payments for part of the mortgage term (usually for one year or less). After the discount period, the ARM rate will probably go up depending on the index rate.

Default

:A failure to comply to make any payment or to perform any other obligation under the mortgage, and such failure continues for a period of 30 days.

Balloon Payment

A balloon payment is a single future payment of the entire bond principal when the borrower makes periodic interest-only payments.

Below Market Federal Loan

A below market federal loan is any loan funded by federal funds if the interest rate payable on such loan is less than the applicable federal rate.

Bond Purchase Agreement

A bond purchase agreement is an agreement between the borrower, issuer and underwriter allowing the underwriter to sell the bonds, subject to responsibilities, warranties, and agreements agreed to by the issuer.

Existing Building

A building that has been previously placed in service

Minority-Owned Business

A business in which more than 50 percent of the ownership or control is held by one or more minority individuals; and more than 50 percent of the net profit or loss of which accrues to one or more minority individuals.

Woman-Owned Business

A business in which more than 50 percent of the ownership or control is held by one or more women; and more than 50 percent of the net profit or loss of which accrues to one or more women; and a significant percentage of senior management positions of which are held by women.

Call Premium

A call premium is a payment made to the bondholder if the borrower pays off the bonds before they mature.

Comfort Letter

A comfort letter is a letter provided by a certified public accountant when the bond purchase agreement is executed. This letter confirms that the issuer's (or borrower's) financial information included in the official statements is presented in conformity with generally accepted auditing standards and that no changes in the financial position of the borrower since the date of the last audited financial statements, other than those changes disclosed in the comfort letter or in the official statement, have occurred.

Universal Design

A design concept that encourages the construction or rehabilitation of housing and elements of the living environment in a manner that makes them usable by all people, regardless of ability, without the need for adaptation or specialized design.

Consolidated Plan

A document written by a state or local government describing the housing needs of the low- and moderate-income residents, outlining strategies to meet these needs, and listing all resources available to implement the strategies. This document is required in order to receive HUD Community Planning and Development funds.

Federally Assisted Building

A federally assisted building is any building that is substantially assisted, financed or operated under laws in effect the date of enactment of the Tax Reform Act of 1986.

Condominium

A form of ownership in which the separate owners of the individual units jointly own the development's common areas and facilities.

Waiting List

A formal record of applicants for housing assistance and/or assisted housing units that identifies the applicant's name, date and time of application, selection preferences claimed, income category, and the need for an accessible unit. The waiting list may be kept in either a bound journal or a computer program. Whichever method is used to maintain the waiting list, the owner must establish a method of documenting the appropriate selection of applicant names from the list.

Grant

A grant is funds received from a private foundation or charitable group, federal, state or local government that do not have to be repaid.

Chronically Homeless Individual

A homeless individual with a disability who lives either in a place not meant for human habitation, a safe haven, or in an emergency shelter, or in an institutional care facility if the individual has been living in the facility for fewer than 90 days and had been living in a place not meant for human habitation, a safe haven, or in an emergency shelter immediately before entering the institutional care facility. In order to meet the "chronically homeless" definition, the individual also must have been living as described above continuously for at least 12 months, or on at least four separate occasions in the last 3 years, where the combined occasions total a length of time of at least 12 months. Each period separating the occasions must include at least 7 nights of living in a situation other than a place not meant for human habitation, in an emergency shelter, or in a safe haven.

Elderly Person Household

A household composed of one or more persons at least one of whom is 62 years of age or more at the time of initial occupancy.

Dilapidated Housing

A housing unit that does not provide safe and adequate shelter, and in its present condition endangers the health, safety or well-being of the occupants. Such a housing unit shall have one or more critical defects, or a combination of intermediate defects in sufficient number or extent to require considerable repair or rebuilding. Such defects may involve original construction, or they may result from continued neglect or lack of repair or from serious damage to the structure.

Low Income Unit

A low-income unit is (1) rent restricted and (2) has individuals occupying it who meet the income limitation applicable under the elected minimum set-aside test.

Security Deposit

A payment required by an owner to be held during the term of the lease (or the time period the tenant occupies the unit) to offset damages incurred due to the actions of the tenant. Such damages may include physical damage to the property, theft of property, and failure to pay back rent. Forfeiture of the deposit does not absolve the tenant of further financial liability.

Transitional Housing

A project that has as its purpose facilitating the movement of homeless individuals and families to permanent housing within a reasonable amount of time (usually 24 months). Transitional housing includes housing primarily designed to serve deinstitutionalized homeless individuals and other homeless individuals with mental or physical disabilities and homeless families with children.

Qualified Contract

A qualified contract is a bona fide contract to acquire a LIHC project for the sum of the existing debt, adjusted investor equity and other capital contributions, less project cash distributions.

Qualified Low-Income Building

A qualified low-income building is part of a qualified low-income housing project throughout the compliance period and for which prior law depreciation rules do not apply.

Qualified Low-Income Housing Project

A qualified low-income housing project is a residential rental project that satisfies the elected minimum set-aside test.

Qualified Non-Profit Organization

A qualified non-profit organization, which is described in Section 501 (C)(3) or (4), is exempt from tax under Section 501(a). Its exempt purpose is to foster low-income housing, among other purposes.

Rating Agency

A rating agency determines or "rates" the investment risk of bonds. Examples include Standard & Poor's and Moody's Investors Service.

Rebate

A rebate is payment of the excess arbitrage proceeds to the federal government to retain the tax-exempt status of the bonds. Special rules allow a borrower to avoid a rebate of arbitrage proceeds.

Regulatory Agreement

A regulatory agreement is an agreement entered into between the borrower, bond issuer and trustee specifying the income rent and income restrictions a project owner must comply with for the bonds to retain their tax exempt status.

Building Code

A set of building construction requirements developed and administered by national and local bodies to ensure that buildings meet certain minimum standards for structural integrity, safety, design, and durability.

Single Family Property

A single-unit family residence, detached or attached to other housing structures.

Census Tract Number

A small, relatively permanent statistical subdivision of a county or statistically equivalent entity, delineated for data presentation purposes by a local group of census data users or the geographic staff of a regional census center in accordance with Census Bureau guidelines.

Blighted Structure

A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare.

Annual Adjustment Factor

AAF

Annual Contribution Contract

ACC

American Community Survey

ACS : A nationwide survey designed to provide communities with a fresh look at how they are changing. It is a critical element in the Census Bureau's reengineered 2010 census plan. The ACS collects information such as age, race, income, commute time to work, home value, veteran status, and other important data from U.S. households.

Applicable Federal Rate

AFR Applicable federal rate is a short term, mid-term and long-term debt rate that is redetermined on a monthly basis.

American Housing Survey

AHS Contains data on apartments, single-family homes, mobile homes, vacant homes, family composition, income, housing and neighborhood quality, housing costs, equipment, fuels, size of housing units, and recent movers. National data are collected every other year, from a fixed sample of about 50,000 homes, plus new construction each year. The survey started in 1973 and has relied on the same sample since 1985, allowing users to view statistical changes in homes and households over the years. In some metropolitan areas, additional samples (every four to six years) measure local conditions.

Analysis of Impediments

AI Section 8 of the U.S. Housing Act of 1937 provides for annual rent adjustments for housing units assisted under this section. HUD develops the rent adjustment factors, called AAFs, on the basis of Consumer Price Index (CPI) data on changes in residential rent and utility costs. HUD publishes the AAFs annually in the Federal Register.

Assisted Living Facility

ALF

Area Median Income

AMI Found by multiplying the ACS median income by the CPI Inflation factor

Geographic Area of Opportunity

AOO Census tracts identified by the FHFC which meet at least two out of the following three threshold criteria designated by FHFC based on the average of the 3 most recent 5-year averages of the American Community Survey: (a) census tract median income greater than the 40th percentile of all census tracts within the county; (b) educational attainment above the median of all tracts in the county, measured as the proportion of adults over 25 years old who have completed at least some college; and (c) tract employment rate greater than the statewide employment rate. The census tract list can be found at http://www.floridahousing.org/programs/developers-multifamily- programs/competitive/areas-of-opportunity

Active Partners Performance System

APPS Software program that allows HUD's business partners to submit their Previous Participation Certification (form 2530) request to HUD for processing via the Internet.

Annual Percentage Rate

APR a measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders, by federal law, follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans. APR is a higher rate than the simple interest of the mortgage.

Adjustable Rate Mortgage

ARM Adjustable Rate Mortgage; a mortgage loan subject to changes in interest rates; when rates change, ARM monthly payments increase or decrease at intervals determined by the lender; the change in monthly payment amount, however, is usually subject to a cap.

American Recovery and Reinvestment Act

ARRA

Brownfield

Abandoned, idled, and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination

Acceleration

Acceleration is a provision included in many of the bond documents requiring the immediate payment of all the bond principal, generally caused by the borrower's default.

Acquisition Cost

Acquisition cost is the cost of acquiring an existing building

Homeless Prevention

Activities or programs designed to prevent the incidence of homelessness, including, but not limited to: (1) short-term subsidies to defray rent and utility arrearages for families that have received eviction or utility termination notices; (2) security deposits or first month's rent to permit a homeless family to move into its own apartment; (3) mediation programs for landlord-tenant disputes; (4) legal services programs that enable representation of indigent tenants in eviction proceedings; (5) payments to prevent foreclosure on a home; and (6) other innovative programs and activities designed to prevent the incidence of homelessness.

Adjusted Basis

Adjusted basis is the cost basis of a building adjusted for capital improvements minus depreciation allowable.

Adjusted Investor Equity

Adjusted investor equity is the aggregate amount of cash taxpayers invested increased by cost-of-living adjustment.

Section 8 Homeownership Program

Allows low-income families who qualify for Section 8 rental assistance to use their certificates or vouchers to pay for homeownership costs under a mortgage.

Eminent Domain

An exercise of the power of government or quasi-government agencies (such as airport authorities, highway commissions, community development agencies, and utility companies) to take private property for public use.

Extended Low-Income Housing Commitment

An extended low-income housing commitment is any agreement between the taxpayer and the housing credit agency that extends the low-income housing requirements for a full 30 years.

Inducement Resolution

An inducement resolution is the resolution passed by the bond issuer communicating the intent to issue bonds for a specific activity.

Commercial Building

Any building other than a residential or government building, including any building constructed for industrial, retail, business, or public purposes.

Energy Audit

Any process that identifies and specifies the energy and cost savings likely to be realized through the purchase and installation of particular energy efficiency measures or renewable energy measures.

Applicable Fraction

Applicable fraction is the percentage of a building that is treated as low-income use and generally eligible for the LIHC. The applicable fraction is the lesser of the unit fraction or the floor space fraction.

Applicable Percentage

Applicable percentage describes the technical term for the credit percentage that a qualified low-income housing project is eligible for

Arbitrage Yield Restriction

Arbitrage occurs when tax-exempt bond proceeds are invested in securities that yield a greater return than the interest charged on the bonds. Restrictions exist on the amount of arbitrage bonds can earn without putting the tax-exempt status of the bonds in peril. In instances where the restriction is violated, exceptions exist that allow for the tax-exempt status of the bonds to remain intact.

Shelter Plus Care Program

Authorized by title IV, subtitle F, of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11403-11407b). S+C is designed to link rental assistance to supportive services for hard-to-serve homeless persons with disabilities (primarily those who are seriously mentally ill; have chronic problems with alcohol, drugs, or both; or have acquired immunodeficiency syndrome (AIDS and related diseases) and their families. The program provides grants to be used for rental assistance for permanent housing for homeless persons with disabilities. Rental assistance grants must be matched in the aggregate by supportive services that are equal in value to the amount of rental assistance and appropriate to the needs of the population to be served. Recipients are chosen on a competitive basis nationwide.

Secretary's Award Program

Awards from the HUD Secretary for best in residential housing design, excellence in historic preservation, and excellence produced through cooperative public/private efforts that expand homeownership opportunities for underserved American families.

Bond Counsel

Bond counsel is the attorney representing the bond issuer and bondholders. The attorney provides an opinion that the interest on the bonds is exempt from federal taxation. He/she is responsible for the bond inducement resolution, bonds, the bond indenture, the financing agreement, the regulatory agreement and the tax opinion.

Bond Issuance Cost

Bond issuance costs are the costs incurred to issue the bonds, including legal fees, underwriting fees, rating agency fees, trustee fees, printing, etc.

Loan to Value Ratio

LTV Ratio a percentage calculated by dividing the amount borrowed by the price or appraised value of the home to be purchased; the higher the LTV, the less cash a borrower is required to pay as down payment.

Prohibited Bases

Civil rights statutes establish the demographic categories by which discrimination is prohibited. Under the Fair Housing Act, the prohibited bases are race, color, religion, sex, national origin, familial status, and disability.

Core-Based Statistical Area

CBSA

Community Development Block Grant

CDBG Funds local community development activities with a goal of providing affordable housing, anti-poverty programs, and infrastructure

Community Development Block Grant Disaster Recovery

CDBG-DR

Code of Federal Regulations

CFR The Code of Federal Regulations (CFR) is the codification of the general and permanent rules published in the Federal Register by the executive departments and agencies of the federal government. It is divided into 50 titles that represent broad areas subject to federal regulation. Each volume of the CFR is updated once each calendar year and is issued on a quarterly basis.

Community Housing Development Organizations

CHDOs

Community Land Trust

CLT Nonprofit, Community-based organizations designed to ensure long-term housing affordability

Change Order

CO

Cost of Funds Index

COFI an index used to determine interest rate changes for some adjustable-rate mortgages.

Community Planning and Development

CPD HUD's Office of Community Planning and Development seeks to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expand economic opportunities for low- and moderate-income persons. The primary means toward this end is the development of partnerships among all levels of government and the private sector, including for-profit and nonprofit organizations.

Community Reinvestment Act

CRA Passed in 1977 encourages banks to meet credit needs of low and moderate income neighborhoods

Combined Statistical Area

CSA May comprise two or more metropolitan statistical areas, a metropolitan statistical area and a micropolitan statistical area, two or more micropolitan statistical areas, or multiple metropolitan and micropolitan statistical areas that have social and economic ties as measured by commuting, but at lower levels than are found among counties within metropolitan and micropolitan statistical areas.

Consolidated Metropolitan Statistical Area

CSMA An area that has a census population of one million or more, has component parts that qualify as primary metropolitan statistical areas (PMSAs) based on official standards, and local opinion favors the designation. CMSAs consist of whole counties, except for the New England states, where they consist of county subdivisions (primarily cities and towns).

Community Workforce Housing Innovation Pilot

CWHIP Created to provide affordable rental and home ownership community workforce housing through incentives and state funds

Percentile Rent Estimates

Calculated for all FMR areas. These are not fair market rents. Under certain conditions, as set forth in the Interim Rule (Federal Register Vol. 65, No. 191, Monday October 2, 2000, pages 58870—58875), these 50th percentile rents can be used to set success rate payment standards.

Call Protection

Call protection describes the provisions in a bond issuance that preclude the borrower from prepaying the bonds for a specified period of time

Tax Shelter Registration

Certain partnerships or other investments with significant tax benefits must register as tax shelters with the Internal Revenue Service and certain state tax agencies.

Foster Children

Children that are in the legal guardianship or custody of a State, county, or private adoption or foster care agency, yet are cared for by foster parents in their own homes, under some kind of short-term or long-term foster care arrangement with the custodial agency. These children will generally remain in foster care until they are reunited with their parents, or until their parents voluntarily consent to their adoption by another family, or until the court involuntarily terminates or severs the parental right of their biological parents, so that they can become available to be adopted by another family. Therefore, the parental rights of the parents of these children may or may not have been terminated or severed, and the children may or may not be legally available for adoption.

Comparative Market Analysis

Comps A property evaluation that determines property value by comparing similar properties sold within the last year

Constitutional Home Rule Subdivision

Constitutional home rules subdivision describes a political subdivision with home rule powers under the state constitution. These subdivisions receive special treatment under the LIHC state allocation rules.

Credit Recapture Amount

Credit recapture amount is the amount of credit that is recaptured upon disposition of the LIHC project during the compliance period. The maximum recapture is two-thirds of the previously claimed credit and an interest charge applies.

Land Use Restriction Agreement

LURA Owner gives up some of their rights of the land use in exchange for the promise of future tax credits

Difficult Development Area (See SDDA)

DDA A difficult development area is any area designated by the U.S. Department of Housing & Urban Development, which has high construction, land or utility costs relative to area median gross income.

Energy Efficient Mortgage

EEM an FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase

Elderly Housing Community Loan

EHCL Loan of up to $750,000 for developers that make substantial improvements to elderly housing

Elderly Housing Low Income Household

EHCL Program

Extremely Low Income

ELI 30% or lower than the median family income

Extremely Low Income Household

ELI Household

Extremely Low Income Loan

ELI Loan

Extremely Low Income Persons

ELI Persons

Extremely Low Income Set Aside

ELI Set-Aside

Deep Rent Skewing Set-Aside

Deep rent skewing set-aside is a special set-aside test that applies for purposes of determining if existing tenants qualify as low-income tenants. This special test is elective and must be met in addition to the general set-aside test (i.e. 20-50, 40-60 and 25-60).

Defeasance

Defeasance describes the retirement of bonds through the issuance of new bonds.

Protected Classes

Demographic categories of persons established by civil rights statutes against whom discrimination is prohibited. (See also Prohibited Bases.)

Equal Credit Opportunity Act

ECOA a federal law requiring lenders to make credit available equally without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public assistance programs.

Emergency Shelter Grant

ESG A federal CPD program grant designed to help improve the quality of existing emergency shelters for the homeless, to make additional shelters available, to meet the costs of operating shelters, to provide essential social services to homeless individuals, and to help prevent homelessness. ESG also provides short-term homeless prevention assistance to persons at imminent risk of losing their own housing due to eviction, foreclosure, or utility shutoffs.

Extended Use Agreement

EUA

Empowerment Zone

EZ Empowerment Zones and Enterprise Communities are part of The Empowerment Zones and Enterprise Communities (EZ/EC) program. The Empowerment Zones and Enterprise Communities (EZ/EC) program was designed by the federal government to encourage comprehensive planning and investment aimed at the economic, physical, and social development of the neediest urban and rural areas in the United States. Under the initial round of funding announced in December 1994, 71 urban sites received EZ/EC designation. The major share of the federal funding went to the six sites designated as Empowerment Zones (EZs) and the remaining funds went to Enterprise Communities (ECs). Although considerable latitude has been afforded to these sites regarding the selection of specific strategies and activities to pursue, each funded community's efforts at zone transformation were expected to reflect four key principles: (1) economic opportunity; (2) community-based partnerships; (3) sustainable community development; and (4) a strategic vision for change

ELIST

Electronic mailing list (eList) available from HUD USER to assist in disseminating research information, and to encourage subscribers to share information and exchange ideas with one another.

Eligible Basis

Eligible basis is a component of the qualified basis of an LIHC project. It is generally equal to the adjusted basis of the building, excluding land but including amenities and common areas.

Fair Credit Reporting Act

FCRA federal act to ensure that credit bureaus are fair and accurate protecting the individual's privacy rights enacted in 1971 and revised in October 1997.

Fair Housing Act

FHA a law that prohibits discrimination in all facets of the home buying process on the basis of race, color, national origin, religion, sex, familial status, or disability

203(b)

FHA's single family program which provides mortgage insurance to lenders to protect against the borrower defaulting; 203(b) is used to finance the purchase of new or existing one to four family housing; 203(b) insured loans are known for requiring a low down payment, flexible qualifying guidelines, limited fees, and a limit on maximum loan amount.

Florida Housing Coalition

FHC Nonprofit statewide membership org. that brings together housing advocates and resources to create quality affordable housing

Florida Housing Data Clearinghouse

FHDC Provides public access to data about housing needs and supply

Farmworker Housing Recovery Program

FHRP Attempt to aid migrant and seasonal farmworkers

Florida League of Cities

FLC Group of over 400 Floridian cities geared at shaping legislation and exchanging ideas between cities

Federally Subsidiexed

Federally subsidized is a term used to describe a building that is financed with a below-market federal loan or with a loan for which the interest income earned by the holder of the loan is exempt from tax under Internal Revenue Code Section 13.

Float

Float is interest earned on bond payments made to the trustee that have yet to be remitted to the bondholders. The borrower generally makes debt service payments monthly while bondholders are paid semi-annually. The interest reduces the amount the borrower has to pay to service the bonds, effectively reducing the interest rate.

Gulf Opportunity Zone Act

GO Zone Act Authorizes issuance of QAP bonds to finance the construction and rehab of residential and nonresidential property in the Gulf Opportunity Zone

Government Sponsored Enterprises

GSE a collection of financial services corporations formed by the United States Congress to reduce interest rates for farmers and homeowners. Examples include Fannie Mae and Freddie Mac.

Data Set

HUD USER provides researchers with access to original electronic data sets generated by PD&R-sponsored data collection efforts, including the American Housing Survey, HUD median family income limits, as well as microdata from research initiatives on topics such as housing discrimination, the HUD-insured multifamily housing stock, and the public housing population.

Gross Income

Gross income is all income from whatever source derived, including the value of property or services as well as cash.

Gross Rent

Gross rent excludes any amounts received from a rental assistance program, utility allowance or fee paid to the owner of the unit owner by any governmental assistance program.

Homeownership Assistance for Moderate Income

HAMI Designed to increase the number of first time home purchases for low to moderate income residents

Housing Credit Program

HC

Housing Credits

HC Federal tax credit designed to encourage private investment into construction, acquisition, and rehab for rental affordable housing targeting low-income households

Housing Credit Agency

HCA The housing credit agency is a state or local housing agency that has the authority to allocate and commit federal low-income housing tax credits to a building.

Homebuyer Education Learning Program

HELP an educational program from the FHA that counsels people about the home buying process; HELP covers topics like budgeting, finding a home, getting a loan, and home maintenance; in most cases, completion of the program may entitle the homebuyer to a reduced initial FHA mortgage insurance premium-from 2.25% to 1.75% of the home purchase price.

Housing and Economic Recovery Act

HERA Allowed the federal government to guarantee $300B in 30-yr. fixed rate mortgages following the housing crash

Housing Finance Agency

HFA State or local agencies responsible for financing and preserving low- and moderate-income housing within a state.

Hardest-Hit Fund

HHF Provides targeted aid to states hit hardest by the subprime mortgage crisis that began in 2007

Hurricane Housing Recovery Program

HHRP Accommodates different housing needs of counties in FL following hurricane damage

Homeownership Loan Program

HLP Allows families to purchase a home and receive monthly assistance in meeting homeownership expenses

HOME Investment Partnerships

HOME Provides grants to states and local communities that use the grants to fund building, buying, rehab of affordable housing for rent or ownership

HOME Ownership Pool

HOP Online program that gives the developers a way to reserve funds for eligible homebuyers to receive purchase assistnace

Housing Opportunities for People Everywhere

HOPE VI Revitalization of public housing in physical improvements, management improvements, social and community services

Housing Opportunities for persons with AIDS

HOPWA Provides housing assistance and supportive services to low-income people with HIV/AIDS and their families. HOPWA funds may also be used for health care and mental health services, chemical dependency treatment, nutritional services, case management, assistance with daily living, and other supportive services.

Homeownership Zone Program

HOZ Allows communities to reclaim vacant and blighted properties, increase homeownership, and promote economic revitalization by creating entire neighborhoods of new, single-family homes, called HOZs.

Department of Housing and Urban Development

HUD HUD s a Cabinet department in the executive branch of the United States federal government. Although its beginnings were in the House and Home Financing Agency, it was founded as a Cabinet department in 1965, as part of the "Great Society" program of President Lyndon Johnson, to develop and execute policies on housing and metropolises.

Moderate Income

Households whose incomes are between 81 percent and 95 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families. HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD's findings that such variations are necessary because of prevailing levels of construction costs, fair market rents, or unusually high or low family incomes.

Co-op (cooperative)

Housing in which each member shares in the ownership of the whole project with the exclusive right to occupy a specific unit and to participate in project operations through the purchase of stock.

Supportive Housing for the Elderly

Housing that is designed to meet the special physical needs of elderly persons and to accommodate the provision of supportive services that are expected to be needed, either initially or over the useful life of the housing, by the category or categories of elderly persons that the housing is intended to serve.

Inadequate Housing

Housing with severe or moderate physical problems, as defined in the American Housing Survey (AHS) since 1984. A unit is defined as having severe physical problems if it has severe problems in any of five areas: plumbing, heating, electrical system, upkeep, and hallways. It has moderate problems if it has problems in plumbing, heating upkeep, hallways, or kitchen, but no severe problems.

Internal Revenue Code

IRC

Independent Registered Municipal Advisor

IRMA

Affordable Housing

In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Please note that some jurisdictions may define affordable housing based on other, locally determined criteria, and that this definition is intended solely as an approximate guideline or general rule of thumb.

HUD Metro FMR Area

Indicates that only a portion of the OMB-defined core-based statistical area (CBSA) is in the area to which the income limits or FMRs apply. HUD is required by OMB to alter the name of metropolitan geographic entities it derives from the CBSAs when the geography is not the same as that established by OMB.

Local Government Area of Opportunity Funding"

LGAO or LGAOF Developments receiving a high level of Local Government interest in the project as demonstrated by an irrevocable funding contribution that equals or exceeds 2.5 times the Total Development Cost Per Unit Base Limitation (exclusive of any add- ons or multipliers for the Development Type committed to for the proposed Development. The Minimum Local Government Areas of Opportunity Funding Amounts are outlined in Section Four A.10.c.(2)(b) of the RFA. A single jurisdiction (i.e., the county or a municipality) may not contribute cash loans and/or cash grants for any other proposed Development applying in the same competitive solicitation in an amount sufficient to qualify as Local Government Areas of Opportunity, per the competitive solicitation.

Local Government Housing Trust Fund

LGHTF Flexible, locally administered funds that support a variety of affordable housing activities

Low Income Housing Tax Credit

LIHTC 9% tax credit to stimulate the acquisition, building, rehabilitation of affordable rental housing for low-moderate incomes

Letter of Map Revision

LOMR

Amended and Restated Limited Partnership Agreement

LPA Legal agreement between two parties

Multiple Listing Service

MLS within the Metro Columbus area, Realtors submit listings and agree to attempt to sell all properties in the MLS. The MLS is a service of the local Columbus Board of Realtors®. The local MLS has a protocol for updating listings and sharing commissions. The MLS offers the advantage of more timely information, availability, and access to houses and other types of property on the market.

Multifamily Mortgage Revenue Bond Land Use Restriction Agreement

MMRB LURA

Multifamily Mortgage Revenue Bond Loan

MMRB Loan

Multifamily Mortgage Revenue Bond Loan Agreement

MMRB Loan Agreement

Multifamily Mortgage Revenue Bond Loan Commitment

MMRB Loan Commitment

Multifamily Mortgage Revenue Bond Program

MMRB Program

Multifamily Mortgage Revenue Bond

MMRB Taxable and tax-exempt bonds used to provide below market rate loans to developers who set aside a certain portion of apartment units for low-income housing

Metropolitan Statistical Area

MSA An area with at least one urbanized area of 50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core, as measured by commuting ties.

Mandatory Redemption

Mandatory redemption is a provision allowing a borrower to prepay bonds regardless of call provisions, due to special circumstances (e.g. foreclosure or condemnation).

National Council of State Housing Agencies

NCSHA Nonprofit, nonpartisan org. created to coordinate and leverage HFA's federal advocacy efforts for affordable housing

New England County Metropolitan Area

NECMA A county-based area designated by the federal Office of Management and Budget to provide an alternative to the county subdivision-based metropolitan areas in New England.

National Foreclosure Mitigation Counseling

NFMC Helped standardized foreclosure practices and fostered relationships between housing counseling agencies and loan servicers

National Homeownership Month

NHOM Takes place in June

Not In My Back Yard

NIMBY Opposition to large developments in one's local area

Notice of Alleged Defficiency

NOAD Tells you the IRS has determined that you have additional unpaid taxes that according to the IRS' records haven't been fulfilled

Notice of Commencement

NOC

Notice of Change

NOC Owner's notice of possible change of rent due to be given to tenant

Notice of Credit Availability

NOCA Indicates availability of 9% housing credit

Notice of Funding Availablity

NOFA Annual notice in Grants.gov for HUD's discretionary funding programs, gives details on funding amounts

Notice of Proposed Rule Hearing

NOPR Notice of hearing regarding a rule, often done at local levels

Notice of Possible Scoring Error

NOPSE Notice that a housing application may undergo a scoring change because of an error

Neighborhood Stabilization Program

NSP Provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.

Worst Case Housing Needs

Needs experienced by unassisted very low-income renters who either (1) pay more than one-half of their monthly income for rent; or (2) live in severely inadequate conditions, or both.

Negative Arbitrage

Negative arbitrage occurs when undisbursed bond proceeds earn a lower interest rate than the bond interest rate.

Nonqualified Nonrecourse Financing

Nonqualified nonrecourse financing is nonrecourse financing that is not qualified commercial financing. This definition is used for purposes of low-income housing tax credit at-risk rules.

Nonqualified Substantial Improvement

Nonqualified substantial improvement is a term used to determine if an existing building is eligible for the acquisition credit; is any substantial improvement for which Section 167 (k) was elected or pre- 1986 Tax Reform Act depreciation rules apply.

Regulation D

Regulation D is a securities law regulation that explains the rules for three private offering exemptions from the general rules that requires securities registration.

Office of Management and Budget

OMB Assists the President in overseeing the preparation of the federal budget and supervises its administration in Executive Branch agencies. In helping to formulate the President's spending plans, OMB evaluates the effectiveness of agency programs, policies, and procedures, assesses competing funding demands among agencies, and sets funding priorities. OMB ensures that agency reports, rules, testimony, and proposed legislation are consistent with the President's Budget and with Administration policies. In addition, OMB oversees and coordinates the Administration's procurement, financial management, information, and regulatory policies. In each of these areas, OMB's role is to help improve administrative management, to develop better performance measures and coordinating mechanisms, and to reduce any unnecessary burdens on the public.

Office of University Partnerships

OUP HUD's Office of University Partnerships facilitates the formation of campus-community partnerships by sharing information about community partnership development in general, and about OUP's various funded programs, in particular. OUP is committed to helping colleges and universities join with their neighbors to address urban problems. The resulting partnerships enable students, faculty, and neighborhood organizations to work together to revitalize local economies, generate jobs, and rebuild healthy communities.

Partnership for Advancing Technology in Housing

PATH HUD's Partnership for Advancing Technology in Housing is dedicated to accelerating the development and use of technologies that radically improve the quality, durability, energy efficiency, environmental performance, and affordability of America's housing. PATH is a voluntary partnership between leaders of the homebuilding, product manufacturing, insurance, and financial industries, and representatives of federal agencies concerned with housing. Working together, PATH partners improve new and existing homes and strengthen the technology infrastructure of the United States. PD&R coordinates all PATH activities.

Project Based Rental Assistance

PBRA

Office of Policy Development and Research

PD&R HUD's Office of Policy Development and Research (PD&R) maintains current information on housing needs, market conditions, and existing programs, as well as conducts research on priority housing and community development issues. The office provides reliable and objective data and analysis to help inform policy decisions. In 1978, PD&R established HUD USER, an information resource for housing and community development researchers, government officials, academics, policymakers, and the American public.

Public Housing Authority

PHA Part of HUD, oversees public housing

Placed in Service

PIS When the building is first available to be occupied

Principal, Interest, Taxes, and Insurance

PITI the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.

Predevelopment Loan Program

PLP Helps finance affordable housing projects up to $750,000

Primary Metropolitan Statistical Area

PMSA An area that qualifies as a metropolitan statistical area has a census population of 1 million or more; two or more PMSAs may be designated within it if they meet published official standards and local opinion favors the designation.

Planned Urban Developnment

PUD a development that is planned, and constructed as one entity. Generally, there are common features in the homes or lots governed by covenants attached to the deed. Most planned developments have common land and facilities owned and managed by the owner's or neighborhood association. Homeowners usually are required to participate in the association via a payment of annual dues.

Lead Based Paint

Paint or other surface coatings that contain lead equal to or exceeding 1.0 milligram per square centimeter or 0.5 percent by weight or 5,000 parts per million (ppm) by weight.

Private Placement

Private placement is the sale of bonds directly from a bond issuer to an investor without the use of an underwriter. An investment banker may act as a placement agent in this type of transaction.

Section 202

Provides capital advances to finance the construction, rehabilitation or acquisition (with or without rehabilitation) of structures that will serve as supportive housing for very-low-income elderly persons, including the frail elderly, and provides rent subsidies for the projects to help make them affordable.

Documentation System

Provides complete documentation of the development of the income limits and median family incomes (since 2007), as well as fair market rents (since 2005), for any area of the country.

Service Coordinator Program

Provides funding for the employment of Service Coordinators in insured and assisted apartment housing that is designed for the elderly and persons with disabilities. A service coordinator is a social service staff person hired or contracted by the development's owner or management company. The Service Coordinator is responsible for assuring that elderly residents, especially those who are frail or at risk, and those nonelderly residents with disabilities are linked to the specific supportive services they need to continue living independently in that housing development.

Section 8 Existing Rental Assistance

Provides rental assistance to low-income families who are unable to afford market rents. Assistance may be in the form of vouchers or certificates.

Due on Sale Clause

Provision of a loan allowing the lender to demand full repayment of the loan if the property is sold

Qualified Allocation Plan

QAP Details selection criteria and application requirements for 9% credits and 4% bonds

Qualified Census Tract

QCT A Qualified Census Tract is any census tract in which 50 percent or more of the households have an income which is less than 60 percent of area median gross income.

Qualified Basis

Qualified basis is the base that is multiplied by the credit percentage to determine the annual credit. The qualified basis equals the applicable fraction times the eligible basis.

Qualified Commercial Financing

Qualified commercial financing is the exception to the at-risk rules. To qualify, financing must generally be nonrecourse, the lender must generally be actively engaged in the business of lending, the lender must not have previously owned the property, and the lender must not earn a fee in connection with the acquisition of the property.

Regulatory Barriers Clearinghouse

RBC Collects, processes, assembles, and disseminates information on the barriers faced in the creation and maintenance of affordable housing. The Clearinghouse is hosted by HUD USER.

Rural Development

RD

Real Estate Assessment Center

REAC Provides and promotes the effective use of accurate, timely, and reliable information assessing the condition of HUD's portfolio. REAC also provides information to help ensure safe, decent, and affordable housing. It is designed to restore the public trust by identifying fraud, abuse, and waste of HUD resources.

Racially and Ethnically Concentrated Areas of Poverty

RECAP Census tracts in which at least 40% of the population is living below the poverty line and in which a concentration of individuals who identify as other than non-Hispanic White exceeds 50% of the population of the census tract. RECAP tracts are designated using the average of the three most recent 5-yr averages of the American Community Survey, excluding high margin of error tracts.

Real Estate Settlement Procedures Act

RESPA A law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships.

Real Estate Settlement Procedures Act

RESPA a law protecting consumers from abuses during the residential real estate purchase and loan process by requiring lenders to disclose all settlement costs, practices, and relationships

Request for Application

RFA Informs organizations that they may present bids because funding is available

Request for Proposal

RFP Describes a project's needs and asks for proposed solutions from applicants

Request for Qualification

RFQ Screening step to gather the list of qualified applicants

Right of First Refusal

ROFR a provision in an agreement that requires the owner of a property to give one party an opportunity to purchase or lease a property before it is offered for sale or lease to others.

Rate of Growth Ordinance

ROGO used in the Florida Keys-procedure for acquiring building permit in Florida Keys. ROGO is a tool utilized by Monroe County to slow and control growth throughout the Florida Keys, to ensure proper evacuation of the area in case of emergencies. (http://www.floridakeyskeywestrealestate.com/pdf/laymansguideROGO.pdf)

Rental Recovery Loan Program

RRLP Approved legislature for $55M to aid areas impacted by Hurricane Michael

Section 167(K) Election

Section 167(k) is any election available before the Tax Reform Act of 1986 which allowed building owners to amortize rehabilitation costs over 60 months.

Substantial Improvement

Substantial improvement is used in connection with determining the eligibility of an existing building for the LIHC. It is any amount incurred during a 24-month period equal to or exceeding 20 percent of the adjusted basis of the building as of the first day of such period.

Supportive Service

Supportive service is any service provided under a planned program of services designed to enable residents to remain independent and avoid placement in a hospital, nursing home or intermediate care facility.

Tenant-Based Rental Assitance

TBRA HUD assists low- and very low-income families in obtaining decent, safe, and sanitary housing in private accommodations by making up the difference between what they can afford and the approved rent for an adequate housing unit.

Tax Credit Assistance Program

TCAP Additional funding for LIHTC developments that received award of credits in 2007, 2008, 2009

Tax Credit Exchange Program

TCEP Additional funding for LIHTC developments that received award of credits in 2007, 2008, 2009

Temporary Certificate of Occupancy

TCO Allows for some occupancy, space is habitable but the entire project is not complete

Tax Equity and Fiscal Responsibility Act Hearing

TEFRA Hearing

Tenant Income Certification

TIC Required step for LIHTC housing

Tallahassee Leaders Contortion

TLC Year-long program for adults that educates and encourages participants to seek positive change in their community

Transit-Oriented Development

TOD Development of commercial space, housing services, and job opportunities close to public transportation, thereby reducing dependence on automobiles. TODs are typically designed to include a mix of land uses within a quarter-mile walking distance of transit stops or core commercial areas.

Metropolitan Planning Organization

That organization required by the Department of Transportation, and designated by the Governor as being responsible for coordination within the State, to carry out transportation planning provisions in a Standard Metropolitan Statistical Area.

20-50 Test

The 20-50 test is a minimum set-aside test used to determine if a building is a qualified low-income housing project. Under the test, a building is generally a qualified low-income building if at least 20 percent of the units are both rent restricted and are occupied by tenants whose income is less than or equal to 50 percent of area median gross income.

25-60 Test

The 25-60 test is a minimum set-aside test used to determine if a building is a qualified low-income housing project. Under the test, a building is generally a qualified low-income building if at least 50 percent of the units are both rent restricted and are occupied by tenants whose income is less than or equal to 60 percent of area median gross income. This test is applicable to New York City only, and is applied in lieu of the 40-60 minimum set-aside test.

30% Credit

The 30 percent credit is the credit percentage available for existing housing or for federally subsidized new construction or rehabilitation (4 percent credit).

4% Credit

The 4 percent credit is the credit percentage available for existing housing or for federally subsidized new construction or rehabilitation (30 percent credit).

40-60 Test

The 40-60 test is a minimum set-aside test used to determine if a building is a qualified low-income housing project. Under the test, a building is generally a qualified low-income building if at least 40 percent of the units are both rent restricted and are occupied by tenants whose income is less than or equal to 60 percent of area median gross income.

70% Credit

The 70 percent credit is the credit percentage available for new construction or rehabilitation (9 percent credit).

9% Credit

The 9 percent credit is the credit percentage available for new construction or rehabilitation (70 percent credit).

Decennial Census

The Decennial Census, undertaken by the U.S. Census Bureau, occurs every 10 years, in years ending in zero, to count the population and housing units for the entire United States. Its primary purpose is to provide the population counts that determine how seats in the U.S. House of Representatives are apportioned

MBS Trustee

The MBS trustee holds the MBS that collateralize the bonds. The MBS trustee remits the proceeds from the MBS to bond trustee, who then pays the bondholders.

Basis Boost

The amount of LIHTC available to a project is calculated using eligible basis, which is basically the same as depreciable items. Sec. 42 of the Internal Revenue Code allows an increase in eligible basis of up to 30% for certain LIHTC projects. This "basis boost" results in a corresponding 30% increase in the maximum LIHTC subsidy. The boost is available to projects located in geographic areas known as Qualified Census Tracts (QCTs) or Difficult Development Areas (DDAs). As part of the act, Congress added Sec. 42(d)(5)(B)(v): Any building which is designated by the state [LIHTC] agency as requiring the increase in credit ... in order for such building to be financially feasible ... shall be treated for purposes of this subparagraph as located in a [DDA]....

At-Risk Rule

The at-risk rule is the rule that limits the ability to include in eligible basis property purchased with nonrecourse financing. An exception exists for nonrecourse financing that meets the definition of Qualified Commercial Financing.

Bond Trustee

The bond trustee is responsible for collecting the interest and principal payments and forwarding these payments to bondholders. The trustee invests the bond proceeds, as applicable, and administers the indenture agreement.

Compliance Period

The compliance period is the 15 year period over which a project must continue to satisfy the various LIHC requirements in order to avoid tax credit recapture. The compliance period begins with the first taxable year of the credit period.

Credit Enhancer

The credit enhancer guarantees, for a fee, that the bondholders will receive scheduled bond payments.

Eviction

The dispossession of the tenant from the leased unit as a result of the termination of tenancy, including a termination prior to the end of a lease term.

Extended Use Period

The extended use period is the period beginning on the first day that the building is part of a qualified low-income housing project and ending on the date specified by the agency or 15 years after the close of the compliance period.

Financing Agreement

The financing agreement is entered into between the bond issuer, trustee and borrower. The agreement covers how the bonds will be issued, serviced by the trustee and paid for by the borrower

Floor Space Fraction

The floor space fraction is obtained by dividing the total floor space of the low-income units in the building by the total floor space of all residential units in the building (whether or not occupied).

Market Area

The geographic area from which a project owner could reasonably expect to draw applicants, based on the services and amenities offered by the development and the needs of the community.

Imputed Income Limitation

The imputed income limitation would apply to a unit based on an assumed family size that is a function of the number of bedrooms in the unit.

Indenture

The indenture is an agreement between the bond issuer and the trustee containing the terms and procedures for payment of the bonds

Creditor

The lending institution providing the loan

Official Statement

The official statement is a marketing prospectus used by underwriters to sell the bonds. The official statement summarizes the terms of the bonds and other information relevant to the investment decision.

Pledge

The pledge grants a security interest or lien to provide security for the repayment of the bond principal and interest.

Geocoding

The process of identifying the coordinates of a location given its address.

State Housing Credit Ceiling

The state housing credit ceiling is the maximum LIHC amount a state may allocate in a given year. It is calculated at $1.75 per resident.(this number can change annually)

Credit Period

The term "credit period" means, with respect to any building, the span of taxable years beginning with the taxable year in which the building is placed in service, or at the election of the taxpayer, the succeeding taxable year, but only if the building is a qualified low-income building as of the close of the first year of such period.

Underwriter

The underwriter is an investment bank that underwrites and markets the bonds to investors.

Accessory Use

The use of a building, structure, or land that is subordinate to, customarily incidental to, and ordinarily found in association with, the principal use it serves.

Utility Allowance

The utility allowance is the amount, determined by the Secretary of the Department of the Treasury, to be the average cost of tenant utilities.

Volume Cap

The volume cap is the maximum amount of LIHCs and tax-exempt bonds each state is allowed to allocate annually. The tax credit volume cap is $1.75 per state resident. The bond volume cap is $75 per person per state, with a $225 million minimum per state. Beginning in 2003, the volume cap will be indexed to inflation

Supportive Housing Program

This program is authorized by title IV of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11381-11389). The program is designed to promote the development of supportive housing and supportive services, including innovative approaches to assist homeless persons in the transition from homelessness, and to promote the provision of supportive housing to homeless persons to enable them to live as independently as possible.

Deed-in-lieu

To avoid foreclosure ("in-lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt. This process does not allow the borrower to remain in the house, but helps avoid the time, effort, and costs associated with foreclosure.

Treasury Index

can be used as the basis for adjustable rate mortgages (ARMs) It is based on the results of auctions that the U.S. Treasury holds for its Treasury bills and securities.

Underwriter's Counsel

Underwriter's counsel is an attorney who verifies that the documents used to market the bonds comply with the applicable securities regulations.

Sustainable Communities

Urban, suburban, and rural places that successfully integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of: 1) economic competitiveness and revitalization; 2) social equity, inclusion, and access to opportunity; 3) energy use and climate change; and 4) public health and environmental impact.

Sweat Equity

Using labor to build or improve a property as part of the down payment.

Very Low Income

VLI

Water and Sewer Department

WASD

Youthbuild Program

Youthbuild is a program that allows non-profit organizations to fund projects to assist high-risk youth learn housing construction job skills and complete their high school education. Participants enhance their skills as they construct and/or rehabilitate affordable housing for low-income and homeless persons or families.

ZIP Code Tabulation Area

ZCTA Metropolitan Difficult Development Areas (DDAs) are desginated by ZIP Code Tabulation Area (ZCTA). For purposes of determining whether a property is located in a SDDA, users should refer to the SDDA (ZCTA) address locator at http://www.huduser.gov/portal/sadda/sadda_qct.html

Chapter 7 Bankruptcy

a bankruptcy that requires assets be liquidated in exchange for the cancellation of debt.

Cash Reserves

a cash amount sometimes required of the buyer to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender.

Microenterprise

a commercial enterprise that has five or fewer employees, one or more of who owns the enterprise

Callable Debt

a debt security whose issuer has the right to redeem the security at a specified price on or after a specified date, but prior to its stated final maturity.

Vacant Unit

a dwelling unit that has been vacant for not less than nine consecutive months.

Land Bank

a governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.

Cap

a limit, such as one placed on an adjustable rate mortgage, on how much a monthly payment or interest rate can increase or decrease, either at each adjustment period or during the life of the mortgage. Payment caps do not limit the amount of interest the lender is earning, so they may cause negative amortization.

Home Equity Loan

a loan backed by the value of a home (real estate). If the borrower defaults or does not pay the loan, the lender has some rights to the property. The borrower can usually claim a home equity loan as a tax deduction.

Livability

a measure of integration of the housing, transportation, environmental, and employment amenities accessible to residents. A livable community is one with multiple modes of transportation, different types of housing, and destinations located within an easy distance (20 minutes by transit, 15 minutes by bike or foot, 10 minutes by car) of homes.

Home Equity Line of Credit

a mortgage loan, usually in second mortgage, allowing a borrower to obtain cash against the equity of a home, up to a predetermined amount.

Rehabilitation Mortgage

a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.

Conventional Loan

a private sector loan, one that is not guaranteed or insured by the U.S. government.

Urban Renewal Project

a project planned and undertaken by an LPA [Local Public Agency] in an urban renewal area with Federal financial and technical assistance under Title I of the Housing Act of 1949. A project may involve slum clearance and redevelopments rehabilitation and conservation, or a combination of both. It may include acquisition of land, relocation of displaced site occupants, site clearance, installation of site improvements, rehabilitation of properties and disposition of acquired land for redevelopment in accordance with the Urban Renewal Plan.

Credit Score

a score calculated by using a person's credit report to determine the likelihood of a loan being repaid on time. Scores range from about 360 - 840: a lower score meaning a person is a higher risk, while a higher score means that there is less risk.

Urban Renewal Area

a slum area or a blighted, deteriorated, or deteriorating area in the locality involved which the Secretary approves as appropriate for an urban renewal project.

Interest Rate Swap

a transaction between two parties where each agrees to exchange payments tied to different interest rates for a specified period of time, generally based on a notional principal amount.

Title Defect

an outstanding claim on a property that limits the ability to sell the property. Also referred to as a cloud on the title.

Indian Tribe

any Indian tribe, band, group, and nation, including Alaska Indians, Aleuts, and Eskimos, and any Alaskan Native Village, of the United States, which is considered an eligible recipient under the Indian Self-Determination and Education Assistance Act or was considered an eligible recipient under chapter 67 of title 31 prior to the repeal of such chapter.

Emergency Shelter

any facility, the primary purpose of which is to provide temporary or transitional shelter for the homeless in general or for specific populations of the homeless.

Delinquency

failure of a borrower to make timely mortgage payments under a loan agreement. Generally after fifteen days a late fee may be assessed.

Zoning

local laws established to control the uses of land within a particular area. Zoning laws are used to separate residential land from areas of non-residential use, such as industry or businesses. Zoning ordinances include many provisions governing such things as type of structure, setbacks, lot size, and uses of a building.

Lock-In

since interest rates can change frequently, many lenders offer an interest rate lock-in that guarantees a specific interest rate if the loan is closed within a specific time.

Lock-In Period

the length of time that the lender has guaranteed a specific interest rate to a borrower.

Housing Stock

the number of existing housing units based on data compiled by the United States Bureau of the Census and referable to the same point or period in time.

Local Public Agency

the official body empowered under State law to plan and undertake a local urban renewal program with Federal assistance. May be a city, county or other governmental entity, or a separate body such as a redevelopment agency or a local housing authority.

203(k)

this FHA mortgage insurance program enables homebuyers to finance both the purchase of a house and the cost of its rehabilitation through a single mortgage loan.

Chapter 13 Bankruptcy

this type of bankruptcy sets a payment plan between the borrower and the creditor monitored by the court. The homeowner can keep the property, but must make payments according to the court's terms within a 3 to 5 year period.

Deed-in-lieu

to avoid foreclosure ("in lieu" of foreclosure), a deed is given to the lender to fulfill the obligation to repay the debt; this process does not allow the borrower to remain in the house but helps avoid the costs, time, and effort associated with foreclosure.

Indemnification

to secure against any loss or damage, compensate or give security for reimbursement for loss or damage incurred. A homeowner should negotiate for inclusion of an indemnification provision in a contract with a general contractor or for a separate indemnity agreement protecting the homeowner from harm, loss or damage caused by actions or omissions of the general (and all sub) contractor.

Equitable Land Use Plannning

zoning, land use regulation, master planning, and other land use planning that, at a minimum, furthers the purposes of Title VI of the Civil Rights Act, Section 504 of the Rehabilitation Act of 1973, and the Fair Housing Act and are intended to achieve additional objectives for expanding housing choice.