Affordable Housing: Housing is generally considered affordable when the total costs of residential occupancy (rent/mortgage, utilities, insurance, etc.) total less than 30% of a household’s income. “Affordable housing” also refers to multi-family developments financed with the support of governmental programs like the Low Income Housing Tax Credit (LIHTC) and Arizona’s state affordable housing tax credit. These communities offer below-market rents to income-qualifying households alongside a suite of supportive services. Usually the income limit to qualify to live in such a unit is 60% of AMI.

Area Median Income (AMI): The median income for a specific geographic area, used to determine eligibility for affordable housing programs. Affordable housing programs often target households earning a percentage of the AMI, such as 50% or 80% AMI. Area median income (AMI) in Maricopa County was around $100,000 in 2024. Affordable monthly housing costs for a household earning right at AMI total $2,500. How realistic is that in today’s economy?

Extremely low income households number 110,557 in the Phoenix metro area alone, 176,191 households statewide. Extremely low income households are those earning 30% AMI or less. That’s around $24,900/year -- “affordable housing” rates for this group would total $623/month.

State Affordable Housing Tax Credit: aka State LIHTC. A governmental financing tool to promote the development of affordable housing. The federal model called the Low Income Housing Tax Credit (LIHTC) as well as the 2021-created state affordable housing tax credit modeled after the federal program are responsible for the construction of more than 90% of all affordable housing units in the state.

The tax credit allows private developers to bid on tax credit funding – shifting the government’s risk burden to private firms while developing much-needed affordable units. The tax credits “come due” once the units are occupied and generating rental income, delaying the state investment typically 3+ fiscal budget years down the road.

Attainable Housing: Affordable housing has now been associated with subsidized housing as described above for lower-income households. Now “attainable housing” is often instead used to describe non-subsidized housing that can be afforded or attained by much of the population.

Missing Middle: Also referred to as medium-density housing. These building types, such as duplexes, fourplexes, cottage courts, and courtyard buildings, provide diverse housing options within “walkable” neighborhoods and support retail and public transportation options. They are referred to as “missing” because they have typically been illegal to build – essentially zoned out of existence - since the mid-1940s and “middle” because they sit in the middle of a spectrum between detached single-family homes and mid-rise to high-rise apartment buildings, as well as number of units and often, affordability.

Workforce Housing: A term for a mixed bag of housing that is gaining usage with the real estate industry, developers, and policy makers. Workforce housing can refer to any form of housing, including ownership of single or multi-family homes, as well as the occupation of rental units. Workforce housing is generally understood to mean housing that is affordable for households with earned income that is insufficient to secure quality housing in reasonable proximity to the household’s workplace(s). Housing that is affordable for middle-income workers, such as teachers, firefighters, and nurses, who may not qualify for traditional affordable housing programs but still face challenges finding affordable housing in high-cost areas. Recent Arizona examples (all school districts):

-Chino Valley

-Prescott

-Bullhead City

Housing Choice Vouchers: A federal program that provides rental assistance to low-income households, allowing them to rent housing in the private market. Tenants pay a portion of their income towards rent, with the voucher covering the rest.

Inclusionary Zoning: A policy that requires or encourages developers to include a certain percentage of affordable units in new or rehabilitated housing projects. In exchange, developers may receive incentives such as density bonuses or tax breaks.

Cost Burdened: A household is considered cost burdened when it spends more than 30% of its income on housing costs, making it difficult to afford other necessities like food, healthcare, and transportation.

Severely Cost Burdened: A household that spends more than 50% of its income on housing costs, significantly limiting their ability to cover other essential expenses

Fair Market Rent (FMR): An estimate of the amount needed to rent a moderately priced home in a given area, used by HUD to determine payment standards for housing assistance programs like Section 8.

Zoning: Local government regulations that dictate how land can be used in different areas, including residential, commercial, and industrial zoning. Zoning laws can impact the availability and affordability of housing.

Land Trust: A land trust is a legal entity, often a nonprofit organization, that holds and manages land or property for various purposes, such as conservation, preservation, or private ownership.

Community Land Trust: A Community Land Trust (CLT) is a type of nonprofit organization that acquires and holds land to benefit the community by providing affordable housing and preventing displacement.