Frequently Asked Questions
How
is "affordable" defined?
What is the difference
between affordable housing, public housing, and subsidized housing?
How does someone qualify for subsidized
housing?
How do you make sure a unit that sells
at below-market rate to a low-income buyer stays affordable for
the next buyer?
Does low-income housing lower the value
of property in the neighborhood?
Who
is a first time homebuyer?
What is
local preference?
Where can I learn about the home
buying process?
How will affordable housing affect my community?
How is "affordable"
defined?
According to HUD, "the
generally accepted definition of affordability is for a household
to pay no more than 30 percent of its annual income on housing.
Families who pay more than 30 percent of their income for housing
are considered cost burdened and may have difficulty affording
necessities such as food, clothing, transportation and medical
care" (for more information, click here).
An array of economic and social factors have created the current
situation in Massachusetts, in which many people no longer earn
enough to be able to rent or buy a home. A variety of public and
private initiatives seeks to reduce the cost of housing to people
who could not otherwise afford it.
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What
is the difference between affordable housing, public housing,
and subsidized housing?
Affordable is a general term for housing that costs 30% or less
of one's income and is either rental or ownership housing. Both
public housing and subsidized housing are affordable. Public housing
is built and/or supported by the state or federal government and
is usually rental. Subsidized housing is either public housing
or private rental or ownership housing that companies or organizations
develop using government funds, tax incentives, etc.
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How
does someone qualify for subsidized housing?
Typically, their income must be below 80% of the Area Median Income.
For rental housing, a household applies to a local housing authority
or a private development with subsidized units and joins a waiting
list if there are no units available. For ownership units, a household
applies to the developer's agent. Then, the state agency funding
the units-the local housing authority or the private monitoring
agent, often a local nonprofit organization designated by the
town-reviews the household's income. For a list of affordable
homeownership opportunities in MA, go to www.massaffordablehomes.org.
For a list of affordable rental opportunities, go to www.chapa.org.
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How
do you make sure a unit that sells at below-market rate to a low-income
buyer stays affordable for the next buyer?
Households moved in many years earlier,
households share residences, or households have several incomes.
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