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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