What is Affordable Housing?
The definition of affordable housing is different depending on who ask.
Affordable housing is defined as residential housing where the occupant pays no more than 30% of their gross income on housing costs, including utilities. This standard, used by the U.S. Department of Housing and Urban Development (HUD).
The U.S. Department of Housing and Urban Development (HUD) defines “affordable housing” as residential housing where the occupant pays no more than 30 percent of gross income on housing costs, including utilities.
Under the wide umbrella of “affordable housing” there are many programs and strategies administered from the federal to the local level intended to create and preserve options for those who need it.
The most commonly known federal tenant-based voucher program is the Housing Choice Voucher (or Section 8 Voucher Program). Those vouchers are used to help pay for housing costs in the private rental market, so recipients can choose where they want to live. In Cumberland County, vouchers are administered by the Cumberland County Housing Authority (CCHRA).
Eligibility criteria for the Housing Choice Voucher is determined by income level. Very low-income families (income at or below 50 percent of area median income) and a few specific categories of families with incomes up to 80 percent of area median income are eligible to apply.
Project-based vouchers (PVBs), though part of the Housing Choice Voucher program, are attached to a specific unit whose landlord contracts with a public housing agency to rent to eligible low-income individuals and families.
The Low-Income Housing Tax Credit (LIHTC) program offers developers nonrefundable and transferable tax credits to subsidize the construction and rehabilitation of housing developments that have strict income limits for eligible tenants and their cost of housing.