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Appendix B: Affordable Housing Terms

Housing terms (lingo) can be difficult to understand. Below are some basic housing terms and definitions.

Income Limits

In order to be eligible to live in most affordable housing units, you must have an income that falls below limits set by the federal government and the State of Michigan. Your income will be computed by the management agent for the development, according to rules and regulations set by the state and/or federal governments.

Tenant Selection Criteria

The housing development management creates standards you must meet before being allowed to move in. These standards are approved by MSHDA. Factors such as your credit history, prior criminal convictions, prior rental experience, and prior evictions are used to determine if you will make a suitable tenant. A development financed by MSHDA may not discriminate in selecting tenants based on race, color, national origin, sex, religion, marital status, height, weight, or handicap. A MSHDA development reserved for seniors may limit eligibility based on age.

Section 8

Generally, residents in these developments must be low-income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. HUD provides a subsidy to the development, which pays a portion of the residents' rent. The rent that residents pay is based on their adjusted family income, minus an allowance for utilities. All residents in these units must pay a minimum rent of $25.00 per month from their own money. Project based Section 8 is where the subsidy is attached to the unit, for example if the consumer moves from the unit they will lose the subsidy. Other places accept Tenant Based Section 8 Vouchers. The potential tenant must already have their own Section 8 voucher to move in. When the consumer leaves, the subsidy will follow them. Note: The waiting list for this program is very long and is closed when full. Open application periods are advertised in the newspapers.

Section 236 (Rent Supplement and Rental Assistance Payments)

All residents in these developments must meet Income Limits set by MSHDA and the Tenant Selection Criteria. Rents at a 236 development tend to be lower than other rental housing units because HUD subsidizes the mortgage interest rate. A small number of units at a 236 development may receive rent supplement or Rental Assistance Payments. Under the Rental Supplement and Rental Assistance Payment programs, the rent that residents pay is based on their adjusted family income, minus an allowance for utilities. All residents receiving Rent Supplement and Rental Assistance Payments must pay a minimum rent of $ 25.00 per month from their own money.

Moderate

Residents in these units must be moderate-income persons and families who meet Income Limits established by MSHDA and the Tenant Selection Criteria. No rent subsidy is offered on any of these units. Rent on these units may be lower than other rental housing units because MSHDA mortgage loans carry a lower interest rate than standard mortgage loans.

80/20

At least 20% of the housing units in these developments must be rented to low-income persons and families who meet the Income Limits set by HUD and the Tenant Selection Criteria. In addition, some units must be rented to persons and families who meet moderate-income limits.

70/30

At least 30% of the housing units in these developments must be rented to low income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria, in addition, some units must be rented to persons and families who meet moderate income limits set by MSHDA and the tenant selection criteria.

One Percent

All residents in these developments must be low-income persons and families who meet Income Limits determined by HUD and the tenant selection criteria. No rent subsidy is offered for these units. Rents for units in these developments are restricted by rent limits established by the federal government.

Taxable Bond

All residents in these developments must be low-income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. No rental subsidy is offered for these units. Rents for units in these developments are restricted by rent limits established by the federal government.

TEAM

At least 40% of the housing units in these developments must be rented to low-income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria.

Neighborhood Preservation Program

At least 20% of the housing units in these developments must be rented to low-income persons or families who meet Income Limits set by HUD and the Tenant Selection Criteria. The remaining 80% of units may or may not be restricted based on resident income depending on when the development was financed. This program is limited to small developments of 4 to 30 units. A rent subsidy is offered for these units.

Families in Transition (FTR)

These developments are restricted to low income, homeless people, single mothers who meet the Income Limits and Tenant Selection Criteria. In addition, day care and other support services may be available subject to available funds. Rents are subsidized and very low. Actual rents to each FTR development are affected my community grants available to that particular development. An additional fee may be charged for services not related housing.

Moderate Rehabilitation (MRH)

Generally, residents in these developments must be low-income persons and families who meet Income Limits set by HUD and the Tenant Selection Criteria. HUD provides a subsidy to the development, which pays a portion of the residents' rent. MSHDA usually plays a very minor role at these developments. The rent that residents pay is based upon their adjusted income, minus an allowance for utilities. All residents in these units must pay a minimum rent of $25.00 per month from their own money.

Subsidy

Financial assistance based upon your income to assist with the monthly cost of housing. These are usually provided through specific agencies and may include:

  • Shelter Plus Programs--Client pays 30% of adjusted gross income for rent. Serves homeless persons with disabilities.
  • Permanent Supported Housing--Housing subsidy for persons who are homeless and disabled. Client pays 30% of adjusted gross income for rent. Long term housing.
  • Transitional Housing--Temporary housing for homeless persons. Length of stay varies from 3 months to 18 months. Rent and services vary by program. Homeless Persons/Various Sub-populations.
  • PATH-(Projects for Assistance in Transition from Homelessness)-- A limited set of housing services to help persons who are homeless and have mental illness and/or substance abuse to access housing.