Affordable Housing Program Definitions
Income Limits
Tenant Selection Criteria
Section 8
Section 236 (Rent Supplement and Rental Assistance Payments)
Moderate
80/20
70/30
One Percent
Taxable Bond
TEAM
Neighborhood Preservation Program
Families in Transition (FTR)
Moderate Rehabilitation (MRH)
Section 8 Existing Rental Allowance Program
Income Limits
In order to be eligible to live in many of the units, tenants must have a family income that falls below specified limits established 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 owner of the development and the management agent develops eligibility criteria. These criteria, approved by MSHDA are used for deciding which persons and families are eligible to live in the development. Factors for determining tenant selection may include: credit history, prior criminal convictions, prior rental experience and other factors. 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 development financed by MSHDA may discriminate based on age only at developments reserved for the elderly.
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. Some developments accept tenant based Section 8 vouchers; meaning that the consumer must already have a tenant based Section 8 voucher to move in and when the consumer leaves the subsidy follow them.
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 set by MSHDA and the Tenant Selection Criteria. Other units may be rented to families meeting the Tenant Selection Criteria, regardless of their income. Rents for some of these units, particularly those set aside for low income residents tend to be lower than those of other rental housing units because of MSHDA financing. No rent subsidy is offered for any of these units. At some 80/20 developments MSHDA provides a subsidy to help Low-income residents pay their rent. Contact the development in which you are interested to find our whether a MSHDA rent subsidy is available and the requirement to qualify for such a subsidy.
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. Families meeting the Tenant Selection Criteria, regardless of their income, may rent other units. No rent subsidy is offered for these units. Rents for all units are restricted by MSHDA. Rents for the units in these developments tend to be lower than other rental housing units because of MSHDA financing.
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 ethos 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. Families meeting the Tenant Selection Criteria, regardless of their income, may rent the remaining units. The owner may at its option choose to restrict all or any potion of these market rate units to low income persons and families. No rent subsidy is offered for these units. Rents for the units in these developments tent to be lower than other rental housing units because of MSHDA financing.
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. Rents for the units in these developments tend to lower than those of other rental housing units because of MSHDA financing.
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 to the residents' rent. MSHDA usually plays a very minor roll 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.
Section 8 Existing Rental Allowance Program
This federal program provides rent subsidies for very low-income people who find their own housing in private homes and apartment buildings. The same criteria apply as the pervious mentioned Section 8. MSHDA administers approximately 13,000 Section 8 existing vouchers. Note: The waiting list for this program is very long and is closed when full. Open application periods are advertised in the newspapers.