AHFA – Development Spotlight: Annie Lee Gardens, Arab

Posted on July 28, 2023July 28, 2023 by Alex Beaver

Development Spotlight: Annie Lee Gardens, Arab

July 01, 2019

Development Info:

Olympia Construction developed Annie Lee Gardens in Arab in 2009. For seniors aged 55 and up, Annie Lee Gardens offers comfortable one- and two-bedroom apartments with plenty of extras. Apartments are equipped with a range, microwave, dishwasher, refrigerator with ice maker, washer/dryer connections, covered patios, front screen doors, and plenty of storage.

AHFA Funding Sources:

$1.13 million in HOME funds (2007) and $409,166 in Housing Credits (2007)

Amenities/Tenant Services:

The complex is attractively landscaped, with additional amenities that include a clubhouse, computer center, laundry facilities, fitness center, and an outdoor picnic area with gazebo. Plenty of shopping and dining options can be found about two miles east along U.S. 231.

“In my mind, what makes this property so special is the site manager and the tenants,” said Debbie Smith of Olympia Management, Inc. “The tenants take so much pride in the property. You can talk with each tenant and they tell you how much they love living there.”

Annie Lee Gardens site manager Tony Petersen was recently named AHFA’s 2019 Manager of the year. Quality management is critical to the success of any affordable housing property, but is especially true of developments for the elderly like Annie Lee Gardens.

“The challenge presented by an elderly complex is you have tenants that get to where they cannot live alone and they have to move in a nursing home or with family, and you also have tenants to pass away,” said Smith. “The challenge is for the site manager who is working with the families during such a difficult time.”

Source:
https://www.ahfa.com/multifamily/development-spotlights/development-spotlight-annie-lee-gardens-arab

AHFA – Development Spotlight: Legacy Trail, Semmes

Posted on July 28, 2023July 28, 2023 by Alex Beaver

Development Spotlight: Legacy Trail, Semmes

June 01, 2022

AHFA’s latest development spotlight shines on Legacy Trail in Semmes. Currently, under construction with an expected completion date of early 2023, Legacy Trail was awarded $1.5 million in HOME Investment Partnership Program funds and $834,216 in Housing Credits during the 2020 competitive cycle. When Legacy Trail was awarded AHFA funding in 2020, we were at the start of the COVID-19 pandemic with little knowledge of how much it was going to impact life in the long term. AHFA spoke with Phil Ellen, executive director of Paladin, Inc., to provide a developer’s viewpoint on how they were able to move the project forward.

1. How was the process of building and financing an affordable housing development impacted by the conditions of an ongoing pandemic?

It was one of the most uncertain times I’ve experienced during my 20 years in affordable housing. Natural disasters and economic downturns have challenged the industry in the past, but in my opinion, the rapid rise in costs as a result of the pandemic has been perhaps the most difficult. Supply chain issues and sub-contractor labor shortages due to COVID-19 created issues for each of our developments across every state we work in. All of these conditions of course were unknown at application and projects based on reasonable budget assumptions were unbuildable in a matter of months.

2. What steps were required to mitigate those issues?

To close our 2020 deal and begin construction we had to aggressively restructure the deal. Our investors were willing to increase the credit pricing. The construction company worked extremely hard to find the best pricing and subs for the job. We asked existing lenders to restructure loans and provide more funding, in addition to pulling in new conventional debt to help deals move forward. While we are grateful to our partners, we remain very concerned as costs have continued to spike even beyond our revised projections at closing.

3. What was involved with that? And, what were you able to accomplish?

In August 2021, we requested and received relief from the Mobile County Commission regarding its HOME funds committed to the project. In addition to increasing its HOME award amount, it also agreed to modify the amortizing loan structure to a cash flow contingent repayment structure. Through this modification, the deal was able to support considerably more conventional debt. We also negotiated a credit price increase with our syndicator to generate additional equity and increased our deferred developer fee substantially. These combined modifications allowed the project to close and begin construction in extremely challenging circumstances. The risk profile for the project is significantly higher following the restructuring, however, and unfortunately so is the rent burden for tenants in order to support the added debt.

4. What lessons have you learned as a developer that can continue to aid the production of affordable housing in a post-COVID climate?

The lesson we have learned is that overcoming the challenges of developing affordable housing in an uncertain environment takes a lot of hard work and good relationships with quality partners who are willing to make the adjustments needed to bring housing to the people who need it during these times.

When complete, Legacy Trail will provide 56 units of safe, decent, and affordable housing for elderly residents in Semmes.

Source:
https://www.ahfa.com/multifamily/development-spotlights/development-spotlight-legacy-trail-semmes

The Importance of the Fair Housing Act of 1968

Posted on July 27, 2023July 27, 2023 by Alex Beaver

The Importance of the Fair Housing Act of 1968

The history of the Fair Housing Act of 1968 is a remarkable example of the culmination of years of hard work and activism. The Act signed into law by President Lyndon B. Johnson on April 11, 1968, is part of American Civil Rights legislation and is closely associated with the Civil Rights Act of 1964. It is crucial to remember that this law came into being after many years of systemic discrimination and segregation, which affected the African American community in particular.

Historical Context

The United States saw a rise in racial discrimination following World War II. Real estate agents and property owners would refuse to rent or sell property to African Americans and other minorities, often through discriminatory practices such as “redlining”. This practice kept minorities from living in areas of “high value,” depriving them of any opportunity to accumulate wealth or live in decent homes. Even though the Civil Rights Act of 1964 outlawed discrimination based on race, color, religion, national origin, and sex, housing discrimination remained pervasive and persisted for years afterward.

The Making of the Fair Housing Act

The making of the Fair Housing Act involved years of activism and lobbying by African American leaders, civil rights organizations, and sympathetic lawmakers. The assassination of one of these leaders, Dr. Martin Luther King Jr., on April 4, 1968, spurred Congress and the President into action. To honor the legacy of Dr. King, President Lyndon Johnson signed the Fair Housing Act into law just one week after Dr. King’s death. The new law aimed to ensure that fair housing opportunities in the United States were available to everyone regardless of race, color, religion, sex, national origin, or disability status.

The Importance of the Fair Housing Act

The Fair Housing Act has been significant in changing the landscape of America. It has opened up housing opportunities for protected groups and that is undoubtedly among the most important elements of the civil rights movement. The Act offers protection against illegal discrimination in all aspects of the housing market, including renting, selling, and financing homes. The Act made residential discrimination illegal in all aspects of the residential real estate market, which was a revolutionary step. This law paved the way for integration and created opportunities for diverse nationalities, races, and cultures to live together.

The passage of the Fair Housing Act was a monumental step in the fight against discrimination, but housing discrimination is not a thing of the past. It is important to recognize that many people still face discrimination in the housing sector based on their race, ethnicity, gender, religion, and sexual orientation. However, with knowledge of fair housing laws and regulations, we can protect our communities and help create a better future for all.

In conclusion, the Fair Housing Act of 1968 was a significant milestone in the quest for equality. It serves as a reminder that progress can be made even when faced with adversity and that we must continue to fight for a more just society. The Act has made remarkable contributions in creating change in American society to limit discrimination, promote fair housing opportunities, and continue the work of our civil rights and human rights activists throughout history.

3 Reasons Why Low Income Apartments Can Be More Beneficial Than Traditional Apartments

Posted on July 27, 2023July 27, 2023 by Alex Beaver

Those looking for low-income apartments might be surprised at all of the benefits they reap compared to those residing in traditional apartment buildings. Affordable housing not only offers lower rent, it also provides numerous advantages for low-wage earners as well as those on a fixed income. Discover the three main reasons a low-income apartment can be more beneficial than a traditional one.

Cost Of Living

Renters who choose a low-income apartment save on the cost of rent and other living expenses. Some affordable housing allows a resident to pay 30 percent or less of his or her income for housing costs, and that includes utilities. The same does not hold true for traditional apartments, where occupants tend to pay much more.

Access To Jobs, Transit, & Good Education

A common problem occurs when a community becomes successful and prices go up. Those earning lower wages often work in these areas but can’t afford to live there. Along with good jobs, these neighborhoods usually have access to bus lines and other public transportation that low-income workers rely on, on a daily basis.

Low-income apartments provide residents with convenient access to good jobs, transportation, schools, and other advantages in successful urban areas. Affordable housing puts these benefits within reach for many while traditional apartments do not simply because low-wage workers can’t afford to live in them.

Stable Housing Helps Families Thrive

Studies show that stable housing is associated with better health, self-sufficiency and improved performance at school. A home with plenty of amenities, in a safe neighborhood, provides children and families with the environment they need to thrive and improve their quality of life.

Contact Olympia Management, Inc. To Find Affordable Housing In Your Area

Are you looking for a low-income apartment close to work, public transportation, and good schools? Get in touch with Olympia Management today! We can help you find the quality, amenity-filled home you are looking for, at an affordable price.

5 Safety Tips To Remember When Managing A Construction Site

Posted on March 12, 2021September 21, 2021 by Alex Beaver

Around 6.5 million people work on construction sites in the United States every day. Based on a report by OSHA, or the Occupational Safety and Health Administration, construction is the deadliest industry in the country. It accounts for 21.1% of all fatalities in the workplace. So, one out of every five deaths in the workplace happen in the construction industry.

What makes this industry so dangerous? OSHA blames the fatalities on something they call the “Fatal Four,” which are the four most common causes of death. Eliminating these hazards would have saved 591 construction workers’ lives in 2018.

What are the four most significant hazards in the construction industry?

Falls, accounting for 33.5% of deaths
Struck by an Object, accounting for 11.1% of deaths
Electrocutions, accounting for 8.5% of deaths
Caught in-between equipment or objects, accounting for 5.5% of deaths

While fatalities are the most devastating, non-fatal injuries happen, too. There’s no way to eliminate all the hazards in the construction industry, but it is possible to reduce them by following some simple safety tips.

How can you ensure that the site you manage is both safe and efficient? Here are five safety tips to help minimize those “Fatal Four” hazards and keep your workers safe.

Tip #1: It Starts with Proper Training

Everyone must receive proper training. In most instances, fatalities and injuries were avoidable had the workers involved received adequate training. Ensure that all your workers have received comprehensive construction site safety training. While a lot of construction work is learned during hands-on experience, safety protocols aren’t one of those things.

This doesn’t just go for your new workers either. Even your seasoned laborers need a refresher now and then.

Tip #2: Minimize Tripping and Falling Hazards

This tip is a big one, as falls account for the highest number of fatalities. It’s also not a straightforward fix because many things cause tripping and falling hazards. For starters, keep the site as clutter-free as possible, and clean up any spills immediately. Don’t make your workers work on rickety scaffolding or ladders, shaky stairs, or uneven permeable paving. Also, always use protective systems for trenches.

Moreover, OSHA advises that all construction sites should utilize fall arrest systems, handrails, safety nets, restraint systems, and covers to prevent many injuries and deaths related to falling.

Tip #3: Enforce and Environment of Awareness

If you look at the “Fatal Four,” how many fatalities do you think could have been prevented by better worker awareness? It’s fair to theorize that better awareness could result in quicker reflexes and faster response time. OSHA mentions the danger of cranes specifically because incorrect operation of cranes results in significant and severe injuries. Often, these injuries include getting struck by an overhead load or accidentally getting caught inside of the crane’s swing radius.

That example is a prime illustration of the second most common fatality in the industry. Getting struck or getting caught in the radius are often results of improper awareness or crane operations safety training. As the manager of a construction site, it’s your responsibility to ensure that your workers remain aware. Sometimes that means enforcing a stricter, less-relaxed site, and prohibiting listening to music, or eliminating banter during work hours.

Tip #4: Take Electricity Seriously

Staying on cranes for a moment. The most significant cause of fatalities with cranes is when a crane runs into a powerline, resulting in electrocution. Electrocution is the third leading cause of death in the industry, and for a good reason. You can’t run a construction site without it. To avoid electrocution, be sure to replace any frayed or damaged cords as soon as you notice they’re damaged.

Always use the correct extension cords with the correct tools. Make sure all electrical tools are properly grounded before using them. This includes your air compressors, sanders, commercial vacuum, chainsaw, and more. Unless your power tool is double insulated, it needs to be grounded before use.

Beyond that, stay aware of power lines, and keep all equipment, ladders, scaffolding, and workers away from them.

Tip #5: Enforce Personal Protective Equipment Use

First, you must enforce personal protective equipment or PPE. This includes making sure your workers are wearing face and eye protection, safety hats, hand protection, slip-resistant shoes, etc. You want your workers to be protected on an individual level.

Beyond personal equipment, you want to ensure that all the equipment is only operated by workers who know how to use them. Ensure that the machinery is appropriately maintained and replaced when it starts to wear down.

Proper equipment use will help eliminate unnecessary injuries in your workplace.

Keep Your Construction Site Safe

If you follow these five simple tips, you’ll have a much safer construction site. Don’t underestimate your influence as a manager and a leader. Workers do what they see, not what they’re told. So, when it comes to safety, you have to lead by example.

Skylar Ross is a contributor to the Innovative Materials blog. He is a content writer for the construction and home improvement industries with an interest in landscaping, outdoor remodeling, and interior design. Skylar is focused on educating homeowners, contractors, and architects on innovative materials and methods of construction that increase property value, improve sustainability, and create a warm and welcoming ambiance.

How Is Affordable Housing Funded?

Posted on February 11, 2021February 12, 2021 by Alex Beaver

With rents on the rise and more people facing economic stress and even homelessness, affordable housing options are needed now as much as ever. Housing is considered “affordable” when it is 30 percent or less of the household’s monthly income. Yet, according to a 2019 report from Habitat for Humanity, 47.5 percent of renters pay more than 30 percent of their income on rent, and 1 in 6 households pay at least half of their income on housing! To make matters worse, not only are the number of at-risk renters increasing, the number of available low-cost rental properties is decreasing over time, and there is an increasing scarcity of new construction affordable housing developments.

Most affordable housing conversations focus on the prospective renters themselves — low-income households who qualify for various affordable housing programs like public housing, housing choice vouchers, and other types of subsidies and rental assistance programs. But not a lot of consideration is given to how affordable housing is created in the first place. How is affordable housing funded, and what can be done to create more affordable rental housing?

The Dilemma with Affordable Housing Development

Have you ever wondered why there seems to be a glut of high-rent developments being built — especially when fewer people can afford to live in them? The answer might surprise you. While economists and philosophers can debate over the overarching problem of greed, it’s not just individual greed that drives these decisions. The fact is that it’s easier for developers to get funding for high-rent projects than for affordable housing units. Lenders approve loans for these multifamily developments based on their projected revenues, not on what it actually costs to build them. When rents are set lower, it’s more difficult for the lenders to get their money back, and they don’t want to assume the risk. Add to that the fact that it simply costs more to build these days, and you can understand why investors head toward the higher rent housing projects. It’s the path of least resistance.

That said, it is highly possible to create more affordable housing opportunities for moderate-income and low-income families — it just takes a bit more creativity to get these projects funded. In fact, affordable housing developers typically rely on 3-5 funding sources, and in some cases as many as 20 or more, to get these communities built. Let’s take a look at some of the most common ways affordable housing gets funded.

Low-Income Housing Tax Credit (LIHTC)

By far, the most common funding source for affordable housing is the Low-Income Housing Tax Credit (LIHTC), a reduced tax liability incentives offered through the federal government but administrated by the states. The LIHTC incentivizes developers to allocate tax credits if they set aside a portion of their total units for affordable housing. To qualify for these credits, the development must set aside at least 20 percent of its units for people who earn less than 50 percent of the area median income, or 40 percent for people who earn less than 60 percent of area median income. The majority of new affordable housing utilizes the LIHTC for at least one of their funding sources.

Federal Block Grant Programs

Additional funding sources for affordable housing developments frequently come in the form of one or more federal block grants — fixed federal grants given to state and local governments for various purposes to benefit those communities, including economic development. Most block grants allocated for affordable housing are administered through the Department of Housing and Urban Development (HUD). Some of the more common grant programs include the HOME Investment Partnerships Program, the Community Development Block Grant (CDBG), and the National Housing Trust Fund, to name a few.

Choice Neighborhoods Initiative

Widely considered the next generation of the HOPE IV program, Choice Neighborhoods is a special competitive grant designed to transform distressed public housing neighborhoods into revitalized mixed-income neighborhoods, either through rehabilitation or demolition and rebuilding. Many affordable housing projects are designed to revitalize such areas and, therefore, may qualify for Choice Neighborhood grants.

USDA Rural Housing Service

Administered by the US Department of Agriculture, the Rural Housing Service provides several funding options for services in rural areas, including affordable single and multifamily housing. Since many affordable housing developments are built in larger urban areas and don’t qualify for this funding, these loans and grants provide developers with an incentive to build in less populated areas that are in no less need of affordable housing.

State and Local Funding Initiatives

While the federal government sponsors all the above funding options, many state and local governments also offer various appropriations for funding affordable home programs in their respective communities. These may include loans, grants, tax credit programs, and other supportive services designed to improve housing affordability for low-income families. These initiatives may be administered by state and local housing authorities or other departments.

Private Market Funding

In many cases, not even a combination of available mortgage loans, grants, and tax credits are enough to bridge the gap between the cost of affordable housing and available funds. In many cases, this gap is filled by private market institutions known as community development financial institutions (CDFIs). These institutions exist solely to provide low-cost loans to help create economic development opportunities for underserved communities — including funding for affordable housing. These institutions are sometimes nonprofit agencies, and sometimes they are modestly for-profit. Either way, their goal is to subsidize the gaps in funding that prevent or hinder economic development in areas that need it most.

Since 1989, Olympia Management has been serving the needs of low- and moderate-income households by providing clean and safe affordable housing options throughout the southeastern United States. To learn more about our properties, determine eligibility and income limits, and any other questions you may have, give us a call at 256-894-2382.

What is Section 42 Housing?

Posted on January 18, 2021February 12, 2021 by Alex Beaver

All over the country, it seems that the need for affordable housing is greater than ever. Between rising rents, financial difficulties, and even a global pandemic, more households are at risk than at any time in recent memory. When low-income families and individuals think of rental assistance programs, they normally think of public housing or Section 8 vouchers, both of which involve a lengthy application process and typically long waiting lists. However, the federal government offered another affordable housing program known as Section 42 housing, and not only does it provide quality, low-cost rental housing for people with low-income levels — it also incentivizes developers to create more affordable rentals for people who need them. But what, exactly, is Section 42? Here’s what you need to know about it.

Section 42 Explained

The Section 42 housing program is perhaps better known by its other name: the Low Income Housing Tax Credit Program, or LIHTC. Under this program, the IRS tax code provides a federal tax credit allocation to developers of rental properties. To be eligible for the LIHTC, the apartment community must allocate a portion of its total units as low-rent housing for people who earn less than a certain percentage of the area median income (AMI) — usually set at less than 60 percent, but which may vary based on the cost of living for the area. The amount of rent on these units is set by the local office of the U.S. Department of Housing and Urban Development (HUD) and is capped based on the AMI of the region. Renters’ eligibility for Section 42 housing is determined by the local housing authority based on total household income and family size.

How Does Section 42 Differ from Section 8?

The difference between Section 8 and Section 42 is based mainly on how housing is subsidized. Under Section 8, also known as the Housing Choice Voucher Program, eligible renters pay no more than 30 percent of their monthly household income, regardless of the rental market rate; the government pays a subsidy to the landlord to make up the difference. Under Section 42, rent rates are set at a fixed amount determined by the local HUD office. In return for the capped rent, property owners receive the tax credit on their annual tax return according to the Internal Revenue code.

On the tenant side, qualifying for Section 42 also tends to be a little easier than qualifying for Section 8. Housing voucher applicants must apply at the local housing authority, meet strict maximum income requirements, and usually sit on a waiting list for a year or more. Section 42 housing generally allows for higher income limits, and while the local housing agency still determines eligibility, prospective tenants apply directly at the leasing office of the property.

How to Apply for Section 42 Housing

Applying for Section 42 housing works similarly to filling out a standard rental application, but with some additional questions and income verification to determine whether you meet eligibility requirements. Your first step is to find a Section 42 apartment community in the area where you live (or wish to live). The local housing agency typically keeps a running list of these properties. You will then go directly to the leasing office of the apartment community to fill out the application.

Income and Asset Verification

Eligibility for Section 42 housing is based on a combination of your total gross income (before taxes) and the number of people in your household. To that end, the Section 42 rental application will consider all possible sources of income and your current financial assets. These may include:

Proof of current income from a job (e.g., pay stubs, tax returns)
Cash on hand (checking and savings accounts)
Child support and/or alimony payments
Social security
Pensions
Inheritance and/or trust funds

You’ll be asked to verify all sources of income you receive. You may also be asked about your student status, as having too many full-time students in the household may affect your eligibility.

In addition, the management company may also perform the standard checks to determine whether you are a qualified renter, including background checks, credit history, rental history, and references.

Once your maximum income has been verified and you have been approved for Section 42 housing, you’ll need to go through an annual recertification process to make sure you still meet the maximum income requirements. The HUD office may adjust rent rates from time to time, but your rent will not go up during the course of your lease.

Olympia Management is pleased to offer a broad selection of Section 42 housing options in cities and towns across the southeastern United States. We are happy to discuss our current availability and answer any questions you may have. To learn more about affordable housing options in your area and how you might qualify, give us a call at 256-894-2382.

Income Restricted & Income Based Apartments: What’s The Difference?

Posted on September 9, 2020February 16, 2024 by Alex Beaver

In an economy where the price of rent continues to rise, especially in big cities, the need for affordable rental housing has never been greater. If you’re trying to get an affordable apartment with low income, you’ve probably already experienced the challenge of finding low-income housing firsthand. The good news is that there are many complexes and apartment communities out there that provide affordable housing for low-income families, elderly, or developmentally delayed individuals, thanks largely to subsidies by both local and federal government agencies.

The two major housing programs that provide affordable housing for low-income households fall into these two categories — income-restricted and income-based. While these programs meet the same goal, there are some significant differences between the two. Let’s explore these three differences in a bit more detail.

1. Criteria for Property Eligibility

Income restricted apartments are typically privately-owned planned developments designed for low or middle-income renters. Local or national governments fund these developments as well as nonprofit agencies. The program is part of the U.S. Department of Housing and Urban Development’s (HUD) affordable housing initiatives. Properties that participate in the program are required to do so for thirty years or more. All of the units in an income-restricted community are designated for low-income tenants.

On the other hand, income-based apartment homes are owned by individual landlords who must meet specific criteria for offering this type of housing. For example, the landlord must renovate the property to HUD standards if it is not a new construction building. These rental units can be part of apartment complexes where twenty to forty percent of units are designated low-income. Income-based housing may also include duplexes, townhouses, or single-family homes.

2. Tenant Eligibility Requirements

There are income limits that one must meet to be eligible for income-restricted housing assistance. Specifically, to qualify for income-restricted housing, your household’s annual income must be at least 60 percent or less than the area median income for the local area where you live.

This area median income differs widely from place to place. For example, the area median income of New York City is much higher than that of a rural community in the South or the Midwest. That means a New York City resident can technically qualify for income-restricted housing on a higher income in a more expensive area.

For an income-based apartment community, the eligibility requirements are also based on the area median income, but the threshold is lower. Your household income level must be 50 percent or less than the area’s median income to qualify for income-based housing.

3. How Rent Is Determined

Another difference between income-based and income-restricted housing is how the rent rates are calculated. For income-restricted housing, the apartment home’s monthly rent is based on a percentage of the area’s income, taking into account the going rental market rates as well as the size of the apartment itself. Rents are not allowed to exceed market values for the area, but they can fluctuate and adjust. The rental amount that is determined is the amount the tenant pays. The difference between the quoted rental rate and the market value is subsidized by the government to compensate the landlord.

By contrast, rental rates for income-based housing are based not on the market value, but on the resident’s income. HUD determines the monthly rent of an approved income-based apartment home by calculating 30% of the tenant’s adjusted gross income. The government subsidizes the remainder of the rent for the landlord.

What About Section 8 Housing Choice Vouchers?

Section 8 housing choice vouchers provide another way the government helps provide rental assistance for low-income households. However, the rule is that housing choice vouchers are for use in non-subsidized rentals. Since both income-restricted and income-based housing receives government subsidies, they generally are ineligible for Section 8.

That said, since there are usually long waitlists for Section 8 vouchers, you can typically get into income-based or income-restricted housing much faster and more easily. For more information, contact your local public housing authority.

Finding Affordable Housing in the Southern U.S.

If you’re looking for a low-income apartment with amazing amenities at an affordable cost, contact Olympia Management, Inc. We offer income-restricted and income-based apartment homes throughout the Southeast, all equipped with a multitude of fantastic amenities. Contact us today to find to learn more about our apartment communities.

What Are the Qualifications for Senior Housing?

Posted on June 15, 2020February 16, 2024 by Alex Beaver

Senior citizens in our country often face a unique challenge when it comes to their housing. While rents continue to climb nationwide, many seniors find themselves struggling to make ends meet on a fixed, limited social security income. To help mitigate this problem, the U.S. Department of Housing and Urban Development (HUD) has several housing programs in place to subsidize rents for eligible seniors in approved affordable senior housing. However, many seniors and their families don’t understand the eligibility requirements of these various assistance programs, or even how to find apartment communities that meet HUD guidelines for these rent subsidies. Let’s eliminate some of the confusion by exploring the qualifications for HUD senior housing and how you can find housing options in your area.

What, Exactly, Is Senior Housing?

As the name suggests, senior housing refers to HUD-designated residential communities specifically intended and/or designed to meet the housing needs of older people. Under the provisions of the Fair Housing Act and Housing for Older Persons Act, a rental community qualifies as “senior housing” if it meets the following criteria:

It is specifically designed to accommodate senior citizens according to HUD guidelines; AND
All occupants are 62 years of age or older; OR
At least 80 percent of the units are occupied by at least one person aged 55 or older.

In most cases, the Fair Housing Act says landlords can’t refuse to rent to any household based on “familial status” (i.e., if they have children under age 18). However, to accommodate the needs of seniors, the law exempts senior housing from this rule so they can qualify their occupants by age and decline to rent to families with children. When a property qualifies as senior housing under the HUD 811 rule, the government will subsidize rent for eligible seniors who live there, capping their rent at 30 percent of their monthly income.

Is Senior Housing the Same as Assisted Senior Living?

Not necessarily. Assisted living primarily refers to special accommodations for the elderly and/or people with disabilities (often with healthcare workers on-site). Senior housing accommodates people based on age and household income, not their physical condition. Some assisted living facilities may qualify as senior housing, but not all senior housing is assisted living. Many housing facilities for older people are more like senior housing communities that offer more opportunity for independent living.

What are the Qualifications for Senior Housing?

The specific qualifications for getting into senior housing may vary according to local rules and the type of property it is. However, they all base their eligibility on age and income requirements. Specifically:

Properties designated as 62 and older will abide strictly by that age requirement (i.e., only 62+ may reside there).
For properties designed for age 55+, at least one tenant must be 55 or older, meaning younger adult family members may be allowed to live with them.
Income verification: You’ll need to demonstrate that your income doesn’t exceed a certain threshold (typically 50 percent of the Area Median Income for that area).

Finding Approved Senior Housing

Your local HUD housing office or housing authority can provide information about affordable and low-income senior housing complexes in your area as well as discuss the process for determining your eligibility for affordable or low-income senior housing assistance. If you know of a specific property you’re interested in, you may also be able to reach out to that property directly to find out how to qualify for state or federal government assistance or if there is a waiting list.

Olympia Management, Inc. manages clean, safe and affordable housing communities throughout the southeastern United States, including a number of properties classified as senior housing. To learn about availability in your area and how to qualify, call us at 256-894-2382.

How to Find Low Income Housing

Posted on June 8, 2020August 6, 2020 by Alex Beaver

If you or your family are surviving on a low or fixed income, no one has to tell you how challenging it can be to find affordable housing. When housing costs go up and your income doesn’t go up to match — as is happening to millions of families around the country — coming up with rent each month or finding rental assistance can be stressful at best, and impossible at worst. The good news is that through a number of housing assistance programs, there are comfortable rental housing options available for low-income families. But how do you find these properties, and how can you qualify to live in them? Let’s discuss some basics for how to find low-income housing programs in your area.

What Counts as Low-Income Housing?

The first thing to understand is income limits. To qualify for low-income housing, your combined household income must be at or below a certain threshold. Since the cost of living is different in every community, the maximum actual dollar amount you can earn each month will be different depending on where you live (or where you seek to rent).

The Department of Housing and Urban Development (HUD) determines this amount based on a percentage of the Area Median Income (AMI) for that area. For expensive areas like San Francisco or New York City, the AMI will be quite high; for more affordable areas like Alabama and Mississippi, the AMI will be lower. Thus, it’s possible to be considered a low-income family in the Bay Area, but a middle-income family in Macon, Georgia, for example.

To qualify you for low-income housing, HUD will look at your total monthly household income compared to the AMI for your area. Low-income households generally fall into three categories:

Households making 80 percent or less than the AMI are considered low income;
Households making 50 percent or less than the AMI are very low income; and
Households making 30 percent or less than the AMI are extremely low income.

Understandably, depending on how much housing is available in a certain area, the local housing authority will give priority to individuals and households with extremely low incomes first.

Types of Low-Income Housing

Depending on your income qualifications and eligibility requirements, you may be eligible for any of the following types of low-income housing in your area:

Public Housing (Section 8): Apartment communities that are directly owned and run by HUD and/or the local housing authorities. These units are typically reserved for extremely low incomes, and rent is capped at 30 percent of the household income.
Income-based Housing: Privately owned apartment communities that apportion at least 20 percent of their units for low-income renters. You can usually qualify for these units at 50 percent or less than the AMI.
Income-restricted Housing: Privately-owned apartment housing units or planned developments specifically created for low-income individuals or families. Qualifying for this housing usually requires incomes of 60 percent or less than AMI, but some areas may extend the threshold as high as 80 percent.
Section 8 Housing Vouchers: If not enough public or low-income housing is available in your area, you may qualify for a Section 8Housing Voucher. This is a guaranteed subsidy from the government that moves with you to make up the difference in rent for a rental of your choosing, provided that rental meets Section 8 requirements.

Where to Find Low-Income Housing Options in Your Area

Finding low-income housing can be done in one of two ways. Perhaps the easiest method is to apply at your local Public Housing Agency (PHA). Doing so will determine your eligibility and identify possible housing options in the same step. Another method is to search online for “income-based” or “income-restricted” housing in your area, then reach out to the management company to inquire about how to qualify.

Olympia Management, Inc. specializes in providing clean, affordable housing for low-income tenants across the Southeast. To learn more about our affordable rental property options, call us at 256-894-2382.

What Is Affordable Housing?

Posted on May 26, 2020June 8, 2021 by Alex Beaver

What is Affordable Housing?

Nearly half of American households now spend more on housing costs than they are financially comfortable with. For many low-income families, in particular, homeownership is but a distant, far-off dream. The Washington Post reports that a person making minimum wage can no longer afford rent on a 2-bedroom apartment anywhere in the United States.

As real estate and rental housing costs climb across the country, it creates a financial strain on lower-income families and individuals. Federal and local agencies across the country have created a number of affordable housing programs to combat the housing market’s decreasing affordability.

In this guide, we’ll explain how affordability is calculated, identify the two main types of affordable housing, and answer your frequently asked questions about affordable housing.

For the purposes of this article, “affordable housing” refers to rental housing within the private market that designates all or part of their housing units as “affordable.”

How Housing Affordability is Determined

When it comes to defining housing affordability, the U.S. Department of Housing and Urban Development (HUD) goes by the “30-percent” rule when determining how much people can afford to spend on their housing.

By the federal government standard, your housing is “affordable” if it costs no more than 30 percent of your monthly household income to live there. (That includes your rent or mortgage plus all associated costs, like utilities.)

If you’re paying more than 30 percent of your monthly income on your housing, you are “rent-burdened” by government standards.

Types of Affordable Housing

There are two main types of affordable housing — Section 42 and Section 8.

Section 42

Section 42, also known as the Low Income Housing Tax Credit (LIHTC), is an affordable housing program that offers a federal tax credit to developers of affordable rental housing. To qualify for the tax credit, the developer must allocate some or all of their units as “affordable.”

Rent for Section 42 properties is usually based on a percentage of the renter’s income (30 percent or lower), and the government provides tax incentives to these properties to offset the difference compared to the market rate.

By incentivizing developers to create more affordable housing, the government is able to expand the number of quality rental housing for people with lower incomes.

Who is Eligible for Section 42 Housing?

Depending on local rules and the general cost of living where you live, households can qualify for affordable housing if their income is either 50 percent and 80 percent of the AMI, or below.

When looking for Section 42 affordable housing, you’ll usually see three different categories, each of which has slightly different rules and eligibility requirements for renters:

Income-based housing refers to privately owned properties that designate at least 20 percent of their units as low-rent or income-based while meeting other HUD criteria. These units usually rent to households at 50 percent or below the AMI.
Income-restricted housing refers to planned developments specifically designed for low to middle-income families, generally making 60 percent or less of AMI.
Senior housing refers to communities that are specifically designed to accommodate senior citizens. To qualify for senior housing, all occupants must be at least 62 years old, or at least 80 percent of the units must be occupied by at least one person aged 55 years or older.

Learn more about the differences between income-based and income-restricted housing.

Section 8

Section 8 is a rental assistance program that uses government vouchers designed to make up the difference in rent for what the tenant can’t afford to pay based on the Area Median Income.

Also known as the Housing Choice Voucher (HCV) program, Section 8 is reserved for low-income households with income that is at or below 50 percent or 30 percent of the Area Median Income (AMI) for that community.

Section 8 is funded federally but administered locally. Public housing agencies (PHAs) are responsible for receiving the funds from U.S. Department of Housing and Urban Development (HUD) and administering the vouchers locally to participants.

Who is Eligible for Section 8 Housing?

PHAs base qualification for Section 8 vouchers on family size, citizenship status, and total annual gross income. According to HUD, “the family’s income may not exceed 50% of the median income for the county or metropolitan area in which the family chooses to live. By law, a PHA must provide 75 percent of its voucher to applicants whose incomes do not exceed 30 percent of the area median income.”

Affordable Housing in the Southeast U.S.

Olympia Management, Inc. specializes in managing affordable housing developments in multiple states throughout the Southeast U.S. We currently offer income-based, income-restricted, and senior housing options in the following states:

To learn about available rental units in your area and how to qualify for housing assistance, contact us today.

Affordable Housing FAQ

Is it easier to get housing through Section 42 or Section 8?
- It is generally easier to access housing through Section 42 rather than Section 8, which has stricter eligibility requirements and longer waitlists.
Can you qualify for affordable housing with bad credit?
- Your credit rating doesn’t affect your eligibility to receive subsidies, but property owners and management companies are within their rights to pull your credit report to determine if you meet their minimum credit score threshold in order to rent to you. Learn more about credit scores and housing eligibility.
Can you qualify for affordable housing with an eviction?
- Having an eviction on your record can certainly complicate matters, but your eligibility will depend on the reason for eviction as well as how long ago the eviction took place.
How is affordable housing funded?
- The most common ways state and local governments fund affordable housing is through the Low-Income Housing Tax Credit (LIHTC), federal block grant programs, Choice Neighborhood Initiative, the USDA Rural Housing Service, and even privately funded community development financial institutions (CDFIs).
What’s the difference between affordable housing and public housing?
- Public housing refers to rental housing units that are owned and managed by HUD. In contrast, affordable housing involving Section 42 or Section 8 typically involves subsidized rent for privately-owned properties.
What is a housing choice voucher?
- A housing choice voucher is a rent subsidy used by tenants enrolled in the Section 8 housing program. This subsidy gives tenants greater choice over where they live compared to public housing projects.

Socially Distanced Block Party a Huge Success!

Posted on May 25, 2020August 6, 2020 by Alex Beaver

Crystal Crouch, Property Manager for Westgate Apartments, had a creative idea to help her residents have some fun. To keep them from being cut off from the each other and the outside world during these difficult times, what could she do? A socially distanced block party! The evening was a fun time for all residents with music and brown bag hot dog supper.

Residents enjoyed the musical festivities from their from porch while brown-bag hot dog dinners were deliver to them.

The socially distanced block party was successful with the coordinated efforts of Crystal Crouch, Robert Crouch (Crystal’s husband), Jamey Napper, Ryan Newburn (property Maintenance Technician) and his wife, Kim Newburn, and Cory Tate. Cory Tate donated the food and Robert Crouch grilled the hot dogs. Belinda Crouch and Carrie Mills baked cookies.

Enjoyable music was had by all as Jamie Napper belted out songs for the tenants.