What is Low-to-Moderate Income Housing?
Low-to-moderate income housing is housing designed for individuals and families whose incomes are low to moderate in comparison to prevailing incomes where they live. In general, offering low-to-moderate income housing is a requirement for a property owner’s participation in the HUD Section 8 program.
What is Market Rate Housing?
Market rate housing consists of non-subsidized properties that are rented or owned by those who pay market rate rents or who paid market value to purchase the property. This is in contrast to both affordable housing and subsidized affordable housing, as both of these types of housing types confer special benefits upon HUD 221(d)(4) loan borrowers.
What is an Appraisal?
An appraisal is the process of estimating the market value of a property. Appraisals for HUD 221(d)(4) loans can only be made by trained, authorized appraisers.
What is an Affordable Property?
Affordable properties are those that have rents set at a rate that is considered affordable for low-to-moderate and low-income residents. These include properties constructed using tax subsidies to provide below-market rents for low-income people, seniors and/or individuals with disabilities.