|
M |
TOP |
|
Maintenance Fee |
The monthly
carrying charges or monthly maintenance
fee is the member/shareholders'
proportionate share of the cooperative's
operating expenses, reserve funding, and
mortgage payments.
|
|
Management Agent
(Or Management Company) |
A management agent
is a firm or entity hired by the
cooperative to manage the development.
The relationship between the cooperative
and the management agent is usually
governed by a specific contract, called
a management agreement. Not all
cooperatives use a management agent.
Some larger cooperatives hire a General
Manager as an employee of the co-op,
others are managed by the members
themselves. However, most large co-ops
use a management company.
|
|
Management
Agreement |
The management
agreement is a contractual arrangement
between the cooperative corporation and
the firm hired to manage the
cooperative's property. These contracts
outline the firm's responsibilities and
compensation. While there are standard
forms of such contracts, they are
usually adapted to the specific needs of
the particular cooperative.
|
|
Management Plan |
A specific plan of
operations provided by a management
agent to the cooperative, in
substantially greater detail than that
provided in the management agreement.
The plan may be attached to the
management agreement as a rider.
|
|
Manufactured
Housing |
A housing type
that is wholly or substantially built in
a factory and then delivered to the
building site for final assembly and
installation.
|
|
Market Economy |
An economy in
which scarce resources are all (or
nearly all) allocated by the interplay
of supply and demand in free markets,
largely unhampered by government
rationing, price fixing, or other
coercive interference.
|
|
Market Forces |
The interplay of
supply and demand in a market economy
that determines what goods or services
will be produced.
|
|
Market
Information |
Data collected
regarding all current
conditions—economic, social, and
demographic—that affect the potential
success of a project.
|
|
Market Rate
Housing |
Apartments,
condominiums, town homes and single
family homes that are built without any
government subsidy by private
developers.
|
|
Market Rent |
The prevailing
monthly cost for rental housing. It is
set by the landlord without
restrictions.
|
|
Market Study |
A projection of
future demand for a specific type of
project, usually with a recommendation
for a number of units to be developed,
to be sold or rented, and a sale or
rental price.
|
|
Market Value |
The price at which
a property could be sold on the open
market, with buyer and seller free from
abnormal pressure.
|
|
Market-Rate
Housing |
Apartments,
condominiums, town homes and single
family homes that are built without any
government subsidy by private
developers.
|
|
Master Plan |
A comprehensive
long range plan intended to guide growth
and development of a community or
region. An overall plan for a proposed
project site outlining general, rather
than detailed, development intentions.
It describes the basic parameters of a
major development proposal, rather than
giving full engineering details.
Required in major land development or
major subdivision review.
|
|
Match |
The commitment of
non-federal funds to supplement HOME
Investment Partnerships Program funds
for affordable housing.
|
|
Measure |
Any bill,
resolution, or constitutional amendment
that is acted upon by the Legislature.
|
|
Median Family
Income (MFI) |
also referred to
as Median Household Income, is commonly
used to provide data about geographic
areas and divides households into two
equal segments with the first half of
households earning less than the median
household income and the other half
earning more.[1] The median income is
considered by many statisticians to be a
better indicator than the average
household income as it is not
dramatically affected by unusually high
or low values.
|
|
Median Income |
This is a
statistical number set at the level
where half of all households have income
above it and half below it. The U.S.
Department of Housing and Urban
Development Regional Economist
calculates and publishes this median
income data annually in the Federal
Register.
|
|
Member Equity |
With respect to
cooperative housing, the difference
between the value of the cooperative
property and the total amount of all
debt against the property. It reflects
the book value of the member/shareholder
interest in the co-op.
|
|
Member/Shareholder |
With respect to
cooperative housing, an individual who
owns a share or membership in a
cooperative. Depending on the type of
cooperative, members are also be
referred to as shareholders.
|
|
Metropolitan
Statistical Area (MSA) |
a large population
nucleus, together with adjacent
communities having a high degree of
social and economic integration with
that core. Metropolitan areas comprise
one or more entire counties, except in
New England, where cities and towns are
the basic geographic units.
|
|
Microenterprise |
A business with
five or fewer employees and little
working capital.
|
|
Mixed Use
Development |
A type of
development that combines various uses,
such as office, commercial,
institutional, and residential, in a
single building or on a single site in
an integrated development project with
significant functional
interrelationships and a coherent
physical design.
|
|
Mixed-Generational
Housing |
Mixed-generational
housing allows for a mix of all ages
within the same community.
|
|
Mixed-Income |
A type of
development that includes families at
various income levels. Mixed-income
developments are intended to promote
deconcentration of poverty and give
lower-income households access to
improved amenities.
|
|
Mixed-Income
Housing |
Mixed-income
housing includes both market rate and
affordable homes within the same
development. This delivers affordable
housing choices in areas close to jobs
that generate more modest incomes.
Mixed-income housing is often financed
through public-private partnerships. The
subsidy is determined by a formula
requiring a certain percentage of the
housing mix to be allocated for
affordable housing. Municipal government
policies related to mixed-income housing
are known as inclusionary zoning.
|
|
Mobile Home |
A structure,
transportable in one or more sections,
which is at least 8 feet in width and 32
feet in length, is built on a permanent
chassis and designed to be used as a
dwelling unit when connected to the
required utilities, either with or
without a permanent foundation.
|
|
Modular Homes |
Modular homes are
houses that are built in sections that
have been manufactured in a factory
setting. These sections, or modules, are
delivered and assembled at the intended
site of use. Unlike manufactured homes,
modular homes are subject to the same
building codes as stick-built homes, and
may be financed using the same mortgage
products. Modular homes are often
indistinguishable from neighboring homes
that have been built entirely on-site;
however producers are able to reduce
their costs through use of a
standardized production technique and
other economies of scale in the
production process.
|
|
Monthly Carrying
Charges Or Monthly Maintenance Fee |
With respect to
cooperative housing, the monthly
carrying charges or monthly maintenance
fee is the member/shareholders'
proportionate share of the cooperative's
operating expenses, reserve funding, and
mortgage payments.
|
|
Mortgage |
A legal instrument
used to secure performance of an
obligation, such as payment of debts,
with property. Commonly associated with
residential home loans. In that case,
the buyer may give the lender a mortgage
with the purchased home as collateral to
secure the repayment of funds loaned to
purchase the home.
|
|
Mortgage Banker |
A lender who
originates loans for sale to other
investors. The mortgage banker generally
continues to service the loans.
|
|
Mortgage Insurance |
Insurance provided
by a private institution or public
agency that insures a lender in whole or
in part from losses due to a default on
a loan. Lenders typically require
mortgage insurance only for loans that
are not considered conventional (see
“conventional financing”). Borrowers
pay the premiums. The Federal Housing
Administration (FHA-part of HUD)
provides many kinds of mortgage
insurance, as does the Veterans
Administration (VA) and many private
insurers, who provide what is called
“private mortgage insurance (PMI).”
|
|
Mortgage Interest
Deduction |
The mortgage
interest deduction is a tax break for
homeowners. Homeowners with deductions
that are large enough to warrant
itemizing can deduct the amount of
interest on their mortgage when they
file their taxes. The mortgage interest
deduction is the largest subsidy for
housing in the United States.
|
|
Mortgage Loan |
A loan secured by
a mortgage deed, meaning the property
owner has agreed to give the property to
the lender if monthly payments are not
made, so the property can be sold to pay
off the loan. First deed of trust loan
means the same thing.
|
|
Mortgagee |
The lender in a
mortgage loan transaction.
|
|
Mortgagor |
The borrower in a
mortgage loan transaction.
|
|
MRB - Mortgage
Revenue Bonds |
A funding source
for home mortgages. Mortgage revenue
bonds help low- and middle-income
first-time home buyers by offering
long-term mortgages at below-market
rates. A state can issue mortgage
revenue bonds (a form of tax-free
municipal bond) to investors, then use
the capital proceeds to invest in that
state’s MRB home loan program.
|
|
Multi-Family |
An apartment
building, condominium, or other
residential building that has more than
one dwelling unit.
|
|
N |
TOP |
|
National Community
Investment Fund |
is a non-profit,
private equity trust that invests in
banks, thrifts and credit unions that
generate both financial and social
returns.
|
|
National Community
Reinvestment Coalition |
is an association
of more than 600 community-based
organizations that promote access to
basic banking services including credit
and savings, to create and sustain
affordable housing, job development and
vibrant communities for America's
working families.
|
|
National Council
Of La Raza |
The largest
national Hispanic civil rights and
advocacy organization in the United
States – works to improve opportunities
for Hispanic Americans. Through its
network of nearly 300 affiliated
community-based organizations (CBOs),
NCLR reaches millions of Hispanics each
year in 41 states, Puerto Rico, and the
District of Columbia. To achieve its
mission, NCLR conducts applied research,
policy analysis, and advocacy, providing
a Latino perspective in five key areas –
assets/investments, civil
rights/immigration, education,
employment and economic status, and
health. In addition, it provides
capacity-building assistance to its
Affiliates who work at the state and
local level to advance opportunities for
individuals and families.
|
|
National Housing
Trust |
Formed to preserve
and improve affordable multifamily homes
for low and moderate income use, the
Trust saves multifamily properties at
risk of conversion to market rate
housing and resolves the problems of
"troubled" properties that suffer from
physical deterioration and financial and
social distress.
|
|
National
Low-Income Housing Coalition (NLIHC) |
Organizes,
provides up-to-date information,
formulates policy, and educates the
public on housing needs and the
strategies for solutions. NLIHC is
involved advocacy nationally with regard
to all housing issues including
production, public housing, and
HUD-assisted housing.
|
|
National Register
of Historic Places |
An official list
of cultural resources worthy of
preservation; part of a federal program
designed to protect the nation’s
historic, architectural, and
archaeological assets.
|
|
National Urban
League |
is a nonpartisan
civil rights organization based in New
York City that advocates on behalf of
African Americans and against racial
discrimination in the United States. It
is the oldest and largest
community-based organization of its kind
in the nation.
|
|
Neighborhood
Alliance |
A local community
group often formed to promote the
community interest in a specific area.
|
|
Neighborhood
Reinvestment Corporation |
A congressionally
chartered, federally funded, public
nonprofit corporation established in
1978 whose mission is to assist in the
revitalization of lower- income
neighborhoods. NRC works mainly through
local NHSs, providing training,
operational grants and technical
assistance.
|
|
Net Acreage |
Net acreage is
calculated by adjusting the gross
acreage of a parcel or lot by deducting
the 'undevelopable' land.
|
|
Net Operating
Income (NOI): |
In rental
properties, this is the gross income
from rents and other sources minus the
vacancy allowance and operating
expenses. The net operating income is
the amount available for making loan
payments (debt service) and paying
investors (cash flow).
|
|
New Urbanism |
New Urbanism is
movement in architecture and urban
planning which favors the restoration
of existing urban centers and towns
within coherent metropolitan regions,
the reconfiguration of sprawling suburbs
into communities of real neighborhoods
and diverse districts, the conservation
of natural environments, and the
preservation of our built legacy. New
Urbanism advocates for the restructuring
of public policy and development
practices to support the following
principles: neighborhoods should be
diverse in use and population;
communities should be designed for the
pedestrian and transit as well as the
car; cities and towns should be shaped
by physically defined and universally
accessible public spaces and community
institutions; urban places should be
framed by architecture and landscape
design that celebrate local history,
climate, ecology, and building practice.
|
|
NIMBY |
NIMBY is an
acronym for Not in My Back Yard, which
refers to opposition by nearby residents
to development that they perceive to be
undesirable. NIMBY sentiment sometimes
leads to the derailment of plans to
build affordable homes. Derived forms:
NIMBYism, NIMBYist, NIMBYs. |
|
NIMTOO |
NIMTOO is an
acronym for Not In My Term Of Office.
|
|
Non-Amortizing
Loan |
A non-amortizing
loan, usually at 0% interest, on which
no repayments are due until sale or some
other point in the future. They are
usually made by a public or nonprofit
agency to a lower income homebuyer or a
developer of low-income housing.
Sometimes called a “deferred payment
loan,” a “DPL,” or a “soft second
mortgage.”
|
|
Nonmarket Forces |
Actions or
regulations of government, outside the
demands of the marketplace, that
determine or influence what is to be
produced. For example, government
regulations may require access for
handicapped individuals to all buildings
as a “public good,” even though not all
users of the buildings require such
access. Subsidies or mandates for
affordable housing are another example
of nonmarket forces.
|
|
Nonprofit
Developers |
A nonprofit
organization with a mission that
involves the creation, preservation,
renovation, operation or maintenance of
affordable housing.
|
|
Non-Profit Housing |
Nonprofit housing
is developed by nonprofit corporations
with a community board of directors and
mission. Most housing developed by
nonprofit housing developers is
affordable with rents or prices below
market-rate. Income generated from the
housing is put back into the mission of
the organization, rather than being
distributed to stockholders or
individual investors as would be the
case in for-profit housing.
|
|
Nonprofit Sponsor: |
A group organized
to undertake one or more housing
projects for reasons other than making a
profit. Generally groups are
incorporated as 501 ( C) 3 corporations
to enable tax-free charitable
contributions for their operation.
|
|
Non-Recourse Loan |
A type of mortgage
loan in which the lender’s remedies in
the event of the borrower’s default are
limited to foreclosing the mortgage; the
borrower is not personally liable.
|
|
O |
TOP |
|
Occupancy
Agreement (Or Proprietary Lease) |
With respect to
cooperative housing, the occupancy
agreement or proprietary lease is the
contract between the cooperative
corporation and the member that sets the
conditions for the right to occupy a
particular unit. FHA co-ops and some
other co-ops call this contract an
occupancy agreement; others refer to it
as a proprietary lease. It sets forth
the rights and obligations of the member
and the cooperative to each other.
Legally, it is viewed as a lease by the
member with the housing cooperative.
|
|
Office |
When used as a
zoning designation, “office” allows
businesses to carry on paperwork rather
than manufacturing or production on the
site. Businesses such as insurance
companies, law firms, and accounting
firms work out of offices.
|
|
Office Building |
A place used for
the conduct of business or a profession,
as distinguished from residential
buildings, retail space, industrial
buildings, or recreational facilities.
|
|
Office Of Fair
Housing And Equal Opportunity |
administers and
enforces federal laws and establishes
policies that make sure all Americans
have equal access to the housing of
their choice.
|
|
Open Space |
Land that is
reserved from development because it is
valued for the agricultural production,
active and/or passive recreation, for
natural processes and wildlife, and/or
for providing other public benefit. The
term is sometimes used interchangeably
with “green space.”
|
|
Operating Budget |
An operating
budget is the annual budget for a
development.
|
|
Operating Subsidy |
Subsidy paid by
the federal government to a local
housing authority to compensate for the
limitation on rent of 30% of a tenant's
adjusted monthly income; a result of the
Housing and Urban Development Act of
1970. The operating subsidy funds-the
amount of the deficit between rents and
expenses up to the difference between
the annual contributions paid the
authority by the federal government.
|
|
Origination |
Once a lone has
been underwritten, the act of processing
the loan through closing, providing the
loan funds and setting the loan up for
servicing.
|
|
Origination Fee: |
The fee charged by
a lender to prepare loan documents, make
credit checks, inspect and underwrite a
property; usually computed as a
percentage of the face value of the
loan.
|
|
Overcrowding |
An indicator used
to measure housing need, however,
standards for how many people per
housing unit constitutes an overcrowded
living situation can vary. For example
overcrowding can be defined as four or
more persons living in a one bedroom
unit and five or more living in a two
bedroom unit, while other standards
assume overcrowding at more than 1.0 or
1.5 persons per room.
|
|
Overflow Shelter |
A shelter where
homeless persons go to seek shelter when
all the permanent shelters are full.
|
|
Overlay District
Or Zone |
A district
established in a zoning ordinance that
is superimposed on one or more districts
or parts of districts and that imposes
specified requirements in addition to,
but not less, than those otherwise
applicable for the underlying zone." --
official Rhode Island definition. An
overlay zone might restrict certain uses
or allow higher densities than would be
permitted in the same zone in other
parts of the city, for instance.
|
|
Overlay Zoning |
Overlay Zoning
allows for special development controls
to be applied to existing zoning
district. This planning tool enables
local governments to install more
specific site-based controls.
|
|
Overpayment |
The extent to
which gross housing costs, including
utility costs, exceed 30 percent of
gross household income, based on data
published by the Census Bureau. Severe
overpayment exists if gross housing
costs exceed 50 percent of gross income.
|
|
Owner |
A household that
owns the housing unit it occupies. (U.S.
Census definition).
|
|
P |
TOP |
|
Parcel |
The basic unit of
land entitlement. A designated area of
land established by plat, subdivision,
or otherwise legally defined and
permitted to be used, or built upon.
|
|
Partnership: |
An association of
persons joined by contract to combine
their property, resources, labor or
skills, to provide for sharing of
profits or losses in a pre-determined
and proportionate manner. The profits
and losses are passed through to the
partners who report them on their
individual income tax returns. The
partnership itself pays no taxes.
|
|
Pedestrian-Oriented |
Creating places
that encourage walking, rather than
driving. Pedestrian-Oriented designs
may include: access to mass transit,
quality walkways, buffers to moving
traffic (planter strips, on-street
parking or bike lanes) and pedestrian
crossings, aesthetics, nearby local
destinations, air quality, shade or sun
in appropriate seasons, street
furniture, traffic volume and speed and
wind conditions.
|
|
Performance/Impact
Zoning |
Performance/impact
zoning is a type of flexible zoning
which determines land use locations and
characteristics through the application
of a system of performance criteria,
which establish basic development
standards and limitations, and specify
the conditions under which developments
will be allowed.
|
|
Permanent
Financing: |
Mortgage loan
covering the total development cost of a
project. It is a long term obligation
which generally goes in place after the
project is constructed and open for
occupancy.
|
|
Permitting Process |
The process of
obtaining government approval to build
or renovate in compliance with
applicable zoning and building codes.
|
|
Personal Property |
Personal property
is property which is not real property
(real estate), consisting of things
temporary or movable-refrigerators,
stoves, or air conditioners.
|
|
Pervious Surfaces |
Pervious surfaces
allow water to filter into the ground,
which enables natural groundwater to
recharge, helps with filtration of
pollutants, and reduces erosion and
flooding. The use of pervious asphalt
and concrete for parking lots, roads and
sidewalks is an important part storm
water management that conserves precious
natural resources.
|
|
Petition |
A declaration
signed by individuals and presented to
governments as evidence of popular
support for an action or position.
|
|
PILT |
Acronym meaning
Payment in-lieu of Taxes.
|
|
Plan Review |
Plan review is the
process of looking over development
plans prior to submitting an application
for a building permit to ensure new
development meets safety, environmental,
and other standards. Early plan review
can help to expedite the issuance of
building and other development permits
by identifying any problems with an
application early in the development
process.
|
|
Planned Unit
Development (PUD) |
Zoning
classification created to accommodate
master planned developments that include
mixed uses, varied housing types, and/or
unconventional subdivision designs.
|
|
Planning
Commission: |
A local or
regional organization, normally a
government agency, responsible for
preparing and adopting comprehensive,
long-term general plans for the physical
development of property within its
jurisdiction.
|
|
Plat |
A map or chart of
a lot, subdivision or community drawn by
a surveyor showing boundary lines,
buildings, improvements on the land, and
easements.
|
|
PMI - Private
Mortgage Insurance |
Insurance provided
by a private institution or public
agency that insures a lender in whole or
in part from losses due to a default on
a loan. Lenders typically require
mortgage insurance only for loans that
are not considered conventional (see
“conventional financing”). Borrowers
pay the premiums. The Federal Housing
Administration (FHA-part of HUD)
provides many kinds of mortgage
insurance, as does the Veterans
Administration (VA) and many private
insurers, who provide what is called
“private mortgage insurance (PMI).”
|
|
Police Power |
The right of the
government to regulate property in order
to protect the health, safety, and
welfare of citizens.
|
|
Pre-Development |
Term referring the
period when the developer goes through
such steps as: Feasibility Analysis,
Assemble team, Determine site
availability/costs, Obtain site control,
Investigate entitlement issues, Solve
financing constraints, Create site
plan/schematic design, Outreach to
community, Procure cost estimates,
Develop construction pro-forma, and
Model cash flow/operating income.
|
|
Prepay |
to pay beforehand;
to pay in advance.
|
|
Prequalification |
The process of
assisting a homebuyer in determining if
they qualify for conventional and/or
subsidy loans. This typically involves
a credit check, verifying income and
asset information, and evaluating debt,
income, and credit information in
relation to lender underwriting
standards. The process typically
determines: 1) if a borrower has good
enough credit to borrow, and 2)
approximately how much can be borrowed
at certain interest rates and loan
terms.
|
|
Preservation |
The term
preservation has several meanings in the
housing context. It can refer to
historic preservation, in which efforts
are made to preserve and retain historic
structures in a community, or to the
preservation of rental housing, in which
efforts are made to stem the loss of
affordable rental homes. Rental housing
preservation can focus on physical
maintenance and repairs, the maintenance
of a development’s affordability, or
both.
|
|
Preservation
Ordinance |
a law passed by
local and/or state governments that
protects certain resources or districts
from demolition or alteration; it
generally outlines the preferred methods
for making changes within a designated
district or boundary.
|
|
Primary Residence |
A primary or
principal residence is the home in which
you intend to live in on a permanent
basis.
|
|
Principal |
The currently
unpaid balance of a loan, not including
interest.
|
|
Principal,
Interest, Taxes, And Insurance (PITI) |
Principal,
Interest, Taxes, and Insurance; the
monthly payment on a mortgage typically
includes an amount toward each.
|
|
Private Activity
Bond |
Private activity
bonds are bonds issued by state or local
governments to fund private activities
that have a public benefit. The federal
government provides each state with a
certain amount of authority – known as
bond cap – to issue tax-exempt private
activity bonds for specified purposes,
including homeownership, rental housing,
health care, education, and
manufacturing. States decide how much of
their bond cap to allocate to each
qualifying use. Private activity bonds
are important sources of financing for
affordable homes. When used to finance
homeownership, they are known as
mortgage revenue bonds. When used to
finance qualifying rental developments,
they automatically qualify a development
for 4 percent low-income housing tax
credits.
|
|
Private Sector |
The part of an
economy in which goods and services are
produced and distributed by individuals
and organizations that are not part of
the government or state bureaucracy.
|
|
Pro Forma |
Projected annual
income and expenses for a rental
development for a given period (usually
15 years).
|
|
Pro Rata |
Literally: in
proportion. Refers to the proportionate
distribution of the cost of something to
something else or to some group, such as
the cost of infrastructure improvements
associated with new development
apportioned to the users of the
infrastructure on the basis of projected
use.
|
|
Project Cost: |
Total cost of a
project including professional
compensation, land costs, construction
costs, furnishings and equipment,
financing ,and all other charges
necessary for the successful completion
of the project.
|
|
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.
|
|
Property Tax |
A government levy
based on the market value (as assessed
by the county assessor’s office) of
property, such as real estate.
|
|
Property Tax
Abatement |
Reduction or
exemption from ad valorem tax for a
specified time period.
|
|
Proprietary Lease |
The occupancy
agreement or proprietary lease is the
contract between the cooperative
corporation and the member that sets the
conditions for the right to occupy a
particular unit. FHA co-ops and some
other co-ops call this contract an
occupancy agreement; others refer to it
as a proprietary lease. It sets forth
the rights and obligations of the member
and the cooperative to each other.
Legally, it is viewed as a lease by the
member with the housing cooperative.
|
|
Public Housing |
The federal public
housing program was established to
provide decent and safe rental housing
for eligible low-income families, the
elderly, and persons with disabilities.
Public housing comes in all sizes and
types, from scattered single family
houses to high-rise apartments. There
are approximately 1.2 million households
living in public housing units, managed
by some 3,300 housing agencies (HAs).
|
|
Public Housing
Authority (PHA): |
A public agency
created by a state or local government
to finance or operate low-income
housing.
|
|
Public Sector |
The offices and
responsibilities of government. In
economic terms, the part of an economy
in which goods and services are produced
and/or (re)distributed by government
agencies.
|
|
Public/Private
Partnership |
A combined effort
by governmental and non-governmental
entities to achieve a goal, such as
Affordable Housing.
|
|
Publicly-Owned
Land |
Developed or
undeveloped land owned by a government
entity. Examples include school
buildings, public hospitals, parking
lots, surplus properties, tax-foreclosed
properties, and other gifted land.
|
|
Purchase Agreement |
a written proposal
by a buyer to purchase real estate that
becomes binding upon acceptance by the
seller.
|
|
Purchase Of
Development Rights |
Purchase of
Development Rights Under a PDR program,
a landowner voluntarily sells his/her
rights to develop a parcel of land to a
public agency or qualified conservation
organization. The landowner retains all
other ownership rights attached to the
land, and a conservation easement is
placed on the land and recorded on the
title. The buyer (often a local unit of
government or land trust) essentially
purchases the right to develop the land
and extinguishes that right permanently,
thereby assuring that development will
not occur on that particular property.
In placing such an easement on their
farm and/or forest land, participating
landowners often take the proceeds from
sale of the development rights to invest
in their farming operations or retire
from the business, and may allow another
farmer to purchase the land at lower
rates (i.e. rates devoid of development
rights). PDR may also be referred to as
Transfer of Development Rights.
|
|
Purchase Option |
The right to buy a
property at a specified price within a
specified time. A purchase option or
“option to purchase” is different from a
purchase and sale contract in that the
option money is not refundable and is
usually not credited toward the purchase
price at closing.
|
|
Purchase-Rehab
Program |
"Acquisition-Rehab
Program" A colloquial term for program,
usually run by a nonprofit group or
local government, that purchases
abandoned or substandard properties,
repairs them and sells them to lower
income homebuyers.
|
|
Q |
TOP |
|
Qualified
Allocation Plan (QAP) |
A document issued
by a state housing finance agency
explaining the standards and priorities
by which applicants will receive federal
low-income housing tax credits.
|
|
R |
TOP |
|
Rural Development
(RD) |
(formerly known as
Farmers Home Administration (FMHA)) -
Provides funding for mainly rural
housing programs. Sometimes used by
local governments to supplement CDBG
projects.
|
|
Real Estate
Transfer Tax |
State and/or local
taxes that are assessed on real property
when ownership of the property is
transferred between parties. Real estate
transfer tax revenue is sometimes used
to fund state or local housing trust
funds.
|
|
Recapitalize |
To inject new
financial resources into an older
property to ensure its long-term
viability. Many multifamily developments
need to be recapitalized after a certain
number of years to cover the costs of
deferred maintenance and upgrades to
bring them into conformity with current
living standards. Affordable multifamily
homes also need to be recapitalized
periodically, but because of legal or
practical limitations on permissible
rents, it is difficult to support new
debt for this purpose.
|
|
Recognition
Agreement |
A recognition
agreement is an understanding between a
cooperative and a financial institution
that provides share loans to the
cooperative's members or shareholders.
The recognition outlines the
responsibilities between the co-op and
the bank and the courses of action that
must be taken by each party if a
shareholder/member defaults on the
loan.
|
|
Reconstruction |
Rebuilding of a
structure, usually on the same
foundation as the existing housing which
will be demolished.
|
|
Redevelopment |
Generally, the
redesign or rehabilitation of existing
properties and improvement of land in
accordance with a city’s goals and
objectives.
|
|
Redevelopment
Agency |
A legislatively
established subdivision of government
established to revitalize blighted and
economically depressed areas of a
community and to promote economic
growth.
|
|
Referendum |
The method by
which a measure adopted by the
Legislature may be submitted to the
electorate for a vote.
|
|
Regional
Development Plan |
The Regional
Development Plan (RDP) is part of the
Atlanta Regional Commission’s policies
that encourage local governments to take
a holistic approach to community
building, issuing permits for
higher-density developments where
appropriate, protecting the integrity of
existing neighborhoods, and preserving
open space.
|
|
Regional Housing
Needs Assessment (RHNA) |
The Regional
Housing Needs Assessment (RHNA) is based
on projections of population growth and
housing unit demand and assigns a share
of the region's future housing need to
each jurisdiction within the SCAG
(Southern California Association of
Governments) region. These housing need
numbers serve as the basis for the
update of the Housing Element.
|
|
Regulatory
Agreement |
Co-ops that are
have mortgage insurance through HUD or
the FHA have certain obligations that
are outlined in a document called a
regulatory agreement. Co-ops financed by
state and local housing authorities
often have similar contracts, which are
often modeled on the standard HUD
agreement. Basically, the regulatory
agreement requires the co-op to abide by
the regulations of HUD (or FHA), which
insured the mortgage in order to induce
a lender to finance the development.
This document binds the mortgagor (the
cooperative) and mortgagee (the
financial institution that holds the
mortgage until the amount borrowed, plus
interest, is paid) with the Secretary of
HUD.
|
|
Rehabilitate |
The process of
renovating and restoring older or
deteriorating properties.
|
|
Rent Control |
Defined as state
and local government actions that
restrict rent increases or service fee
charges to tenants.
|
|
Rent Stabilization
Ordinance |
The City of Los
Angeles regulates residential rents
under a local ordinance called the "Rent
Stabilization Ordinance." It is commonly
referred to as rent control.
|
|
Rent Subsidies |
Term typically
used to describe HUD’s Section 8
program, which subsidize, the rent of
low-income tenants in privately owned
apartments and are typically
administered by local housing
authorities. There are two types of
subsidies with only slight technical
differences—certificates and vouchers.
Generally tenants pay 30% of income for
rent and utilities and HUD pays the rest
directly to the landlord. Some other
HUD funding programs for supportive
housing and special needs housing can be
used for rent subsidies. Some local
governments sometimes provide rent
subsidies or stipends with their own
funds.
|
|
Rental Assistance
(RA): |
Tenant-based
rental assistance generally provided by
USDA-Rural Development to low-income
families in rural areas (see
Certificates/vouchers).
|
|
Rental Housing
Financial Assistance |
Rental housing
assistance is provided by the state and
federal government. Direct grants and
low cost loans are provided to
non-profit and for profit entities in
order renovate and construct structures
where rents affordable to families and
individuals as low as 30% of AMI can be
provided. Examples of rental housing
assistance include; CDBG housing
programs, federal tax credit, rental
vouchers, state low interest loans and
grants.
|
|
REO - Real Estate
Owned. |
Property that is
owned by a lender, usually acquired
through a foreclosure, or through a deed
in lieu of foreclosure.
|
|
Replacement
Reserve |
A replacement
reserve is a reserve fund to provide
savings for the timely replacement of
major appliances, building components,
and structures.
|
|
Request For
Proposals |
A request from a
government or private entity asking
developers to submit proposals for ways
to develop a property.
|
|
Resale |
The term resale
describes the process of transferring a
share from an outgoing co-op member to a
new member.
|
|
Resale Value |
The transfer value
is the dollar amount of the membership
or share in a housing cooperative as set
by the bylaws in event the cooperative
re-purchases the membership/share. In a
limited equity co-op, the transfer value
is the maximum amount at which a
member's share in the co-op may be sold
according to the co-op's limited equity
formula.
|
|
Reserve Funds |
The reserves of
state or local housing finance agencies
(HFAs) are funds saved through income
generated in the course of their
operations. Among other sources,
reserves are built through fees that
HFAs charge on outstanding bonds and the
spreads between the cost of funds to the
HFA and the rates charged to borrowers.
|
|
Reserves |
Cash or letter of
credit held to fund future liabilities.
Typical reserves include replacement
reserve for major repairs, operating
reserve for covering negative cash flow
and contingency fund.
|
|
Resident Council |
The organization
created by residents to serve as the
group that represents the interests of
its members.
|
|
RESPA Real Estate
Settlement Procedures Act |
RESPA requires
that lenders give all borrowers of
federally related loans an estimate of
settlement costs and a HUD-prepared
booklet with information about real
estate transactions, settlement
services, cost comparisons, and relevant
consumer protection laws.
|
|
Retail Space |
Space in a
building for selling merchandise.
|
|
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.
|
|
Reverse Annuity
Mortgage (Ram) |
A form of mortgage
in which the lender makes periodic
payments to the borrower using the
borrower’s equity in the home as
security.
|
|
Reverter Clause |
A provision in a
land sale agreement mandating that the
land will revert back to public
ownership if not used in accordance with
the terms of the agreement.
|
|
Right Of First
Approval |
Most co-ops have a
process to review and approve new
members/shareholders. Your purchase of a
membership/share is conditioned on the
co-ops review and approval of your
application and abilities to meet your
obligations under the occupancy
agreement. Co-ops may not discriminate
against any protected class under local,
state, and federal law.
|
|
Right Of First
Refusal |
A right of first
refusal is often stipulated in a co-op's
bylaws. If a co-op's bylaws contain a
right of first refusal clause, the co-op
has the first option to purchase or
refuse to purchase the outgoing member's
share at an agreed upon price.
|
|
Row Houses |
Town homes built
without side yards.
|
|
Regional Planning
Council (RPC) |
In Florida, RPCs
provide planning and technical
assistance to local governments on
federal and state issues such as
housing, growth management, emergency
management, and intergovernmental
coordination. The State of florida has
11 RPCs
|
|
Rural |
Rural is a
type-of-area concept rather than a
specific area outlined on a map. As
defined by the Census Bureau, an urban
population comprises all persons living
in urbanized areas (UA's) and in places
2,500 or more inhabitants outside UA's.
The rural population consists of
everyone else. Therefore, a rural
classification need not imply farm
residence or a sparsely settled area,
since a small city or town is rural as
long as it is outside a UA and has fewer
than 2,500 inhabitants.
|
|
Rural Housing
Service |
A division of the
U.S. Department of Agriculture that
provides housing grants and loans to
housing projects in small cities and
rural areas, similar to programs of HUD
in urban areas.
|
|
S |
TOP |
|
Scarcity |
A condition that
occurs because people’s wants and needs
are unlimited, while the resources to
produce goods and services to meet those
wants and needs are limited.
|
|
Second Mortgage: |
A mortgage that
has rights secondary to the first
mortgage, i.e., the proceeds from a
foreclosure sale must pay the first
mortgage before any funds can go to
repay the second mortgage.
|
|
Second Unit |
A self-contained
living unit, either attached to or
detached from, and in addition to, the
primary residential unit on a single
lot. Sometimes called "granny flat."
|
|
Secondary
Financing |
A term used to
describe any financing used in
conjunction with first mortgage loans
from conventional financing
institutions—for example, a down payment
grant, a deferred payment loan, or an
amortizing second mortgage loan.
|
|
Secondary Market |
Collectively, the
companies and government institutions
that buy mortgage loans from lenders
that originated them. A large number of
single-family mortgage loans and some
multifamily loans are sold to the
secondary market, even through
originators may still service many of
the loans (see “servicer”).
|
|
Section 202 |
A HUD program that
finances supportive housing for the
elderly through interest-free capital
advances to private, nonprofit
organizations. The advance does not have
to be repaid as long as the housing
continues to serve very low-income
elderly residents for 40 years.
|
|
Section 203(N) |
HUD's Section
203(n) single-family cooperative
mortgage insurance program insures loans
for persons buying a share/membership in
a housing cooperative. The loan is made
by a lending institution, such as a
mortgage company, bank, or savings and
loan association, and is insured by
HUD's Federal Housing Administration
(FHA). (See "Share Loan").
|
|
Section 213 |
Section 213 is a
HUD program that insures mortgages only
on cooperative housing projects on a
market rate basis. Section 213 has been
used to insure over 500 cooperative
housing projects, totaling over 70,000
units.
|
|
Section 216 |
Section 216 is a
section of the U.S. federal tax law that
permits individual cooperative members
to deduct mortgage interest and property
tax on their income tax returns just
like other homeowners do. Section 216
allows cooperative housing corporations
to pass-through the mortgage interest
and real property tax deductions to
their stockholders on a pro rata basis.
|
|
Section 221(D)(3) |
Previously, the
Section 221(d)(3) Below Market Interest
Rate (BMIR) program provided below
market interest rate financing for
sponsors of low-income housing projects.
Many cooperatives that were developed
during the 1960s and 70s used this
program. BMIR projects were replaced by
the Section 236 Mortgage Subsidy Program
under authority of the Housing
Development Act of 1968. Presently no
new mortgages are insured under the BMIR
or the Section 236 programs.
|
|
Section 236 |
Section 236, a HUD
program enacted in 1968, provides a
subsidy to reduce mortgage interest
payments down to as low as 1%.
|
|
Section 236
Housing |
Section 236 of the
National Housing Act (1934) provided a
rent subsidy, in the form of interest
reduction, through which multifamily
housing could be produced. Two rent
schedules were utilized: market rent,
based on a market rate mortgage; and
basic rent, based on a one percent
mortgage. Tenants were required to pay
the basic rent of 25 percent of their
income, whichever was greater, with rent
payments never to exceed the market
rents. Units were restricted to
households that met the low- and
moderate-income limits established for
the program. The subsidized housing
moratorium imposed by President Nixon in
January 1973 brought an end to
additional Section 236 construction.
|
|
Section 502 |
A program of the
Rural Housing Service that provides
low-income borrowers with direct
low-interest loans or loan guarantees to
buy a new or existing home. The
guarantors are used as an incentive for
private, institutional lenders to make
home purchase loans at interest rates
slightly below market. Section 502
loans are also sometimes originated as
low-interest second mortgage loans made
in tandem with first mortgage loans from
private lenders.
|
|
Section 504 |
Section of the
Handicapped Accessibility Architecture
Barriers Act that requires all public
buildings to be designed, constructed,
or renovated to provide access for
physically handicapped persons.
|
|
Section 8 Housing
Choice Voucher |
The largest
federal rental housing assistance
program, the Section 8 Housing Choice
Voucher program helps eligible
low-income families afford the costs of
rental homes they locate on the private
market. Under the program, an
income-qualified household typically
contributes about 30 percent of its
income for housing, including utilities,
and the government covers the balance of
costs through a subsidy. Although it is
commonly referred to as "Section 8," it
is now officially called the Housing
Choice Voucher Program.
|
|
Section 8
Vouchers |
A rent subsidy
that allows a tenant to rent a unit that
is above the fair market rent (FMR) set
by HUD. The rental property owner is
paid for the difference between 40% of
the renter's income and the FMR. The
tenant pays the amount of rent over the
FMR.
|
|
Semi-Detached
House |
A house that is
attached to another property, such as a
duplex or townhouse.
|
|
Senior Housing |
Senior housing is
exclusively for those age 65 and older,
which represents a growing sector of the
U.S. population. Public subsidy programs
are available for this type of
development and help to provide new
homes for low and moderate income
seniors with fixed incomes.
|
|
Septic Tank |
An underground
tank used for sewage treatment where
city sewerage is not available.
|
|
Servicer |
Or “loan
servicer.” A company that collects
payments due on mortgage loan, often the
lender that originated the mortgage
loan, even if the lender sold the loan
to another entity.
|
|
Setback |
The minimum
distance which a wall face or window is
required to be from a property boundary
or another window to a habitable room.
It is measured as the horizontal
distance between the proposed wall or
window and boundary or other window.
|
|
Settlement |
Closing- The
occasion where the sale of real estate
and/or the making of a loan is
finalized. Sometimes called
“settlement.”
|
|
Share |
With respect to
cooperative housing, a share is the
proportion of the cooperative that each
member owns, and it represents the
proportionate amount that each member
invested in the co-op when the co-op was
started. A certificate, often called a
stock or membership certificate,
documents the purchase price and
membership in the cooperative.
|
|
Shared
Appreciation Loan |
A form of
financial assistance for homeownership,
in which the homebuyer must repay the
original loan amount plus some
percentage of the home price
appreciation in lieu of interest. This
approach helps to reduce the need for
new subsidy monies to help future
homebuyers as housing costs increase.
Shared appreciation loans are often
structured as a silent second mortgage
that does not need to be repaid until
the home is sold.
|
|
Shared Equity |
An approach to
homeownership that balances ongoing
housing affordability and individual
asset accumulation. Under shared equity,
a public or philanthropic entity
provides funding to help a family
purchase a home. In return, the entity
shares in any home price appreciation
that occurs while the family lives
there, preserving the buying power of
the subsidy in the face of rising home
prices, and allowing an initial
investment in homeownership to help one
generation of homeowners after another.
In some forms of shared equity, such as
community land trusts, the public's
share of appreciation stays in the home,
enabling it to be sold for an affordable
price. In other forms, such as shared
appreciation mortgages, the public's
share of appreciation is used to give a
larger loan to the next homebuyer to
make a home of their choice affordable.
|
|
Shared Parking |
Use of the same
parking spaces by adjacent uses that
have staggered peak periods of demand,
thereby reducing the amount of land
consumed by parking.
|
|
Shareholder |
With respect to
cooperative housing, a shareholder, also
called a member, is the owner of a share
in a housing cooperative.
|
|
Shelters
/Emergency Housing |
Provide temporary
overnight living accommodations and are
often not open during the day.
|
|
Shortage |
The condition in
which the quantity demanded is greater
than the quantity supplied at a certain
price.
|
|
Silent Second
Mortgage |
An important
technique for making homeownership
affordable while recycling public
dollars, a silent second mortgage is a
secondary home loan issued by a
home-buying program to supplement a
family's primary mortgage that does not
need to be repaid until the home is
resold (or in some cases, refinanced).
Because no payments are due on the loan
until the home is resold or refinanced,
it has the same effect as a grant on
housing affordability for a purchaser.
But because the loan is repaid upon
resale, the funds can be recycled to
help the next homebuyer. When used as
part of a shared equity strategy, silent
second mortgages are known as shared
appreciation loans.
|
|
Single-Family
Housing |
A type of
residential structure designed to
include one dwelling. Adjacent units may
share walls and other structural
components but generally have separate
access to the outside and do not share
plumbing and heating equipment. However,
several Federal housing programs
classify buildings with up to four
attached units as single-family housing.
|
|
Site Analysis |
The study of a
specific parcel of land (and the
surrounding area) to determine its
suitability for a specific use.
|
|
Site Manager |
A site manager is
the individual who is employed by the
cooperative or the cooperative's
management agent to perform the
necessary on-site management functions.
The site manager may or may not reside
on-site, and may or may not be employed
full time.
|
|
Small Business
Development Center (SBDC) |
provides
management assistance to current and
prospective small business owners. SBDCs
offer one-stop assistance to individuals
and small businesses by providing a wide
variety of information and guidance in
central and easily accessible branch
locations.
|
|
Small Business
Loan |
Small business
loans are defined by the dollar amount
of the loan and the revenue size of the
business: Any business loan up to $ 1
million, and loan to a business with
revenues less than $ 1million.
|
|
Smart Growth |
Smart Growth, or
quality growth, refers to developing
urban (metropolitan) communities that
are more hospitable, productive, and
fiscally and environmentally responsible
than most communities developed in the
last century. The principles of smart
growth are based on compact and multiuse
development, infill and redevelopment,
expansion of infrastructure, enhanced
livability, expanded mobility, and
conservation of open space. While some
parties focus on one aspect of
development over another, smart growth
seeks to identify a common ground where
developers, environmentalists, public
officials, citizens, and others can all
find ways to accommodate growth.
|
|
Smart Growth
Incentives |
Use of tax and
planning incentives by state and local
governments to promote sustainable
growth in developed areas and discourage
growth in green areas. For instance,
state funding is funneled to schools in
dense, built areas and not provided for
schools in new areas with no
infrastructure.
|
|
Soft Costs |
A jargon term for
non-bricks-and-mortar costs of a real
estate development project. Includes
architectural costs, surveys,
appraisals, other fees, holding costs,
etc.
|
|
Soft Second
Mortgage Program |
A non-amortizing
loan, usually at 0% interest, on which
no repayments are due until sale or some
other point in the future. They are
usually made by a public or nonprofit
agency to a lower income homebuyer or a
developer of low-income housing.
Sometimes called a “deferred payment
loan,” a “DPL,” or a “soft second
mortgage.”
|
|
Special Needs
Housing |
A loosely defined
term for affordable or no-cost
residential facilities for people with
special medical problems, the homeless
or people enrolled in self-sufficiency
programs. In the broadest sense, it
includes emergency shelters, longer-term
shelters, transitional housing, halfway
houses and group homes.
|
|
Spot Zoning |
Zoning that sets
aside certain areas (a building or a
lot, for instance) for purposes
different from the general area
requirements.
|
|
Sprawl |
The process in
which the spread of development across
the landscape far outpaces population
growth. The landscape sprawl creates has
four dimensions: 1) a population that is
widely dispersed in low-density
development; 2) rigidly separated homes,
shops, and workplaces; 3) a network of
roads marked by huge blocks and poor
access; and 4) a lack of well-defined,
thriving activity centers, such as
downtowns and town centers. Most of the
other features usually associated with
sprawl – the lack of transportation
choices, relative uniformity of housing
options, or the difficulty of walking –
are a result of these conditions.
Families' search for affordable housing
is one factor contributing to sprawl.
|
|
Single Room
Occupancy (SRO) |
One of the
country's oldest forms of affordable
housing for single and elderly
low-income people. Typically, an SRO
room will have a sink and a closet.
Bathroom, shower, kitchen and other
rooms are usually shared.
|
|
Stakeholders |
A group of people
who represent all issues and interests
possibly affected by a proposed project.
|
|
State Housing
Trust Fund |
Distinct funds
established states that permanently
dedicate a source of public revenue to
support the production and preservation
of affordable housing.
|
|
Stormwater
Management |
Stormwater
management is the process of controlling
and processing runoff from rain and
storms so it does not harm the
environment or human health.
|
|
Strategic Plan |
A plan of action
that guides how a goal such as
developing affordable housing, will be
accomplished.
|
|
Streetscape |
The overall
character, design quality, and
particular physical elements that occupy
the ground level public environment.
Streetscape elements may include the
paving materials, curbs, landscaping,
lighting, and street furniture.
|
|
Student Housing
Cooperative |
Located near
colleges and universities, student
housing cooperatives provide a variety
of shared housing, dormitory
arrangements, or apartments to meet
student needs for low-cost housing.
|
|
Subdivision |
The division of a
tract of land into defined lots, either
improved or unimproved, which can be
separately conveyed by sale or lease,
and which can be altered or developed.
|
|
Sublease |
A sublease is a
lease between a current lessee and
another party
|
|
Subordinated
(Secondary Or Tertiary) Debt |
If more than one
lender has a lien on a property, the
subordinated debt is paid after the debt
of the lien holders in superior (or
first) positions.
|
|
Subordinated Loan |
In single-family
mortgage lending, a second or third
mortgage loan with a lien that is
subordinate to a first or second
mortgage loan. In the event of default
and foreclosure, subordinated loans are
repaid only after other debts with a
higher claim have been satisfied. (See
“mortgage loan” and “lien.”)
|
|
Subprime |
Subprime mortgages
are made to borrowers with poor credit
histories who do not qualify for prime
interest rates. To compensate for the
increased credit risk, subprime lenders
charge a higher rate of interest.
|
|
Subsidize |
To assist by
payment of a sum of money or by the
granting of terms or favors that reduce
the need for monetary expenditures.
Housing subsidies may take the forms of
mortgage interest deductions or tax
credits from federal and/or state income
taxes, sale or lease at less than market
value of land to be used for the
construction of housing, payments to
supplement a minimum affordable rent,
and the like.
|
|
Subsidized
Housing |
A generic term
covering all federal, state or local
government programs that reduce the cost
of housing for low- and moderate-income
residents. Housing can be subsidized in
numerous ways—giving tenants a rent
voucher, helping homebuyers with
downpayment assistance, reducing the
interest on a mortgage, providing
deferred loans to help developers
acquire and develop property, giving tax
credits to encourage investment in low-
and moderate-income housing, authorizing
tax-exempt bond authority to finance the
housing, providing ongoing assistance to
reduce the operating costs of housing
and others.
|
|
Subsidy |
In housing, money
put into a deal to lower the monthly
debt service on an individual home or in
a larger project. Low interest second
mortgage loans are the most common
source of subsidy. Tax credit
investments can also act as a subsidy.
Rent subsidies are given to landlords to
reduce rents paid by tenants.
|
|
Substandard
Housing |
Housing that does
not meet local, state or federal housing
code guidelines and that poses a threat
to the health and safety of those living
in the unit/building, or that does not
have adequate plumbing or heating
facilities.
|
|
Substantial
Renovation |
Substantial
renovation is considered new
construction and requires the renovation
or alteration of 90% or more of the
interior of an existing residential
building.
|
|
Supply-Side |
Supply-side
housing policies seek to increase the
supply of affordable homes. Government
agencies may either add to the housing
stock directly, such as by building
public housing, or may provide
incentives for private developers to
produce more homes – for example,
through the low-income housing tax
credit. Efforts to reduce regulatory
barriers to the development or
rehabilitation of housing also operate
on the supply-side of the equation; such
efforts promote housing affordability by
freeing the market to better respond to
increases in housing demand.
|
|
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.
|
|
Sweat Equity |
Value added to a
property due to improvements as a result
of work performed personally by the
owner.
|
|
T |
TOP |
|
Takings |
A legal concept
based on the Fifth Amendment of the U.S.
Constitution which prohibits the taking
of private property by the government
for a public use without payment of just
compensation.
|
|
Targeted Area |
That part of the
Eligible Loan Area that has been or may
be designated from time to time as a
qualified census tract or an area of
chronic economic distress in accordance
with section 143(j)(3) of the IRS Code
or as a qualified census tract in
accordance with section 143(i)(2) of the
IRS Code. Not all counties have targeted
areas.
|
|
Tax Allocation
District |
A financing source
for housing and other public
improvements in designated
underdeveloped areas. Communities can
borrow against the incremental tax
revenue expected to be received after
completion of the improvements to
provide initial funding of the
investments. Also referred to as Tax
Increment Financing
|
|
Tax Abatement: |
The reduction or
elimination of property taxes, granted
to owners of specific properties for a
designated period of time in order to
stimulate a specified public benefit.
|
|
Tax Credits |
A dollar amount
that may be subtracted from the amount
of taxes owed.
|
|
Tax Exemption |
A reduction in
taxes granted for special classes such
as elderly or veterans.
|
|
Tax Increment
Financing |
A financing source
for housing and other public
improvements in designated
underdeveloped areas. Communities can
borrow against the incremental tax
revenue expected to be received after
completion of the improvements to
provide initial funding of the
investments. Referred to as Tax
Allocation Districts in Georgia.
|
|
Tax-Delinquent
Property |
A property for
which property taxes and/or municipal
bills are severely past due. Click here
to learn how tax-delinquent properties
can be used as potential sites for the
development of affordable homes.
|
|
Tenant-Based
Rental Assistance. |
A form of 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.
|
|
Tender |
When organizations
need contract or repair work done,
competitive bids may be obtained by
putting the contract out to tender to
compare estimates and obtain the best
combination of price, quality and
service.
|
|
The Home
Investment Partnerships Act |
The HOME
Investment Partnership Program, a HUD
program that grants housing subsidy
funds on a formula basis to cities and
states. Smaller cities must apply to
states for funding. Funds may be used
for acquisition, rehab, rent subsidies
and (in some places) new construction.
Subsidies can be low interest second
mortgages, “forgivable” loans, grants,
interest subsidies and rent subsidies.
The program requires local nonfederal
matching funds. HOME will fund
developer fees and administrative costs
of programs (up to certain limits).
|
|
Title Insurance |
Insurance through
a title company to protect the owner or
lender from loss if title to the insured
property proves imperfect.
|
|
Townhouse |
A one-family
dwelling in a row of such units in which
each unit has its own front and rear
access to the outside, no unit is
located over another unit, and each unit
is separated from any other unit by one
or more common and fire-resistant walls.
Townhouses usually have separate
utilities; however, in some condominium
situations, common areas are serviced by
utilities purchased by a homeowners
association on behalf of all townhouse
members of the association.
|
|
Traditional
Neighborhood Development |
The purpose of
Traditional Neighborhood Development (TND)
is to create walkable and sustainable
communities. Borrowing principles from
the neighborhoods built in the
pre-1950s, TNDs include high-density
residential choices integral to or
within walking distance to neighborhood
stores, services, schools, recreational
activities and open green space. The
connectivity of roads and sidewalks is
another key element to achieving less
traffic congestion and better air
quality.
|
|
Traffic Calming |
A method of
altering or designing a street to
encourage slower driving.
|
|
Transfer Of
Development Rights (TDR) |
In a TDR program a
landowner voluntarily sells his/her
rights to develop a parcel of land to a
public agency or qualified conservation
organization. The landowner retains all
other ownership rights attached to the
land, and a conservation easement is
placed on the land and recorded on the
title. The buyer (often a local unit of
government or land trust) essentially
purchases the right to develop the land
and extinguishes that right permanently,
thereby assuring that development will
not occur on that particular property.
In placing such an easement on their
farm and/or forest land, participating
landowners often take the proceeds from
sale of the development rights to invest
in their farming operations or retire
from the business, and may allow another
farmer to purchase the land at lower
rates (i.e. rates devoid of development
rights). TDR may also be referred to as
Purchase of Development Rights
|
|
Transitional
Housing |
Shelter provided
to the homeless for an extended period,
often as long as 24 months, and
generally integrated with other social
services and counseling programs to
assist in the transition to
self-sufficiency through the acquisition
of a stable income and permanent
housing.
|
|
Transit-Oriented
Development (TOD) |
New
pedestrian-friendly, mixed-use
developments located near rail and major
bus stops. TOD communities allow people
to live near transit services and to
decrease their dependence on driving.
|
|
Transportation
Management Plan |
A comprehensive
plan or program designed to more
efficiently use existing transportation
resources in order either to reduce the
existing demand for vehicular travel or
to reduce the future need to expand
transportation infrastructure.
|
|
Trust |
A fiduciary
relationship whereby legal title to a
property is transferred to a trustee
with the intention that such property be
administered for the benefit of another
(beneficiary) who holds equitable title
to such property.
|
|
U |
TOP |
|
U. S. Department
Of Housing And Urban Development (HUD) |
U.S. Department of
Housing and Urban Development. By its
own definition: "Established in 1965,
HUD works to create a decent home and
suitable living environment for all
Americans; it does this by addressing
housing needs, improving and developing
American communities, and enforcing fair
housing laws." HUD oversees the Federal
Housing Administration.
|
|
U.S. Small
Business Administration |
an independent
agency of the federal government to aid,
counsel, assist and protect the
interests of small business concerns, to
preserve free competitive enterprise and
to maintain and strengthen the overall
economy of our nation.
|
|
UBC (Uniform
Building Code): |
The basic building
code in which minimum standards are set
for building construction (see also
BOCA).
|
|
Underwriting |
The process of
evaluating a loan application to
determine if it meets credit standards
and any other special requirements (as
with special loan products for
low-income borrowers). The underwriting
process determines whether or not a loan
will be approved, and on what terms and
conditions.
|
|
Underwriting
Ratios |
Criteria used by
lenders to determine how large a loan a
prospective borrower can afford. The
housing payment ratio (for “front”
ratio) is the maximum percentage of
monthly household income that can be
paid for principal, interest, taxes and
insurance (PITI). The installment debt
ratio (or “back” ratio) is the maximum
percentage of income that can be paid
for total installment debt (including
PITI, car loans, etc.). Ratios for
conventional loans are 28% for PITI, and
36% for all installment debt, often
expressed as 28/36. Many special loan
products allow ratios of 33/38 or even
higher increasing the amount of the
monthly payment and, thus, the amount
that can be borrowed.
|
|
Unit |
A generic term for
residential dwelling, more often used in
the context of multi-family housing
(i.e. a condominium or apartment).
|
|
Universal Design |
Buildings that are
accessible by everyone, including people
with disabilities.
|
|
Unsecured |
A loan that has no
collateral pledged as security.
|
|
Unsubsidized
Housing: |
Housing that is
priced (Owner housing) or has
monthly-annual rent charges (Renter
housing) at levels determined by the
regional housing market without policy
or regulatory intervention. Some of this
housing may relatively inexpensive
housing that allows low-and
moderate-income families to afford
without spending a disproportionate
share of their income.
|
|
Upzoning |
An increase in the
amount of square footage or acreage of
land required in connection with
specified amounts of development: for
example: a change in the acreage
requirement for a single family home
from one acre to three acres. “Upzoning”
is often confused with “downzoning”, as
it is common to assume that the “up”
refers to the amount of allowable
density instead of the amount of
mandated land area.
|
|
Urban Design |
Urban Design is
the aspect of architecture and city
planning that deals with the design of
urban structures and spaces.
|
|
Urban
Redevelopment Authority |
State or city
government entity responsible for
promoting revitalization of the city and
real estate development in the public
interest.
|
|
Urbanized Area |
central city and
surrounding closely settled “urban
fringe” that together have a minimum
population of 50,000.
|
|
Use |
In Zoning and
Planning, use defines the type of
development that can occur in a
neighborhood or district. Zoning
districts are most commonly referred to
by their use, such as single-family or
multi-family residential, commercial,
industrial or open space.
|
|
V |
TOP |
|
Vacancy Rate |
The ratio between
the number of vacant units and the total
number of units in a multi-tenant
building or development.
|
|
Vacant |
Lands or buildings
that are not actively used for any
purpose.
|
|
Vacant Property |
A property that
has no occupants. Often these properties
are also in severe disrepair.
|
|
Valuation |
Estimation of
value or price through appraisal.
|
|
Variable-Rate
Mortgage Loan |
A mortgage loan
for which the interest rate may change
over time in relationship to some index
such as the market price of long-term
U.S. Treasury obligations.
|
|
Very Low-Income
Household |
As widely defined
by governmental and nonprofit
organizations, a household with an
income at or below 50% of area median
income. See “area median income.”
|
|
Vehicle Miles
traveled (VMT) |
The number of
miles that residential vehicles are
driven each day. When housing is located
far from employment centers and public
transit, vehicle miles traveled
generally increase, along with
environmental pollutants.
|
|
Voucher |
The largest
federal rental housing assistance
program, the Section 8 Housing Choice
Voucher program helps eligible
low-income families afford the costs of
rental homes they locate on the private
market. Under the program, an
income-qualified household typically
contributes about 30 percent of its
income for housing, including utilities,
and the government covers the balance of
costs through a subsidy. Although it is
commonly referred to as "Section 8," it
is now officially called the Housing
Choice Voucher Program.
|
|
W |
TOP |
|
Waiver of Lien |
A written
evidence in many states from contractor
(or supplier of material or service)
surrendering the right of lien to
enforce collection of debt against
property. Alternatively referred to as a
Lien Waiver.
|
|
Weatherization |
Modifying a
building to reduce energy loss, e.g.,
adding insulation or installing storm
windows.
|
|
Workforce Housing |
Workforce housing
is housing for the occupations needed in
every community, including teachers,
nurses, police officers, fire fighters
and many other critical workers.
|
|
Working Capital |
The excess of
current assets over current liabilities.
|
|
Write-Down: |
In low-income
housing development, it generally means
an up-front subsidy provided by a
government agency or other owner of
property that reduces the asking price
of a property to make it affordable to
low-income people.
|
|
X |
TOP |
|
Y |
TOP |
|
Yield Rates |
Yield rates are
the amount of the land that can actually
have houses given physical and
regulatory requirements. According to
interviews with selected builders in
Rhode Island, yield rates have fallen
from 50 percent ten years ago to
approximately 35 to 40 percent today.
Factors such as wetlands, open space
requirements and even the grade of the
land can reduce the overall yield.
|
|
Z |
TOP |
|
Zero Lot Line: |
A system of
subdividing that permits building on lot
lines, e.g., row houses.
|
|
Zoning |
Rules and
regulations that affect the use of land.
See also Zoning Code.
|
|
Zoning Code |
Local codes
regulating the use and development of
property. Zoning ordinances typically
divide a community into land use
districts or "zones," represented on
zoning maps, and specify the allowable
uses within each of those zones. For
example, some communities divide land
into industrial zones, commercial zones,
and one or more residential zones. Some
zones also may permit a mix of uses.
Zoning codes establish development
standards for each zone, such as minimum
lot sizes, maximum heights of
structures, building setbacks, and yard
sizes. Overly rigid zoning codes that
don’t allow for multifamily homes or
higher density development may present
obstacles to affordable homes.
|
|
Zoning Map |
A map that shows
the existing use classification for each
parcel within a local jurisdiction (see
also Zoning ordinance).
|
|
Zoning Ordinance |
A municipal
ordinance which establishes regulations
and standards relating to the nature and
extent of uses of land and structures.
See also Zoning Code.
|
|
Zoning Variance |
A deviation from
the zoning ordinance/code that may be
granted upon petition to a single
property owner for a specific parcel
because strict enforcement of the zoning
provision in question as applied to the
parcel would result in undue hardship on
the petitioning property owner. |
