Glossary Terms

A program that helps keep families safe and healthy through initiatives that assist families with energy costs. LIHEAP provides federally funded assistance to reduce the costs associated with home energy bills, energy crises, weatherization, and minor energy-related home repairs.

LIHEAP can help you stay warm in the winter and cool in the summer through programs that reduce the risk of health and safety problems that arise from unsafe heating and cooling situations and practices.

A program provides states and territories with flexibility in operating programs designed to help low-income families with children achieve economic self-sufficiency. States use TANF to fund monthly cash assistance payments to low-income families with children, as well as a wide range of services.

HERA, enacted into law on July 30, 2008, made comprehensive and significant reforms to several HUD programs, including HUD’s Public Housing, Section 8 Tenant-Based Voucher, and Project-Based Voucher programs.

Is a certification exam that covers everything you need to know about the HUD Enterprise Income Verification system including its purpose, how it developed, how to sign up, how to maintain access, which reports are required, how to interpret reports, how to resolve any discrepancies and how to ensure the security of the data.

The EIVS is appropriate for all managers, assistant managers, compliance staff and any other persons involved with the tenant certification process.

Certified Occupancy Specialist (COS) is a comprehensive study of HUD’s Office of Multifamily Housing guidelines and regulations set forth in HUD Handbook 4350.3 REV-1 and subsequent notices, including rent calculation, eligibility, verification, recertification, tenant screening, and Fair Housing.

A course trains managers to understand these complex regulations, and provides clear instructions on fair housing laws.

The Tax Reform Act of 1986 was signed into legislation by President Ronald Regan. It was meant to simplify the tax code and stimulate the economy. The law lowered the maximum rate on ordinary income (earned income) from 50% to 28% while raising it on long-term capital gains (unearned income) from 11% to 15%.

The Housing Act of 1949 is a significant piece of federal legislation in the United States that aimed to address the country’s housing challenges and improve the living conditions of its citizens. It was signed into law by President Harry S. Truman on July 15, 1949.

The main objectives of the Housing Act of 1949 were as follows:

1. Housing Quality Improvement: The act sought to improve the quality of housing by providing financial assistance for slum clearance, urban renewal, and the rehabilitation of existing housing units.

2. Housing Availability: It aimed to increase the availability of safe and decent housing for low-income families by promoting the construction of new housing units and the expansion of affordable rental housing options.

3. Urban Planning: The act encouraged the development of comprehensive urban planning and zoning regulations to ensure orderly and efficient urban growth.

4. Slum Clearance and Redevelopment: It provided resources for the clearance of blighted areas and the redevelopment of such regions to revitalize communities and eliminate unsafe living conditions.

5. Public Housing: The act supported the creation of public housing projects to offer affordable housing to those in need, especially low-income families.

6. Loans and Loan Guarantees: It authorized the provision of loans and loan guarantees for various housing-related purposes to stimulate private investment in housing development.

The Housing Act of 1949 laid the foundation for several federal housing programs that have been instrumental in shaping the American housing landscape over the years. It represented a significant step towards addressing housing inequality and ensuring adequate housing for all citizens, especially those with low incomes. The act has undergone subsequent amendments and revisions to adapt to changing housing needs and socioeconomic conditions in the United States.

USDA Section 538 is a provision within the Housing Act of 1949 that establishes a loan guarantee program to facilitate the development of affordable rental housing in rural areas in the United States. Under this program, the U.S. Department of Agriculture (USDA) provides loan guarantees to approved lenders, including private financial institutions and state housing finance agencies.

The purpose of Section 538 is to encourage lenders to offer loans to developers or sponsors of affordable rental housing projects in rural communities by reducing the lender’s risk. The loan guarantees act as a form of insurance for lenders, promising to repay a portion of the loan if the borrower defaults.

By offering these loan guarantees, USDA aims to increase the availability of safe and affordable rental housing for low-income individuals and families in rural areas, helping to address the housing needs of these communities.

Section 515 is a specific provision within the Housing Act of 1949, a federal law in the United States. It establishes the Rural Rental Housing Program, which aims to provide affordable rental housing options for low-income individuals and families in rural areas.

Under Section 515, the U.S. Department of Agriculture (USDA) offers subsidized loans to eligible entities, including nonprofit organizations, private companies, and public agencies. These loans are used to finance the construction, acquisition, or rehabilitation of multi-family rental properties in rural communities with populations of 35,000 or less.

The main objective of the program is to increase the availability of safe and decent rental housing for individuals and families with very low to moderate incomes. The properties developed or rehabilitated under Section 515 must maintain their affordability for at least 30 years and are subject to income restrictions to ensure they serve the target population.

The rental rates in these properties are set at an affordable level, typically requiring eligible tenants to pay no more than 30% of their income for housing costs. By providing financial assistance and incentives to develop and maintain affordable rental housing, Section 515 has been instrumental in addressing the housing needs of rural communities and improving the living conditions of low-income residents in these areas.

Eligible basis is a component of the qualified basis of an LIHTC project. It is generally equal to the adjusted basis of the building, excluding land but including amenities and common areas.

Qualified basis is the base that is multiplied by the credit percentage to determine the annual credit. The qualified basis equals the applicable fraction times the eligible basis.

HUD’s very low-income limits.
See also Very low-income.

Documentation gathered to verify eligibility factors.

The Violence Against Women Act.

HUD-published “VLI” limits that are 50% of the area median income.

A unit that was previously occupied by a household. Often contrasted with an
empty unit, which is a unit in a new project that has never been occupied.
Vacant Unit Rule
When a unit is vacant, an owner can continue to claim tax credits as long as
marketing efforts are continuously made to fill the unit and it is ready for
occupancy in a reasonable time.

An estimate of utility costs resent.

When a household and owner/agent intend to reside in a unit for less than 6
months they are “transient” and not eligible for an LIHTC unit. A lease of at
least 6 months demonstrates nontransience.

Documents prepared by a third party. Examples include verification of
employment and pay stubs. Also referred to as source documents in the
HOME regulation.

The application for occupancy and supporting verification paperwork
establishing household eligibility for an affordable housing unit.

The amount that the tenant pays in rent monthly. An estimate of any utilities
paid and fees that are nonoptional are added to tenant-paid rent to
determine gross rent for an LIHTC unit, and any subsidy is added to determine
gross HOME rent (with an exception for Low HOME units).

A legal resident of a rental property.

When a tenant is over-income for the HOME unit in which they reside.

The Tax Credit Assistance Program, a temporary program funded under the
American Recovery and Reinvestment Act of 2009. Designed to supplement
tax credit equity from investors. TCAP funds were HOME funds redesignated
for LIHTC purposes during the Great Recession.

A reduction in tax liability. Benefits an owner of a property claims under the
low-income housing tax credit program.

An entity that identifies investors and developers and facilities pairing these
in a limited partnership. The syndicator is often thought of as the investor, but
it actually represents the investors and manages the relationship between the
investors and the general partner.

Money paid by a government agency to assist a household or property.
Depending on the context, this can be in the form of rental assistance or
financing assistance to a property.

Utility sub-metering is a system that allows a property owner to bill tenants
for individual measured utility usage. The approach makes use of individual
meters for units. Utilities paid to an owner are permissible to include in a
utility allowance for a property, even though paid to the owner and not a
utility company directly.

Financial assistance includes any assistance in excess of tuition that a student
receives: (1) Under the Higher Education Act of 1965. This includes Pell Grants,
Federal Supplement Educational Opportunity Grants, Academic Achievement
Incentive Scholarships, State Assistance under the Leveraging Educational
Assistance Partnership Program, the Robert G. Byrd Honors Scholarship
Program, and Federal Work Study programs. (2) Assistance from private
sources. Non-governmental sources of assistance, including assistance that
may be provided to a student from a parent(s), guardian, or other family
member and other persons not residing in the unit. (3) From an institution of
higher education requires reference to a particular institution and the
institution’s listing of financial assistance. HUD has interpreted the term
“financial assistance” to not include loan proceeds for the purpose of
determining income. Therefore, Perkins loans, Stafford loans, and Plus loans
under the Higher Education Act of 1965 are not considered as student
financial assistance.

A person attending an institute of education.

How HOME regulations describe documents prepared by a third party used to
verify factors related to household eligibility. Examples include verification of
employment and pay stubs. Also generally referred to as third-party
verification.

When a unit is assigned a specific income or rent limitation.

Under the Americans with Disabilities Act (ADA), a service animal is a dog that
provides disability-related physical assistance to a person. This relates to animals that can be brought into public accommodations and not what animals a person can keep in their rental home, where the Fair Housing Act applies.

An affidavit signed by a person.

Project Rental Assistance (PRA) through the HUD Section 811 program.

Housing funded under Section 8 of the Housing Act of 1937. Section 8 funds
project-based rental assistance (PBRA) and Housing Choice Vouchers.

The highest rent that can be charged to LIHTC or HOME households. These
are provided by unit size. Each program has a specific formula to calculate
these limits.

Reevaluation of a household’s status for a housing program.

An adjustment to a unit or property’s common areas to accommodate a
disability. If reasonable, allowing such modifications is required under Fair
Housing law.

An adjustment to an owner/agent’s policies or procedures to accommodate a
disability. If reasonable, making such accommodation is required under Fair
Housing law.

When tenants pay utilities based on a ratio rather than their actual utility
usage.

A unit that 1) houses a program-eligible household, 2) has programappropriate
rents, and 3) is decent, safe, and sanitary.

A building that meets the requirement of the LIHTC or HOME program and
houses program-eligible households.

A HUD program that provides permanent housing in which housing assistance
such as long-term leasing or rental assistance, and supportive services are
provided to assist households with at least one member (adult or child) with
a disability in achieving housing stability.

Personal characteristics for which it is illegal to treat people differently under
the Fair Housing Act. Starting in 1968 these included race, religion, color, and
national origin. In 1974 sex was included. In 1988 disability and familial status
were added.

Federal rental subsidy attached to a specific project. Most often project-based
Section 8 or 811.

All of the buildings included in a group at a housing development for
compliance purposes, as indicated on each building’s form 8609 line 8b. The
default is that each building is a separate project unless the owner elects a
multiple-building project.

Abbreviation for the HOME Participating Jurisdiction.

Public housing authority. A local Agency that may manage public housing and Housing Choice Vouchers.

The date a building is ready for its intended purpose. For new construction,
this is generally when a building receives its certificate of occupancy for the
first unit in a building. For acquisition, this is when an occupied building is
acquired by purchase for IRC section 179 depreciation purposes. The placed
in service date for a rehab is determined by accountants based on an
expenditure test and other factors.

The local or state agency that commits HOME Funds to a property and
monitors for compliance.

For a project that is not 100% LIHTC, a household is over-income when its
income exceeds 140% of the current income limit at annual recertification.
For HOME, a household that exceeds the applicable low or high HOME limit
for a unit is over-income.

A fee that a tenant may choose to pay but is not required to. There must also
be a reasonable alternative to the fee for it to be optional.

The number of people allowed to occupy each unit size. These are set by the
owners, taking into consideration Fair Housing and housing program
guidelines.

Neighborhood stabilization program.

A fee that a person must pay to live at a property.

An LIHTC project that includes more than one building for compliance
purposes.

Metropolitan statistical area.

A unit reserved for marketing purposes to be viewed by applicants to
demonstrate what furnished units may look like.

An LIHTC project that includes both LIHTC and market rate units.

An election for the LIHTC program that determines a minimum commitment
to the tax credit program (a percentage of total units in the project) and the
income limits federally applicable to the project. The minimum set-aside is
irrevocably elected on IRS Form 8609 for each building in a project. Options
are 20-50, 40-60, and the Average Income Test.

Units that are not LIHTC or HOME-funded.

Home to more than 4.6 million people, Louisiana sits in the heart of the Deep South along the rich Gulf coastal plain. First explored by the Spanish, then claimed by the French before President Thomas Jefferson bought it for the U.S. as part of the 1803 “Louisiana Purchase,” Louisiana today maintains a distinct French Creole culture not found anywhere else in the Union. In fact, Louisiana is the only state in the union that subdivides into “parishes” rather than counties – a throwback to the rich Roman Catholic influence of the Spanish and French who first settled here.

Louisiana enjoys a mild, subtropical climate fueled by the warm waters of the Gulf of Mexico, featuring lush forestlands to the north and the fertile Mississippi Delta to the south. A major provider of seafood for the U.S., Louisiana produces about 90 percent of the nation’s crawfish. Agriculture and oil are also major economic anchors for the state. The largest population centers lie along the Gulf Coast near the mouth of the Mississippi River – namely, Baton Rouge, its state capital (pop. 220,000) and New Orleans, its largest city (pop. 400,000). New Orleans in particular serves as a major hub for tourism, hosting millions of visitors a year to the French Quarter to experience New Orleans jazz and the noted Mardi Gras celebration. Meanwhile, in the northwest corner of the state near the Texas border, the city of Shreveport has become home in recent years to a thriving film scene.

Home to the Mammoth Caves, KFC, bluegrass music, and the Kentucky Derby. Birthplace of Johnny Depp, Jennifer Lawrence, Bill Monroe, Abraham Lincoln, and bourbon whisky. These are just a few of the things that make up the rich heritage of Kentucky. Marked by the rolling hills and forested lands of the western Appalachian Mountains, this state is known for its rich farmland and incredible natural beauty – not to mention 95 percent of the world’s bourbon and some of the finest thoroughbred horses found anywhere on the planet.

Kentucky’s capital city, Frankfort, is relatively small, home to only about 27,000 people. While most of the state is rural, the two largest cities in the state are Lexington (pop. 323,000) and Louisville (pop. 767,000).

Located in the nation’s heartland, the State of Tennessee is a land as rich and diverse as the people who live there. In fact, Tennessee residents think of their state as divided into three Grand Divisions – “three Tennessees,” if you will – each with its own land features and culture.

The eastern third of the state, East Tennessee, is dominated by the Blue Ridge Mountains, Great Smoky Mountains, and Cumberland Plateau, a land rich both in natural beauty and Appalachian culture with population centers that include Knoxville, Chattanooga, and the famed Tri-Cities area, the historic birthplace of Country Music.

Middle Tennessee, the state’s midsection, is a land of rolling hills and fertile soil – the agricultural center of the state. It’s also home to Nashville, the state capital and the famed Country Music Capital of the World. With a combined metro population of almost 2 million, Nashville is also the state’s largest city.

West Tennessee, the western third of the state, is loosely considered the region between the Tennessee River to the east and the Mississippi River along the western border. This flat, fertile bottom land is part of the massive Gulf plain and serves as another bed of agriculture for the state. On the western end, along the banks of the Mississippi, lies Memphis, the state’s second largest city. Also known for its music scene, Memphis is the historic birthplace of Rock & Roll (Sun Records), as well as the home of Elvis Presley, B.B. King, and the world-famous Beale Street, home of the blues.

Over the past few decades, the State of Georgia has gone from being primarily an agricultural region to being an international crossroads and one of the most influential regions of the Southeast. Now serving as the headquarters for at least 17 Fortune 500 companies, the economy of Georgia is the 28th largest in the world. More than half of the state’s 10 million people live in and around Atlanta, the state’s capital and largest city, a major center for commerce, industry, healthcare, and technology, and even film – not to mention being home to what has become the world’s busiest airport.

Of course, there’s much more to living in Georgia than business and commerce. Still a major agricultural center, the “Peach State” is the nation’s largest producer of pecans, peanuts, and of course, peaches. Georgia also boasts more than 100 miles of coastline with pristine beaches. Along the coast, the port city of Savannah, one of the few places in Georgia not burned by General Sherman during the Civil War, is also today one of the state’s most popular tourist destinations, loved as much for its championship golf and its downtown “open container” policy as for its lovely beaches. And the north Georgia mountains provide ample opportunities for camping, boating, fishing, hiking, climbing, and just communing with nature.

Whether you love the hustle, bustle, and culture of city living, the quiet of the countryside, the relaxed vibe of coastal living, or the natural beauty of the mountains, Georgia truly offers something for everyone.

The birthplace of root beer, Elvis Presley, and the blues, Mississippi is coveted for its mild climate, sandy Gulf beaches, Southern hospitality, and rich soil. Indeed, the state’s economy has been rooted in agriculture since it was first settled, thanks in part to its deep, fertile soil and extended growing season. Cotton and soybeans are among the predominant crops raised here, but Mississippi is also home to more tree farms than any other state in the U.S., and more than 60 percent of all farm-raised catfish are produced in Mississippi. Jackson is both the state capital and largest city in Mississippi, with a metro population of over a half-million. The other major population center of Mississippi is along the Gulf Coast, with the Gulfport-Biloxi area serving as home to nearly 400,000 people.

Olympia Property Management is proud to provide affordable senior housing at Calhoun Manor in Calhoun City, a quiet community of 1800 people in the heart of North Mississippi about two hours from Jackson. Calhoun City is a quiet rural community surrounded by lakes and woodlands, offering a lovely small-town feel with numerous community events year-round.

Known for its mild climate, low cost of living, tasty barbecue, shag dancing, sandy beaches, and championship golf, South Carolina is not only one of the largest tourist attractions along the eastern seaboard, but it’s also a great place to live. Between the scenic barrier islands and salt marshes of the coastal plain to the fast-growing urban centers of Upper Piedmont, to the scenic Blue Ridge Mountains, there’s something here for everyone to enjoy.

In the center of the state lies Columbia, the state capital and second-largest city, known as the center for healthcare, commerce, and military. Much of the tourism centers around the coastline, with destinations like Myrtle Beach and Charleston (the state’s largest city) seeing huge numbers of visitors each year. However, the Upstate region in the northwest corner of the state has seen a huge population surge over the past years, to the point that the Greenville metropolitan area now contains the largest combined population in the state – about 1.5 million people.

From the rolling mountains of the north to the pristine Mobile Bay and the Gulf of Mexico, Alabama is a state with natural beauty all its own. Since it was first settled, Alabama has largely been a rural, agricultural state due to its mild

growing season – and agriculture is still a major part of its economy. However, Alabama has also emerged as one of the nation’s major producers of cast iron and steel, and it’s also home to one of the country’s main aerospace technology hubs in Huntsville. (Alabama workers built the first rocket to put a man on the moon.)

While Montgomery serves as the state capital, the largest city is Birmingham, with a combined metro population of more than 1 million people, also serving as a major hub for industry, business, and finance for the region. At the southern tip of the state along Mobile Bay, the city of Mobile is a significant port city, industrial center, and shipyard, as well as serving as a major tourist destination. It’s also one of the oldest cities in Alabama, having first been settled by French explorers in 1702 – along with having the longest-running annual Mardi Gras celebration in the United States.

Alabama is known across the country for its Southern hospitality and relaxed lifestyle, as well as its love for college football. With major universities that include Auburn University, Jacksonville State University, and the University of Alabama, residents of the state have many great teams to root for – and a few friendly rivalries, as well!

Does not include any amounts received from a rental assistance program, any utility allowance, or any fee paid to the apartment complex by any governmental assistance program.

A person who is attending school or vocational training on a full-time basis.

A payment made by HUD or the contract administrator to the owner of an assisted unit as provided in the contract. Where the unit is leased to an eligible family, the payment is the difference between the contract rent and the tenant rent. An additional payment is made to the family when the utility allowance is greater than the total tenant payment.

Is a temporary visitor of the tenant’s and should not be confused with an unauthorized occupant. Additionally, a guest in not a party to the lease agreement.

A program that the federal government has for assisting very low-income families, the elderly, and the disabled to afford decent, safe, and sanitary housing in the private market. Since housing assistance is provided on behalf of the family or individual, participants are able to find their own housing, including single-family homes, townhouses and apartments.

The Adult member of the family who is the head of the household for the purposes of determining income eligibility and rent.

The housing assistance payments program that implements Section 8 of the United States Housing Act of 1937.