Affordable Housing Grant Key Terms

Familiarize yourself with affordable housing grant key terms

Affordable housing essentially means housing that has a sales price or rental price that is within the means of a low- or moderate-income family. The government housing agencies periodically come up with affordable programs for the low- or moderate-income class.

If you are looking for information on affordable housing grants and programs, you will need to be aware of certain industry terms. This guide covers some affordable housing grant terminology, such as AHP (Affordable Housing Program), HOME program, area median income and CRA (Community Reinvestment Act). 

 

AHP (Affordable Housing Program)

AHP is a program by the Federal Housing Finance Board (FHFB) that subsidizes the cost of housing for people in the low-to-medium income groups. The subsidy could be in the form of a low interest rate or a federal grant. All 12 Federal Housing Loan banks implement this scheme.
Try: To learn more about the AHP, read through the information at the Federal Housing Finance Board, the regulator of Federal Housing Loan banks.

HOME Investment Partnership

This program provides a federal grant to states and localities to cater to diverse needs. The source of funding is flexible. The agencies channel these funds for construction, rehabilitation and down payment assistance.
Try: You can read through information at the U.S. Department of Housing and Urban Development, the institution overseeing housing affairs of the nation.

AMI (Area Median Income)

AMI is the median income for communities across the country that is calculated by the federal government each year. Moderate-income households are classified as earning between 80-120 percent of the AMI of an area, with low-income households earning much less. Subsidies are given on the basis of percentage of income against AMI.
Try: For the definition of this term, read through the glossary at AFL-CIO Housing Investment Trust, an investment company.

CRA (Community Reinvestment Act)

This act provides a framework for depository institutions and community organizations to promote availability of credit for underserved communities.
Try: You can get detailed information about the CRA at The Office of the Comptroller of the Currency, an institution that regulates and supervises all national banks.

CDBG (Community Development Block Grants)

CDBG is a program that provides communities with resources to address community development needs. Under this program, local and state governments receive grants annually on a formula basis.
Try: For further information about CDBG programs, read through description at North Carolina Department of Commerce.

HUD section 202 program

The HUD section 202 program is an initiative to provide funds to corporations to develop affordable housing for low-income senior citizens. On meeting HUD requirements, a senior citizen can take advantage of rental assistance through the federal program.
Try: Read through information at Housing Assistance Council, a non-profit organization helping to create affordable rural housing in the US.

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