Terminology is important and sometimes can be confusing if you’re not a development industry professional. That’s why TheHUB assembled this comprehensive glossary of commonly used terms among community developers. Now everyone can speak the language of development.
As defined by HUD: In general, housing for which the occupant(s) is/are paying no more than 30 percent of his or her income for gross housing costs, including utilities. Some jurisdictions may define affordable housing based on other, locally determined criteria.
AMI-AREA MEDIAN INCOME
Area Median Income (based on an MSA): The median divides the income distribution into two equal parts: one-half of the cases falling below the median income and one-half above the median. HUD establishes income limits for assisted housing every fiscal year. These income limits are available by family size, and are defined as “extremely low income” (30% of area median income), “very low income” (50% of area median income) and “low-income” (80% of area median income).
Abandoned, idled, and underused industrial and commercial facilities where expansion and redevelopment is burdened by real or potential environmental contamination. May also include property that is considered to be “functionally obsolete” and/or “blighted”. See also Detroit Brownfield Redevelopment Authority
BESEED – BUILDING, SAFETY, ENGINEERING AND ENVIRONMENTAL DEPARTMENT
This department is responsible for overseeing construction, licenses and permits, including business licenses, environmental affairs, plan reviews, property maintenance and zoning. BSEED also oversees Medical Marihuana Caregiver Centers business licenses.
Activities and/or funding directed toward helping CDCs stabilize operations and build staff depth and experience in order to take on larger and more complex operations, operations and projects.
CBO – COMMUNITY-BASED ORGANIZATION
This acronym is also known to reference Community Building Organization.
CDC – COMMUNITY DEVELOPMENT CORPORATION
A CDC is an organization specifically established to design, implement and manage community development projects and must be a nonprofit with a board of directors that is representative of the area served.
COMMUNITY DEVELOPMENT BLOCK GRANT
Federal funding to support community development projects and neighborhood services allocated by the City of Detroit on an annual basis.
CDBG – COMMUNITY DEVELOPMENT BLOCK GRANT
Federal funding to support community development projects and neighborhood services allocated by the City of Detroit on an annual basis.
CDAD – COMMUNITY DEVELOPMENT ADVOCATES OF DETROIT
CDAD is a trade association for nonprofit, community-based development organizations in Detroit. The organization, its members and its supporters strive to serve as a catalyst for the transformation of Detroit neighborhoods.
CDFI – COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION
CDFIs are private financial institutions that are 100 percent dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.
CDAM – COMMUNITY ECONOMIC DEVELOPMENT ASSOCIATION OF MICHIGAN
CDAM is a trade association for community-based development organizations, partners and supporters. The organization’s mission is to support its diverse membership to create vibrant, sustainable and resilient communities. It enhances locally-driven efforts through high quality training, technical assistance, capacity building and policy advocacy.
CHDO – COMMUNITY HOUSING DEVELOPMENT ORGANIZATION
A CHDO is a private nonprofit, community-based, service organization that has, or intends to obtain, staff with the capacity to develop affordable housing for the community it serves. There are Many Benefits of Working with CHDOs. The HOME Program guarantees CHDOs funds.
A mutually beneficial and well-defined relationship entered into by two or more organizations to achieve common goals.
The process of defining and implementing a strategy that addresses physical, social and economic needs of a neighborhood.
A document written by a state or local government describing the housing needs of the low- and moderate-income residents, outlining strategies to meet these needs, and listing all resources available to implement the strategies. This document is required in order to receive HUD Community Planning and Development funds.
CRA – COMMUNITY REINVESTMENT ACT
Created by an act of Congress 1977, the CRA was created to encourage depository institutions to help meet the credit needs of surrounding communities (particularly low and moderate income neighborhoods).
CRP – COMMUNITY REVITALIZATION PROGRAM
Administered by the MEDC, the MCRP is an incentive program available from the Michigan Strategic Fund (MSF), in cooperation with the Michigan Economic Development Corporation (MEDC), designed to promote community revitalization that will accelerate private investment in areas of historical disinvestment; contribute to Michigan’s reinvention as a vital, job generating state; foster redevelopment of functionally obsolete or historic properties; reduce blight; and protect the natural resources of this state. The program is designed to provide grants, loans, or other economic assistance for eligible investment projects in Michigan. See also Michigan Economic Development Corporation.
DBRA – DETROIT BROWNFIELD REDEVELOPMENT AUTHORITY
The DBRA supports the redevelopment of blighted, obsolete or contaminated properties through state and local property tax reimbursements and tax credits that can be used for specific cleanup and development efforts. See also Brownfield.
DEGC – DETROIT ECONOMIC GROWTH CORPORATION
The DEGC is a non-profit organization that works closely with the City of Detroit and other partners to support existing businesses and to bring new companies and investments to the city.
DFC – DETROIT FUTURE CITY
The DFC Implementation Office coordinates with stakeholders to inform decision-making, build capacity, and fulfill the objectives of the (DFC) Strategic Framework, a shared long-term plan for the City of Detroit.
DLBA – DETROIT LAND BANK AUTHORITY
The DLBA is a public authority dedicated to returning Detroit’s vacant, abandoned, and foreclosed property to productive use. Our current programs include auction, side lot, community partnership and demolition. See also, Land Bank.
DON – DEPARTMENT OF NEIGHBORHOODS
The City of Detroit’s DON’s District Managers have been charged with the task of eliminating blight in their district and will be residents’ partners in making that happen. They work closely with neighborhood and other community organizations, CDCs, faith-based organizations and local businesses to identify and prioritize citizen’s concerns, and then coordinate with the appropriate City department to deliver results. They help address all blight-related issues, including dangerous building demolition, re-purposing vacant lots and structurally sound vacant buildings, as well as non-structural blight.
Federal funding to implement local housing strategies designed to increase homeownership and affordable housing opportunities for low and very low-income populations allocated by the City of Detroit on an annual basis.
HPTC – HISTORIC PRESERVATION TAX CREDIT
The HPTC is a federal program to help finance projects that preserve historic structures.
HQS – HOUSING QUALITY STANDARDS
HQS help HUD and local Public Housing Authorities (PHAs) accomplish their program goals by defining “standard housing” and establishing the minimum quality criteria necessary for the health and safety of program participants.
HRD – HOUSING AND REVITALIZATION DEPARTMENT
The City of Detroit’s HRD oversees the development of housing and other development projects in the city. Housing and Revitalization works hand in hand with the Planning and Development Department (P&DD).
HUD – HOUSING AND URBAN DEVELOPMENT
Established in 1965, HUD’s mission is to increase homeownership, support community development, and increase access to affordable housing free from discrimination. To fulfill this mission, by definition: HUD will embrace high standards of ethics, management and accountability and forge new partnerships — particularly with faith-based and community organizations — that leverage resources and improve HUD’s ability to be effective on the community level
Income limits determine the eligibility of applicants for HUD’s assisted housing programs. The major active assisted housing programs are the Public Housing program, the Section 8 Housing Assistance Payments program, Section 202 housing for the elderly, and Section 811 housing for persons with disabilities.
JET – JOBS AND ECONOMY TEAM
The City of Detroit’s JET is in charge of workforce development, economic growth and works on commercial development and other city development with the Housing and Revitalization Department (HRD) and the Planning & Development Department (P&DD).
A governmental or nongovernmental nonprofit entity established, at least in part, to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. See also, Detroit Land Bank Authority.
LIHTC – LOW INCOME HOUSING TAX CREDIT
Low Income Housing Tax Credit (often pronounced “Lie-tech”) is a federal tax credit program to leverage private investment in low-income housing development or preservation allocated by state housing authorities (MSHDA). The program provides an income tax credit to owners of newly constructed or substantially rehabilitated low-income rental housing projects.
LISC – Local Initiatives Support Corporation
LISC is a national CDFI with local offices in 31 cities, including Detroit, and rural communities across the U.S.
LOW INCOME FAMILY
Families whose [combined] income does not exceed 80 percent of the median family income for the area. See also, Area Median Income.
MARK TO MARKET
A program designed to preserve low-income rental housing affordability while reducing the long-term costs of federal rental assistance, including project-based assistance from HUD, for certain multifamily rental projects. The projects involved are projects with;
1) HUD-insured or HUD-held mortgages; and
2) contracts for project-based rental assistance from HUD, primarily through the Section 8 program, for which the average rents for assisted units exceed the rent of comparable properties.
MEDC -Michigan Economic Development Corporation
The MEDC is the state’s marketing arm and lead advocate for business development, job awareness and community and talent development with the focus on growing Michigan’s economy. For more information on the MEDC and its initiatives, visit www.MichiganBusiness.org.
Pure Michigan® tourism information: www.michigan.org.
Job Creation/Employment Connector: www.mitalent.org .
See also Community Revitalization Program.
Households whose incomes are between 81 percent and 95 percent of the median income for the area, as determined by HUD, with adjustments for smaller or larger families. HUD may establish income ceilings higher or lower than 95 percent of the median for the area on the basis of HUD’s findings that such variations are necessary because of prevailing levels of construction costs, fair market rents, or unusually high or low family incomes. See also Area Median Income.
MSA – METROPOLITAN STATISTICAL AREA
A MSA is an area with at least one urbanized area of 50,000 or more population, plus adjacent territory that has a high degree of social and economic integration with the core, as measured by commuting ties. Detroit’s MSA includes Detroit, Warren and Livonia; See also Area Median Income.
MSHDA – MICHIGAN STATE HOUSING DEVELOPMENT AUTHORITY
Established in 1966, MSHDA provides financial and technical assistance through public and private partnerships to create and preserve safe and decent affordable housing, engage in community economic development activities, develop vibrant cities, towns and villages, and address homeless issues. MSHDA also administers various federal housing programs.
A building with more than four residential rental units.
NSP – NEIGHBORHOOD STABILIZATION PROGRAM
A NSP provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The NSP provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.
NMTC – NEW MARKETS TAX CREDIT
The NMTC is a federal tax credit program, created to spur revitalization efforts of low-income and impoverished communities. The NMTC program attracts private capital into low-income communities by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments in specialized financial intermediaries called Community Development Entities (CDEs).
NOAH – NATURALLY OCCURRING AFFORDABLE HOUSING
NOAH is term used to describe affordable housing that is not supported by public subsidies, such as low-income housing tax credits. One common denominator of NOAH’s is age. The majority of NOAH properties are 40 – 50 years old and lack amenities. It is no-frills, functional housing that is nonetheless safe, secure, and habitable.
OPRA – Obsolete Property Rehabilitation Act
The OPRA provides an exemption from ad valorem property taxes to commercial property and commercial housing property that is being rehabilitated. An ad valorem tax (Latin for “according to value”) is a tax whose amount is based on the value of a transaction or of property.
PD&D – PLANNING AND DEVELOPMENT DEPARTMENT
The City of Detroit’s PD&D is staffed by interdisciplinary teams of design professionals responsible for setting new standards for urban planning and design in three designated “Design Regions” of the city ─ West, Central and East.
PHA – PUBLIC HOUSING AGENCY
Any state, county, municipality, or other governmental entity or public body, or agency or instrumentality of these entities that is authorized to engage or assist in the development or operation of low-income housing under the U.S. Housing Act of 1937.
PILOT – PAYMENT IN LIEU OF TAXES.
A PILOT (sometimes also known as PILT) is a payment in lieu of taxes made to compensate a local government for some or all of the tax revenue lost due to tax exempt ownership or use of a particular piece of real property. Usually it relates to the foregone property tax revenue.
PHA – PROJECT-BASED HOUSING ASSISTANCE
In project-based assistance [as opposed to tenant-based housing assistance], a HUD [rental] subsidy is tied to the housing unit.
PBVs – PROJECT-BASED VOUCHERS
PBV’s are a component of a public housing agency’s (PHA) housing choice voucher program. A PHA can attach up to 20 percent of its voucher assistance to specific housing units if the owner agrees to either rehabilitate or construct the units, or the owner agrees to set-aside a portion of the units in an existing development.
Assisted housing, supported under the provisions of the U.S. Housing Act of 1937 or under a state or local program having the same general purposes as the federal program. Distinguished from privately financed housing, regardless of whether federal subsidies or mortgage insurance are features of such housing development.
QAP – QUALIFIED ACTION PLAN
A QAP is a point-based application system employed by state housing authorities (in Michigan, that’s MSHDA) to evaluate and award allocations of low-income tax credits to finance affordable housing projects. See also, MSHDA.
REAL ESTATE OWNED
Real estate owned is a term used in reference to defaulted FHA-insured properties.
RFP – REQUEST FOR PROPOSAL
An RFP is act that seeks responses from an individual, firm or organization.
RFQ – REQUEST FOR QUALIFICATIONS
An RFQ seeks information about an individual’s or firm’s expertise, capacity, experience and references.
SCATTERED SITE HOUSING
Housing dispersed throughout the community and usually rented from a private landlord.
SECTION 8 EXISTING RENTAL ASSISTANCE
Provides rental assistance to low-income families who are unable to afford market rents. Assistance may be in the form of vouchers or certificates.
A single-unit family residence detached or attached to other housing structures.
Individuals or organizations that have an interest or investment in existing development activities or a commitment to being part of a larger effort to address current or future development needs.
A dwelling unit that is either dilapidated or unsafe, which endangers the health and safety of the occupant, or that does not have adequate plumbing or heating facilities.
Authorized by title IV of the Stewart B. McKinney Homeless Assistance Act (the McKinney Act) (42 U.S.C. 11381–11389), designed to promote the development of supportive housing and supportive services, including innovative approaches to assist homeless persons in the transition from homelessness, and to promote the provision of supportive housing to homeless persons to enable them to live as independently as possible.
Urban, suburban, and rural places that successfully integrate housing, land use, economic and workforce development, transportation, and infrastructure investments in a manner that empowers jurisdictions to consider the interdependent challenges of:
1) economic competitiveness and revitalization;
2) social equity, inclusion, and access to opportunity;
3) energy use and climate change; and
4) public health and environmental impact
TIF -TAX INCREMENT FINANCING
TIF is a public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement projects in many communities.
Specifically chosen geographic area(s) for planning or investment activities.
TOD is development of commercial space, housing services, and job opportunities close to public transportation, thereby reducing dependence on automobiles. TODs are typically designed to include a mix of land uses within a quarter-mile walking distance of transit stops or core commercial areas.
A project that has as its purpose facilitating the movement of homeless individuals and families to permanent housing within a reasonable amount of time (usually 24 months). Transitional housing includes housing primarily designed to serve deinstitutionalized homeless individuals and other homeless individuals with mental or physical disabilities and homeless families with children.
URBAN LAND INSTITUTE
ULI is a nonprofit education and research institute with focus on the use of land in order to enhance the total environment. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide.
VERY LOW INCOME
Households whose incomes do not exceed 50 percent of the median area income for the area, as determined by HUD, with adjustments for smaller and larger families and for areas with unusually high or low incomes or where needed because of facility, college, or other training facility; prevailing levels of construction costs; or fair market rents. See also Area Median Income.
The classification of land by types of uses permitted and prohibited in a given district, and by densities and intensities permitted and prohibited, including regulations regarding building location on lots.
Editor’s note: TheHUB used multiple sources to confirm this glossary including HUD, City of Detroit, Urban Land Institute, MEDC, LISC, Opportunity Finance Network (OFN), Investopedia.com, and Wikipedia.com