Appendix D

Long Range Plan to Reduce Homelessness
in Milwaukee County for 2000 To 2004

Appendix D: Glossary/Definitions of Housing Programs

Glossary of Housing and Urban Development Terminology

Affordable Rents: Generally defined by HUD as 30% of a household’s adjusted monthly income. The affordable rent includes utility payments made by the tenant.

Low Income Housing Tax Credit: Section 42: This program allows affordable housing projects to “sell’ tax credits to investors, who, in return for their investments in the project, are permitted to apply the credits towards their taxes. Tax Credits are allocated by the federal government to the states who, in turn, allocate them to individual projects. Projects must meet rent, occupancy, and other use restrictions in order to be eligible for the tax credits.

Privately Owned, Publicly Subsidized Housing: An affordable housing program developed by HUD in which the federal government provides capital subsidies and/or mortgage insurance to private owners who build and operate affordable housing.

Project Based Section 8 Assistance: HUD-funded rental assistance that is tied to a particular property (as opposed to “Tenant Based Assistance”).

Rental Assistance: Government payments to subsidize a tenant’s rent. The tenant typically pays 30% of adjusted monthly income to the owner, and HUD makes up the difference between that amount and the rent the owner charges. Sometimes referred to as Section 8, after the section of the act that authorized the program.

Tenant-Based Assistance: HUD Section 8 assistance that is tied to an individual’s resident household. If the household moves to a new unit, the assistance goes with the household (as opposed to “Project-Based Assistance”).

Vouchers: A type of Section 8 tenant-based assistance where the federal subsidy is calculated based on the difference between a HUD established payment standard and 30% of the household’s income. Households may choose housing that rents for more or less than the payment standard, and therefore pay more or less than 30% of their income (may soon be merged with certificates into a single tenant-based assistance program.)

Public Housing:

A. Public Housing Operations and Residential Initiatives

Public Housing Operations and Residential Initiatives focuses on operational issues, such as operating subsidies, tenant eligibility and admissions, tenant organization, services, and management improvement.

B. Public Housing Capital Assistance

Public Housing Capital Assistance description discusses federal aid for repair and revitalization of the housing itself.

Continuum of Care — Supportive Housing Program: (SHP) helps homeless people live as independently as possible by facilitating the development of housing and related supportive services for people moving from homelessness to independent living.

SHP funds states, local governments, and nonprofit organizations.

SHP supports five types of program designs:

¨ Transitional housing, which helps homeless people move to permanent housing.

¨ Permanent housing for homeless people with disabilities.

¨ Safe Havens: 24 hour supportive housing that serves hard to reach homeless people with severe mental illness.

¨ Supportive services for homeless people not living in supportive housing.

¨ Other types of innovations supportive housing for homeless people.

(Supportive services include employment assistance, outpatient health services, case management, assistance in locating and accessing permanent housing, child care, help to get employment, nutritional counseling, security arrangement, and help to obtain other assistance. SHP funds may be used to:

¨ Acquire land for a homeless facility.

¨ Build, rehabilitate, or lease housing for homeless persons

¨ Pay for new or increased supportive serves for homeless people.

¨ Cover day-to-day operating expenses of supportive housing.

¨ Pay administrative expenses.

Continuum of Care Section 8 Moderate Rehabilitation Single Room Occupancy (SRP)

Section 8 SRO is designed to ensure adequate supply of SRO units for the provision of housing for the homeless. This program provides funding to public housing agencies and private nonprofit for rental assistance for homeless individuals who rent rehabilitated SRO units.

Continuum of Care Shelter Plus Care

S+C is designed to ensure supportive housing opportunities for homeless people with disabilities and their families, primarily those who are seriously mentally ill; have chronic problems with alcohol, drugs, or both; or have HIV/AIDS. Four types of rental assistance are available: (1) tenant-based, (2) project based (contracted with a building owner), (3) sponsor based (contracted with a non‑profit organization, and (4) single room occupancy based.

Section 202 Supportive Housing for Elderly: The section 202 program is designed to enable very low-income elderly person (62 years or older) to live independently by increasing the supply of rental housing with supportive services. The program provides interest-free capital advances to private, nonprofit organizations to construct or rehabilitate rental housing with supportive services for very low-income elderly. The advance remains interest-free and need not be repaid as long as the housing remains available for very low-income elderly people for at least 40 years. The program also provides rental assistance for project resident. Resident pay 30% of their adjusted gross income in rent while Section 202 pays the difference between monthly approved operating cost and rent received from the tenant.

Section 811 Supportive Housing for Persons with Disabilities. The Section 811 program is designed to enable very low-income persons with disability to live independently by increasing the supply of rental housing with supportive services. The program provides interest-free capital advances to nonprofit organizations to construct or rehabilitate rental housing, with supportive services if necessary, for very low-income persons with disabilities who are at least 18 years old. The advance remains interest free and need not be repaid as long as the housing remain available for very low-income persons with disabilities for at least 40 years. The program also provides rental assistance for project residents. Resident pay 30% of their adjusted gross income in rent while Section 811 pays the difference between monthly approved operating cost and rent received from the tenant.

Section 8 Mainstream Program. The purpose of the Section 8 Mainstream Program is to enable very low-income persons with disabilities to rent affordable private housing of their choice. The Mainstream Program provides public housing agencies with funding for rental vouchers for persons with disabilities.

Note: The preceding definitions are taken from "Connecting with Communities: A User's Guide to HUD Programs and the 1999 SuperNOFA Process", U.S. Department of Housing and Urban Development, February, 1999.