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Glossary of Housing Acronyms and Terms

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									Glossary of Housing Acronyms and Terms

This glossary of terms and acronyms is a practical and easy-to-use guide to terms used in relation
to the programs and functions of the South Carolina State Housing Finance and Development
Authority. It is current as of November 21, 2008 and while every effort has been made to
present accurate and up-to-date definitions, this glossary should be used as a resource, not as an
authority. Users should refer to relevant program materials, including, but not limited to state or
federal law, regulations, or program manuals, for more detail. The information contained in the
glossary is intended to be of a general nature only and is not necessarily comprehensive. If you
have suggested additions or changes, please e-mail them to

4 Percent Credit (LIHTC) - The 4 percent credit is the credit percentage available for existing
housing or for federally subsidized new construction or rehabilitation (30 percent credit).

9 Percent Credit (LIHTC) - The 9 percent credit is the credit percentage available for new
construction or rehabilitation (70 percent credit).

10-Year Rule – A provision added to Federal Tax Law in the Technical and Miscellaneous
Revenue Act of 1988 which, for tax-exempt bond issues subject to the Rule, requires that the
mortgage loan repayments must be used to redeem the bonds of such an issue after ten years
from the date of issuance of the bonds. The effect of the 10-Year Rule is to limit an Issuer’s
ability to re-loan the mortgage loan repayments to new Mortgagors, to limit an Issuer’s ability to
recycle volume cap by issuing refunding bonds and to limit an Issuer’s ability to cross call bonds
of a different issue.

15-40 Test (LIHTC) – See Deep Rent Skewing Set-Aside.

20-50 Test (LIHTC) - The 20-50 test is a minimum set-aside test used to determine if a building
is a qualified low-income housing project. Under the test, a building is generally a qualified low-
income building if at least 20 percent of the units are both rent restricted and are occupied by
tenants whose income is less than or equal to 50 percent of area median gross income.

25-60 Test (LIHTC) - The 25-60 test is a minimum set-aside test used to determine if a building
is a qualified low-income housing project. Under the test, a building is generally a qualified low-
income building if at least 50 percent of the units are both rent restricted and are occupied by
tenants whose income is less than or equal to 60 percent of area median gross income. This test
is applicable to New York City only, and is applied in lieu of the 40-60 minimum set-aside test.

30 Percent Credit (LIHTC) - The 30 percent credit is the credit percentage available for
existing housing or for federally subsidized new construction or rehabilitation (4 percent credit).

32-Year Rule – A provision added to Federal Tax Law in the Mortgage Subsidy Bond Tax Act
which specified that which are issued to refund mortgage revenue bonds cannot have a final
maturity date longer that 32 years from the date of issuance of the refunded bonds or longer that
the original maturity date of the refunded bonds, whichever date is longer.
Glossary of Housing Acronyms and Terms

40-60 Test (LIHTC) - The 40-60 test is a minimum set-aside test used to determine if a building
is a qualified low-income housing project. Under the test, a building is generally a qualified low-
income building if at least 40 percent of the units are both rent restricted and are occupied by
tenants whose income is less than or equal to 60 percent of area median gross income.

42-Month Rule – Federal Tax Law requires that the bond proceeds of a mortgage revenue bond
issued must be used to acquire mortgage loans (or mortgage-backed securities) no later than 42
months from the date of issuance of bonds. Bond proceeds not expended by the deadline must
be used to redeem all or a portion of the bonds issued to fund the program.

48-Year Rule – Federal Tax Law requires that the tax-exempt bonds used to finance an asset
must mature no later that 120% of the life of the asset financed. Since single-family homes are
generally thought to have a life of 40 years, the longest maturity date is 48 years from the date of
issuance of the bonds. For bonds that were issued prior to the effective date of the Mortgage
Subsidy Bond Tax Act (Pre-Ullman Bonds), the Act does not change the longest allowable
maturity date for bonds which refund Pre-Ullman bonds.

100% FHA Prepayment Experience – A method of determining the amount and timing of
mortgage loan prepayments throughout the life of a bond issue. The 100% FHA Prepayment
Experience is based on a schedule for mortgage loan prepayments determined by the Department
of Housing and Urban Development (last updated in 1991). Mortgage loan prepayments must be
calculated utilizing 100% FHA Prepayment Experience when calculating the mortgage yield.

1.125% Spread – The maximum difference allowed under Federal Tax Law between the
Mortgage Yield and the Bond Yield.

401(k)/403(b) - An investment plan sponsored by employers that allows individuals to set aside
tax-deferred income for retirement or emergency purposes. A 401(k) applies to private
corporations, while a 403(b) applies to non-profit organizations.

401(k)/403(b) Loan - A loan that can be taken against the amount accumulated in the
401(k)/403(b) plans, if so allowed by the plan administrator. Loans against these plans are an
acceptable source of down payment for most types of other loans.

501(C)(3) – A non-profit organization which is organized under Section 501(C)(3) of the Federal
Tax Code.

501(C)(3) Bond – Bonds which are issued by or on behalf of a Section 501(C)(3) non-profit
organization. 501(C)(3) Bonds can be used to provide single-family or multi-family housing
without the need for Private Activity Volume Cap.
Glossary of Housing Acronyms and Terms

AAF – Annual Adjustment Factor

AAHSA - American Association of Homes and Services for the Aging

AAPCC - Adjusted Average Per Capita Cost

ABA - American Bankers’ Association

ACA – Annual Community Assessment (HUD)

ACC – Annual Contributions Contract

ACM – Asbestos Containing Material

ACRS – Accelerated Cost Recovery System

ACS – American Community Survey (HUD)

ADA – Americans with Disabilities Act of 1990

ADAAG - ADA Accessibility Guidelines

ADC - A loan package to finance acquiring, developing and constructing real estate

ADCAA - Age Discrimination Claims Assistance Act

ADEA - Age Discrimination in Employment Act

ADR - American Depository Receipt

ADU – Accessory Dwelling Unit

AFC – “Affordable Housing Coalition”

AFDC - Aid to Families with Dependent Children

AFGE – “American Federation of Government Employees”

AFHMP – Affirmative Fair Housing Marketing Plan

AFR Rate – Applicable Federal (interest) Rate
Glossary of Housing Acronyms and Terms
AFS – Annual Financial Statement

AG – Attorney General, SC

AHP – Affordable Housing Program

AHS – American Housing Survey (HUD)

AHTC - Affordable Housing Tax Credit Program (Formerly LIHTC: Low-Income Housing Tax

AI - Analysis of Impediments

AIDS – Acquired Immune Deficiency Syndrome

AIR - Assumed Interest Rate

AIREA – “American Institute of Real Estate Appraisers”

ALCP - Assisted Living Conversion Program

ALJ – Administrative Law Judge

ALTA – “American Land Title Association”

AMERICORP - Federal program that provides funds to pay "volunteers" for community-based

AMGI – Area Median Gross Income

AMT - Alternative Minimum Tax

ANSI – American National Standards Institute

AoA – Administration on Aging

AOR – “Association of Realtors”

APP – Annual Performance Plan

APPS – Active Partners Performance System

APR – Annual Percentage Rate

AQL – Acceptable Quality Level
Glossary of Housing Acronyms and Terms
ARAMS – Automatic Renewal & Amendment Management Subsystem

ARELLO – “Association of Real Estate License Law Officials”

ARES – “American Real Estate Society”

ARM - Adjustable Rate Mortgage or “variable rate” mortgage

ASA – “American Society of Appraisers”

ASC - Administrative Services Center

ASHI – “American Society of Home Inspectors”

ASHRAE – “American Society of Heating, Refrigerating and Air Conditioning Engineers”

ASREC – “American Society of Real Estate Counselors”

ATI - Alternative Mortgage Instruments

ATIP - Actual Thrift Investment Percentage

"A" Loan or "A" Paper - a credit rating where the FICO score is 660 or above. There have
been no late mortgage payments within a 12-month period. This is the best credit rating to have
when entering into a new loan.

ABA Number - A number, usually placed near the upper right corner of checks, which identifies
the financial institution on which the check is drawn. The number is used in sorting and clearing
checks. The ABA coding system was designed by the American Bankers Association.

Abandoned Property - Property that is no longer being maintained by its owners and is either
vacant or not lawfully occupied. Some jurisdictions limit the term to properties that have gone
through a legal proceeding confirming their failure to pay back property taxes.

Abandonment (Foreclosure) - A disclaimer of ownership by the trustee or debtor in a property
deemed burdensome or inconsequential. Once a property has been abandoned it is no longer the
property of the estate, and creditors can seek to recover their money.

Abandonment (Bankruptcy) - A process by which the court releases property from its control.
This occurs when property of the estate is of little or no value to the estate.
If the debtor's real estate is worth $100,000, but has mortgages of $110,000 against it, the trustee
may "abandon" the property rather than administer it.

Abandonment Clause - A clause in a property insurance contract that, under certain
circumstances, permits the property owner to abandon lost or damaged property and still claim a
full settlement amount. If the insured party's property cannot be recovered, or the cost to recover
Glossary of Housing Acronyms and Terms
or repair it is more than its total value, it can be abandoned and the insured party is entitled to a
full settlement amount.

Abandonment of Homestead (Legal) - Document recorded to terminate a homestead.

Abandonment Value – Abandonment Value is the value of a project or asset if it were
immediately liquidated. This is also referred to as the liquidation value. The abandonment value
is generally a cash value, or equivalent, associated with an asset. This value is important for
companies when analyzing the profitability of particular projects or assets and deciding whether
they should be maintained.

Abrogate (Legal) - An act that repeals a law or custom which makes it void.

Absolute Auction (Foreclosure) - An Absolute Auction has no minimum bid amount. The seller
has no reservation price. The highest bidder wins.

Absolute Priority Rule (Bankruptcy) - In a Chapter 11 Plan, the debtor-in-possession must
completely satisfy the claims of a higher, dissenting class before the claims of classes lower in
priority can participate in the reorganization. Thus, a corporate debtor's shareholders cannot
receive distribution (or retain any interest) unless the Plan provides for the unsecured creditors to
be paid in full if the class of unsecured creditors has rejected the plan.

Absorption (Section 8) – In portability (under subpart H of this part 982): the point at which a
receiving PHA stops billing the initial PHA for assistance on behalf of a portability family. The
receiving PHA uses funds available under the receiving PHA consolidated ACC.

Abstention (Bankruptcy) - In certain circumstances, the court may choose to abstain from
control of the case or of an adversary proceeding within the case.
When an existing lawsuit between the debtor and another party is being heard in another court
and someone tries to bring that dispute to bankruptcy court, the bankruptcy judge may decide to
"abstain" and allow it to continue in the other court.

Abstract of Judgment (Bankruptcy) - A full summary by the court of a judgment. It becomes a
general lien on all of a debtor's property in the county where it is recorded.

Abstract of Title (Legal) - A summary of the conveyances, transfers, and any other facts relied
on as evidence of title, together with any other elements of record which may impair the title to
real property.

Accelerated Amortization (Mortgages) - The restructuring of an existing mortgage loan by
increasing the monthly payments in order to pay off the loan in a shorter time than the original

Accelerated Cost Recovery System (ACRS) - Accelerated cost recovery system, also known as
ACRS, is a depreciation method that was introduced and defined in the Economic Recovery
Glossary of Housing Acronyms and Terms
Tax Act of 1981. ACRS allows for rapid depreciation (for tax purposes) of property placed into
service between 1981 and 1986.

Accelerated Depreciation - The method of speeding up the write-off from income of qualifying
investments at a faster than normal rate. Annual tax deductions are higher in the first years and
diminish in later years of the write-off.

Acceleration Clause (Legal) - A provision that gives a lender the right to collect the balance of
a loan if a borrower misses a payment.

Accessible (Section 8) – The facility or portion of the facility can be approached, entered, and
used by individuals with physical handicaps.

Accessibility (LIHTC) - All new construction of covered multifamily buildings must include
certain features of accessible and adaptable design. Units covered are all those in buildings with
four or more units and one or more elevators, and all ground floor units in buildings without

Accessory Dwelling Unit (ADU) (LIHTC) - A small, self-contained residential unit built on the
same lot as an existing single-family home. (Because they are often used by extended family
members, ADUs are also referred to as "in-law apartments" or "granny flats.") ADUs may be
built within a primary residence (such as in an attic or basement), attached to the primary
residence (like a small duplex unit with a separate entrance), or detached from the primary
residence (such as conversion of a detached garage). An ADU will be subordinate in size,
location, and function to the primary residential unit (which is why ADUs are sometimes
referred to as "secondary units" or "second units").

Accessory Use (HOME) - The use of a building, structure, or land that is subordinate to,
customarily incidental to, and ordinarily found in association with, the principal use it serves.

Accommodation Paper - An accommodation paper is a document executed by one party for the
benefit of another. In practice, an accommodation paper is used as a loan guarantee, in which a
third party agrees to repay the loan if the borrower does not.

Accomplished Payments (HUD) - A term used by Treasury and agency personnel to refer to
payments requested by an entity and made by Treasury or a Non-Treasury disbursing office on
behalf of that entity. (JFMIP Core Appendix A Terminology, p 48 [Common Term]) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97.

Accord and Satisfaction (Bankruptcy) - An agreement to settle a contract dispute by accepting
less than what's due.

Accrual Period (Bonds) – Period over which bond interest payments or swap payments are
calculated. The accrual period is typically 6 months, 3 months or 1 month. For bonds the
accrual period can be as short as a day for daily variable rate debt to as long as the entire life of
the bond for certain types of zero coupon bonds. For swaps the accrual period does not have to
Glossary of Housing Acronyms and Terms
be the same for each leg of the swap; the fixed leg can use one accrual period length while the
floating leg uses another.

Accrued Expenditure (HUD) - See Expended Appropriations (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97.

Accrued Interest (Bonds) – Interest on bonds from the dated date or the previous interest
payment to the date the investor purchases them. The interest is paid by the investor at the time
of purchase and is returned to the investor on the next interest payment date.

Acknowledgment (Legal) – An acknowledgement is the process of establishing the fact that
each signature on an instrument is genuine. In most cases, the signatures on documents must be
authenticated or acknowledged before the Register may accept them. An acknowledgment is a
type of authentication often performed by a notary public.

Acquisition Cost (LIHTC) - Acquisition cost is the cost of acquiring an existing building.

Acquisition Credit - Fees other than interest charged by a bank for making, refinancing or
changing a loan or a loan commitment. Acquisition credits are sometimes referred to as loan
origination fees.

Acquisition, Development and Construction Loan (ADC) - A loan package to finance
acquiring, developing and constructing real estate

Acquisition Fund (Bonds) – The fund created pursuant to a typical single family Trust
Indenture into which bond proceeds are deposited and from which whole loans or mortgage-
backed securities are purchased.

Acquisition Fund Investment Agreement (Bonds) – Prior to the time that bond proceeds are
utilized to purchase whole loans or mortgage-backed securities, funds are typically invested in
the Acquisition Fund Investment Agreement.

Acquisition Loan (LIHTC) - A loan for purchasing raw, or yet to be developed, land.

Acquisition Proposal (HOPE VI) - A proposal to acquire land or land with improvements to be
demolished. The proposal must meet the requirements of 24 CFR 941.303, and must be
submitted to and approved by HUD before HOPE VI or other public housing funds may be used
for acquisition of property. The Acquisition Proposal will include documentation of site control,
zoning, appraisal, environmental assessment, etc. To acquire land with improvements which will
not be demolished, the PHA must submit a Development Proposal in accordance with 24 CFR
941.304 (conventional development) or 24 CFR 941.606 (mixed-finance development).

Acquisition Rehab - A strategy of purchasing and rehabbing substandard homes or properties
for rent or for sale with affordable financing to low- or moderate-income renters or buyers
Glossary of Housing Acronyms and Terms
Act (Community Planning & Development (CPD)) - means Title I of the Housing and
Community Development Act of 1974, as amended (42 U.S.C. 5301 et seq.).

Action Plan (HOME) - The one-year portion of a PJ’s Consolidated Plan (see definition of
"Consolidated Plan" below). It includes the PJ’s annual application for HOME funds.

Action to Quiet Title (Legal) – An Action to Quiet Title is a court action to establish ownership
of real property. This court action usually removes any interest or claim to title of real estate. The
action results in removing any cloud on the title. Normally a lender will not commit to a
mortgage with a cloud on the title. If the complainant is successful in the court action, the title is
made quiet, or is clean.

Active Partners Performance System (APPS) – APPS is a software program that allows
HUD's business partners to submit their Previous Participation Certification (form 2530) request
to HUD for processing via the Internet.

Actual Eviction (Legal) – An actual eviction is the legal process that results in the tenants being
physically removed from the leased premises.

Actual Thrift Investment Percentage (ATIP) (Banking) - A ratio whose numerator is housing-
related investments, called qualified thrift investments, and whose denominator is portfolio
assets. The ratio is used to determine whether a savings association meets the qualified thrift
lender test.

Adaptable Housing - Housing with features needed by persons with physical disabilities already
installed or that has the capacity to have such features installed.

Adaptive Re-use (LIHTC) - A new use for a structure or landscape other than the historic use,
normally entailing some modification of the structure or landscape.

Addendums (Legal) - Additions to a contract, sometimes called attachments or exhibits. Items
added to a document, letter, contract, or escrow instructions, etc.

Additional Bonds Test (Bonds) – Refers to a legal test found in resolution or ordinance
securing bonds governing the ability to issue additional bonds having the same lien on pledged
revenues. Usually expressed as a ratio in which historic earnings meet certain levels of future
debt service coverage.

Additional Funds Policy - Allows owners and purchasers to bring additional resources such as
tax credits, tax-exempt bond financing, HOME/CDBG funds, or other state or local resources to
a HUD Mark to Market transaction without decreasing HUD's contribution to restructuring. The
transaction must result in significant benefits to residents and the property, and must be able to
close in a timely manner consistent with the debt restructuring schedule.

Additional Interest - interest you have earned or incurred that is yet to be paid or charged.
Glossary of Housing Acronyms and Terms
Additional Principal Payment - money paid to the lender in addition to the established payment
amount used directly against the loan principal to shorten the length of the loan.

Additional Repayment - extra funds paid into the loan in addition to the minimum monthly or
weekly payments. These extra funds reduce the term of the home loan and the interest paid.

Additional Securities - an asset that guarantees the lender their loan until the home loan is
repaid in full. Usually the residential or investment property is offered to secure the loan.

Adequate Protection (Bankruptcy) - normally in the context of a chapter 13, where a secured
creditor's collateral is not being protected by the bankruptcy system, and where said creditor can
ask for additional funds to be paid pre-confirmation especially when a depreciating asset is
involved or when 11 USC §362 Automatic stay be lifted by the Bankruptcy Court Judge.

Ad-Hoc Query (HUD) - A query that consists of dynamically constructed SQL, usually
performed by desktop-resident query tools. DAMA web site at

Adjudicated Newspaper (Foreclosure) - A newspaper that has met certain judicial
requirements to be an official newspaper for the publication of legal notices

Adjudication - A judicial determination.

Adjustable Rate Mortgage or “variable rate” mortgage (ARM) - A mortgage in which the
interest rate is allowed to be adjusted on a periodic basis in reference to an accepted index of
market interest rates, e.g. 12-month Treasury borrowing rate. Today, ARMs usually include caps
on the adjustments, e.g. 1 percent a year, 5 percent overall.

Adjusted Annual Income (Section 8) – The net amount of income anticipated to be received by
all adult members of the household minus allowable expenses and deductions. This figure is used
to determine the share of rent and the offset amount of subsidy for each resident/applicant
family. Annual income is used to determine eligibility for assisted housing, while adjusted
income is used to determine tenant rent payments. (See Certification)

Adjusted Basis - Adjusted basis is the cost basis of a building adjusted for capital improvements
minus depreciation allowable.

Adjusted Income (Section 8) – Annual income, less allowable HUD deductions and expenses

Adjusted Income (HOME) - "Adjusted income" is "annual (gross) income" reduced by
deductions (or allowances) for dependents, elderly households, medical expenses, disability
assistance expenses, and child care. (The HOME Program allows the use of three definitions of
"annual income.") Adjusted income is used only under the certain circumstances described in the
"Calculating Income Eligibility" module.

Adjusted Investor Equity - Adjusted investor equity is the aggregate amount of cash taxpayers
invested increased by cost-of-living adjustment.
Glossary of Housing Acronyms and Terms

Adjustment Date - the actual date that the interest rate is changed for an ARM.

Adjustment Index - the published market index used to calculate the interest rate of an ARM at
the time of origination or adjustment.

Adjustment Interval - the time between the interest rate change and the monthly payment for an
ARM. The interval is usually every one, three or five years depending on the index.

Administrative Costs (CPD) - Mean costs for general management, oversight, coordination,
evaluation, and reporting on eligible activities. Such costs do not include costs directly related to
carrying out eligible activities, since those costs are eligible as part of the activity delivery costs
of such activities.

Administrative Division/Subdivision of Funds (HUD) - Any distribution of an appropriation
or fund made pursuant to the Antideficiency Act. Divisions include: apportionments, allotments,
and suballotments. (GAO) HUDCAPS Core Financial System Standard Accounting Interface,
dated 9/30/97

Administrative Fee (Section 8) – Fee paid by HUD to the PHA for administration of the
program. See §982.152

Administrative Fee Reserve (Section 8) – (formerly “operating reserve”). Account established
by PHA from excess administrative fee income. The administrative fee reserve must be used for
housing purposes. See §982.155. Administrative fee reserves from FY 2004 and 2005 funding
are further restricted to activities related to the provision of tenant-based rental assistance
authorized under.

Administrative Notice (AN) No. 4010 - Issued by USDA's Rural Housing Service on
September 23, 2004, AN 4010 provides guidance on preserving housing using improved
procedures for property transfers.

Administrative Plan (Section 8) – The plan that describes PHA policies for administration of
the tenant-based programs. The Administrative Plan and any revisions must be approved by the
PHA’s board and included as a supporting document to the PHA Plan. See §982.54

Administrative Services Center (ASC) - HUD field offices providing administrative support in
the areas of staffing, labor relations, computer, and a variety of day-to-day operational support
needs such as space, supplies, equipment, furniture and mail to HUD employees in the field.

Administrators Deed (Legal) - A transfer of property arising from probate or terms of a will
Glossary of Housing Acronyms and Terms
Admission (Section 8) – The effective date of the first HAP contract for a participant family
(first day of initial lease term). Admission is the point at which a tenant family becomes a

Adverse Possession (Legal) – Adverse Possession is the actual, exclusive, open notorious,
hostile and continuous possession and occupation of real property under an evident claim of right
or title. The time required legally to obtain title by adverse possession varies from state to state.

Adverse Use - The access and use of property without the owners consent.

Adversary Proceedings (Bankruptcy) - a lawsuit within in the bankruptcy, usually in a
Chapter 7 proceeding and very rarely in a Chapter 13 proceeding. (The most common example
is an adversary proceeding brought by a creditor to determine the dischargeability of a debt
pursuant to §523 or 727 of the Bankruptcy Code.

Affiant - A person who makes a sworn statement.

Affidavit (Legal) - A sworn statement under oath in writing usually in the presence of a notary

Affidavit of Death (Legal) - A document recorded to verify the death and identify the decedent
as a former interest holder in specifically described or referred to real property.

Affidavit of Title (Legal) - A written statement, made under oath by a seller or grantor of real
property and acknowledged by a notary public, in which the grantor 1. identifies himself or
herself and indicates marital status, 2. certifies that since the examination of the title on the date
of the contracts no defects have occurred in the title and 3. certifies that he or she is in possession
of the property (if applicable).

Affirmation - A solemn and formal declaration of the truth of a statement of facts used by a
person who objects to taking an oath, usually due to religious convictions that preclude swearing
an oath.

Affirmative Action Program - A detailed plan used to overcome the causes and affects of
discriminatory policies in the hiring, employment and/or training of minority members of

Affirmative Lending - The practice of actively marketing and making loans in areas of
particular need: inner-city, low- and moderate-income, minority and/or older neighborhoods in
need of rehabilitation.

Affordable Housing (CPD) - Housing for which the occupant is paying no more than 30 percent
of his or her income for gross housing costs, including utilities. Office of Affordable Housing
Preservation (OAHP) administers three separate programs designed to address the nationwide
shortage in affordable housing. The HOME Investment Partnerships, Self-Help Homeownership
(SHOP), and Homeownership Zone programs bring federal resources directly to the state and
Glossary of Housing Acronyms and Terms
local level for use in the development of affordable housing units, or to assist income-eligible
households in purchasing, rehabilitating, or renting safe and decent housing.

Affordable Housing Coalition of SC - The Affordable Housing Coalition is a non-profit
membership organization of individuals, public and private agencies, businesses and other non-
profit organizations.

Affordable Housing Program - A program established by the Financial Institutions Reform,
Recovery, and Enforcement Act (FIRREA) through which Federal Home Loan Banks provide
low-cost advances and direct subsidies to member banks to finance the purchase, construction
and rehabilitation of owner-occupied housing for low- and moderate-income households.
FIRREA gives both Freddie Mac and Fannie Mae additional responsibility to support mortgages
for low- and moderate-income families.

Affordable Senior Housing - The HUD 202 Program offers rental assistance for seniors who
meet the requirements of the federal program. Rents are based on a resident's adjusted gross
income, which is calculated by subtracting approved medical expenses from their income. The
resident then pays 30 percent of the adjusted gross income for rent and utilities. Residency
requirements have been determined by HUD. To be eligible for an apartment under the HUD 202
program, individuals or their spouse must be at least 62 years of age or older; individuals must
have an annual income consistent with HUD guidelines for income maximums; individuals must
be able to meet the posted residency criteria. All affordable senior housing communities comply
with federal fair housing regulations, accepting age- and income-qualified residents without
regard to race, color, religion, sex, disability, familial status, or national origin.

Affordability (HOME) - As used in the HOME Program, affordability refers to the
requirements of the HOME Program that relate to the cost of housing both at initial occupancy
and over established timeframes, as prescribed in the HOME regulations. Affordability
requirements vary depending on the nature of the HOME-assisted activity (i.e., homeownership
or rental housing).

Affordability Covenant (Legal) - An affordability covenant is a legally binding clause to a deed
that specifies that the property will remain affordable by setting certain terms and conditions
related to its long-term use. An affordability covenant may restrict to whom a rental unit is
rented and at what level or to whom and at what price a for-sale unit will be sold. These
guidelines are typically put in place to preserve the affordability of homes financed with
substantial government subsidies for future residents.

Affordability Period - The time period for which rent restrictions or resale restrictions apply to
housing that has been assisted by government funding.

Affordability Restrictions - Recorded tenant income and rent restrictions that are placed on a
project by a city, state (including the state credit allocating agency), bank or other lender of funds
to a project. These restrictions are monitored by designated credit agencies and are enforceable
Glossary of Housing Acronyms and Terms
for a set period of time. The restrictions bind the property and are assumed by any purchaser of
the property.

After Acquired Title - The receipt of property occurring after a particular date or defined event
such as where there has been an execution of a mortgage to property not yet owned but will be

Age of Housing - means the number of year-round housing units, as further defined in section
102(a)(11) of the Act.

Agency (HUD) - Any department, agency, commission, authority, administration, board, or
other independent establishment in the executive branch of the government, including any
corporation wholly or partly owned by the United States that is an independent instrumentality of
the United States, not including the municipal government of the District of Columbia. (OMB
Circular A-34, Part II, Section 21.1, p. II-2) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Agency Buy-Down (Bonds) – An attempt to reduce the monthly principal and interest cost of a
loan by reducing the initial interest rate on a loan, by subsidizing the homeowner during the buy-
down period. The South Carolina agency used agency funds to buy down mortgages in its 1982
bond issue, thus ensuring the attractiveness of the program.

Agency Contribution (Bonds) – Upfront dollar transfer of agency unrestricted funds to a new
bond issue, to cover the amount of non-asset bonds in a financing. Reducing the amount of non-
asset bonds makes the potentially negative effect of partial non-origination less of a credit

Aggregate Data (HUD) - Data that is the result of applying a process to combine data elements.
Data that is taken collectively or in summary form DAMA web site at

Aging-In-Place - A term used to describe the phenomenon that elderly residents who have lived
in their homes or apartments for several years often require more supportive services than when
they were initially moved-in. Physiologically, a combination of changes brought on by normal
aging and chronic underlying illnesses resulting in increased frailty. For housing providers, this
means increased service demands.
If you are in HUD 202 elderly housing- the FHA number for your project would be NNN-
EHNNN, where N is a number, or NNNSH- NNN. Section 522 of the Year 2000 HUD
Appropriations Act allows for partial conversion of your facility to assisted living, or so I hear.
This is one way to deal with "Aging in Place" issues

Agreement Among Underwriters (Bonds) – An agreement between the members of an
underwriting group which spells out the method which will be used to offer bonds to investors
and spells out the rights of each of the underwriters. The primary information which is contained
in the Agreement Among Underwriters is the priority in which orders will be filled and the
manner in which liability will be assigned between the underwriters.
Glossary of Housing Acronyms and Terms

Alienation (Legal) - The act of transferring property to another, either voluntarily (via a sale), or
involuntarily (via adverse possession)

Alienation Clause (Legal) - A clause in a mortgage contract that requires full payment of the
balance of a mortgage at the lender's discretion if the property is sold or the title to the property
changes to another person. Nearly all mortgages have an alienation clause.

All-Inclusive Mortgage - A purchase money mortgage that is subordinate to, but also
including, the original loan

All Inclusive Trust Deed (AITD) - Also known as a Wraparound Mortgage. A junior lien on
a property which encompasses the senior financing. Enables the borrower to increase the amount
of borrowing without paying off the original loan or paying the higher interest rates associated
with other types of secondary financing. The borrower makes one payment (usually to the seller)
from which the senior financing is paid with the balance going to ward the holder of the Note.
May be advantageous to the seller in that he can experience an additional return on money (the
senior financing) which he never loaned.

Allocation - The amount of budget authority transferred from one agency, bureau, or account
that is a Transfer Appropriation Account to carry out the purposes of the Parent Appropriation.

Allocation Date (LIHTC) - Date the tax credits are allocated to the owner. Found on IRS form

Allonge (Legal) - A piece of paper which has been attached to a contract, a check or any
promissory note, on which to add signatures because there is not enough room on the main

Allotment - a block of land created (subdivided) out of a larger area.

Allotment (HUD) - An authorization by either the agency head or another authorized employee
to his/her subordinates to incur Obligations within a specified amount. Each agency makes
allotments pursuant to specific procedures it establishes within the general requirements stated in
OMB Circular A-34. The amount allotted by an agency cannot exceed the amount apportioned
by OMB. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Allotment Holder (HUD) - Represents the holder of the Allotment, usually Assistant Secretary,
who will further distribute funds to a Program Class or Budget Object Classification. HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Alt-A Loans - Mortgage loans in which one or more borrower or loan characteristics are weaker
than required for conforming mortgage loans. These loans generally carry an interest rate of
about .5 percent higher than conforming loans.
Glossary of Housing Acronyms and Terms

Alternative Minimum Tax (AMT) – One of the Federal Tax Law Provisions which was added
as a result of the Tax Reform Act of 1986 which creates a second method of calculating income
and taxes for those individuals and corporations which historically had been able to take
advantage of more than the average amount of tax deductions.

Alternative Minimum Tax Bond (AMT Bond) – A Tax-Exempt Bond which is subject to the
Alternative Minimum Tax. Generally, all non-refunding, private activity tax-exempt bonds
which were issued after 1986 are AMT Bonds.

Alternative Mortgage - A home loan that is not a standard fixed-rate mortgage

Alternative Mortgage Instruments (ATI) - All mortgage plans that differ from the
conventional fixed rate, fixed term, fixed monthly payment, fully amortized mortgage.

Alternative Transportation Fuel (CPD) - means methanol, denatured ethanol, and other
alcohols; mixtures containing 85 percent or more by volume of methanol, denatured ethanol, and
other alcohols with gasoline or other fuels; natural gas; liquified petroleum gas; hydrogen; coal-
derived liquid fuels; fuels (other than alcohol) derived from biological materials (including neat
biodiesel); and electricity (including electricity from solar energy).

Amendments (Legal) - An amendment is a change to the existing content of a contract. Any
time words or provisions are added to or deleted from the body of the contract, the contract has
been amended.

Amendments (Contract Amendments) (HUD) - Added funds which are provided to a specific
project when the previously approved amount of funding runs out prior to the end of the contract
term. Appropriations for contract amendments, in the HUD context, usually refers to the line
item in a particular fiscal year funding bill.

Amenity – a feature of the home or property that serves as a benefit to the buyer but is not
necessary to its use; may be natural (like location, woods, water) or man-made (like a swimming
pool or garden).

American Association of Homes and Services for the Aging (AAHSA) - The American
Association of Homes and Services for the Aging: the national association for non-profit aging
services providers. AAHSA currently represents over 5,000 not-for-profit facilities
providing elderly housing and other living arrangements for the elderly. Seventy-five percent of
AAHSA member facilities are affiliated with religious organizations. Most of AAHSA’s not-
forprofit sponsors of elderly housing are involved in various federal housing programs,
particularly, the Section 202, Section 236, Section 221(d), and Section 231 programs

American Bankers’ Association (ABA) - A trade association of commercial bankers
Glossary of Housing Acronyms and Terms
American Community Survey (ACS) - A nationwide survey designed to provide communities
with a fresh look at how they are changing. It is a critical element in the Census Bureau's
reengineered 2010 census plan. The ACS collects information such as age, race, income,
commute time to work, home value, veteran status, and other important data from U.S.

American Federation of Government Employees (AFGE) – One of two (AFGE, NFFE) HUD
employee unions AFGE has national recognition.

American Housing Survey (AHS) - Contains data on apartments, single-family homes, mobile
homes, vacant homes, family composition, income, housing and neighborhood quality, housing
costs, equipment, fuels, size of housing units, and recent movers. National data are collected
every other year, from a fixed sample of about 50,000 homes, plus new construction each year.
The survey started in 1973 and has relied on the same sample since 1985, allowing users to view
statistical changes in homes and households over the years. In some metropolitan areas,
additional samples (every four to six years) measure local conditions.

American Land Title Association (ALTA) - An organization that is composed of title
insurance companies which sets the industry standards including the title insurance policy forms
used nationally.

American National Standards Institute (ANSI) - A premier source for timely, relevant,
actionable information on national, regional, international standards and conformity assessment

American Society of Heating, Refrigerating and Air Conditioning Engineers and the
Illuminating Engineering Society of North America (ASHRAE/IESNA) - 90.1-1989, as
amended means the building design standard published in December 1989 by the American
Society of Heating, Refrigerating and Air-Conditioning Engineers, and the Illuminating
Engineering Society of North America titled "Energy Efficient Design of New Buildings Except
Low-Rise Residential Buildings," with Addenda 90.1b-1992; Addenda 90.1d-1992; Addenda
90.1e-1992; Addenda 90.1g-1993; and Addenda 90.1i-1993, which is incorporated by reference
in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. The availability of this incorporation by
reference is given in Sec. 420.6(b).

American Society of Home Inspectors (ASHI) - the American Society of Home Inspectors is a
professional association of independent home inspectors. Phone: (800) 743-2744

American Society of Real Estate Counselors (ASREC) - A national professional and trade
association of developers, consultants and experienced advisors on all real estate matters which
confers the CRE, Counselor of Real Estate designation.
Glossary of Housing Acronyms and Terms
Americans with Disabilities Act (ADA) - The purpose of the ADA is to: (1) provide a clear and
comprehensive national mandate for the elimination of discrimination against individuals with
disabilities; (2) provide a clear, strong, consistent, enforceable standard addressing
discrimination against individuals with disabilities; (3) ensure that the Federal Government plays
a central role in enforcing the standards established in this chapter on behalf of individuals with
disabilities; and (4) invoke the sweep of congressional authority, including the power to enforce
the fourteenth amendment and to regulate commerce, in order to address the major areas of
discrimination faced day-to-day by people with disabilities.
The Act has subchapters or titles: Title I covers employment; Title II covers public services;
Title III covers privately operated public accommodations and transportation services; Title IV
covers telecommunications relay services; and Title V covers miscellaneous provisions.
Title III of the ADA requires public buildings meet minimum standards and make reasonable
accommodations for disabled persons. Multifamily dwellings may require an ADA review prior
to rehabilitation design.

Americorps VISTA - AmeriCorps VISTA is the national service program designed specifically
to fight poverty. Founded as Volunteers in Service to America in 1965 and incorporated into the
AmeriCorps network of programs in 1993, VISTA has been on the front lines in the fight against
poverty in America for more than 40 years.

Amortization (Bonds) – The process of paying the principal amount of an issue of bonds by
periodic payments, either directly to bondholders, or to a sinking fund for the benefit of
bondholders. Payments are usually calculated to include interest in addition to a partial payment
of the original principal amount.

Amortization Payment (Section 8) – In a manufactured home space rental: The monthly debt
service payment by the family to amortize the purchase price of the manufactured home.

Amortization Schedule - A table which shows how much of each payment will be applied
toward principal and how much toward interest over the life of the loan. It also shows the
gradual decrease of the loan balance until it reaches zero.

Amortization Term- The amount of time required to amortize the mortgage loan. The
amortization term is expressed as a number of months. For example, for a 30-year fixed-rate
mortgage, the amortization term is 360 months.

Amortizing Swap - A swap in which the notional amount of the agreement declines over time
according to an amortization schedule. The rate of amortization may be preset or may be
determined by interest rates.

Analysis of Alternatives (HUD) - Examining a set of feasible options to determine the
advantages and disadvantages of each. Part of analyzing all of the alternatives includes a
cost/benefit analysis of each alternative. (JFMIP Framework) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms
Analysis of Impediments (AI) - A HUD requirement for each state to conduct an analysis to
determine impediments to fair housing choice within the state. The Commonwealth must take
appropriate actions to overcome the effects of any impediments identified through that analysis.
Fair Housing Planning Guide, Volume I, Department of Housing and Urban Development, 1993

Annual Adjustment Factor (AAF) – Section 8 of the U.S. Housing Act of 1937 provides for
annual rent adjustments for housing units assisted under this section. HUD develops the rent
adjustment factors, called AAFs, on the basis of Consumer Price Index (CPI) data on changes in
residential rent and utility costs. HUD publishes the AAFs annually in the Federal Register.

Annual Contributions Contract (ACC) (Section 8) – the written contract between HUD and a
PHA under which HUD agrees to provide funding for a program under the 1937 Act, and the
PHA agrees to comply with HUD requirements for the program.

Annual Debt Service - Monthly loan payments (principal and interest, if any) times 12 months.

Annual Financial Statements (AFS) - HUD instituted a process for electronically submitting
project financial statements annual beginning in 1998, and continues to refine and realign its
financial management oversight functions. As of 2006, over 20,000 Multifamily Housing
Program participants are required to submit annual electronic financial statement data to HUD
for assessing the financial condition of Multifamily housing projects. PIH/REAC currently
administers the Uniform Financial Reporting Standards and collection/reviews.

Annual Income (Section 8) – The anticipated total Annual Income of an eligible family from all
sources for the 12-month period following the date of determination of income, computed in
accordance with the regulations-See Income and Subsidy Determinations [24 CFR Part 5,
Subparts E and F; 24 CFR 982]

Annual Income - The HOME Program allows the use of three income definitions for the
purpose of determining applicant eligibility:
   1. annual income as defined in 24 CFR 5.609; or
   2. annual income as reported under the Census Long Form for the most recent decennial
       census; or
   3. adjusted gross income as defined for purposes of reporting under Internal Revenue
       Service (IRS) Form 1040 series for individual Federal annual income tax purposes.
The definitions are collectively referred to as "annual income" and are also used in the
Community Development Block Grant (CDBG) Program.

Annual Income After Allowances (Section 8) – The Annual Income (described above) less the
HUD-approved allowances. These changed with the HURRA legislation. Same as Adjusted
Income (always annual)

Annual Mortgagor Statement - A report sent to the borrower every year, detailing how much
principal remains on the home loan and how much was paid in taxes and interest during the
previous year.
Glossary of Housing Acronyms and Terms
Annual Percentage Rate (APR) – calculated by using a standard formula, the APR shows the
cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage
insurance, and other fees associated with the loan.

Annuity - A sum of money received by an annuitant in a series of fixed periodic payments.

Anticipatory Breach - A notification that informs the parties to a contract that one party will not
be fulfilling the obligations of the contract, releasing the other party (or parties) from having to
fulfill their end of the agreement.

Antideficiency – Prohibits obligations or expenditures prior to appropriations or in excess of

Antideficiency Act (HUD) - Refers to Section 3679, Revised Statutes (31 U.S.C. 665) Act
which, among other things, prohibits the making of expenditures or the incurring of Obligations
prior to Appropriations, and prohibits incurring obligations or making expenditures in excess of
an Apportionment . (GAO) HUDCAPS Core Financial System Standard Accounting Interface,
dated 9/30/97

Antimerger Clause - A clause in a mortgage or deed of trust specifying that the senior
lienholder will retain lien priority in the event of a merger

Applicable Federal Rate (AFR) (LIHTC) - monthly interest rate statistic published by the
Treasury Department. Used to determine the tax credit rate as well as what loans constitute
federally subsidized and non-federally subsidized.

Applicable Fraction – The applicable fraction is calculated on a building by building basis. It is
the smaller of the building’s unit fraction (the number of low-income units divided by the total
number of all residential units) or the building’s floor space fraction (the low-income floor space
divided by the total residential floor space), determined as of the close of the taxable year. The
first year application fraction is established at the end of the first year of the credit period (the
first year credits are claimed).

Applicable Percentage - Applicable percentage describes the technical term for the credit
percentage that a qualified low-income housing project is eligible for.

Applicant (Applicant Family) (Section 8 & HOME Programs) – A tenant family that has
applied for admission to the program, but is not yet a participant in the program

Application – the first step in the official loan approval process; this form is used to record
important information about the potential borrower necessary to the underwriting process.

Application Controls (HUD) - Specific controls to provide reasonable assurance that the
recording, processing, and reporting of data is properly performed within the framework of
financial management system. (JFMIP FRAMEWORK) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms

Apportionment - A distribution made by OMB of amounts available for Obligation, authorized
by an Appropriation and out of a Fund Account into amounts available for specified time
periods, activities, projects, objects, or combinations thereof. The amounts so apportioned limit
the obligations that may be incurred. (OMB Circular A-34, Part II, Section 21.1, p. II-1)

Appraisal – An estimated value of real property by a licensed real estate appraiser.

Appropriation (HUD) - One of the basic forms of Budget Authority. Statutory authority that
allows federal agencies to incur Obligations and to make payments out of the Treasury for
specified purposes. An appropriation act is the most common means of providing budget
authority, but in some cases the authorizing legislation itself provides the budget authority.
(OMB Circular A-34, Part II, Section 21.1 (Budget Authority, p. II-3) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Appropriation Act - A statute, under the jurisdiction of the House and Senate Committees on
Appropriations, that generally provides legal authority for federal agencies to incur Obligations
and to make payments out of Treasury for specified purposes. Three major types of appropriation
acts are regular, supplemental, and continuing. (GAO) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

Appropriation Authority - Authority given to federal agencies to incur Obligations and to
make payments from Treasury for specified purposes.

Arbitrage (Bonds) – Generally, transactions by which securities are bought and sold in different
markets at the same time for the sake of the profit arising from a difference in prices in the two
markets. With respect to the issuance of municipal bonds, arbitrage usually refers to the
difference between the interest paid on the bonds issued and the interest earned by investing the
bond proceeds in other securities. Arbitrage profits are permitted on some bond proceeds for
various temporary periods after issuance of municipal bonds. Internal Revenue Service
regulations govern the arbitrage treatment of municipal bond proceeds.

Arbitrage Rebate (Bonds) – In single family mortgage revenue bond transactions, the Issuer is
only allowed to keep investment earnings calculated at a rate equal to the bond yield. If their
overall return on an issue’s investments is greater than the bond yield, the excess investment
earnings have to be rebated to the U.S. Treasury Department. Such excesses are called Arbitrage

Arbitrage Yield Restriction (Bonds) - Arbitrage occurs when tax-exempt bond proceeds are
invested in securities that yield a greater return than the interest charged on the bonds.
Restrictions exist on the amount of arbitrage bonds can earn without putting the tax-exempt
status of the bonds in peril. In instances where the restriction is violated, exceptions exist that
allow for the tax-exempt status of the bonds to remain intact.

Arbitration - An alternative dispute resolution method in which a third party renders a decision
without resorting to court.
Glossary of Housing Acronyms and Terms

Area Exception Rent (Section 8) – An amount that exceeds the published FMR. See
Area Median Gross Income (AMGI) (LIHTC) - Area median gross income is the gross
income level that half the families in an area are below.

Area Median Income(s) - HUD determines annually the area median incomes for each county
(and for the entire statewide non-metropolitan area). For purposes of the tax credit program,
only households with incomes at or below either 50 percent of median income or 60 percent of
area median income are eligible for housing in a tax credit project. See Minimum Set-Aside.

Army Corps of Engineers (COE) - The Corps of Engineers is an agency of the U.S. Army that
provides comprehensive engineering, management and technical support to the Department of
Defense, other agencies, and to State and Local governments. Army Corps of Engineers Internet

Arrangement (Bankruptcy) - The agreements worked out concerning the conditions under
which a bankrupt entity may operate.

Arrearage (Foreclosure) - The past-due balance on your real estate loan and includes the
balance due on the loan, unpaid interest, late charges and statutory attorney fees and costs.

Asbestos Containing Material (ACM) - The Environmental Protection Agency (EPA) defines
asbestos containing material as any material or product that contains more than one percent
asbestos. Some states regulate smaller percentages of asbestos containing material. National
Safety Council on Asbestos

“AS-PAID” States (Section 8) – States where the welfare agency adjusts the shelter and utility
component of the welfare grant in accordance with actual housing costs.

Asset Oversight (Bonds) - Duties performed in conjunction with multifamily bond financed
properties. Asset oversight typically entails monitoring aspects relating to the property and
periodically reporting that information to the owner of the property as well as other parties that
may be involved. Asset oversight duties are primarily restricted to defined physical audits of the
property and monitoring the financial covenants and agreements in applicable loan agreements.

Assets (Section 8) – See Net Family Assets

Asset Test (Bonds) – The typical Indenture contains a provision which allows surplus cash flow
to be released from the Indenture as long as the Asset Test is met. The Asset Test is met when
the total amount of assets in the program exceeds the principal amount of the liabilities by more
than a certain percentage. The amount that the assets need to exceed the liabilities to pass the
Asset Test is determined by the rating agencies or investors.

Assignee (Legal) - a person to whom property is transferred by sale or gift, particularly real
Glossary of Housing Acronyms and Terms

Assignment - The transfer of the right, title and interest in the property of one person (the
assignor) to another (the assignee). There are assignments of, among other things, mortgages,
sales contracts, contracts for deeds, leases and options.

Assignment of Deed of Trust (Foreclosure) - a written document that transfers the beneficial
interest in a note and deed of trust from one to another

Assignment of Rents - A document which gives the beneficiary the right to collect rent on the
secured property in the event of a default.

Assistance Payment (Section 8) – The amount HUD pays the owner for a unit occupied by a
Section 8, RAP or Rent Supplement tenant. It includes HUD’s share of the contract rent and any
utility reimbursement due the tenant. It is the gross rent for the unit minus the TTP (Total
Tenant Payment).

Assisted Household or Person (CPD) - A person or household that will benefit through one or
more programs included in the jurisdiction's Consolidated Plan during the coming Federal fiscal

Assisted Housing - As opposed to assisted living, and sometimes though synonymous with
public housing, assisted housing refers to the stock of privately owned and/or operated housing
projects. Most assisted housing for the elderly falls under the following programs: Section 202,
Section 221(d)(3), Section 236, Section 231 or Section 232.
The term “assisted” refers to the portfolio of HUD facilities having either FHA-mortgage
insurance, or a federal mortgage interest subsidy help to keep rents affordable to low- or very-
low income persons. These projects may or may not also receive project-based rental assistance.

Assisted Living Conversion Program (ALCP) - In FY 2000, HUD issued the first NOFA of
$50 million for Section 202 owners interested in converting facilities or portions of facilities (no
less than 5 units) to licensed assisted living. The grant would cover facility modification and
upgrades, including creating of office, common areas and/or dining/kitchen facilities needed to
operate the program, but the services component must be paid for by other (non-HUD) funds.

Assisted Rent (Section 8) – Any rent less than the market rent defined herein. Includes Section
236 rents that are greater than the basic rent

Assisted Tenant (Section 8) – A tenant who pays less than the market rent as defined in the
regulations. Includes tenants receiving rent supplement, Rental Assistance payments, or Section
8 assistance and all other 236 and 221(d)(3) BMIR (Below Market Interest Rate) tenants, except
those paying the 236 market rent or 120% of the BMIR rent, respectively.

Association of Real Estate License Law Officials (ARELLO) – An association of state real
estate commissioners and other officers and officials in the U.S. and Canada who are charged
Glossary of Housing Acronyms and Terms
with the responsibility of enforcing the license laws of the various states and provinces.

Assumable Mortgage – a mortgage that can be transferred from a seller to a buyer; once the
loan is assumed by the buyer the seller is no longer responsible for repaying it; there may be a
fee and/or credit package involved in the transfer of an assumable mortgage.

Assumption Clause (Legal) - a provision in the terms of a loan that allows the buyer to take
legal responsibility for the mortgage from the seller

Assumption Fee - A lender's charge for updating records when a buyer takes responsibility for a
mortgage from the seller.

Assumption of Mortgage - An obligation undertaken by the purchaser of property to be
personally liable for payment of an existing mortgage. In an assumption, the purchaser is
substituted for the original mortgagor in the mortgage instrument, and the original mortgagor is
released from further liability. In the assumption, the mortgagee's consent is usually required.

At Risk of Homelessness - A person or family that is coming out of a treatment program,
institution, transitional living program, half-way house or jail and has no place to go; is living in
a situation where the person/family is at great risk of loosing their housing; is in need of
supportive services to maintain their tenancy; or is living in an inappropriate housing situation
(i.e. substandard housing, overcrowding, etc.).

At-Risk Rule - The at-risk rule is the rule that limits the ability to include in eligible basis
property purchased with nonrecourse financing. An exception exists for nonrecourse financing
that meets the definition of Qualified Commercial Financing.

Atomic Data - Data elements that represent the lowest level of detail. For example, in a daily
sales report, the individual items sold would be atomic data, while rollups such as invoice and
summary totals from invoices are aggregate data. DAMA web site at

Attachment (Foreclosure) - The seizing by a Sheriff or other authorized person or property
belonging to the defendant as security for any judgment the plaintiff may get in a court action.

Attest (Legal) - To witness or testify; to affirm that a document is genuine.

Attorney's Opinion of Title - An abstract of title that an attorney has examined and has certified
to be, in his or her opinion, an accurate statement of the facts concerning the property

Auction or Sale (Foreclosure) - Usually the final phase in the foreclosure process in which
your property is sold to the highest bidder.

Authentication (Legal) - The process of establishing the fact that each signature on an
instrument is genuine. In most cases, the signatures on documents must be authenticated or
Glossary of Housing Acronyms and Terms
acknowledged before the Register may accept them. An attorney may authenticate a signature on
a legal document.

Authority to Borrow (HUD) - One of the basic forms of Budget Authority. Statutory authority
that permits a federal agency to incur Obligations and make payments for specified purposes out
of borrowed moneys. (JFMIP Core; A-34, PART 11, SECTION 21.1 (BUDGET AUTHORITY),
P. 11-3) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Authorization to Sign as Agent Agreement (Foreclosure) – A written document given by a
beneficiary authorizing an agent to sign a document on their behalf (such as a notice of default)

Authorizing Legislation (Legal) - Specific authority in the form of a law which is necessary
before a program can be carried out and funds can be appropriated.

Automatic Annual Adjustment Factor (AAF) - Section 202/8 projects which received their
fund reservations in FY76 through FY79 (usually?) received this additional benefit which
guarantees an automatic rent increase based on a predetermined calculation regardless of actual
funds needed to operate the project and pay debt service. (As opposed to projects receiving their
fund reservations in Fy80 and beyond which must request a rent increase and include
documentation of the need.) In some cases, this has led to excessive reserves and, some would
contend, unrestrained operating expenses. (reference: Analysis of the Issues in the Conversion of
the Section 202 Loan Portfolio to Capital Advanced, prepared for HUD/FHA by Robert Wilden,
Hamilton Securities Advisory Services Inc. 1997)

Automatic Stay (Bankruptcy) - An injunction that stops lawsuits, foreclosure, garnishments
and all collection activity against the debtor the moment a bankruptcy petition is filed.

Auxiliary Aids (Section 8) – Services or devices that enable persons with impaired sensory,
manual, or speaking skills to have an equal opportunity to participate in, and enjoy the benefits
of, programs or activities receiving Federal financial assistance.

Avoidance of Lien (Bankruptcy) - Avoidance of lien is the act of obtaining a release from the
effect of a lien, judgment or security interest in property, often in connection with exempt
property under the Bankruptcy Code. In some cases, a lien, although enforceable under the state
remedies system, may nonetheless be avoided in bankruptcy.

Avoidance Power (Bankruptcy) - these are rights and authority given to the bankruptcy trustee
to recover pre-petition transfers of property that the bankruptcy code or state laws deem as
"preferences or fraudulent transfers".

B&C – Budget & Control Board, SC

BANs - Bond Anticipation Notes
Glossary of Housing Acronyms and Terms
BEDI – Brownfields Economic Development Initiative

BIN – Building Identification Number for Housing Credits

BLS – Bureau of Labor Statistics, U.S. Department of Labor

BMA - Bond Market Association (Due to a merger with SIA this is now referred to as SIFMA)

BMIR – Below Market Interest Rate

BOCA – Building Officials and Code Administrators

BOP - Business and Operating Plan (HUD)

BR - Bedroom

BRI – Brownfields Redevelopment Initiative

"B" Loan or "B" Paper - FICO scores from 620 - 659. Factors include two 30 day late
mortgage payments and two to three 30 day late installment loan payments in the last 12
months. No delinquencies over 60 days are allowed. Should be two to four years since a
bankruptcy. Also referred to as Sub-Prime.

Back-End Ratio (Debt Ratio) - a ratio that compares the total of all monthly debt payments
(mortgage, real estate taxes and insurance, car loans, and other consumer loans) to gross
monthly income.

Back Title Letter - A document that a title insurance company gives to an attorney specifying
condition of the title.

Back-To-Back Escrow - arrangements that an owner makes to oversee the sale of one property
and the purchase of another at the same time.

Bad Debt Reserve - A reserve account maintained by thrift institutions and used to offset losses
from foreclosed or un-collectable loans. Within certain guidelines, contributions to the bad debt
reserve are deductible from the institution's taxable income. The deduction is known as the bad
debt deduction.

Balloon Maturity (Bonds) – A term maturity within an issue of bonds which contains a
disproportionately large percentage of the principal amount of the original issue and which
contains no provision for periodic payments to a sinking fund for the mandatory redemption of
specified amounts prior to their stated maturity.

Balloon Mortgage – a mortgage that typically offers low rates for an initial period of time
(usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by
the borrower.
Glossary of Housing Acronyms and Terms

Balloon Payment - The final lump sum payment that is due at the termination of a balloon

Ballot Date (Bankruptcy) - The deadline to which all votes on a reorganization plan is

Bank Qualified (Bonds) – The 1986 Tax Code generally denies banks deductions for their
interest expense allocable to the purchase or holding of tax-exempt bonds. However, bonds
which (1) are not private activity bonds, and (2) are issued by a qualified small issuer, may be
exempted from this restriction. These bonds are commonly referred to as “Bank Qualified”.

Bankruptcy - A legal proceeding that protects a debtor from legal action by some creditors.
There are two basic ways of filing for personal bankruptcy. A Chapter 7 bankruptcy declaration
gets rid of all debts (except some taxes and maybe alimony payments); Chapter 13 allows a
borrower with a steady income to pay off bills over a 36- to 60-month period.

Bankruptcy Administrator - An officer of the Judiciary serving in the judicial districts of
Alabama and North Carolina who, like the United States trustee, is responsible for supervising
the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure
statements; monitoring creditors' committees; monitoring fee applications; and performing other
statutory duties.

Bankruptcy Code - The informal name for title 11 of the United States Code (11 U.S.C. §§
101-1330), the federal bankruptcy law.

Bankruptcy Court - The specialized court in where bankruptcy-related matters under the
Federal Bankruptcy Act are handled

Bankruptcy Estate - All interests of the debtor in property at the time of the bankruptcy filing.
The estate technically becomes the temporary legal owner of all of the debtor's property.

Bankruptcy Judge - A judicial officer of the United States district court who is the court official
with decision-making power

Bankruptcy Petition - The document filed by the debtor (in a voluntary case) or by creditors (in
an involuntary case) by which opens the bankruptcy case. (There are official forms for
bankruptcy petitions.)

Bankruptcy Proceedings - the bankruptcy procedure is:
       a) filing a petition (voluntary or involuntary) to declare a debtor person or business
       bankrupt, under Chapter 7, Chapter 11, or Chapter 13, to allow reorganization or
       refinancing under a plan to meet the debts of the party unable to meet his/her/its
       obligations. The petition is supposed to include a schedule of debts, assets and income
Glossary of Housing Acronyms and Terms
        b) A hearing called "first meeting of creditors" with notice to all known creditors. This is
        often brief and usually results in the judge assigning the matter to a professional trustee.
        c) Later the trustee reports and there is a determination of what debts are dischargeable,
        what assets are exempt, and what payments are possible.
        d) If there are assets available then the creditors are requested in writing to file a
        "creditor's claim."
        e) There may be other hearings, reports, proposals, hearings on claims of fraudulent
        debts, petitions for removing the stay on foreclosures and other matters.
        f) Debts secured by property or by judgment lien are paid up to the amount of assets and
        funds available.
        g) The final step is a hearing on discharge of the bankrupt, which wipes out unsecured
        debts (or a pro rata share of them). Under Chapter 11 and 13 proceedings, the process
        will be more drawn out and can go on for years as plans are proposed, possibilities of
        refinancing are considered and, in effect, the debtor tries either to legitimately get out
        from under his/her/its financial woes or delay while current profits are made and prayers
        for economic salvation are made.

Bankruptcy Trustee - A private individual or corporation appointed in all Chapter 7, Chapter
12, and Chapter 13 cases to represent the interests of the bankruptcy estate and the debtor's

Bar Date (Bankruptcy) - The deadline creditors have to file against a debtor.

Bargain and Sale Deed - A deed that conveys title to real property but does not guarantee clear
title that is often used by court officials and fiduciaries that are only holding title by force of law.
See Grant deed, Quitclaim deed and Warranty deed.

Bargaining Unit - Group of employees designated by the Federal Labor Relations Authority and
recognized by management to be exclusively represented by a labor organization.

Base Line Program - Another name for the standard program, under which the Federal Home
Loan Mortgage Corporation purchases mortgages for cash

Base Rent - A set amount used as a minimum rent in a lease with provisions for increasing the
rent over the term of the lease.

Basic Rent (Section 236) - One of four possible rent variables used to determine individual
tenant rent payments in Section 236 projects. Basic rent is the operating costs of the project,
including the mortgage payments at 1 percent interest and the utility costs for the dwelling unit
paid by the owner. (See also, Fair Market Rent, Section 236 Market Rent, and Adjusted Annual

Basis Point – A measure of interest rates equal to 0.01% (or 1/100th of 1 percent). Basis Points
are typically used to describe the difference between two interest rate indices or to express the
change in any one index from one point in time to another (e.g. interest rates on 30-year Treasury
Bonds exceed the interest rate on 10-year Treasury Bonds by 20 basis points).
Glossary of Housing Acronyms and Terms

Basis Price – The price of a security expressed in yield or percentage of return on the

Basis Risk – Used in swap transactions to describe the risk that the historical relationship
between two different markets change. Clients who use a fixed rate swap based on 67% of
LIBOR to hedge tax-exempt variable rate debt are exposed to basis risk between 67% of one
month LIBOR and the rate that the issuer pays on its tax-exempt variable rate bonds. If the
BMA Index (as a proxy for tax-exempt VRDNs averages greater than 67% of LIBOR (its
historical average), the floating rate payment that the client receives in the swap (67% of
LIBOR) will be less than the floating rate payment it must make on its bonds (the BMA Index).

Bearer Bond (Bonds) – A bond that has no identification as to owner. It is presumed to be
owned, therefore, by the bearer or the person who holds it. Bearer bonds are freely and easily
negotiable since ownership can be quickly transferred from seller to buyer.

Bedroom Community - A suburban community in which the residents commute to the city to
work. These communities do not support their own employment centers for its residents so the
people are said to only sleep there after commuting to a larger city to work the majority of the
time. Often, people chose to live in one of theses communities because of affordability, good
schools, and low crime rates

Below-Market (LIHTC) - Below-market is a general term that refers to housing that rents or
sells for less than prevailing market levels. In some cases, below-market housing is used
synonymously with affordable housing. In other cases, below-market housing is targeted at
moderate-income families with somewhat higher incomes than those served by federal
affordable housing programs. Generally, housing can be offered at below-market levels only
with a public subsidy or with a public concession such as density bonuses or reduced-cost
publicly-owned land.

Below Market Federal Loan - A below market federal loan is any loan funded by federal funds
if the interest rate payable on such loan is less than the applicable federal rate.

Below-Market Interest Rate (BMIR) - An interest rate below the current rate for conventional
financing in a given area. Programs with below-market rates may be used to assist low-or
moderate-income buyers.

Below Market Interest Rate Program (BMIR) - This program was created in 1988 when
approximately 301 of HUD's below market interest rate (BMIR) multifamily housing mortgage
loans were purchased by the Arkansas Development Finance Authority (ADFA) in order to
preserve thousands of low-income housing units. The loans were purchased through the sale of
$215,625,000 in Government National Mortgage Association (GNMA) Guaranteed Bonds. This
innovative financing by ADFA was accomplished in order to provide assurances to low-income
housing advocates regarding preservation of the low-income rental housing projects, which
secure the BMIR loans. The 3 to 3-1/2 percent interest rate BMIR loans offered through ADFA
Glossary of Housing Acronyms and Terms
include low-income rental requirements that must be met. The BMIR loans also prohibit
prepayments for a period of 20 years.

Beneficiary - (1) A party entitled to the benefit of a trust; (2) A party who receives profit from
an estate, the title of which is vested in a trustee; (3) A party to whom a insurance policy is
payable; (4) The lender on the security of a note and trust deed.

Beneficiary Deed - A beneficiary deed is a type of real property deed used to transfer property.
By signing and recording a beneficiary deed, an owner of an interest in real property may cause
the owner's interest in the real property to be conveyed to people or entities on the owner's death.
The interest in real property conveyed by a beneficiary deed does not take effect until the death
of the owner, at which time that interest transfers automatically by law to the designated
grantee(s) named in the beneficiary deed. A beneficiary deed takes the property out of the
probate process as ownership is transferred upon death and no longer part of the decedent's estate
that might go through probate or pass under a will.

Beneficiary Statement - A statement of the unpaid balance of a loan and the condition of the
debt, as it relates to a trust deed.

Bi-Weekly Payment Mortgage - a mortgage paid twice a month instead of once a month,
reducing the amount of interest to be paid on the loan.

Bid (Bonds) – (1) A proposal to purchase an issue of bonds offered for sale either in a
competitive offering or on a negotiated basis, specifying the interest rate(s) for each maturity and
the purchase price which is usually stated in terms of par, par plus a premium, or par minus a
discount. (2) A proposal to receive invested funds and pay the bid rate of interest on the invested

Bid Authorization Letter (Foreclosure) – A written authorization instructing the trustee to
make the initial opening bid at the trustee's sale on the lender's behalf. This form advises of any
additional amounts to be included in the opening bid, (total Debt), such as funds advanced by
you to pay delinquent real estate taxes, etc.

Binder - Sometimes called "preliminary certificate" or "commitment." (1) A preliminary report
as to the condition of a title and a commitment to issue a title insurance policy in a certain
manner when certain conditions are met. (2) A deposit in escrow of a small part of the purchase
price of real estate as evidence of good faith and to bind an agreement to purchase.

Binder Policy - A type of title insurance policy offered by some title companies which allows
for a refund of the basic title insurance rate if the property is sold within a specified period of

Blanket Mortgage - A single mortgage or trust deed that covers more than one piece of real
Glossary of Housing Acronyms and Terms
Blanket Trust Deed - A trust deed secured by several properties or a number of lots. A blanket
mortgage is often used to secure construction financing for proposed subdivisions or
condominium development projects. The developer normally seeks to have a "partial release"
clause inserted in the mortgage so that he or she can obtain a release from the blanket loan for
each lot as it is sold, according to a specified release schedule.

“Blockbusting” - The illegal practice of inducing homeowners to sell their properties by making
representations regarding the entry or prospective entry of persons of a particular race or national
origin into the neighborhood. See also panic peddling.

Blue List (Bonds) – The “Blue List” is a daily digest of municipal and corporate bond offerings,
market commentaries, fixed-income statistics and other bond information. The blue list is used
by bond investors to identify investment opportunities in the bond market. Historically printed on
blue paper, the Blue List is printed by Standard & Poor's and was first printed in 1935.

Blue Sky Laws – Common term for State Securities Laws, which vary from state to state
Generally refers to provisions related to prohibitions against fraud, dealer and broker regulations
and securities registration.

Boilerplate - Form language used in deeds, mortgages and other documents. Individual parties
can add details.

Bond (Bonds) – An instrument which evidences a debt obligation between the Issuer and

Bond (Foreclosure) - An agreement that insures one party against loss by acts or defaults of
another party.

Bondholder – The owner of a municipal bond, to whom payments of principal and interest are
made. The owner of a bearer bond is the person having possession of the bond, while the owner
of a registered bond is the person whose name is noted on the bond register.

Bond Anticipation Notes (BANs) – are issued by states and municipalities to obtain interim
financing for projects that will eventually be funded long term through the sale of a bond issue.

Bond Buyer's 20-Bond Index - Bond Buyer's 20-Bond Index is a representation of municipal
bond trends based on a portfolio of 20 general obligation bonds that mature in 20 years, with an
average AA rating. The index is based on a survey of municipal bond traders rather than actual
prices or yields. The 20-Bond Index is published by The Bond Buyer, a daily financial

Bond Counsel – A firm of lawyers which give a legal opinion which speaks to the fact that the
Issuer is authorized to issue bonds, that the bonds are validly issued under the applicable State
Law, and if the bonds are tax-exempt bonds, that the interest on them is exempt from Federal
and/or State Tax.
Glossary of Housing Acronyms and Terms

Bond Fund – A portfolio of bonds administered by a manager who offers shares in such funds to
investors. Open-end bond funds offer shares continuously to the investing public, while closed-
end bond funds contain a limited number of shares, and new investors must purchase shares from
previous investors in such funds. Bond pools of these types are also known as “Managed
Funds”, because the manager, at his discretion, may buy and sell bonds for the portfolio.

Bond Indenture – See “Indenture”

Bond Issuance Costs - Bond issuance costs are the costs incurred to issue the bonds, including
legal fees, underwriting fees, rating agency fees, trustee fees, printing, etc.

Bond Issuer - A bond issuer is the governmental or non-profit entity responsible for issuing

Bond Insurance – A policy which guarantees that the investor will receive the agreed-upon
payments of principal and interest on the bonds

Bond Market Association (BMA) – The Bond Market Association was a non-profit trade
association for approximately 200 securities firms that underwrite, trade, and sell debt securities.
The association compiled statistics, attempts to standardize market practices, and served as an
industry advocate before legislators and regulators. SIFMA was formed by the merger in 2006
of the Securities Industry Association and the Bond Market Association.

Bond Market Association Index (BMA Index) - Index of seven-day, tax-exempt, non-AMT,
variable rate demand notes that are rated in the highest short-term ratings category for
transactions that are greater than ten million. It is published each Wednesday by Municipal
Market Data (MMD) and is effective Thursday through the following Wednesday. The BMA
Index is frequently used by tax-exempt issuers as the floating rate index in both fixed rate swaps
and floating rate swaps.

Bond Proceeds – The amount of funds that an Issuer receives from the Underwriters’ in a public
offering, or from an investor in a private placement, in exchange for the Issuer’s bonds.

Bond Purchase Agreement – The legal document which explains the Underwriters’ (in a public
offering) or the Investors’ (in a private placement) obligation to purchase the bonds and the
Issuers’ obligation to deliver the bonds in the agreed-upon closing date.

Bond Rate – Interest rate that is stated on the bond and that is payable to the bondholders.

Bond Traders – Investment banking and commercial bank employees who engage in the
purchase and sale of bonds after they are first sold (a secondary market).

Bond Trustee - The bond trustee is responsible for collecting the interest and principal payments
and forwarding these payments to bondholders. The trustee invests the bond proceeds, as
applicable, and administers the indenture agreement.
Glossary of Housing Acronyms and Terms

Bond Yield – The interest rate which causes the present value of the principal and interest that
the Issuer pays on the bonds to be equal to the purchase price of those bonds.

Book Entry Bond – A registered bond with ownership recorded with a central registrar and
bond depository. Physical delivery of a bond certificate is not available to bondholders.

Book Running Senior Manager (Bonds) – The member of the Underwriting Group which is
primarily responsible for structuring the bond issue and coordinating the marketing of the issue
to investors. The Book Running Senior Manager typically does the most work and typically
earns the highest fee of any firm in the Underwriting Group.

Borrower (CPD) - means the public entity or its designated public agency that issues debt
obligations under this subpart.

Breach (Foreclosure) - the failure without legal excuse to perform any promise made in a
contract. A breach is stated in the notice of default.

Breach of Covenant - Breach of covenant is the failure to perform a promise made, usually
within a contract.

Bridge Financing - A form of an interim loan generally made between a short term loan and a
long term loan when the borrower needs additional time before obtaining permanent financing.

Bridging the Digital Divide - An initiative to provide low- and moderate-income families and
children with access to computers, so that they will not be disadvantaged with respect to
education, work and training opportunities. The Neighborhood Networks program (see below) is
one program that incorporates the availability of computers to education and job training

Bridging the Gap Apprenticeship Program - A program aimed at expanding economic and
skill building opportunities offered through registered apprenticeship programs in HUD-assisted
construction and maintenance activities. Apprenticeship programs have a long history of
providing structured, highly competent, safe, and comprehensive occupational training which
produces highly qualified journey level workers, especially in the construction trades. PHAs are
encouraged to promote the use of apprenticeship programs when using
HOPE VI funds to revitalize public housing.

British Thermal Unit (BTU) - means the quantity of heat necessary to raise the temperature of
one pound of water one degree Fahrenheit at 39.2 degrees Fahrenheit and at one atmosphere of

Brokers – In the municipal securities market brokers play an important role in the secondary
market by buying from and selling to bond traders (see “Bond Traders” above).
Glossary of Housing Acronyms and Terms
Broom Clean - Broom clean refers to the desired state of a property that's to be transitioned to a
new tenant or buyer. Trash should be picked up and the floors should be swept.

Brownfields - Abandoned, idled, or under-used industrial and commercial facilities where
expansion or redevelopment is complicated by real or perceived environmental contamination.
Environmental Protection Agency web site at

Brownfields Economic Development Initiative (BEDI) - BEDI grants enhance the security or
improve the viability of a project financed with new Section 108 guaranteed loan authority. HUD
intends BEDI and Section 108 funds to finance projects and activities that will provide near-term
results and demonstrable economic benefits, such as job creation and increases in the local tax
base. HUD web site at

Brownfields Redevelopment Initiative (BRI) - An interagency initiative to address the
financial and legal risks of cleaning up and redeveloping Brownfields. To attract private
financing, HUD brings together four existing types of assistance that communities can use to
clean up and revitalize potentially contaminated sites: annual formula grants allocated through
Community Development Block Grants; lower interest loan guarantee authority through the
Section 108 Loan Guarantee program; accompanying competitive grants through the
Brownfields Economic Development Initiative program; and additional competitive grants
provided through the Lead-Based Paint Hazard Control program. HUD web site at

Budget Amendment - A change in the amount requested for appropriation after the original
request has been submitted by the President to Congress.

Budget Authority (GAO) - Authority provided by law to enter into financial Obligations that
will result in immediate or future Outlays involving federal government funds. Budget authority
may be classified by its duration: One-Year [Annual] Authority, Multiple-Year Authority, or No-
Year Authority, by the timing of the legislation providing the authority (Current Authority or
Permanent Authority, by the manner of determining the amount available (Definite Authority or
Indefinite Authority), or by its availability for new obligations. Basic forms of budget authority
include: Appropriations, Borrowing Authority, Contract Authority and authority to obligate and
expend offsetting receipts and collections.

Budget Authority (Section 8) – An amount authorized and appropriated by the Congress for
payment to HAs under the program. For each funding increment in a PHA program, budget
authority is the maximum amount that may be paid by HUD to the PHA over the Annual
Contribution Contract (ACC) term of the funding increment.

Budget Formulation (HUD) - The annual cycle wherein budget estimates are developed
(formulated) beginning each spring within every agency, submitted to the Office of Management
and Budget (OMB) for review, transmitted by the President to the Congress, and tracked though
the Congressional appropriations process. (JFMIP Framework) HUDCAPS Core Financial
System Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms
Budget Mark-up - Revision of a budget in detail, representing proposed or actual decisions by a
review level such as the OMB, based on consideration of policies, programs, scheduling, cost
factors, and other pertinent data.

Budget Mortgage - A type of amortizing mortgage which includes the principal, interest and
other costs such as taxes and fire insurance - referred to as a PITI monthly payment - in the
monthly payment.

Budget Resolution - Annual Congressional action pursuant to the Congressional Budget Act
which establishes targets or limits for all spending based on estimated revenues, the appropriate
surplus or deficit, and recommended changes in revenues or debt.

Budgetary Resources (HUD) - Forms of authority given to an agency allowing it to incur
Obligations. These include: new Budget Authority, Unobligated Balances, direct spending
authority, and obligation Limitations. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Buffer Zone - A strip of land, identified in the zoning ordinance, established to protect one type
of land use from another with which it is incompatible. Buffer zones may either be shown on the
zoning map or described in the ordinance with reference to neighboring districts.

Builder’s Remedy (LIHTC) - A builder's remedy is a legal cause of action available in certain
states to a developer that has been denied a building permit for development of affordable
homes. The "remedy" occurs when a state enforcement agency, such as a court or other special
authority, overrides local decision-making and grants permission to move forward with
development. In New Jersey, the builder's remedy has been established as a tool for encouraging
municipalities to meet their fair share housing targets.

Building (CPD) - means any structure which includes provision for a heating or cooling system,
or both, or for a hot water system.

Building Code - A set of building construction requirements developed and administered by
national and local bodies to ensure that buildings meet certain minimum standards for structural
integrity, safety, design, and durability.

Building Identification Number (BIN) – The nine digit alpha-numeric designation that is
assigned during the allocation process to each building that receives an allocation of credits. This
number is used to identify a specific low-income building for purposes of tracking, monitoring
and reporting noncompliance, both internally and to the Internal Revenue Service.

Building Officials and Code Administrators (BOCA) - Refers to the basic building code
manual, used nationally as a standard, and locally with certain adaptations.

Buildings for the General Conduct of Government (CPD) - means city halls, county
administrative buildings, State capitol or office buildings or other facilities in which the
Glossary of Housing Acronyms and Terms
legislative, judicial or general administrative affairs of the government are conducted. Such term
does not include such facilities as neighborhood service centers or special purpose buildings
located in low and moderate income areas that house various non-legislative functions or
services provided by government at decentralized locations.

Business Data - Information about people, places, things, business rules, and events, which is
used to operate the business. It is not meta data. (Meta data defines and describes business data.)
DAMA web site at

Business Model - A view of the business at any given point in time. The view can be from a
process, data event or resource perspective, and can be the past, present or future state of the
business. DAMA web site at

Business and Operating Plan (BOP) - Management plans developed by all HUD offices to
accomplish the Department's mission and goals.

Business Transaction - A unit of work acted upon by a data capture system to create, modify, or
delete business data. Each transaction represents a single valued fact describing a single business
event. DAMA web site at

Buy-Down - the seller pays an amount to the lender so the lender provides a lower rate and
lower payments many times for an ARM. The seller may increase the sales price to cover the
cost of the buy down.

Buyer’s Market - A market condition which occurs in real estate where more homes are for
sale than there are interested buyers.

CA – Contract Administration/Administrator

CAA – Community Action Agency

CABs - Capital Appreciation/Accumulator Bonds

CAC – Community Action Council

CAOM – Contract Administrator Oversight Monitor

CAOS – Contract Administrator Oversight Supervisor

CAP – Community Action Program

CARH – “Council for Affordable and Rural Housing”

CB - Community Builders
Glossary of Housing Acronyms and Terms

CBD - Commerce Business Daily

CBO - Congressional Budget Office

CBO – Community-Based Organizations

CBRF – Community Based Residential Facility

CBSA – Core-Based Statistical Area

CC – Civil Code

CC&Rs – Covenants, Conditions and Restrictions

CCCS - Consumer Credit Counseling Service

CCHRCO – “Carolinas Council of Housing Redevelopment and Codes Officials”

CCI – Comprehensive Community Initiatives

CDC – Community Development Corporation

CDBG – Community Development Block Grant

CDFI – Community Development Financial Institutions Fund

CDI – Continuing Disclosure Information

CED – Commercial and Economic Development

CEF – Community Empowerment Fund, administered by CPD

CEI - Credit Enhancement Instrument

CETA - Comprehensive Employment and Training Act.

CFDA - Catalog of Federal Domestic Assistance

CFO - Chief Financial Officer (HUD Office of)

CFP – Certificate of Family Participation

CFP – Certified Financial Planner

CFR – Code of Federal Regulations
Glossary of Housing Acronyms and Terms

CG – Comptroller General, SC

CGP - Comprehensive Grants Program

CGT – Capital Gains Tax

CHAP - Comprehensive Homeless Assistance Plan

CHAS - Comprehensive Housing Affordability Strategy

CHDO – Community and Housing Development Organization

CHRB – Community Housing Resource Board

CHSP - Congregate Housing Services Program

CIAP - Comprehensive Improvement Assistance Program

CIC - Canadian Interest Cost

CIO – State Chief Information Officer, SC Division of

CIR – Congressional and Intergovernmental Relations (HUD Office of)

CLC - Construction Loan Certificate

CLPHA – “Council of Large Public Housing Authorities”

CLT – Community Land Trust

CLTV – Combined Loan to Value Ratio

CMA – Commission For Minority Affairs

CMA – Comparative Market Analysis

CMBS – Commercial Mortgage-backed Securities

CMHI - Cooperative Management Housing Insurance Fund (one of four FHA funds)

CMI – County Median Income

CMOs - Collateralized Mortgage Obligations

CMSA – Consolidated Statistical Area
Glossary of Housing Acronyms and Terms

CNA - Comprehensive Needs Assessment

CO - Contracting Officer

CO – Certificate of Occupancy

COBs - Convertible Option Bonds

COBRA - Consolidated Omnibus Budget Reconciliation Act

CoC – Continuum of Care approach to assistance to the homeless

CODI – Cost of Deposit Index

COE – Army Corps of Engineers

COE – Cost of Equity

COFI – Cost of Funds Index

COG – Continuity of Government

COI – Conflict of Interest

COLA – Cost-of-Living Adjustment

CON – Condominium association under HUD’s Section 234 Program

COO – Certificate of Occupancy

COSCAA – Council of State Community Affairs agencies

COSI – Cost of Savings Index

CP – Consolidated Plan (HUD)

CPD – Community Planning and Development (HUD Office of)

CPI - Consumer Price Index

CPM – Certified Property Manager

CPO – Certified Professional of Occupancy

CPO - Chief Procurement Officer (HUD Office of)
Glossary of Housing Acronyms and Terms

CR – Contract Rent

CRA – Community Reinvestment Act

CRA - Civil Rights Act of 1964 (or of 1991)

CRA – Community Reinvestment Act

CRS - Congressional Research Service

CRS – Certified Residential Specialist

CRV – Certificate of Reasonable Value

CSBG – Community Services Block Grant

CSHA – “Council of State Housing Agencies”

CUSIP - Committee on Uniform Securities Identification Procedures

CUV – Current Use Value

C Corporation - Common business slang to distinguish a corporation whose profits are taxed
separate from its owners under subchapter C of the Internal Revenue Code, from an S
corporation, whose profits are passed through to shareholders and taxed on their personal returns
under subchapter S of the Internal Revenue Code.

"C" Loan or "C" Paper - FICO scores typically from 580 to 619. Factors include three to four
30 day late mortgage payments and four to six 30 day late installment loan payments or two to
four 60 day late payments. should be one to two years since bankruptcy-also referred to as Sub-

Call Option - A clause in a loan agreement that allows a lender to ask for the balance at any

Call Price (Bonds) - The price at which a callable bond or security is redeemable. It is used in
connection with preferred stocks and debt securities having a fixed redemption value. It is the
price the issuer must pay to call in the security and retire it by paying the holder. The call price
often exceeds the par, or face value, of the security in order to compensate the holder for the
disruption of earnings and the bother of having to reinvest the funds, possibly at a lower rate of

Call Premium – An amount of money typically described as a certain percentage which an
Issuer has to pay to an investor if the Issuer executes an optional redemption of the bonds.
Glossary of Housing Acronyms and Terms
Call Protection - Call protection describes the provisions in a bond issuance that preclude the
borrower from prepaying the bonds for a specified period of time.

Call Provisions – Bonds that are redeemable by the issuer prior to the specified maturity date at
a specified price at or above par.

Callable Bond – A bond which permits or requires the Issuer to redeem the obligation before
the stated maturity date at a specified price (usually at or above par) by giving notice of
redemption in a manner specified in the Indenture.

Callable Debt - A debt security whose issuer has the right to redeem the security at a specified
price on or after a specified date, but prior to its stated final maturity

Canadian Interest Cost (CIC) - A method of calculating total cost for new issues of municipal
securities that takes into consideration the time value of money.

Cancellation Clause - A clause that details the condition under which each party may terminate
the agreement

Cap - 1) the maximum allowable interest rate increase for adjustable rate mortgages. Caps
embedded in mortgage agreements may limit the amount of upward change in the rate of interest
at each adjustment period and provide a fixed maximum over which the rate cannot rise during
the life of the loan. (2) an agreement negotiated between a buyer and seller. The buyer of a cap
agreement pays a fee to the seller. In return, the seller will pay the buyer if a designated floating
index rate is higher than a specified fixed rate on designated days. The seller pays nothing If the
floating rate is below the fixed rate. Buyers of cap agreements use them to hedge against rising
interest rates, because payments to the buyer increase as rates rise.

Cap Rate – Describes the ratio of a property’s net operating income (NOI) to its purchase price.

Capacity - The ability to make mortgage payments on time, dependant on assets and the amount
of income each month after paying housing costs, debts and other obligations.

Capacity Building - Educational and organizational support assistance to promote the ability of
community housing development organizations and nonprofit organizations to maintain,
rehabilitate and construct housing for low and very low-income person and families. This
activity may include, but is not limited to: 1) Organizational support to cover expenses for
training, technical, and other assistance to the board of directors, staff, and members of the non-
profit organization or community housing development organization, 2) Program support
including technical assistance and training related to housing development, housing
management, or other subjects related to the provision of housing or housing services, and 3)
Studies and analyses of housing needs.

Capacity Building for Community Development and Affordable Housing - Section 4 of the
HUD Demonstration Act of 1993 authorizes HUD to provide assistance through the National
Community Development Initiative to develop the capacity and ability of community
Glossary of Housing Acronyms and Terms
development corporations (CDCs) and community housing development organizations (CHDOs)
to undertake community development and affordable housing projects and programs. Private
sources must provide a match 3 times the amount of any assistance provided under this section.

Capital Advance - Created in 1990 by the Cranston-Gonzales Act, this HUD program assists
private, nonprofit corporations to finance the acquisition, construction or rehabilitation of
housing for the elderly (Section 202/PRAC) or disabled (Section 811/PRAC). It has a 40 year
term and does not have to be paid back, provided the project continues to serve the low-income
population for which it was initially intended.

Capital Appreciation Bond (or “Zero Coupon Bond”) – A type of bond in which the Issuer
pays no interest to the investor until the bond’s redemption. Interest accrues at the agreed-upon
rate and the total dollars which an investor receives upon redemption is based on how long the
bond remains outstanding.

Capital Appreciation/Accumulator Bonds (CABs) – Bonds which pay interest on an
accumulated basis at maturity. Unlike zero coupon bonds, the purchase price of CABs do not
reflect future interest payments.

Capital Contribution(s) (LIHTC) - infusions of capital invested in a tax credit project in return
for receipt of tax credits. The amount of capital contributions relates to the total amount of tax
credits which may be claimed; the schedule of capital contributions is agreed upon and described
within the Partnership Agreement.

Capital (Debt Service) Reserve Fund – Security requirement established to provide a revenue
bond program with reserves that would be available in the event of a shortfall in operating
revenues. Typically, the requirement has been equal to maximum annual debt service, but is in
some cases, calculated as a fixed percent of the principal amount of debt outstanding.

Capital Fund Program - Program making funding available for physical and management
improvements to all Public Housing Authorities, beginning in FY 2000. Will replace CIAP and

Capital Gain or Capital Loss - The gain or loss incurred from the sale or disposition of a
capital asset (such as a property).

Capital Improvements - Improvements on a property that increase its value; also,
improvement of public facilities such as streets, sewers, etc.

Capital Interest – In a multi-family transaction where long term financing is obtained before
the project is put into service there is no revenue with which to pay the periodic interest on the
debt. Additional funds are often put on deposit to pay the deficiency, or capitalized interest. In a
single-family transaction the rate of return on acquisition fund investment agreements is less than
the average coupon rate on the bonds. Since the invested funds will not produce sufficient funds
to pay the interest on the bonds, additional funds need to be invested at closing to pay the portion
Glossary of Housing Acronyms and Terms
of the interest on the bonds which will not be paid from the Acquisition Fund Investment
Agreement. This deficiency as well as the lag payment are capitalized interest.

Capped Adjustable Mortgage – An adjustable–or variable–rate mortgage with a limit on the
amount of annual/or overall increase in the interest rate.

Carolinas Council of Housing Redevelopment and Codes Officials (CCHRCO) – The
purpose of the Carolinas Council is to serve Housing and Community Development Agencies in
North and South Carolina. In addition, the Carolinas Council strives to improve professionalism
and sound management practice in the public administration of Housing, Community
Development, Codes and Housing rehabilitation programs.

Carolinas Council for Affordable Housing - The primary focus of the Carolinas Council for
Affordable Housing is the promotion of affordable rental housing in the States of North and
South Carolina. This effort involves both the development, construction, and management of
affordable rental housing in both states. The Council's diverse membership is composed of
individuals and firms involved in the development, construction, financing, and management of
affordable rental housing units throughout both States.

Carry-back Loan - A loan in which a seller agrees to finance a buyer in order to complete a
property sale. A carry-back-loan contains a promissory note placed within the loan. The
promissory note is a contract that details the terms of a commitment from the buyer to pay the
seller for a property. The terms of the note or contract contains the purchase price, the interest
rate, and the date that the loan must be paid in full.

Carryover Allocation – A commitment by a tax credit allocating agency to allow a project to
keep its reservation of tax credits for an extra year after the end of the year in which the
reservation was made. Used when a project has not been completed, but at least 10 percent of
the project’s depreciable costs have already been incurred in the name of the partnership which
owns the project.

Cash Back Mortgage Refinance Loan - a type of loan that is larger than the remaining balance
on your current mortgage. If you refinance with a cash back mortgage, you literally get cash back
from the equity that has accumulated in your home. These types of loans are often used for home
improvements or tuition.

Cash Flow – For bonds which will finance mortgage loans, the sum of mortgage repayments
and prepayments, and other revenues available to make debt service payments on the bond and to
pay related fiduciary and servicing costs.

Cash Flow Analysis – A quantitative analysis which demonstrates that the invested funds,
mortgage loans, or mortgage-backed securities will provide sufficient cash flow to pay the
principal and interest on the bonds and all expenses. Typically a Cash Flow Analysis will
consist of several different cash flow projections utilizing several different sets of assumptions.
Glossary of Housing Acronyms and Terms
Cash-Out Refinance - when a borrower refinances a mortgage at a higher principal amount to
get additional money. Usually this occurs when the property has appreciated in value. For
example, if a home has a current value of $100,000 and an outstanding mortgage of $60,000, the
owner could refinance $80,000 and have additional $20,000 in cash.

Cash Reserves – A cash amount sometimes required to be held in reserve in addition to the
down payment and closing costs; the amount is determined by the lender.

Catalog of Federal Domestic Assistance (CFDA) - The Catalog of Federal Domestic
Assistance is a government-wide compendium of Federal programs, projects, services, and
activities which provide assistance or benefits to the public. HOPE VI's CFDA number is 14.866.
A list of CFDA numbers for all HUD programs can be found on HUD's website

Caveat – (1) A warning or a caution. (2)A formal notice that asks a court to suspend action until
the party that filed the challenge can be heard.

Cease and Desist Order - A formal demand from the Office of Thrift Supervision, other
government agency, or court, to a person or institution ordering an immediate halt to a specified
activity. An OTS cease and desist order is a formal enforcement action. If the respondent does
not challenge the issuance of the order, it is called a consent cease and desist order.

Census Tract - A small, relatively permanent statistical subdivision of a county or statistically
equivalent entity, delineated for data presentation purposes by a local group of census data users
or the geographic staff of a regional census center in accordance with Census Bureau guidelines.

Census Tract Number - A four-digit basic number, followed by an optional two-digit decimal
suffix, used to uniquely identify a census tract within a county or statistically equivalent entity.

Certificate of Claim (Foreclosure) - A certificate of claim is a borrower's promise to reimburse
a lender if a foreclosure sale of the collateral doesn't produce enough money to pay back the loan
balance and other amounts outstanding in full.

Certificate of Completion - A document issued by an architect or engineer stating that a
construction project has been completed in accordance with approved terms, conditions, plans
and specifications.

Certificate of Compliance - Commonly used synonymously with "zoning permit" in which an
official certifies that the plans for a proposed use are in conformance with the zoning ordinance

Certificate of Deposit - A document written by a bank or other financial institution that is
evidence of a deposit, with the issuer's promise to return the deposit plus earnings at a specified
interest rate within a specified time period. See adjustable rate mortgage (ARM).
Glossary of Housing Acronyms and Terms
Certificate of Deposit Index – An index that is used to determine interest rate changes for
certain adjustable-rate mortgage (ARM) plans. It represents the weekly average of secondary
market interest rates on six-month negotiable certificates of deposit. See adjustable-rate

Certificate of Eligibility – A document issued by the federal government certifying a veteran's
eligibility for a Department of Veterans Affairs (VA) mortgage.

Certificate of Family Participation (Section 8) – A Certificate issued by the HA under the
Section 8 Rental Assistance Program, declaring a family to be eligible for participation in this
program and stating the terms and conditions for such participation

Certificate of Occupancy (COO) – A document issued by a local government to a developer or
in some cases others which permits a structure to be occupied by the general public and generally
indicates that the building is in compliance with public health and building codes.

Certificate of Reasonable Value (CRV) – A document issued by the Department of Veterans
Affairs (VA) that establishes the maximum value and loan amount for a VA mortgage.

Certificate of Sale (Foreclosure) - A legal document tendered to the winning bidder at a
foreclosure sale stating their rights to the property once the borrower’s redemption period has

Certificate of Tax Lien (Legal) - A lien for nonpayment of property taxes. Attaches only to the
property upon which the taxes are unpaid.

Certificate of Title - a document provided by a qualified source, such as a title company, that
shows the property legally belongs to the current owner; before the title is transferred at closing,
it should be clear and free of all liens or other claims.

Certificate of Veteran Status - FHA form filled out by the VA to establish a borrower's
eligibility for an FHA Vet loan. These documents are obtainable through your local VA office.

Certificate or Voucher Holder - A family holding a voucher or pre-merger certificate with
unexpired search time

Certificate Program - Pre-merger Rental certificate program

Certificates (Section 8) - Section 8 housing assistance payment program administered by local
Public Housing Authorities (PHAs). Housing certificates are issued primarily to very low-income
families and a limited number of low-income families with a limit on the amount based on local
Fair Market Rents (FMRs). Certificates are also issued to families currently living in projects
with project-based subsidies where an owner is opting out of participation in the program. As of
1992, certificates were also authorized for family homeownership.
Glossary of Housing Acronyms and Terms
Certification also Recertification - The documentation and verification process required of
HUD managers in order to determine initial income and eligibility during the application
process. The “initial certification” is used for applicants/new tenants to establish the amount of
rental assistance subsidy which the applicant or tenant is eligible to receive. Recertification is
required at least once each year. The “annual recertification” begins approximately 90 -120 days
prior to the anniversary of each resident’s move-in date.
During the certification process, verification forms are sent out and data is collected to establish
the gross annual income (considering all sources including earned income, income from assets,
etc.) for all adult participants. Meanwhile, the total amount of allowable expenses (which for
elderly households is a $400 elderly household reduction plus any allowable medical expenses)
is determined using receipts and/or verification forms. The adjusted annual income is the total of
gross annual income minus allowable expenses.
Residents receiving federal rental assistance usually pay 30 percent of their annual adjusted
income, and the rental assistance payment (i.e. Section 8 or PRAC) makes up the difference
between the resident payment and the unit rent level.

Certified Copy (Legal) - A copy of a document issued by a court or government agency
guaranteed to be a true and exact copy of the original. Many agencies and institutions require
certified copies of legal documents before permitting certain transactions. For example, a
certified copy of a death certificate is required before a bank will release the funds in a deceased
person's payable-on-death account to the person who has inherited them.

Certified Mail Notice - A notice sent through the USPS that requires the signature of the
recipient. The signature of the recipient certifies that the notice was received. Certified mail is
used in the foreclosure process by the court and trustees to send out foreclosure notices and other
important documents

Chain of Title - The succession of conveyances, from some accepted starting point, whereby the
present holder of real property derives title.

Change Control (HUD) - A scheme to provide orderly and controlled modifications to the
functions and operations of the system. (JFMIP Framework) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

Change Order – A change in the original construction plans ordered by the owner or the general

Chapter 7 Bankruptcy - Chapter 7 bankruptcy, sometimes called a straight bankruptcy is a
liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee
who then converts it to cash for distribution to the creditors. The debtor receives a discharge of
all dischargeable debts usually within four months. In the vast majority of cases the debtor has
no assets that he would lose so Chapter 7 will give that person a relatively quick "fresh start".

Chapter 7 Trustee - A person appointed in a Chapter 7 case to represent the interests of the
bankruptcy estate and the creditors. The trustee's responsibilities include reviewing the debtor's
petition and schedules, liquidating the property of the estate, and making distributions to
Glossary of Housing Acronyms and Terms
creditors. The trustee may also bring actions against creditors or the debtor to recover property of
the bankruptcy estate.

Chapter 9 Bankruptcy - A bankruptcy proceeding that provides financially distressed
municipalities with protection from creditors by creating a plan between the municipality and its
creditors to resolve the outstanding debt. Municipalities include cities, counties, townships and
school districts.

Chapter 10 Bankruptcy - Chapter 10 refers to the section of the U.S. Bankruptcy Code that
defines a type of court protection for insolvent entities. In Chapter 10 bankruptcy filings, the
insolvent entity is reorganized by an independent, court-appointed consultant.

Chapter 11 Bankruptcy - Chapter 11 is a chapter of the United States Bankruptcy Code, which
permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is
available to any business, whether organized as a corporation or sole proprietorship, and to
individuals, although it is most prominently used by corporate entities. In contrast, Chapter 7
governs the process of a liquidation bankruptcy, while Chapter 13 provides a reorganization
process for the majority of private individuals with unsecured debts of less than $336,900.00 and
secured debts of less than $1,010,650.00 as of April 1, 2007.

Chapter 12 Bankruptcy - Chapter of the Bankruptcy Code designed to give special relief to a
family farmer with regular income. Chapter 12 of the Bankruptcy Code was enacted in 1986,
specifically to meet the needs of financially distressed family farmers. The primary purpose of
this legislation was to give family farmers facing bankruptcy a chance to reorganize their debts
and keep their farms.

Chapter 13 Bankruptcy - Chapter 13 Bankruptcy is also known as a reorganization bankruptcy.
Chapter13 bankruptcy is filed by individuals who want to pay off their debts over a period of
three to five years. This type of bankruptcy appeals to individuals who have non-exempt
property that they want to keep. It is also only an option for individuals who have predictable
income and whose income is sufficient to pay their reasonable expenses with some amount left
over to pay off their debts.
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with
regular income, often referred to as a "wage-earner" plan. Chapter 13 allows a debtor to keep
property and use his or her disposable income to pay debts over time, usually three to five

Chapter 13 Plan - A document filed in a Chapter 13 bankruptcy in which the debtor shows
how all of his or her disposable income will be used over a three- to five-year period to pay all
mandatory debts -- for example, back child support, taxes, and mortgage arrearages -- as well as
some or all unsecured, non-priority debts, such as medical and credit card bills.

Chapter 13 Trustee - A person appointed to administer a Chapter 13 case. A Chapter 13
trustee's responsibilities are similar to those of a Chapter 7 trustee; however, a Chapter 13 trustee
has the additional responsibilities of overseeing the debtor's plan, receiving payments from
debtors, and disbursing plan payments to creditors.
Glossary of Housing Acronyms and Terms

Chapter 15 - The chapter of the Bankruptcy Code dealing with cases of cross-border

Chapter 20 Bankruptcy - a combination of filing of filing a Chapter 7 and Chapter 13, in this
order, or the reverse order. The most common form, however, is filing a Chapter 7 to discharge a
very high amount of unsecured debt followed by a Chapter 13 to save real property in which
there are mortgage and/ or tax arrears. A Chapter 20 can also help assist placing an estate within
the acceptable statutory levels of debt.

Charge-Off - the portion of principal and interest due on a loan that is written off when deemed
to be uncollectible.

Chart of Accounts (HUD) - The list of general ledger account numbers that subdivide basic
accounting equations, with associated titles and definitions, used by an entity for posting to its
general ledger. (JFMIP Framework) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Chattel Mortgage - A claim on personal property rather than on real property used to secure or
guarantee a promissory note to acquire personal property.

Child (Section 8) – A member of the family other than the family head or spouse who is under
18 years of age

Child Care Expenses (Section 8) – Amounts paid by the family for the care of minors under 13
years of age where such care is necessary to enable a family member to be employed or for an
adult to further his/her education.

Chronically Homeless - A person who is disabled and who 1) has been homeless for a year or
more and has not resided in a transitional housing program during that time, or 2) has had at least
four episodes of homelessness within the past three years.

Citizen (Section 8) – A citizen or national of the United States

Citizen Participation Plan (HOME) - A plan that must be developed by all PJs to describe and
document efforts that will be undertaken to provide for and encourage citizens to participate in
the development of the Consolidated Plan, any substantial amendments to the Consolidated Plan,
and the performance report. (See definition of "Consolidated Plan".)

Claim (Bankruptcy) - A creditor's assertion of a right to payment from the debtor or the debtor's

Claim - An adverse right or interest asserted by one party against another or against an insurer or
indemnitor. Claims may arise from unpaid debts or taxes, as well as from hidden title defects
such as fraud, forgery, missing heirs, etc.
Glossary of Housing Acronyms and Terms
Claim in Bankruptcy - the written claim filed by persons or businesses owed money (creditors)
by a party who files for bankruptcy (debtor) to benefit from the distribution if money becomes
available. The known creditors receive written notice of the bankruptcy and will receive a
creditor's claim form. They may also receive notice that the bankrupt party has no assets to
distribute and that they should not file a claim until further notice (this is bad news for the

Class (Bankruptcy) - The different levels of claims against a debtor.

Classification Structure (HUD) - The data elements defined to support a specific portion of an
information architecture. The classification structures identified in this document are the
transaction classification structure, financial information classification structure, operations
information classification structure, and program information classification structure. (JFMIP
Framework) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Classified Assets - Assets, generally loans, for which payments are not being made on time.
Such assets are classified as substandard, doubtful or loss.

Classified Loan - A loan that is not being repaid on time and has been designated a troubled

Clear Title - a property title that has no defects. Properties with clear titles are marketable for

Closed Account (HUD) - An Appropriation account whose balance has been cancelled. An
account available for a definite period (fixed appropriation account) is cancelled 5 fiscal years
after the period of availability for obligation ends. (GAO) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

Closed-End Lease - A closed-end lease is an agreement that allows one party to use a second
party's property temporarily without any obligation to purchase the property at a later date.
Closed-end leases are common in auto leasing; if the lease is closed-end, the individual leasing
the vehicle has the option to return the car at the end of the lease arrangement.

Closed-End Mortgage - A closed-end mortgage is a loan in which the lender is given a security
interest in real estate and the borrower may not repay the loan before the maturity date. The loan
amount may not be increased or extended over the life of the loan. The borrower must also seek
permission from the lender to incur additional debt, using the same collateral as security for the
debt. It is the opposite of an open-end mortgage.

Closing (Bonds) – The meeting of concerned parties on the date of delivery to sign the requisite
legal documents and to physically deliver the bonds in exchange for payment of the purchase
price. The parties at closing usually include representatives if the Issuer, bond counsel and the
purchaser (underwriters). Sometimes a pre-closing meeting is held the day before delivery to
review the adequacy of the closing procedures and documents.
Glossary of Housing Acronyms and Terms
Closing Date – See “Delivery Date”

Cloud on Title - Any document, claim, unreleased lien or encumbrance that might invalidate or
impair the title to real property or make the title doubtful. Clouds on title are usually
discovered during a title search. Clouds on title are resolved through initiating a quitclaim deed
or a commencement of action to quiet title.

Cluster Development - A housing arrangement in which units are placed close together to allow
for large recreational or common areas.

Cluster Zoning - A type of zoning in which density is determined for an entire area, rather than
on a lot-by-lot basis. Within the cluster zone, the developer has greater flexibility in designing
and placing structures so long as the overall density requirement is met. Developments in cluster
zoning often incorporate open, common areas with park-like settings.

Co-Head (Section 8) – An individual in the household who is equally responsible for the lease
with the head of household. A family may have a co-head or spouse but not both. A co-head
never qualifies as a dependant. The co-head must have legal capacity to enter into a lease.

Co-Manager (Bonds) – A member of the Underwriting Group which is given less responsibility
than a Senior Manager and who typically earns less of the underwriter’s fees than a Senior

Co-Op Housing - An apartment building or a group of dwellings owned by a corporation and
the stockholders are the residents of the dwellings. It is operated for their benefit by their elected
board of directors. In a cooperative, the corporation or association owns title to the real estate.
A resident purchases stock in the corporation that entitles him to occupy a unit in the building or
property owned by the cooperative. While the resident does not own his unit, he has an absolute
right to occupy his unit for as long as he owns the stock.

Co-Senior Manager (Bonds) – A member of the Underwriting Group which is given more
responsibility than a Co-Manager but less than the Book Running Senior Manager. A Co-Senior
Manager typically receives a greater portion of the underwriter’s fee than a Co-Manager, but less
than the Book Running Senior Manager.

Co-Venture Loan - A loan where the lender gets a share of ownership or income from the

Code of Federal Regulations (CFR) – Commonly referred to as “the regulations.” The CFR is
the compilation of Federal rules which are first published in Federal Register and define and
implement a statute.

Coinsurance– FMA mortgage insurance in which the loan originator agrees to insure part of
the mortgage in return for part of the premium-Usually, a stop-loss provision with respect to a
pool of mortgage is involved.
Glossary of Housing Acronyms and Terms
Coinsurance Clause - A provision in a hazard insurance policy that states the amount of
coverage that must be maintained -- as a percentage of the total value of the property -- for the
insured to collect the full amount of a loss.

Collateral (Bankruptcy) - property in which the debtor has granted the creditor a legal interest
(a/k/a lien). A creditor that has a legal interest in the property is called a secured creditor.
Generally, a Chapter 7 does not alter the security interest of the creditor; however, it is possible
to alter the secured interest of a creditor using a Chapter 13 with the exception of a first mortgage
on a house.

Collateral Investments - Economic or other kinds of development activities that would have
occurred with or without the anticipation of HOPE VI-funded revitalization of the public housing
site. Collateral Investments include physical redevelopment activities underway or projected to
be completed around the time the HOPE VI revitalization is completed, such as schools,
libraries, subway or light rail stations, or improved roads, which will enhance the new HOPE VI
community but will occur whether or not the site is revitalized.

Collateral Security - An obligation attached to another contract so as to guarantee performance
of contract.

Collateralized Mortgage Obligation (CMO) - A type of bond having mortgages or mortgage-
backed securities as collateral. Principal and interest payments from an underlying pool of
mortgages are redirected to pay the CMO holders until the CMOs are retired. A single issue of
CMOs contains two or more classes of bonds called tranches, each with a different length of
maturity, providing a form of call protection to the holder of a CMO. A holder who wants to lock
in a CMO investment for a specific length of time will buy into a tranche with a low risk of being
retired early because the underlying mortgages are paid off early. Such low prepayment risk
tranches are called planned amortization classes (PACs). Changes in prepayment rates in the
underlying pool of mortgages are absorbed first by another tranche, so that the PAC remains
unaffected by prepayment risk. CMOs generally pay principal and interest semiannually. CMO
were first issued by the Federal Home Loan Mortgage Corporation (Freddie Mac) in June 1983.

Collection Account - an unpaid debt referred to a collection agency to collect on the bad debt.
This type of account is reported to the credit bureau and will show on the borrower's credit

Color of Title - That which appears to be good title but which is not title in fact

Combined Statistical Area (CSA) - May comprise two or more metropolitan statistical areas, a
metropolitan statistical area and a micropolitan statistical area, two or more micropolitan
statistical areas, or multiple metropolitan and micropolitan statistical areas that have social and
economic ties as measured by commuting, but at lower levels than are found among counties
within metropolitan and micropolitan statistical areas.
Glossary of Housing Acronyms and Terms
Combined Loan to Value Ratio (CLTV) - A ratio used by lenders to determine the risk of
default by prospective homebuyers when more than one loan is used. In general, lenders are
willing to lend at CLTV ratios of 80% and above to borrowers with a high credit rating.

Comfort Letter - A comfort letter is a letter provided by a certified public accountant when the
bond purchase agreement is executed. This letter confirms that the issuer’s (or borrower’s)
financial information included in the official statements is presented in conformity with generally
accepted auditing standards and that no changes in the financial position of the borrower since
the date of the last audited financial statements, other than those changes disclosed in the comfort
letter or in the official statement, have occurred.

Commerce Business Daily (CBD) - Published by the U.S. Department of Commerce every
Federal business day. The CBD lists contracting opportunities with all Federal agencies In most
cases, all proposed contracts expected to exceed $25,000 are required to be announced in the
CBD at least 15 days before the solicitation is issued. CBD Website

Commercial and Economic Development (CED) - A program to encourage commercial
districts to strengthen small businesses, improve the physical environment, and provide
organizational support, business counseling and loan packaging.

Commercial Building - Any building other than a residential or government building, including
any building constructed for industrial, retail, business, or public purposes

Commercial Mortgage-backed Securities (CMBS) - A type of mortgage-backed security that
is secured by the loan on a commercial property. A CMBS can provide liquidity to real estate
investors and to commercial lenders. As with other types of MBS, the increased use of CMBS
can be attributable to the rapid rise in real estate prices over the years.

Committed to a Specific Local Project (HOME) - Commitment to a specific local project
means that a legally binding agreement was executed meeting one of the following sets of
   1. For rehabilitation or new construction projects, the PJ (or other entity) and the project
       owner will execute an agreement for an identifiable project under which construction can
       reasonably be expected to start within 12 months of the agreement date. If the project is
       owned by the PJ or State recipient, the project must be set up in the Integrated
       Disbursement and Information System (IDIS) and construction must be reasonably
       expected to start within 12 months of the set-up date.
   2. For projects consisting of the acquisition of standard housing by the PJ, the agreement
       must be a binding contract for the sale of an identifiable property and the property title
       must be transferred to the PJ (or other entity) within six months of the date of the
   3. For projects involving the acquisition of standard housing and where the PJ is providing
       HOME funds to a purchaser under the agreement, the title of the property must be
       transferred to the purchaser within six months of the agreement date.
Glossary of Housing Acronyms and Terms
   4. For projects consisting of tenant-based rental assistance (TBRA), the PJ must enter into a
      rental assistance contract with the owner or the tenant in accordance with the provisions
      of 24 CFR Part 92.209.

Commitment (HUD) - An administrative reservation of an allotment or of other funds in
anticipation of an obligation. (GAO) The amount of Allotment or lower level authority
committed in anticipation of an Obligation. (SGL, definition of account 4700.) (JFMIP Core
Appendix A Terminology, p 49) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Commitment - As used in the HOME Program, commitment means one of three things. The
participating jurisdiction has:
    1. executed a legally binding agreement with a State recipient, sub-recipient, or contractor
        to use a specific amount of HOME funds to produce affordable housing or provide
        tenant-based rental assistance; or
    2. executed a written agreement reserving a specific amount of funds for a Community
        Housing Development Organization; or
    3. met requirements to commit to a specific local project as defined below.
For tenant-based rental assistance, commitment means that a rental assistance contract between
the participating jurisdiction (or other entity) and the tenant or owner has been executed. HUD
recognizes a commitment when the project is set up in the Integrated Disbursement and
Information System (IDIS).

Commitment Fee (Bonds) – A fee paid to the Issuer of a single-family mortgage revenue bonds
by a lender to secure the right to originate a specific portion of the available program funds.
Typically these funds are used by the Issuer to pay all or a portion of the costs of issuance of the

Commitment Letter - A letter sent by a lender informing a borrower that the lender has
approved a loan application for a specific amount, term and rate, and listing any conditions that
must be met before the loan funds are disbursed.

Commitment to a Specific Project (CPD) - Commitment to a specific local project means that
a legally binding agreement was executed meeting one of the following sets of requirements:

   1. For rehabilitation or new construction projects, the PJ (or other entity) and the project
      owner will execute an agreement for an identifiable project under which construction can
      reasonably be expected to start within 12 months of the agreement date. If the project is
      owned by the PJ or State recipient, the project must be set up in the Integrated
      Disbursement and Information System (IDIS) and construction must be reasonably
      expected to start within 12 months of the set-up date.
   2. For projects consisting of the acquisition of standard housing by the PJ, the agreement
      must be a binding contract for the sale of an identifiable property and the property title
      must be transferred to the PJ (or other entity) within six months of the date of the
Glossary of Housing Acronyms and Terms
   3. For projects involving the acquisition of standard housing and where the PJ is providing
      HOME funds to a purchaser under the agreement, the title of the property must be
      transferred to the purchaser within six months of the agreement date.
   4. For projects consisting of tenant-based rental assistance (TBRA), the PJ must enter into a
      rental assistance contract with the owner or the tenant in accordance with the provisions
      of 24 CFR Part 92.209.

Committee on Uniform Securities Identification Procedures (CUSIP Number) – A CUSIP
number is an identification number assigned to each maturity of an issue, which is usually
printed on the face of each individual certificate of issue. The CUSIP numbers are intended to
help facilitate the identification and clearance of municipal securities.

Common Elements - Parts of a property that are necessary or convenient to the existence,
maintenance, and safety of a condominium, or are normally in common use by all of the
condominium residents. Each condominium owner has an undivided ownership interest in the
common elements.

Common Space (Section 8) – In shared housing: Space available for use by the assisted family
and other occupants of the unit.

Common Stock - a security that provides voting rights in a corporation and pays a dividend after
preferred stock holders have been paid. This is the most common stock held within a company.

Community 2020 - Mapping software developed by HUD to track where various HUD funds
are being spent in communities across the country. Communities are being encouraged to utilize
the new software in any new Consolidated Plans they are planning to submit to HUD for federal

Community Action Agency (CAA) or Community Action Council (CAC) - Community
Action Agency or Community Action Committee or Community Action Council. A nonprofit
comprehensive social service agency often serving a large area (several counties) and created as
an anti-poverty organization under requirements of the Office of Economic Opportunity (OEO),
which became the Community Services Administration (CSA), and is now part of the federal
Department of Health and Human Services (HHS). CAAs are also known as CAP (for
Community Action Program) agencies, and operate an array of assistance programs, such as
weatherization and emergency housing, shelters for the homeless, and employment training.

Community Action Program (CAP) – The Community Action Program was created under the
Economic Opportunity Act of 1965 and restructured under the Omnibus Budget and
Reconciliation Act of 1981. The program was created to examine and ameliorate the causes of
poverty in the U.S. CAP agencies are nonprofits that operate an array of assistance programs,
such as weatherization and emergency housing for low-income homeowners, shelters for the
homeless and employment training.
Glossary of Housing Acronyms and Terms

Community and Housing Development Organization (CHDO) (HOME) - A federally
defined type of nonprofit housing provider that must receive a minimum of 15 percent of all
Federal HOME Investment Partnership funds. The primary difference between CHDO and other
nonprofits is the level of low-income resident participation on the Board of Directors. HUDWEB,
Continuum of Care and Veterans Programs Glossary

Community Builders (CB) - People selected to receive training at Harvard and HUD before
working in two-to-four year temporary fellowships. Community Builders are trained in all
aspects of HUD operations to serve as team builders, fostering partnerships and innovation inside
and outside the agency. HUD Press Release, March 18, 1998

Community Development Block Grants (CDBG) (HOME) - Programs administered by HUD
to aid community and economic development, mostly to benefit activities serving low and
moderate income persons. Three types of CDBGs:
       CDBGs (Entitlement) - Grants to entitlement communities, for a wide range of
       community development programs for neighborhood revitalization, economic
       development and improved community facilities and services. These communities
       develop their own programs in consultation with local residents.
       CDBGs (Non-Entitlement) - For States and Small Cities: Grants to non-entitlement
       communities, for similar programs.
       CDBGs (Section 108 Loan Guarantee) - These are loan guarantees that offer
       eligible communities financing for housing rehabilitation, economic development
       and large-scale physical development projects.
Federal funding that allows communities to create flexible, locally designed comprehensive
community development strategies to enable them to develop viable urban communities (Title I,
Housing and Community Development Act of 1974)

Community Development Corporation (CDC) – Non-profit groups accountable to local
residents that engage in a wide range of physical, economic and human development activities.
CDCs rebuild their communities through housing, commercial, job development and other

Community Development Financial Institutions Fund (CDFI) - The CDFI Fund was created
for the purpose of promoting economic revitalization and community development through
investment in and assistance to community development financial institutions (CDFIs).

Community Home Improvement Mortgage Loan - An alternative financing option that
enables low- and moderate-income home buyers to purchase housing that has been improved by
a non-profit Community Land Trust, and to lease the land on which the property stands.

Community Housing Development Organization (CHDO) (HOME) - A private, nonprofit
organization that meets a series of qualifications prescribed in the HOME regulations at 24 CFR
Glossary of Housing Acronyms and Terms
Part 92.2. A participating jurisdiction must award at least 15 percent of its annual HOME
allocation to CHDOs. CHDOs may own, develop, or sponsor HOME-financed housing.

Community Housing Resource Board (CHRB) - An organization composed of representatives
of various groups having an interest in fair housing and equal opportunity, to assist with
voluntary compliance with fair housing law.

Community Investment Program - This is a program offered through the Federal Home Loan
Bank System which provides finds for community-oriented mortgage lending. Under the
Program, each Bank also designates a community investment officer to implement the Banks’
community lending and affordable housing advance programs.

Community Land Trust (CLT) (LIHTC) - Community land trusts are a form of shared equity
homeownership designed to ensure that homes made affordable through public or philanthropic
subsidies remain affordable over the long-term. Under the traditional community land trust
model, a nonprofit community land trust is established to own the land on which homes are
situated. The trust then sells the physical structures to home purchasers for an affordable price,
along with a long-term lease on the land. When the home is sold, it must be sold an affordable
price to a qualifying homebuyer.

Community Planning and Development (CPD) - HUD's Office of Community Planning and
Development seeks to develop viable communities by promoting integrated approaches that
provide decent housing, a suitable living environment, and expand economic opportunities for
low- and moderate-income persons. The primary means toward this end is the development of
partnerships among all levels of government and the private sector, including for-profit and
nonprofit organizations.

Community Reinvestment Act (CRA) - An act of Congress enacted in 1977 with the intention
of encouraging depository institutions to help meet the credit needs of surrounding communities
(particularly low and moderate income neighborhoods). The CRA requires federal regulators to
assess the record of each bank or thrift in helping to fulfill its obligations to the community. This
record will then be used in evaluating applications for future approval of bank mergers, charters,
acquisitions, branch openings and deposit facilities.

Community Service Block Grant - Community Services Block Grant. Federal program
administered by the Department of Health and Human Services, providing grants to states and
federally recognized Indian tribes, most of which is passed through to local CAAs for a variety
of social services and anti-poverty activities

Comparables - Properties used as comparisons to determine the value of a particular property.
They are generally recently sold properties that are similar in size, location and amenities to the
home for sale. Comparables help appraisers determine the fair market value of a property.
Glossary of Housing Acronyms and Terms
Comparative Market Analysis (CMA) – A comparison of recently-sold homes that are
substantially equivalent to each other in terms of selling price, location, style and amenities. Also
know as a Competitive Market Analysis.

Competitive Bids – A sale of municipal securities by an issuer in which underwriters or
syndicates of underwriters submit sealed bids to purchase the securities. This is contrasted with
a negotiated underwriting.

Competitive Market Analysis - An estimate of what a property might bring based on the sale or
offering of similar properties. This is usually compiled by a real estate agent.

Complaint (Legal) - is a legal document drawn by an attorney to serve on the defendant with a
summons to initiate a lawsuit. (The most common example is a complaint to determine the
dischargeability of a debt; this is also sometime called an adversary proceeding.)

Compliance Agent – The organization which is responsible for completing the Compliance

Compliance Monitoring - The process of determining whether program requirements continue
to be met. For example, the Low Income Housing Tax Credit program has specific compliance
monitoring requirements.

Compliance Period (LIHTC) – The compliance period is the fifteen (15) year period beginning
with the first taxable year of the credit period during which the property is required to comply
with Section 42 of the Internal Revenue Code and other regulatory documents.

Compliance Period (HTF) - The Housing Trust Fund program is designed to increase the
supply of permanent affordable housing over an extended period of time. The compliance period
is twenty (20) years.
    • Forgivable Housing Trust Fund awards are forgiven at a rate of five percent (5%) per
       year over a twenty (20) year period.
    • Restrictive covenants will be utilized for owner-occupied rehabilitation. This eliminates
       the need for a formal loan closing.

Compliance Review – In a multi-family project, the review process by which the compliance
agent determines whether the property manager is leasing enough units to qualified tenants to
satisfy the federal affordability requirements associated with the type of long term financing
utilized. In a single-family program, the review process by which the Compliance Agent
determines whether each potential homebuyer conforms to the requirements for borrowers
determined by Federal Tax Law,

Comprehensive Grants Program (CGP) - HUD grant program via an annual formula to large
public housing authorities to modernize public housing units.

Comprehensive Homeless Assistance Plan (CHAP) - Plans, required by law, which are
submitted by states and local governments to the Secretary for approval before HUD assistance
Glossary of Housing Acronyms and Terms
for the homeless can be made available.

Comprehensive Housing Affordabilty Strategy (CHAS) – An analysis of housing needs and
strategies which are required of states and local governments to receive HUD program funds or

Comprehensive Community Initiatives (CCI) – Comprehensive Community Initiatives (CCIs)
are neighborhood-based efforts that seek improved outcomes for individuals and families as well
as improvements in neighborhood conditions by working comprehensively across social,
economic and physical sectors.

Comprehensive Grant Program (CGP) - The Comprehensive Grant Program, which provided
HUD funds to medium and large (more than 250 units) PHAs for rehabilitation of housing
projects. CGP has been replaced by the public housing Capital Fund.

Comprehensive Improvement Assistance Program (CIAP) – For Public Housing Authorities
that own or operate fewer than 250 units, CIAP is the primary source of funds for making
physical and management improvements. Through CIAP, HUD makes funds available to help
smaller public housing agencies (PHAs) correct physical, management, and operating
deficiencies and keep units in the housing stock as sage and desirable homes for low-income

Comprehensive Needs Assessment (CNA) - The CNA is a statutorily required description of
current and future financial resources and needs of certain multifamily projects. It describes
available resources for meeting the current and future needs of the project and the likelihood of
obtaining such resources which might include assistance from private foundations, State and
local governments, any HUD programs, rent increases, etc. The CNA involves project residents
in its development from start to finish and is based on a thorough and detailed physical
inspection of the project. It also includes descriptions of modernization needs and activities,
supportive services needed and provided, and personnel needs, including service coordinators
and security staff.
The CNA program is intended to inform Congress and HUD of the current status of existing
programs. It was authorized in 1992, but not implemented until 1995. By statute, the first round
of CNA’s is required to be completed by the end of Fiscal Year 1997.

Comprehensive Plan - A comprehensive plan is a written document that identifies the goals,
objectives, principles, guidelines, policies, standards, and strategies for the growth and
development of the community. This plan includes land use patterns according to whether a
given district or parcel will be devoted to residential, commercial, or industrial use. Such a plan
also includes transportation, public facilities, and sometimes social services or redevelopment

Computer Match (Section 8) – The automated comparison of data bases containing records
about individuals
Glossary of Housing Acronyms and Terms
Condemnation (Legal) – (1.) a legal process in which a government acquires private property
for public use (2.) a declaration by a government agency that a property is unfit for use.

Conditional Commitment - Document which affirms the commitment to insure a mortgage on a
particular project or property. Term applies to both Single Family and Multifamily mortgage

Conditional Endorsement - A type of restrictive endorsement on a negotiable instrument that
designates both the next titleholder and conditions to the endorser's liability

Conditional Use Permit (LIHTC) - A conditional use permit (CUP) is granted by a
municipality to authorize a development type or land use on a specific lot that would not
otherwise have been permitted by the underlying zoning code. In many cases, the permit is
granted only upon the fulfillment of certain conditions. For example, the developer of a
multifamily project may receive permission to build at a higher density than ordinarily allowed
in exchange for the inclusion of a modest share of affordable homes in the development.

Confession of Judgment Clause (Foreclosure) - A written agreement in which the borrower
admits liability and accepts the amount of agreed-upon damages that they must pay to the lender
in the event of a default of an underlying loan obligation, including the note that may be secured
by a mortgage, and agrees that the statement may be filed as a court judgment against them if
they do not pay or perform as agreed. This avoids further legal proceedings and may prevent a
legal judgment being filed if the borrower fulfills all of the terms.

Confirm Title - Title is the sum total of legally recognized rights to the possession and
ownership of property. In the case of real property, an action to quiet title, sometimes referred
to as an action to "confirm title" may be brought to affirm ownership of the property when others
claim an interest in such property. This is often seen in relation to back tax liens or liens or
easements (rights of way) on the property.

Confirmation (Bankruptcy) - Approval of a plan of reorganization by a bankruptcy judge

Confirmation (Bankruptcy) - this is a court order entered by the United States Bankruptcy
Court Judge which contains the terms of repayment for bankruptcies filed under Chapters 9, 11,
12, or 13.

Confirmatory Review (Section 8) – An on-site review performed by HUD to verify the
management performance of a PHA

Confirmed (Bankruptcy) - A plan of reorganization in Chapter 11, 12 or 13 approved by the
court and binding on the parties is said to be confirmed.

Conflict of Interest - A situation in which an official or fiduciary decision maker is faced with a
possible decision from which he or she stands to personally gain and so the decision maker must
step down from one role or the other.
Glossary of Housing Acronyms and Terms
Conformed Copy (Legal) - An exact copy of a document filed with a court. To conform a copy,
the court clerk will stamp the document with the filing date and add any handwritten notations to
the document that exist on the original, including dates and the judge's signature. A conformed
copy may or may not be certified.

Conforming Loan - A mortgage loan that meets all Fannie Mae and Freddie Mac underwriting
guidelines (See Fannie Mae, Freddie Mac)

Congregate Housing Services Program (CHSP) – Begun in 1990, CHSP is a program
designed to provide meals, expanded services, and funding for retrofit and certain
modernization activities in housing projects for the frail elderly and non-elderly disabled. CHSP
is a competitive program, and Notice of Funding (NOFA) availability is published annually in
the Federal Register. Applications are rated and ranked and the highest scoring application is
funded. This program is operated in conjunction with the Public Housing Division since grant
funds can be awarded to public housing properties. It was intended to be a five (5) year
renewable grant, but new funding has not been appropriated since FY95. The first CHSP
contracts will expire in FY98.

Congressional Budget Office (CBO) - Budget organization created by the Congressional
Budget Impoundment and Control Act of 1974 which provides staff assistance to Congress on
the Budget

Congressional Research Service (CRS) - The research arm of the Congress.

Consent Foreclosure - Forecloses the interests of the mortgagor and any other lien claimant.
The party being foreclosed upon agrees not to contest the proceeding or the eventual sale of the
property involved.

Consent Form (Section 8) – Any consent form approved by HUD to be signed by assistance
applicants and participants to obtain income information from employers and State Wage
Information Collection Agencies (SWICAs); return information from the Social Security
Administration (including wages, net earnings from self-employment, and retirement income);
and return information for unearned income from the IRS. Consent forms expire after a certain
time and may authorize the collection of other information to determine eligibility or level of

Consent Judgment (Legal) - A judgment issued by a judge based on an agreement between
parties of a lawsuit to settle the matter. It is aimed at ending the lawsuit with a judgment that is

Conservator (Legal) - A guardian, protector, preserver or receiver appointed by a court to
administer the person and property of another (usually an incapable adult) and to ensure that the
property will be properly managed. A conservator may not need a real estate license to sell the
protected real estate, although the sale does require court approval.
Glossary of Housing Acronyms and Terms
Consolidated Metropolitan Statistical Area (CMSA) - An area that has a census population of
one million or more, has component parts that qualify as primary metropolitan statistical areas
(PMSAs) based on official standards, and local opinion favors the designation. CMSAs consist
of whole counties, except for the New England states, where they consist of county subdivisions
(primarily cities and towns).

Consolidated Omnibus Budget Reconciliation Act (COBRA) - A federal law requiring that
employers offer employees -- and their spouses and dependents -- continuing insurance coverage
if their work hours are cut or they lose their job for any reason other than gross misconduct.
Courts are still in the process of determining the meaning of gross misconduct, but it's clearly
more serious than poor performance or judgment. COBRA also makes an ex-spouse and children
eligible to receive group rate health insurance provided by the other ex-spouse's employer for
three years following a divorce.

Consolidated Plan (Con Plan) - Developed by local and state governments with the input from
citizens and community groups, the Consolidated Plan serves four functions: 1) it is a planning
document for each state and community, built upon public participation and input; 2) it is the
application for funds under HUD's formula grant programs (CDBG, HOME, ESG, and
HOPWA); 3) it lays out local priorities; and 4) it lays out a 3-5 year strategy the jurisdiction will
follow in implementing HUD programs.

Consolidation Loan – A consolidation loan is a loan that consolidates, or pays off, several old
loans and replaces them with one new loan, usually to obtain a lower interest rate or lower
monthly payment by extending the loan over a longer period of time.

Consortium (HOME) - Geographically contiguous units of general local government
consolidated to be in a single unit of general local government for HOME Program purposes
when certain requirements are met.

Constitutional Home Rule Subdivision - Constitutional home rules subdivision describes a
political subdivision with home rule powers under the state constitution. These subdivisions
receive special treatment under the LIHTC state allocation rules.

Construction Loan Certificate (CLC) – Temporary, short-tern GNMA securities that are
issued by GNMA-approved lenders in connection with construction draws requested by a
developer as project is built. The maturity date of all CLCs is always set at a date at least twice
as long as FHA’s estimated construction period. The CLC bears an interest rate equal to the
pass-through rate.

Constructive Eviction (Legal) - Actions of a landlord that so materially disturb or impair a
tenant's enjoyment of the leased premises that the tenant is effectively forced to move out and
terminate the lease without liability for any further rent.

Constructive Notice (Legal) - Notice given to the world by recorded documents regarding
interests and rights in real estate. All people are charged with knowledge of such documents and
their contents, whether or not they have actually examined them.
Glossary of Housing Acronyms and Terms

Consumer Credit Counseling Service (CCCS) - A national non-profit agency that, at no cost,
helps debtors plan budgets and repay their debts. One major criticism of CCCS is that each office
is primarily funded by voluntary donations from the creditors that receive payments from debtors
repaying their debts through that office. Despite this criticism, most CCCS counselors provide
clients with thorough and neutral advice.

Consumer Credit Protection Act - The Consumer Credit Protection Act, passed in 1968, for
the first time spelled out basic consumer protections, including Truth in Lending disclosures. It
requires creditors to state the cost of borrowing in understandable terms to allow consumers to
figure out how much loans would cost, and to compare them.

Consumer Debtor (Bankruptcy) – A debtor whose debts are primarily consumer debts

Consumer Debts (Bankruptcy) - Debts incurred for personal, as opposed to business, needs.

Consumer Leasing Act - A federal law that requires lease agreements to include certain terms,
including a statement of the number of lease payments and their dollar amounts, penalties for not
paying on time and whether a lump sum payment is due at the end of the agreement. Despite this
law, many vehicle lease agreements are nearly impossible to decipher.

Consumer Price Index (CPI) – CPI is published monthly by the Department of Labor as an
inflation indicator.

Contested Matter (Bankruptcy) - Those matters, other than objections to claims, that are
disputed but are not within the definition of adversary proceeding contained in Rule 7001.

Contiguous Metropolitan Statistical Area (Section 8) – In portability (under subpart H of part
982): An MSA that shares a common boundary with the MSA in which the jurisdiction of the
initial PHA is located.

Contingency for Clear Title - Your purchase contract should include a contingency that the
purchase is subject to your receiving clear title to the property. This process includes a title
search and title insurance.

Contingency Reserve - Most mortgages for purchase-renovation require an additional 10
percent of the total cost of the project to be put aside into a reserve account. This contingency
reserve is only used when unforeseen repairs or deficiencies are found during renovation.

Contingent Claim (Bankruptcy) - A claim that may be owed by the debtor under certain
circumstances, e.g., where the debtor is a cosigner on another person's loan and that person fails
to pay.
Glossary of Housing Acronyms and Terms
Contingent Remainder (Legal) - A contingent remainder is an interest in real estate property,
which will go to a person or entity only upon the existence of a certain set of circumstances at
the time the title-holder dies. It is a future property ownership right which depends upon the
fulfillment of specific conditions. For example, the interest may be contingent on the person
surviving a close relative of the title-holder. If the specified conditions are not met, the remainder
never takes effect. The future estate, otherwise valid, will not be void on the ground of the
probability or improbability of the contingency upon which it is limited to take effect.

Continuing Disclosure Information (Pilot) (CDI) - This is the Municipal Securities
Rulemaking Board’s (MSRB’s) effort to collect continuing financial information regarding
municipal bond issues.

Continuing Resolution - Enacted legislation for federal agencies to continue operations until the
regular appropriation is enacted. Continuing resolutions usually specify a maximum rate for
obligations during a specified period of time. (i.e., the government shut-downs in early FY96
because departmental funding bills had not been completed.) Usually, the CR funds programs at
the lowest of the House-passed level, the Senate passed level or the current fiscal year rate. Until
FY06, CRs traditionally continued funding programs at the prior year levels in order to ensure
that no programs are cut prior to final Congressional action.

Continuously Assisted (Section 8) – An applicant is continuously assisted under the 1937 Act if
the family is already receiving assistance under any 1937 Housing Act program when the family
is admitted to the voucher program.

Continuing Disclosure Agreement – An agreement between the Issuer and the underwriters in
which the Issuer agrees to comply with the requirements of SEC Rule 15(c)(2)-12(b)(5). Under
this rule, Underwriters are required to provide information to investors concerning any events
which would be deemed material to determining the value of a bond. In the Continuing
Disclosure Agreement, the Issuer agrees to provide this information on behalf of the

Continuum of Care (CoC) - A program to help more than 330,000 homeless Americans get
housing, job training, child care, and other services. The Continuum of Care, which is the
centerpiece of the federal policy on homelessness, stresses permanent solutions to homelessness
through comprehensive and collaborative community planning. In 1997, the Continuum of Care
was one of 25 finalists, out of 1400 competitors, for the prestigious Innovations in American
Government Award that is awarded by the Ford Foundation and the Kennedy School of
Government at Harvard University. HUDWEB 1/4/99

Contract (Section 8) – See Housing Assistance Payments Contract

Contract Administration (CA) (HUD) – Also known as Project Based Contract
Administration and Performance-Based Contract Administration (PBCA). In 2000, HUD began
transferring to third party agents (most commonly, the state housing finance agencies or public
housing authorities with some public/private partnerships) the administration duties for
projectbased Section 8 contracts. PBCA’s handle all aspects of Section 8 renewal, rent
Glossary of Housing Acronyms and Terms
adjustments, review and payment of rental assistance contracts, etc. Portfolio asset management
(including approval of withdrawals from reserve for replacements and access to residual receipts)
continues to be the responsibility of the HUD field offices. In early 2005, the Department
achieved its goal of having one performance based contract administrator per state. Actually,
there are currently 56 PBCA contracts. There are two states, Washington and New York that
have both a PBCA and a PBCA – Participant Administrative Entity (PAE) contract.
Massachusetts has a PBCA and a PBCA-Demo Disposition contract. And the state of California
has two PBCAs administering the eligible project-based Section 8 contracts. The list of contracts
awards and assignments of projects to the contractors can be found at
In 2004 and 2005, HUD ran a formal solicitation to explore outsourcing of all non-Section 8
rental subsidy programs, including the Section 202/PRAC program, but at this time it has been
determined that HUD will continue to administer all non-Section 8 rental subsidy contracts.

Contract Administrator Oversight Monitor (CAOM) – The CAOM is a position given to
named HUD staff from the various HUBs and program centers designated to serve as a resource
to the third party contract administrators. Oversight of the CA initiative remains a HUD field
office responsibility.

Contract Authority - One of the basic forms of Budget Authority. Statutory authority under
which contracts or other Obligations may be entered into prior to an appropriation for the
payment of such obligations. The later enacted Appropriation provides cash to liquidate such
obligations. (JFMIP Core; A-34, Part 11, Section 21.1 (Budget Authority), p. 11-3) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Contract Authority (Section 8) – The maximum annual payment by HUD to a PHA for a
funding increment

Contract for Deed - A written agreement between the seller and buyer of a piece of property,
whereby the buyer receives title to the property only after making a determined number of
monthly payments; also called an installment contract or land contract.

Contract Renewal - Beginning in 1997, the first wave of long-term (20 year) Section 8 contracts
began to expire and were renewed according to a new standard of comparability (replacing the
Fair Market Rent standard) created under the Multifamily Assisted Housing Reform and
Affordability Act (MAHRA). Initially, contracts were renewed on an annual basis. In 2000,
owners were given the option of accepting longer-term contracts (generally for 5 years) “subject
to annual appropriations,” though longer terms may be requested and in some cases are required,
introducing new terminology of “initial” and “subsequent” renewals, and the concept of
multiyear rent adjustments.
In general, MAHRA required that expiring Section 8 project-based contracts be renewed under
Section 524(a)(1) or 524(a)(2).
Section 524(a)(1) renewals required a Rent Comparability Study (RCS). If the RCS indicated
rents at or below comparable market rents, the contract was renewed at current rents, unless the
Glossary of Housing Acronyms and Terms
Owner submitted documentation justifying a budget-based rent increase. In no case could
renewal rents exceed comparable market rents.
If the RCS indicated rents above comparable market rents, the contract was referred to OMHAR
for debt restructuring and/or rent reduction.
Section 524(a)(2) renewals were for projects identified as “exception” projects that were not
eligible for mark-to-market – these include the non-FHA insured properties such as Section 202,
Section 202/8, and Section 515.
Comprehensive contract renewal guidance was first issued under Notice H 99-36, with revised
and expanded and comparability study guidance under Notice H 2000-12. These and subsequent
clarification are now merged under the Section 8 Contract Renewal Guide available through the
HUD Multifamily Clearinghouse at (800) 767-7468. (See also opt-out, enhanced voucher, and
rent comparability study (RCS).)

Contract Rent (Section 8) – The rent HUD (or the contract administrator) authorizes an owner
to collect for a unit occupied by a family receiving assistance. The rent may be paid by the
tenant, HUD, or both. The term “contract rent” includes Section 236 basic rents, HUD-approved
rents for BMIR, Section 202 and Rent Supplement units, and the unit rents specified in a Section
8 HAP contract. The contract rent is listed on the project’s HUD-approved rent schedule (Form
HUD-92458) or HAP contract.
In the Section 8 Certificate Program, Contract Rent is the total rent paid to the owner, including
the tenant payment and the HAP payment from the PHA.

Contract Sale or Deed - A contract between purchaser and a seller of real estate to convey title
after certain conditions have been met. It is a form of installment sale.

Contracting Officer (CO) - COs are HUD's expressly authorized agents and represent HUD
with regard to contractual matters. Only COs may enter into, administer and terminate contracts.
CO authority is delegated in writing and limited by the specific terms of each delegation.

Contractual Lien - A legal claim against a property as a result of a voluntary contract

Control Activities - The policies and procedures which help ensure that management's
directives are carried out, and that actions are taken to address risks to achievement of the entity's
objectives. Control activities occur throughout the organization, at all levels and in all functions.
They include approvals, authorizations, verifications, reconciliation, reviews of operation
performance, security of assets, and segregation of duties. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Control Environment - The foundation for all other components of internal control, providing
discipline and structure. Control environment factors include the integrity, ethical values, and
competence of the entity's people; management's philosophy and operating style; the way
management assigns authority and responsibility and organizes and develops its people; and the
attention and direction provided by top management. The environment sets the tone for the
organization, influencing the control consciousness of its people. (JFMIP Framework)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms

Conventional Life Estate - A conventional life estate is created intentionally by the owner. It
may be established either by deed at the time the ownership is transferred during the owner's life
or by a provision of the owner's will after his or her death. The estate is conveyed to an
individual who is called the life tenant. The life tenant has full enjoyment of the ownership for
the duration of his or her life. When the life tenant dies, the estate ends and its ownership passes
to another designated individual or returns to the previous owner.

Conventional Mortgage Loan – A mortgage loan which is not guaranteed by FHA, VA or
USRD and which is either underwritten to conservative loan to value ratios or includes a Primary
Mortgage Insurance Policy.

Conversion (Bankruptcy) - Cases under the Bankruptcy Code may be converted from one
chapter to another chapter; for example, a Chapter 7 case may be converted to a case under
Chapter 13 if the debtor is eligible for Chapter 13. Even though the chapter of the Code which
governs it changes, it remains the same case as originally filed.

Conversion – The transformation/rehabilitation of an existing structure not currently used for
housing into affordable housing.

Conversion Clause - A provision that may appear in an adjustable-rate loan agreement allowing
the loan to be changed to a fixed-interest rate loan, usually for an additional charge

Conversion Provision - A feature of an adjustable-rate mortgage loan that allows the borrower
to change to a fixed-rate loan, with an interest rate and monthly payment that stay the same.

Convertibility Clause - A provision in some adjustable-rate mortgages (ARMs) that allows the
borrower to change the ARM to a fixed-rate mortgage at specified timeframes after loan

Convertible ARM - an adjustable-rate mortgage that provides the borrower the ability to
convert to a fixed-rate within a specified time

Convertible Option Bonds (COBs) – A bond which is sold as a short-term security but which
contains a provision allowing it to be remarketed into a long-term security as part of a single
family mortgage revenue bond issue.

Conveyance - The transfer of the title to land from one to another.

Cooling Off Rule (Bankruptcy) - The act that allows you to cancel a contract within a specified
time period after signing it.

Cooperation Agreement (Public Housing) - Contract between a local housing authority and the
governing body of the municipality where a public housing development is located, providing for
the governing body to furnish municipal services and facilities to the authority and for the
authority, in turn, to make stipulated payments in lieu of taxes to the municipality.
Glossary of Housing Acronyms and Terms

Cooperative (Section 8) – (term includes mutual housing). Housing owned by a nonprofit
corporation or association, and where a member of the corporation or association has the right to
reside in a particular apartment, and to participate in management of the housing. A special
housing type: See §982.619

Cooperative (CO-OP) - Housing in which each member shares in the ownership of the whole
project with the exclusive right to occupy a specific unit and to participate in project operations
through the purchase of stock.

Cooperative Management Housing Insurance Fund (CMHI) - One of four funds within the
FHA Fund; used to finance the Section 213 Cooperative Housing Mortgage Insurance Program.

Cooperative Mortgage - A loan that allows a borrower to buy shares in a cooperative residential

Cooperative Project - A building in which a corporation holds the title and sells shares of stock
to individuals who receive a lease or agreement as evidence of title.

Cooperation Agreement - Contract between a local housing authority and the governing body
of the municipality where a public housing development is located, providing for the governing
body to furnish municipal services and facilities to the authority and for the authority, in turn, to
make stipulated payments in lieu of taxes to the municipality.

Core-Based Statistical Area (CBSA) - Refers collectively to metropolitan and micropolitan
statistical areas.

Cost-Burdened - A household is considered cost-burdened if it spends 30% or more of its
annual income on housing. This standard, developed by HUD, was raised from 25% to 30% in
the late 1980’s. Using HUD’s 2005 AMI data for a family of four in Sarasota County, a
household is cost-burdened if it spends $16,770 or more annually on housing.

Cost Containment - A policy enacted in FY91 which substantially impacted facilities which
received their fund reservations between FY83 and FY88. HUD imposed requirements that 25%
of the units in elderly projects should be efficiency units, owners contain their design features
and eliminated most common area spaces and such amenities as balconies, etc. Such a policy is
responsible, in part, for the turn-over and vacancy problems experienced as subsidized renters
pay the same amount for an efficiency unit as for a one-bedroom. Design constraint also resulted
in the obsolescence of design and negatively impacted marketability.

Cost of Deposit Index (CODI) - The Cost of Deposit Index (CODI) is one of several indexes
commonly used to set the adjustment amount of an adjustable rate mortgage (ARM). CODI is
typically calculated as a 12-month moving average of three-month certificate of deposit, or CD,
yields as reported by the Federal Reserve Board. Lenders market CODI as an attractive pricing
index in times of rising rates. The length of the 12-month moving average, plus the tendency of
banks to drag their feet in raising CD rates both dampen the responsiveness of the index.
Glossary of Housing Acronyms and Terms

Cost of Funds Index (COFI) - an index used to determine interest rate changes for some
adjustable-rate mortgages.

Cost of Savings Index (COSI) - A popular index used for certain adjustable-rate mortgages
(ARMs). The index is a weighted average of the rates of interest on the deposit accounts
(sometimes called cost of savings) of the federally insured depository institution subsidiaries of
Golden West Financial Corporation (GDW). These subsidiaries currently operate under the
name World Savings.

Cost Plus Contract - A contract providing that the contractor's profit is fixed at a specific
percentage of the actual cost of labor and materials

Costs of Issuance (Bonds) – The costs associated with the issuance of an issue. Costs if
Issuance typically include Bond Counsel Fees, Financial Advisory Fees, Issuer Counsel Fees,
Trustee’s Fees, and Trustee’s Counsel Fees.

Council for Affordable and Rural Housing (CARH) - The Council for Affordable and Rural
Housing (CARH) is a non-profit trade organization. For over 28 years, CARH has served as the
nation’s premier association for participants in the affordable rural housing profession, including:
Builders, Owners, Developers, Managers, Non-profits, Housing Authorities, Syndicators,
Accountants, Architects, Attorneys, Bankers, and Companies that supply goods and services to
the industry.

Council of Large Public Housing Authorities (CLPHA) - The Council of Large Public
Housing Authorities is a national non-profit organization that works to preserve and improve
public and affordable housing through advocacy, research, policy analysis and public education.
Web site for National Organizations Concerned with Mental Health, Housing, and

County Median Income (CMI) - County Median Income. Income limits are set based on
HUD's estimate of median family income, adjusted for family size and area of the state. These
income limits determine the eligibility of applicants for HUD's assisted housing programs.

Coupon (Bonds) – The interest rate on a bond the Issuer promises to pay the holder until
maturity, expressed as a percentage of face value. The term derives from the small, detachable
piece of a bearer bond which, when presented to the Issuer, entitles the holder to the interest due
on that date.

Coupon Bond – A bearer bond, or a bond registered as to principal only, carrying coupons as
evidence of future interest payments. Traditionally, most municipal bonds had been issued in
coupon form. However, the Tax Equity and Fiscal Responsibility Act of 1982 requires that all
municipal securities with maturities longer than one year be issued in fully registered form.
Glossary of Housing Acronyms and Terms
Coupon Rate - The annual interest rate of a debt instrument. More generally, the annual interest
rate on any indebtedness. In mortgage banking, the term is used to describe the contract interest
rate on the face of a bond or note.

Covenant or Bond Covenant – The Issuer’s enforceable promise to do or refrain from doing
some act. With respect to municipal bonds, covenants are generally stated in the Bond,
Resolution, or Indenture. Covenants commonly made in connection with a bond issue include
covenants to collect principal and interest payments on invested funds; to enforce the terms of
the program’s mortgage loans; not to sell or encumber the mortgage loan; not to issue parity
bonds unless certain earnings test are met (additional bonds covenant); and not to take actions
which would cause the bonds to be arbitrage bonds (i.e., violate IRS regulations concerning
levels of permitted investment earnings).

Covenants, Conditions and Restrictions (CC&Rs) - Written rules and restrictions on the use
of property, agreed to by a homeowners association of condominium board, that are filed with a
county recorder's office and are legally enforceable.

Coverage – The ratio of pledged revenues or net operating income available annually to pay
debt service, as compared to the annual debt service requirement. The ratio is one indication of
the margin of safety for payment of debt service.

                                  pledged revenues or net operating income
                     coverage =         debt service requirement

Covered Families (Section 8) – Statutory term for families who are required to participate in a
welfare agency economic self-sufficiency program and who may be subject to a welfare benefit
sanction for noncompliance with this obligation. Includes families who receive welfare
assistance or other public assistance under a program for which Federal, State or local law
requires that a member of the family must participate in an economic self-sufficiency program as
a condition for the assistance.

Cramdown (Bankruptcy) - A court-ordered reduction of the secured balance due on a home
mortgage loan, granted to a homeowner who has filed for personal bankruptcy. In a cramdown,
the bankruptcy court splits the outstanding mortgage balance into two parts. The amount of debt
equal to the current appraised value of the home is treated as a secured claim, which the
borrower must continue to pay. The amount of debt in excess of the current property's value
becomes an unsecured claim, which is usually not repaid in full. In areas where home prices have
depreciated, cramdowns can result in significant mortgage reductions. In some cases, the judge
may order the remaining secured debt amortized over the remaining life of the loan term, thus
lowering monthly payments. In other cases, monthly payments remain the same as before the
cramdown, and the secured mortgage is simply paid off faster

Cranston-Gonzales – See “National Affordable Housing Act of 1990”
Glossary of Housing Acronyms and Terms
Credit Bid (Foreclosure) - A bid usually on behalf of the lender at a foreclosure auction. The
bid amount must be less than or equal to the balance of the loan that is in default.

Credit Counseling - Counseling that explores the possibility of repaying debts outside of
bankruptcy and educates the debtor about credit, budgeting, and financial management. Under
the new bankruptcy law, a debtor must undergo credit counseling with an approved provider
before filing for bankruptcy.

Credit Enhancement – An insurance policy or a letter of credit which provides a guaranty to
investors that they will receive the agreed-upon principal and interest payments on the bonds or
guaranteeing that principal and interest payments will be received on the pledged loan or loans.

Credit Event – An event which affects the credit worthiness of either the issuer, a specific
project, a guarantor, investment provider or swap provider. What constitutes a credit event will
be specified in the controlling documents; a guaranty agreement, continuous disclosure
agreement, investment agreement or the ISDA master agreement. The remedies for a credit
event are also specified in the controlling document and can include a requirement to post
collateral or even terminate the transaction.

Credit Period (LIHTC) – Generally beginning in the year that a building places-in-service, the
credit period is the consecutive ten (10) year period of time during which credits can be claimed.
The owner may elect to defer claiming credits until the next year after placing a building in
service. By the end of the following calendar year after placing-in-service, however, the owner
must have satisfied the minimum set-aside and must begin claiming credits.

Credit Recapture Amount - Credit recapture amount is the amount of credit that is recaptured
upon disposition of the LIHTC project during the compliance period. The maximum recapture is
two-thirds of the previously claimed credit and an interest charge applies.

Creditor Meeting (Bankruptcy) - A creditor meeting is a gathering that takes place several
weeks after a bankruptcy case is filed. The bankrupt debtor and the bankruptcy trustee must
attend the meeting, but creditors involved in the case have the option to participate. The creditor
meeting is also called a 341 meeting, after the section of the Bankruptcy Code that describes it.

Critical Success Factors - Key areas of activity in which favorable results are necessary for a
company to reach its goal. DAMA web site at

Cross-Default – A cross-default refers to an event of default in an agreement triggered because
the party defaults in another obligation.

Cross-Default Thresholds – Thresholds, which are specified in the controlling agreements,
allow for a party to default on obligations up to the amount of the threshold before a cross-
default would occur.

Curable Defect - A problem with a property than can be remedied.
Glossary of Housing Acronyms and Terms
Cure the Default (Foreclosure) - Reinstate or payoff the loan.

Current Authority - Budget Authority made available by the Congress in, or immediately prior
to, the fiscal year or years during which the funds are available for Obligation.

Current Delivery Bond – Bonds which are delivered on the bond issue’s closing date

Current Interest Bond – See “Coupon Bond”.

Current Yield – The ratio of interest to the actual market price of the bond stated as a
percentage. For example, a $1,000 bond that pays $80 per year in interest would have a current
yield of 8%.

Curtailment - A payment that reduces the principal balance of a loan.

DAODAS – Department of Alcohol and Other Drug Abuse Services, SC

DAP – Development Application Processing (FHA Multifamily Housing)

DAP – Down Payment Assistance Program FHA Single Family Housing)

DBA - Doing Business As

DBMS - Database Management System

DDA – Difficult Development Area

DDSN or DSN – Department of Disabilities and Special Needs, SC

DE – Direct Endorsement

DEC – Department Enforcement Center

DGMS – Department Grants Management System

DHEC – Department of Health and Environmental Control, SC

DHHS – Department of Health and Human Services, SC

DIM – Deferred Interest Mortgage

DJJ – Department of Juvenile Justice, SC

DMH – Department of Mental Health, SC
Glossary of Housing Acronyms and Terms

DMV – Department of Motor Vehicles, SC

DNR – Department of Natural Resources, SC

DOE – Department of Energy

DOFA - Date of Full Availability

DOL – Department of Labor

DOR – Department of Revenue, SC

DOT – Department of Transportation, SC

DPS – Department of Public Safety, SC

DRO – Deficit Restoration Obligation

DSIT – Division of State Information Technology, SC

DS – Due on Sale

DSS – Department of Social Services, SC

DTC - Depository Trust Company

DTCC - Depository Trust & Clearing Corporation

Data - Items representing facts, text, graphics, bit-mapped images, sound, analog or digital live-
video segments. Data is the raw material of a system supplied by data producers and is used by
information consumers to create information. DAMA web site at

Data Access Tools - An end-user oriented tool that allows users to build SQL queries by
pointing and clicking on a list of tables and fields in the data warehouse. DAMA web site at

Data Dictionary - Listing of information about data elements. Data dictionaries commonly
describe the contents of data elements, provide the names used by functional users of the system
to refer to elements, as well as the name or representation used within the programming and
tables of the system, and other descriptive information. The other descriptive information may
include the logic used to obtain that element; the size of the element; formatted reports that use
the element; and the source, type and potential users of the element. (JFMIP Framework)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms
Data Element - The most elementary unit of data that can be identified and described in a
dictionary or repository which cannot be subdivided DAMA web site at

Data Loading - The process of populating the data warehouse. Data loading is provided by
DBMS-specific load processes, DBMS insert processes, and independent fastload processes.
DAMA web site at

Data Mapping - The process of assigning a source data element to a target data element DAMA
web site at

Data Mining - A technique using software tools geared for the user who typically does not know
exactly what to search for, but is looking for particular patterns or trends in large amounts of
data. Data mining is the process of sifting through large amounts of data to produce data content
relationships. DAMA web site at

Data Replication - The process of copying a portion of a database from one environment to
other and keeping the subsequent copies of the data synchronized with the original source.
Changes made to the original source are propagated to the copies of the data in other
environments. DAMA web site at

Data Scrubbing - The process of filtering, merging, decoding, and translating source data to
create validated data for the data warehouse DAMA web site at

Data Set - HUD USER provides researchers with access to original electronic data sets
generated by PD&R-sponsored data collection efforts, including the American Housing Survey,
HUD median family income limits, as well as microdata from research initiatives on topics such
as housing discrimination, the HUD-insured multifamily housing stock, and the public housing

Data Stewardship - The process of managing information necessary to support program and
financial managers and assuring data captured and reported is accurate, accessible, timely, and
usable for decision-making and activity monitoring. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Data Store - A place where data is stored; data at rest. A generic term that includes databases
and flat files DAMA web site at

Data Transfer - The process of moving data from one environment to another environment. An
environment may be an application system or operating environment. See Data Transport.
DAMA web site at

Data Transformation - Creating "information" from data. This includes decoding production
data and merging of records from multiple DBMS formats. It is also known as data scrubbing or
data cleansing. DAMA web site at
Glossary of Housing Acronyms and Terms
Data Transport - The mechanism that moves data from a source to target environment. See
Data Transfer. DAMA web site at

Data Warehouse - An implementation of an informational database used to store sharable data
sourced from an operational database-of-record. It is typically a subject database that allows
users to tap into a company's vast store of operational data to track and respond to business
trends and facilitate forecasting and planning efforts. DAMA web site at

Data Warehouse Architecture - An integrated set of products that enable the extraction and
transformation of operational data to be loaded into a database for end-user analysis and
reporting DAMA web site at

Data Warehouse Engines - Typically implemented as relational databases (RDBMS) or multi-
dimensional databases (MDBMS). Data warehouse engines must provide strong query
capabilities, fast load mechanisms, and large storage access capabilities. DAMA web site at

Data Warehouse Infrastructure - A combination of technologies and the interaction of
technologies that support a data warehousing environment. DAMA web site at

Data Warehouse Management Tools - Software that extracts and transforms data from
operational systems and loads it into the data warehouse. DAMA web site at

Database Management System (DBMS) - An application or group of applications that control,
protect, and facilitate access to a collection(s) of data. DAMA web site at

Date-down (Foreclosure) - An extension to the title search that is commissioned during the
foreclosure process by a trustee’s sale guaranty. A date down is commissioned to make sure all
lien holders receive notification of the foreclosure action.

Date of Full Availability (DOFA) - Date when a Public or Indian Housing project is ready for

Dated Date – The date from which an investor will earn interest to be paid on the first interest
payment date after the purchase of their bond.

Dating Violence (Section 8) – Violence committed by a person who is or has been in a social
relationship of a romantic or intimate nature with the victim; and where the existence of such a
relationship shall be determined based on a consideration of the length of the relationship, the
type of relationship, and the frequency of interaction between the persons involved in the

Davis-Bacon – The Davis-Bacon Act of 1931 is a United States federal law which established
the requirement for paying prevailing wages on public works projects. All federal government
construction contracts, and most contracts for federally assisted construction over $2,000, must
Glossary of Housing Acronyms and Terms
include provisions for paying workers on-site no less than the locally prevailing wages and
benefits paid on similar projects. .

Day Count Convention – Determines how interest is calculated over a specified period of time.

     Typical day count conventions:
          Fixed Rate Municipal Bonds, Fixed leg of a swap:       30/360
          Variable Rate Demand Bonds, the BMA Index:             Actual/actual
          LIBOR, auction rate securities:                        Actual/360

De Facto – Latin for “in fact”

Dealer – A securities firm or department of a commercial bank that engages in the underwriting,
trading and sales of municipal securities.

Debenture - A broad term for any unsecured, long-term debt instrument. Corporations use
debenture bonds to raise capital. Municipal bonds are debenture bonds.

Debt Capital - Money loaned at an agreed interest rate for a fixed term of years: distinguished
from equity capital.

Debt Limit – The statutory or constitutional maximum debt that an issuer can legally incur

Debt Obligation (CPD) - means a promissory note or other obligation issued by a public entity
or its designated public agency and guaranteed by HUD under this subpart, or a trust certificate
or other obligation offered by HUD or by a trust or other offeror approved for purposes of this
subpart by HUD which is guaranteed by HUD under this subpart and is based on and backed by
a trust or pool composed of notes or other obligations issued by public entities or their designated
public agencies and guaranteed or eligible for guarantee by HUD under this subpart.

Debt Ratio - The relationship between a person's long term debt payments and their monthly

Debt Retirement - Debt retirement is the repayment of money owed. When a debt is completely
paid off, it's said to be retired.

Debt Security - A security that represents a loan from an investor to an issuer. The issuer in turn
agrees to pay interest in addition to the principal amount borrowed.

Debt Service – The amount of money necessary to pay interest on an outstanding debt, the serial
maturities of principal for serial bonds, and the required contributions to an amortization or
sinking fund for term bonds. Debt service on bonds may be calculated on a calendar year, fiscal
year, or bond fiscal year basis.

Debt Service Coverage – See “Coverage”
Glossary of Housing Acronyms and Terms
Debt Service Reserve Fund – A pool of funds invested pursuant to an Indenture which are to be
utilized to pay the principal and interest on a bond issue in the event that the mortgage loans or
the mortgage-backed securities do not provide sufficient funds.

Debt to Equity Ratio (LIHTC) - The debt to equity ratio is a financial ratio used to determine
whether a government agency, business, household, or other entity can safely borrow over long
periods of time. The ratio is calculated by dividing an entity's outstanding debt by the amount of
equity it holds. A high debt to equity ratio may indicate that an entity is financing its growth with
debt. For government agencies, debt to equity ratio is important because it will determine
whether it has a strong or weak bond rating.

Debt-to-Income Ratio - A borrower's monthly long term debt payments divided by the
borrower's gross monthly income and expressed as a percentage. This ratio is used by lenders to
determine if a loan applicant is qualified for the amount of the loan.

Debtor in Possession (Bankruptcy) - In a Bankruptcy Chapter 11 case, where the debtor retains
control and possession and assumes the duties, which are normally that of a case trustee. The
debtor in possession is a fiduciary position for the creditors of the estate and owes them the
typical fiduciary duties of care and loyalty.

Debtor’s Plan - A debtor's detailed description of how the debtor proposes to pay creditors'
claims over a fixed period of time.

Declaration of Covenants, Conditions & Restrictions - Document recorded to specify the
limitations or qualifications on land use imposed in a conveyance or other instrument

Declaration of Default (Foreclosure) - a written document that instructs the trustee to prepare
and record a notice of default and if necessary, to sell the secured property in order to satisfy the
unpaid obligation. This document does not require the acknowledgment of a notary public or
recording and is merely retained by the trustee in their foreclosure file.

Declaration of Homestead - A document recorded by either a homeowner or head of household
on his primary residence to protect his home from forced sale in satisfaction of certain types of
creditors’ claims.

Declaration of Trust - An instrument that identifies property held by a master for another

Deconstruction - HUD encourages Grantees to design programs that incorporate sustainable
construction and demolition practices, such as the dismantling or "deconstruction" of public
housing units, recycling demolition debris, and reusing salvage materials in new construction.
The publication "A guide to Deconstruction: an Overview of Deconstruction with a Focus on
Community Development Opportunities" is available at HUD USER: For articles on the concept of deconstruction,
go to the U.S. Forest Service website - - and enter deconstruction as
the search term.
Glossary of Housing Acronyms and Terms

Decoupling - A program to permit owners or purchasers of HUD Section 236-financed housing
to retain the Interest Reduction Payments (IRP) contract and subsidy after refinancing or adding
new debt to an existing Section 236 mortgage. The existing use restrictions must be extended for
five years beyond the outstanding mortgage term. Authorized by Section 236(b) and (e)(2) of the
National Housing Act. See also:IRP.

Decree of Distribution - A probate court decree which determines how the estate of a decedent
shall be distributed.

Decree of Foreclosure - A court order to set out the outstanding amount on a delinquent
mortgage in order to sell the property to pay the lending institution.

Dedication - The voluntary transfer, or transfer as a condition of subdivision approval, of private
property by its owner to the public for some public use, such as for streets or park land.

Deed – A written agreement in proper legal form that conveys title to, or an interest in, real

Deed Given to Secure a Debt - A form of mortgage in which title to the property is conveyed
from the borrower to the lender as security for the repayment of the debt. Also called a deed

Deed-in-lieu of Foreclosure – to avoid foreclosure (“in lieu” of foreclosure), a deed is given to
the lender to fulfill the obligation to repay the debt; this process doesn’t allow the borrower to
remain in the house but helps avoid the costs, time, and effort associated with foreclosure.

Deed in Trust - An instrument that grants a trustee under a land trust full power to sell,
mortgage and subdivide a parcel of real estate-the beneficiary controls the trustee's use of these
powers under the provisions of the trust agreement

Deed of Assent - A deed of assent is sometimes used to convey real property to heir(s) who are
entitled to the property under a decedent’s will. This type of deed constitutes the executor’s
agreement or “assent” to the transfer of the property to the heir(s), after all debts of the decedent
have been paid. Once the heir(s) own the property, they are free to deal with it as they choose.
This type of deed doesn't contain warranties of title, it conveys only such title as the decedent
held while still alive.

Deed of Distribution - A distribution deed is a method of transferring real property when the
devisee of real property cannot be determined by reading the will. In such cases, an executor or
administrator determines who is to receive the property. The typical distribution deed contains
the facts concerning the death of the record title holder and the probate of the will; identifies the
devisee and property in the same manner as other deeds; and conveys the property to the devisee
subject to all covenants, easements, etc., of record to the extent that they remain in effect, ad
valorem taxes and laws, ordinances, etc., relating to the property. Distribution deeds generally do
not contain a warranty of title.
Glossary of Housing Acronyms and Terms

Deed of Reconveyance - A document used to transfer legal title from the trustee back to the
borrower (trustor) after a debt secured by a deed of trust has been paid to the lender

Deed of Release - A deed of release is legal documentation that a claim on a property has been
removed. Once a mortgage debt is completely satisfied, either through regular payments or
refinance, a deed of release is issued to indicate that the lender no longer holds a security interest
in that property

Deed of Trust - An instrument given by the borrower to a third party (trustee) vesting title to the
property in the trustee as security for the borrower's repayment of the mortgage loan

Deed of Trust and Assignment of Rents - The first page of a lending instrument; identifies the
parties to the agreement, conveys title to the trustee, describes the collateral, states the terms and
conditions of the note, and refers to previously recorded "fictitious deeds of trust."

Deed of Trust Rider - The document required by the lender to be recorded along with the
security instrument for an ARM

Deed Restrictions - Clauses in a deed limiting the future uses of the property.

Deep Rent Skewing Set-Aside - Deep rent skewing set-aside is a special set-aside test that
applies for purposes of determining if existing tenants qualify as low-income tenants. This
special test is elective and must be met in addition to the general set-aside test (i.e. 20-50, 40-60
and 25-60).

Deep Subsidy - Programs narrowly targeted to serve those most in need, such as the later
Section 202 programs, serving very low-income persons (as opposed to low-income persons or a
mix of income groups). This kind of targeting required a deeper level of assistance for eligible
applicants than programs which serve people who have greater income and need less federal
financial assistance.

Default – Breach of some covenant, promise, or duty imposed by the Bond Indenture or other
agreement. The most serious default occurs when the Issuer fails to pay principal or interest (or
both) when due. Other “technical” defaults result when specifically defined events of default
occur, such as failure to meet covenants. If the Issuer defaults in the payment of principal,
interest, or both, or if a technical default is not cured within a specified period of time, the
bondholders or trustee may exercise legally available rights and remedies for enforcement of the

Default Judgment - A court order resulting from the failure of a defendant to answer a
complaint in a lawsuit.

Defeasance - Defeasance describes the retirement of bonds through the issuance of new bonds.
Glossary of Housing Acronyms and Terms
Defeasance Clause - A clause used in leases and mortgages that cancels a specified right upon
the occurrence of a certain condition, such as cancellation of a mortgage upon repayment of the
mortgage loan.

Defective Title - Title to real property which lacks some of the elements necessary to transfer
good title. Title to a negotiable instrument obtained by fraud.

Defensible Space - Residential environment whose physical characteristics, building layout, and
site plan function to allow inhabitants to become the key agents in ensuring their own security. A
defensible housing complex has the appearance of being composed of small, defined areas
controlled by specific groups of residents.)

Deferral - Under the Congressional Budget Impoundment Control Act, this is one type of
impoundment in which the President may request to delay or postpone the execution of a

Deferred Interest - Interest due but unpaid. Mortgages that permit negative amortization
(GPMs, and ARMs without a rate cap) will allow deferred interest.

Deficiency (Foreclosure) - In a foreclosure sale of a secured property, those funds still needed to
completely release the defaulting borrower after the lender has been paid, the accrued interest,
the foreclosure expenses and any damages incurred have been paid. See Deficiency Judgment.

Deficiency Judgment (Foreclosure) - A judgment entered against the borrower for the amount
remaining due when a property is sold at a foreclosure auction sale for less than the remaining
balance on the loan.

Deficit Restoration Obligation (DRO) (LIHTC) – Provision in the partnership agreement
requiring one or more partners to infuse capital into the partnership to restore negative capital
account balances upon liquidation of the partnership or partner’s interest.

Definite Authority - Budget Authority which is stated as a specific sum at the time the authority
is granted usually stated as "not to exceed".

De-leveraged Bonds - Bonds that pay investors according to a formula that is based on a
fraction of the increase or decrease in a specified index, such as the Constant Maturity Treasury
(CMT) rate or the prime rate. For example, the coupon might be 0.5 x 10-year CMT + 150 basis
points. The "de-leverage multiplier," (0.5) causes the coupon to lag behind overall movements in
market yields.

Delegated Underwriting and Servicing Program (DUS) - Fannie Mae's program under which
participating lenders are authorized to underwrite, close and sell loans to Fannie Mae.

Delinquency - Failure to make mortgage payments when mortgage payments are due.
Glossary of Housing Acronyms and Terms
Delinquency Experience – The level of loans past due, expressed as a percentage of the total
portfolio of loans. Most commonly, record-keeping for delinquent loans is according to 30, 60,
and 90-day intervals. Loans that are delinquent 60 days or more, (2 payments), are considered
“serious” delinquencies.

Delivery Date – The date on which the Issuer delivers the bonds to the Underwriters (in a public
offering) or to the investor (in a private placement) in exchange for funds delivered to the Issuer.
Also known as the Closing Date.

Delta Update - Only the data that was updated between the last extraction or snapshot process
and the current execution of the extraction or snapshot. DAMA web site at

Demand Letter (Foreclosure) - Notice to the borrower, sent by the lender or trustee, that she is
in default and that the loan must be cured or foreclosure proceedings will begin.

Demand Note - A debt instrument that allows the lender to call the balance due at any time
without prior notice

Demand Note/Demand Mortgage - note or mortgage that the lender can call due at any time
without prior notice.

Demand-Side - Demand-side housing policies address housing affordability challenges by
increasing individuals' purchasing power. For example, the federal government provides Section
8 housing choice vouchers to individual households to enable them to afford the costs of private-
market rental homes. Supply-side policies, by contrast, seek to directly expand the supply of
affordable homes – usually through subsidies to enable developers to build or rehabilitate
affordable homes.

Demolition Fee (LIHTC) - A fee paid to a municipality by a developer or demolition contractor
in order to obtain a permit to demolish a structure. Some older communities require demolition
fees to stem the loss of affordable homes by (a) discouraging demolition of older homes, which
tend to be more affordable than new construction; and (b) providing a revenue source that can be
directed into a housing trust fund and used for affordable homes.

Denial of Discharge (Bankruptcy) - an order normally after a hearing or trial, denying the
debtors discharge pursuant to 11 USC 727 on the basis of debtor misconduct. The denial cannot
be discharged in any subsequent bankruptcy.

Denomination – The face amount or par value of a security that the issuer promises to pay on
the maturity date. Most municipal bonds are issued in a minimum denomination of 45,000,
although a few older issues are available in $1,000 denominations.

Density - The number of housing units per unit of land, usually per acre.

Density Bonus (LIHTC) - Permission granted by a municipality to build more or larger units
than otherwise allowed by the existing zoning codes. Density bonuses are sometimes included as
Glossary of Housing Acronyms and Terms
an "offset" to compensate developers for revenue that may be lost due to a requirement in an
inclusionary zoning ordinance that a share of newly developed units be affordable to working
families. In other cases, density bonuses are granted as an incentive to encourage owners to
voluntarily include affordable units within new developments.

Deobligation - An agency's cancellation or downward adjustment of previously recorded
Obligations. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Dependent (Section 8) – A member of the family household (excluding foster children) other
than the family head or spouse, who is under 18 years of age or is Disabled Person or
Handicapped Person, or is full-time student 18 years of age or over.

Deposition - An important tool used in pretrial discovery where one party questions the other
party or a witness in the case. Often conducted in an attorney's office, a deposition requires that
all questions be answered under oath and be recorded by a court reporter, who creates a
deposition transcript. Increasingly, depositions are being videotaped. Any deponent may be
represented by an attorney. At trial, deposition testimony can be used to cast doubt on (impeach)
a witness's contradictory testimony or to refresh the memory of a suddenly forgetful witness. If a
deposed witness is unavailable when the trial takes place -- for example, if he or she has died --
the deposition may be read to the jury in place of live testimony.

Depository Trust Company (DTC) – A facility which acts as a securities depository on behalf
of investors to hold their bonds. One bond is issued for each maturity of an issue and the bond is
registered to DTC. DTC participates the interest in the bond to the actual investors. Bonds
which are held by DTC can be sold and transferred from one investor (DTC Participant) to
another investor (DTC Participant) without a physical exchange of the bonds.

Depreciable Costs (LIHTC) - Those development costs incurred in connection with a capital
asset that is subject to a loss of value brought about by age, physical deterioration or functional
or economic obsolescence.

Depressed Mortgage - A mortgage with a market value less than its face value.

Derivative Mortgage Product - financial instrument that is created by redistributing the cash
flows from some underlying instruments, such as mortgages or mortgage-backed securities, to
new classes of holders. The most common derivatives include multiple class securities, stripped
mortgage-backed securities, and residuals.

Derived Data - Data that is the result of a computational step applied to reference or event data.
Derived data is the result either of relating two or more elements of a single transaction (such as
an aggregation), or of relating one or more elements of a transaction to an external algorithm or
rule. DAMA web site at

Descent - Acquisition of an estate by inheritance in which an heir succeeds to the property by
operation of law.
Glossary of Housing Acronyms and Terms

Design Program (Public Housing) - Guidelines provided by a local housing authority to
architects, requiring, at minimum, plans and specifications that adhere to local zoning and
building requirements and HUD minimum property standards. The program usually sets forth the
type of refuse disposal, heating system, security features, materials required, and amenities

Design Standards - Standards governing the size, shape, and relationship of spaces in a building
or area.

Designated Housing Allocation Plan - A plan to designate a public housing development for
elderly families, disabled families, or a combination of the two. The Plan must be submitted to
HUD's Special Applications Center for approval and follow the requirements of Notice PIH 97-
12, as extended by Notice PIH 2001-17. A PHA may designate all, or a portion of a public
housing development for use by specific resident populations, provided that those residents are
already eligible for occupancy in public housing. More information is on HUD's website:

Designated Low Income Census Tracts - census tracts which have been designated by HUD as
particularly low-income areas based on 1994 income estimates. Tax credit projects located in a
low-income census tract may be allocated tax credits based on 130 percent of qualified basis.
The current list of designated low income census tracts will remain effective until the year 2000
census data becomes available.

Designation – When a bond is sold to an investor pursuant to a Priority Order, the investor is
allowed to determine which member or members of the Underwriting Group is to receive credit
for the bond sale. The investor can specify which members of the Underwriting Group can get
credit pursuant to the Issuer-approved Designation Rules.

Designation Rules (Bonds) – When a bond issue is marketed to investors, the Issuer approves
the rules which will be described in the Agreement Among Underwriters. These rules specify
the minimum number of members of the Underwriting Group who will get credit for the bond
sale and the maximum percentage of the sale any member of the Underwriting Group can be

Developer – Any individual, association, corporation, joint venture, or partnership, which
possesses the requisite skills and experience to successfully produce affordable multifamily
and/or single-family housing.

Developer/Sponsor Financing (LIHTC) - Financing invested by the owner exclusive of
developer fee and tax credit equity.

Developers Fee – The compensation to the developer for the time and risk involved to develop
the project.

Development (Section 8) - A public housing project under an ACC
Glossary of Housing Acronyms and Terms

Development Agreement - A document that establishes the business relationship and terms
between a PHA and its developer for a mixed finance development project.

Development Costs (LIHTC) - Costs incurred for the purpose of preparing raw land for the
construction of buildings or the rehabilitation of existing building. Development costs may
include planning, oversight, relocation, demolition, construction or rehabilitation, equipment,
interest and carrying charges, on-site streets and utilities, any contingency reserve, insurance
premiums and all other costs necessary to develop the housing project.

Development Funds - Funds awarded by HUD to PHAs under the Public Housing Development
Program consistent with regulations at 24 CFR part 941. Development funds can be used for any
activity eligible under the Capital Fund, and may be combined with HOPE VI and/or other funds
for this purpose. Although the last Development funds were distributed to PHAs in FY 1995,
many authorities have funds remaining which can be used in conjunction with a HOPE VI
project or in a mixed-finance project without HOPE VI.

Development Loan - A loan made to finance preparing raw land for the construction of
buildings. Such preparation may include grading and the installation of utilities and roadways.

Development Partner - A third party entity with which the PHA enters into a partnership or
other contractual arrangement to provide for the mixed-finance development of projects that
include public housing units. The Development Partner has primary responsibility with the PHA
for the development of the housing units and/or non-residential structures under the terms of the
approved mixed-finance proposal. PHAs must procure development partners in accordance with
24 CFR part 85, subject to the following proviso: 24 CFR 941 subpart F allows for procurement
by a PHA of a Development Partner using competitive proposal procedures for qualifications-
based procurement, where price may be negotiated separately.

Devise - A gift of real estate made by a will.

Difficult Development Area (DDA) - metropolitan areas and rural counties with high
construction, land, and utility costs relative to area median income. HUD establishes annually
which places qualify as difficult development areas by comparing Fair Market Rents to Area
Median Incomes. In 1996, 247 rural counties were designated as difficult development areas.
Tax credit projects in difficult development areas may be allocated tax credits based on 130
percent of qualified basis.

Direct Endorsement - The ability of an FHA-approved lender to secure FHA single- and
multifamily mortgage insurance by following FHA guidelines. Under a direct endorsement
program, applications for many of FHA's mortgage insurance programs can be underwritten by
approved lenders who certify that the mortgage complies with applicable FHA requirements.

Direct Leveraging Loan Program - The Direct Leveraging Loan Program makes it easier and
more economical for rural residents to own a home through lower interest rates and no down
payment. Under this program, the lender offers up to 50 percent of the mortgage amount as a
Glossary of Housing Acronyms and Terms
conventional 30-year, fixed-rate first mortgage and the Rural Housing Service (RHS) offers the
balance as a second mortgage at an interest rate that is generally below market. The RHS is part
of the U.S. Department of Agriculture.

Direct-Pay Credit Enhancement Instrument (CEI) – In a multi-family financing, the type of
enhancement offered by Fannie Mae and Freddie Mac for the purpose of providing full credit
support to taxable or tax exempt bonds. The direct pay structure of the instrument or agreement
provides that the bond trustee will draw upon the instrument from Fannie Mae or Freddie Mac
without first relying on loan payments made by the project borrower. Loan payments received
by the bond trustee pursuant to the multi-family note executed by the borrower at bond closing
are used to reimburse Fannie Mae or Freddie Mac for the draws made upon the instrument.
In a single-family financing, the type of enhancement typically used to guaranty unhedged
variable rate debt service payments or swap payments. A third party guarantor provides the
guaranty which makes payments directly to the trustee to satisfy the issuer’s obligation.
Payments from mortgage loans, mortgage backed securities, or even the issuer’s general fund are
then utilized to reimburse the guarantor for the draws made upon the instrument.

Direct Reduction Mortgage - A loan secured by real estate which is to be repaid by periodic,
usually equal, amounts that include part of the principal plus interest due on the unpaid balance.

Disability Assistance Expenses (Section 8) – Reasonable expenses that are anticipated, during
the period for which annual income is computed, for attendant care and auxiliary apparatus for a
disabled family member and that are necessary to enable a family member (including the
disabled member) to be employed, provided that the expenses are neither paid to a member of
the family nor reimbursed by an outside source.

Disabled Family (Section 8) – A family whose head, spouse, or sole member is a person with
disabilities; or two or more persons with disabilities living together; or one or more persons with
disabilities living with one or more live-in aides.

Disabled Person (Section 8) – “Disabled person” means a person who is under a disability as
defined in Section 223 of the Social Security Act (42 U.S.C. 423) or in Section 102(7)(b) or
6001(7) of the Development Disabilities Assistance and Bill of Rights Act.

Disaster Recovery Assistance - HUD provides flexible grants to help cities, counties, and States
recover from Presidentially declared disasters, especially in low-income areas, subject to
availability of supplemental appropriations.

Disbursements - Payments made using cash, checks, or electronic transfers. Disbursements
include advances to others as well as payments for goods and services received and other types
of payments made. (JFMIP Core, Pg. 48; Common Term) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

Discharge in Bankruptcy - an order given by the bankruptcy judge, at the conclusion of all
legal steps in processing a bankrupt person's assets and debts, which forgives those remaining
debts which cannot be paid, with certain exceptions. Debts for fraudulent or illegal actions,
Glossary of Housing Acronyms and Terms
alimony and child support and taxes are not dischargeable and remain owed (but often not
collectible if the bankrupt person has nothing). A discharge in bankruptcy is bad news for
unsecured creditors.

Dischargeable Debt (Bankruptcy) - Debts that can be eliminated pursuant to a bankruptcy
filing and the completion of the bankruptcy case.

Disclaimer - A statement denying legal responsibility, frequently found in the form of the
statement, "There are no promises, representations, oral understandings or agreements except as
contained herein." Such a statement, however, would not relieve the maker of any liabilities for
fraudulent acts or misrepresentations.

Disclaimer Deed - A disclaimer deed is a deed in which a spouse disclaims any interest in the
real property acquired by the other spouse. A mortgage company often asks a borrower to sign a
disclaimer deed so that his spouse not having her name on the loan, cannot claim any interest in
the property.

Disclosure – (1) A statement listing defects to a property. (2) A statement required by the Truth-
in-lending act that requires a lender to inform a borrower about the APR, finance charges, and
other terms of a loan.

Disclosure Statement (Bankruptcy) - A written document prepared by the chapter 11 debtor or
other plan proponent that is designed to provide "adequate information" to creditors to enable
them to evaluate the chapter 11 plan of reorganization.

Disclosure Statement (Bankruptcy) - A written document prepared by the chapter 11 debtor
or other plan proponent that is designed to provide "adequate information" to creditors to
enable them to evaluate the chapter 11 plan of reorganization.

Disclosure Statements - Information that government regulations require a lender to give a
borrower prior to consummation of a loan.

Discount - The amount by which the purchase price of the security is less than the principal
amount or par value.

Discount Bond – A bond which is sold to an investor at a price which is less that the principal
amount of the bond.

Discount Points – In a single-family program, an amount charged to a borrower by a lender for
the origination of a mortgage loan. One Discount Point is equal to 1.0% of the amount of the
mortgage loan. Typically the number of Discount Points which a lender can charge a borrower
is spelled out in the Mortgage Origination Agreement.

Discounted Cash Flow - calculation used to determine the future value of a cash stream
received over time, or the present value of a cash stream received over time.
Glossary of Housing Acronyms and Terms
Discovery - A formal investigation -- governed by court rules -- that is conducted before trial.
Discovery allows one party to question other parties, and sometimes witnesses. It also allows one
party to force the others to produce requested documents or other physical evidence. The most
common types of discovery are interrogatories, consisting of written questions the other party
must answer under penalty of perjury, and depositions, which involve an in-person session at
which one party to a lawsuit has the opportunity to ask oral questions of the other party or her
witnesses under oath while a written transcript is made by a court reporter.

Discretionary ARM - A discretionary ARM is a type of mortgage loan that gives the lender the
option of changing the borrower's interest rate without limitation. Usually, the lender must only
provide a certain notice to the borrower before implementing a rate change, and the rate can
change in any amount. Discretionary ARMs are not offered in the U.S.

Discretionary Grant - means a grant made from the various Special Purpose Grants in
accordance with subpart E of this part.

Dismissal (Bankruptcy) - the termination of a bankruptcy case prior to the order of discharge;
therefore, all debts are reinstated as if the case was never filed.

Displaced by Governmental Action (HUD) – An individual or family moved or to be moved
from real property occupied as dwelling unit as a result of activities in connection with a public
improvement or development program carried on by an agency of the United States or any state
or local government body or agency.

Displaced Person (Section 8) – “Displaced person” means a person displaced by governmental
action or a person whose dwelling has been extensively damaged or destroyed as a result of a
disaster declared or otherwise formally recognized pursuant to Federal Disaster Relief laws.

Displaced Family (Section 8) – A family in which each member, or whose sole member, is a
person displaced by governmental action, or a person whose dwelling has been extensively
damaged or destroyed as a result of a disaster declared or otherwise formally recognized
pursuant to Federal Disaster Relief Laws.

Disposable Income (Bankruptcy) - Income not reasonably necessary for the maintenance or
support of the debtor or dependents. If the debtor operates a business, disposable income is
defined as those amounts over and above what is necessary for the payment of ordinary
operating expenses.

Disposition (LIHTC) - The transfer or sale of an item, including a partnership interest or
partnership property, reserves and other partnership assets.

Disposition Bond (LIHTC) - A bond that may be posted to avoid credit Recapture upon
Disposition of the property or partner’s interest prior to the end of the compliance period.

Disposition Budget (LIHTC) - The general partner should prepare a disposition budget to
project expenses related to acquiring the partnership assets including staff time, deferred
Glossary of Housing Acronyms and Terms
maintenance issues, legal and accounting, refinancing costs, and other transaction related costs
required to transitioning the property for new ownership.

Disposition Demonstration Program - Also known as “dispo/demo,” this is a demonstration
program under which HUD enters into agreements with HFAs to dispose of some of the
properties that HUD owns as a result of foreclosures in HUD-insured mortgages.

Dispossess - To remove a person from his or her real property by lawful means, including, if
necessary, the use of force.

Distraint - The right of a landlord to seize the property of a tenant which is in the premises being
rented, as collateral against a tenant that has not paid the rent or has otherwise defaulted on the
lease, such as wanton disrepair or destruction of the premises.

Distressed Property - A property which is to be sold in order to pay arrears on a mortgage

Distributee - (1) Anyone who receives something. Usually, the term refers to someone who
inherits a deceased person’s property. If the deceased person dies without a will (called
intestate), state law determines what each distributee will receive. Also called a beneficiary.

Divided Interest - An ownership interest in only a part of a property. The interest in the selected
part may be total or partial.

Documentation System - Provides complete documentation of the development of the income
limits and median family incomes (since 2007), as well as fair market rents (since 2005), for any
area of the country.

Doing Business As (DBA) - A situation in which a business owner operates a company under a
name different from his or her real name. The owner must file a "fictitious name statement" or
similar document with the appropriate agency -- for example, the county clerk. This enables
consumers to discover the names of the business owners, which is important if a consumer needs
to sue the business.

Dollar Bond – A bond that is quoted and traded in dollar prices rather than in time of yield

Domestic Violence (Section 8) – Includes felony or misdemeanor crimes of violence committed
by a current or former spouse of the victim, by a person with whom the victim shares a child in
common, by a person who is cohabitating with or has cohabitated with the victim as a spouse, by
a person similarly situated to a spouse of the victim under the domestic or family violence laws
of the jurisdiction receiving grant monies, or by any other person against an adult or youth victim
who is protected form that person’s acts under the domestic family violence laws of the

Domicile (Section 8) – The legal residence of the household head or spouse as determined in
accordance with State and local laws.
Glossary of Housing Acronyms and Terms
Dominant Tenement - Used when referring to easements to specify that property (i.e. tenement)
or piece of land that benefits from, or has the advantage of, an easement

Dominant Estate - The property for the benefit of which a right-of-way easement exists across
another's adjoining piece of land is said to be the dominant estate. The land across which the
easement runs is said to be the servient estate.

Dominant Tenement - The estate that is said to attach to and derive benefit from the servient
estate in reference to an easement appurtenant. For example, an easement road passes over an
owner's land (the servient tenement) to give access to an adjacent parcel (the dominant
tenement). The dominant tenement usually adjoins the servient tenement.

Double-Barreled Bond – A bond secured by the pledge of two or more sources of repayment,
such as the unlimited taxing power of the issuer as well as revenues generated by a particular
user charge.

Double Exemption – Securities that are exempt from State as well as Federal Income Taxes are
said to have double exemption.

Double Tax-Exempt Bond – A bond which is exempt from both Federal and State Income

Dower - The legal right or interest, recognized in some states, that a wife acquires in the
property her husband held or acquired during their marriage. During the husband's lifetime the
right is only a possibility of an interest; upon his death it can become an interest in land.

Dower and Curtesy - A surviving spouse's right to receive a set portion of the deceased spouse's
estate -- usually one-third to one-half. Dower (not to be confused with a “dowry”) refers to the
portion to which a surviving wife is entitled, while curtesy refers to what a man may claim. Until
recently, these amounts differed in a number of states. However, because discrimination on the
basis of sex is now illegal in most cases, most states have abolished dower and curtesy and
generally provide the same benefits regardless of sex -- and this amount is often known simply as
the statutory share. Under certain circumstances, a living spouse may not be able to sell or
convey property that is subject to the other spouse’s dower and curtesy or statutory share rights.

Down Payment – In a single-family program, the portion of the purchase price of a home which
the borrower cannot borrow from the first mortgage lender.

Down Payment Assistance – In a single-family program, funds which are provided by the
Issuer or another third party which can be used to offset a portion of the borrower’s down

Draft Sale Deed - A legal document detailing about the parties entering into a specified
transaction. Ordinarily, it will be prepared and duly signed by the purchaser's advocate.
Glossary of Housing Acronyms and Terms
Dragnet Clause - A clause in a mortgage or deed of trust which places the real estate as security
for existing debts between the parties

Draw - A periodic payment made to a construction contractor or subcontractor as the project
progresses. A draw is part of a construction loan.

Draw-Down - The process of requesting and receiving HOME funds. PJs and authorized State
recipients draw down funds from a line of credit established by HUD.

Draw Down Bond – A single-family bond which the Issuer authorizes in a not-to-exceed
amount but which is not completely delivered at closing. Draw Down Bonds are typically used
to create a facility to capture and preserve volume cap.

Draw Period - The period of time when a borrower may withdraw funds or obtain advances
from the available line of credit. The time periods depend on the terms of your loan. At the end
of the draw period, the borrow may renew the credit line or be required to pay the outstanding
balance in full or in monthly payments

Drill Down - A method of exploring detailed data that was used in creating a summary level of
data. Drill down levels depend on the granularity of the data in the data warehouse. DAMA web
site at

Drug-Related Criminal Activity (Section 8) – Drug trafficking, illegal use or possession for
personal use, of a controlled substance as defined in Section 102 of the Controlled Substances
Act. As defined in 42 U.S.C. 1437f(f)(5)

Drug-Trafficking (Section 8) – The illegal manufacture, sale, or distribution, or the possession
with intent to manufacture, sell, or distribute, of a controlled substance as defined in Section 102
of the Controlled Substances Act (21 U.S.C. 802)

Dry Mortgage - Also known as "non-recourse loan" because the lender has no personal right of
action against the property owner in the event of default. The lender may only sell the property to
enforce the loan obligation.

Dual Index Mortgage - A dual index mortgage, or DIM, is a real estate property loan that uses
an interest rate index to accrue interest expense, and a wage and salary index to calculate the
monthly payment. If the payment doesn't cover the monthly accrued interest, the difference is
added into the loan balance. DIMs are not available in the U.S., but they're popular in some Latin
American countries

Due Diligence - process of assembling and reviewing project and partnership documents to
insure that all statements made by the developer/sponsor are true, that the land, property, and
partnership documents are all in order.

Due-on-Sale Clause - Standard language in a mortgage which states that the loan must be paid
when a house is sold
Glossary of Housing Acronyms and Terms

Due on Transfer Clause - This terminology is usually used for second mortgages. See due-on-
sale Clause.

Durable Power of Attorney - The Power of Attorney document contains the words, “this power
of attorney shall not be affected by subsequent disability, incapacity or incompetence of the
principal,” or similar words; may state that the power of attorney shall become effective upon the
incompetence of the principal.

Dutch Auction (Foreclosure) - The auction sale price is gradually lowered until a purchase

Dynamic Query - A query that is not pre-processed, but is prepared and executed at run time.
Usually desktop-resident query tools dynamically construct the SQL. DAMA web site at

EA – Environmental Assessment

EC – Enforcement Center (formally: Departmental Enforcement Center)

EC – Enterprise Communities

ECHO – Elder Cottage Housing Opportunity

ECOA – Equal Credit Opportunity Act

EDA – Economic Development Administration (part of Dept. of Commerce)

EDI – Economic Development Initiative (CPD program)

EDSS – Economic Development and Supportive Services (CPD program)

EEM – Energy Efficient Mortgage

EEO – Equal Employment Opportunity

EEOC - Equal Employment Opportunity Commission

EH&S – Exigent Health and Safety

EHOP – Equal Housing Opportunity Plan

EIN – Employer Identification Number
Glossary of Housing Acronyms and Terms
EIP – Employee Insurance Program, SC

EIR – Excess Income Report

EIR – Environmental Impact Report

EIS – Environmental Impact Statement

EIV – Enterprise Income Verification

ELIHPA – Emergency Low Income Housing Preservation Act of 1987

EMD – Emergency Management Division, SC

EOHP – Equal Opportunity Housing Plan

EPA – U.S. Environmental Protection Agency.

EPR - Effective Percentage Rate

EPS – Earnings Per Share

ERISA - Employee Retirement Income Security Act of 1974

ERV – Estimated rental Value

ESG – Emergency Shelter Grants (CPD program)

ETV - Educational Television Network

EZ – Empowerment Zones

EZ/EC - Empowerment Zones and Enterprise Communities

Earmarking – (1) Dedicating collections by law for a specific purpose or program. These
include offsetting collections credited to Appropriation accounts. (2) Dedicating appropriations
for a particular purpose. (GAO) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Earnings Per Share (EPS) - A corporation's profit that is divided among each share of common
stock. It is determined by taking the net earnings divided by the number of outstanding common
stocks held. This is a way that a company reports profitability.

Easement - The right to a specific use of or right to travel over land owned by another. The land
being used or traveled over is the servient tenement; the land that is benefited by the use is the
dominant tenement. An easement appurtenant is a property interest belonging to the owner of
Glossary of Housing Acronyms and Terms
dominant tenement and is transferred with the land; an easement in gross is a personal right that
usually is not transferable by its owner.

Easement By Condemnation - An easement created by the government or government agency
that has exercised its right under eminent domain.

Easement By Estoppel - An easement created when a person's words or actions lead another to
believe that an easement exists. If, in relying on those words or actions, the easement user acts to
his or her detriment, they may not deny the existence of the easement.

Easement By Necessity - An easement allowed by law as necessary for the full enjoyment of a
parcel of real estate; for example, a right of ingress and egress over a grantor's land.

Easement By Prescription - An easement acquired by continuous, open and hostile use of
property for the period of time prescribed by state law.

Easement in Gross - An easement that is not created for the benefit of any land owned by the
owner of the easement but that attaches personally to the easement owner. For exam ple, a right
granted by Eleanor Franks to Joe Fish to use a portion of her property for the rest of his life
would be an easement in gross.

Economic Development Administration (EDA) - Organization within the U.S. Department of
Commerce responsible for a number of grant and loan programs designed to help alleviate
conditions in economically depressed areas of the country.

Economic Development Initiative (EDI) - EDI provides communities with grants that can be
used in tandem with Section 108 guaranteed loans. This program provides communities with a
source of financing for economic development, housing rehabilitation, and large-scale physical
development projects.

Economic Life - The period over which a property is expected to yield a return on the
investment, over and above the economic or ground rent.

Economic Obsolescence - Impairment of desirability or useful life arising from economic
forces, such as changes in optimum land use, legislative enactments which restrict or impair
property rights and changes in supply-demand relationships. Loss in the use and value of
property arising from the factors of economic obsolescence is to be distinguished from loss in
value from physical deterioration and functional obsolescence.

Economic Occupancy – The ratio of net rental income to gross potential rent

Economic Rent - The amount of rent a property likely would command in the open market if it
were vacant and available for rent. Economic rent may be more or less than the actual rent
currently in force.
Glossary of Housing Acronyms and Terms
Economic Self-Sufficiency Program (Section 8) – Any program designed to encourage, assist,
train or facilitate the economic independence of assisted families, or to provide work for such
families. Can include job training, employment counseling, work placement, basic skills
training, education, English proficiency, Workfare, financial or household management,
apprenticeship, or any other program necessary to ready a participant to work (such as treatment
for drug abuse or mental health treatment). Includes any work activities as defined in the Social
Security Act (42 U.S.C. 607(d)). Also see §5.603(c)

Economy of Scale (LIHTC) - The economic principle that as the scale of production increases,
the cost of producing each additional unit decreases, leading to a lower average cost per unit.
This principle helps explain, for instance, some of the costs advantages of manufactured homes
and larger builders.

Educational Institution – An educational facility that maintains a regular faculty and
curriculum and which has a regularly enrolled body of students in attendance at the place where
its educational activities are regularly conducted.

Effective Date (Bankruptcy) - The point at when the plan of reorganization commences

Effective Federal Funds Rate - The average interest rate that federal funds actually trade at in a
day. The federal funds rate remains stable for months at a time, but the effective rate is often
volatile and will vary from day to day.

Effective Percentage Rate (EPR) - Similar to the Annual Percentage Rate (APR), the Effective
Percentage Rate (EPR) measures the cost of a mortgage stated as a yearly rate and includes such
items as interest, mortgage insurance, and loan origination fees (points). The difference between
the EPR and the APR is that the APR calculates the cost of a loan over the entire term of the loan
(30 year, for example). The EPR calculates the cost of the loan over the time you expect to keep
the loan or other specified period. This changes the relative costs of different loans because it
spreads your closing costs over what is usually a shorter time.

Effective Rent - The actual rent to be accrued by the landlord after deduction of concessions
from the base rent paid by a tenant.

Ejectment - A legal action brought to regain possession of property and to remove a party who
is not legally in possession.

Elder Cottage Housing Opportunity (ECHO) - Small, free-standing, barrier-free, energy-
efficient, and removable units designed to be installed adjacent to existing single-family

Elderly Household (Section 8) – A family whose head or spouse or whose sole member is at
least 62 years of age or a Disabled Person as defined in this section or a Handicapped Person as
defined in this section or may include two or more elderly, disabled or handicapped persons
living together or one or more such persons living with another person who is determined to be
essential to his/her care and well-being.
Glossary of Housing Acronyms and Terms

Elderly or Disabled Household (Section 8) – A participant family whose head or spouse or co-
head, or whose sole member, is at least 62 years of age or a disabled person. It may include two
or more elderly, disabled persons living together or one or more persons living with another
person who is determined to be essential to his/her care and well being.

Elderly Family (Section 8) – A family whose head, spouse, or sole member is a person who is
at least 62 years of age; or two or more persons who are at least 62 years of age living together;
or one or more persons who are at least 62 years of age living with one or more live-in aides.

Elderly Housing - Not to be confused with the statutory term of “Housing for Older Persons,” a
class of facilities which are exempt from the familial status provisions of the Fair Housing
Amendments Act, elderly housing is a loose term indicating intended target group for which the
sponsor developed the housing.
The needs and concerns for elderly housing programs are often distinguishable from those
impacting family housing. Elderly housing programs, however, need to be distinguished from
within multifamily housing as having a unique position in the long-term care reform efforts
concerning Medicare and Medicaid.

Elderly Person (Section 8) – One who is at least 62 years old

Electronic Signature - A paperless method of entering into an electronic contract. To "sign" a
contract electronically, a person may be asked to click an "I Accept" button or use a "key" to
encrypt (scramble) information that uniquely identifies the signer using a method called Public
Key Infrastructure (PKI). Electronic signatures are as binding as those in ink.

Eligible Basis (LIHTC) - the portion of development costs that are eligible for consideration in
the tax credit allocation process. Only depreciable development costs count towards the
project’s eligible basis. Land acquisition costs, for example, may not be included in the basis.

Eligible Existing Building - A taxpayer may normally receive a 30 Percent Value Credit for the
acquisition of an existing building if (1) it was purchased from an unrelated entity that owned it
for at least ten years and kept it in active use; (2) for the ten-year period preceding the purchase,
it did not undergo any rehabilitation in excess of 25 percent of its basis; and (3) no 15-year
compliance period is in effect for any previously received low-income housing tax credits. Please
note that these ten-year ownership requirements may be waived in certain circumstances where
federal mortgage or FDIC funds are at risk. The requirements also do not apply to certain non-
taxable transfers or to single-family houses that have been used as primary residences and sold
by one owner-occupancy to another.

Eligible Family (Section 8) – A family (including those covered by the definition of “Family” in
Part 812, which qualifies as Lower-Income family and which meets the other requirements of the
Act and Part 813.

Eligible Metropolitan Statistical Area (EMSA) (CPD) - means a metropolitan statistical area
that has a population of more than 500,000 and has more than 1,500 cumulative cases of AIDS.
Glossary of Housing Acronyms and Terms

Eligible Organization (CPD) - means a State, unit of local government or a private non-profit
organization which provides assistance to the homeless, and which is authorized by its charter or
by State law to enter into an agreement with the Federal government for use of real property for
the purposes of this subpart. Representatives of the homeless interested in receiving a deed for a
particular piece of surplus Federal property must be Section 501(c)(3) tax exempt.

Eligible Person (CPD) - means a person with acquired immunodeficiency syndrome or related
diseases who is a low-income individual, as defined in this section, and the person's family. A
person with AIDS or related diseases or a family member regardless of income is eligible to
receive housing information services, as described in Sec. 574.300(b)(1). Any person living in
proximity to a community residence is eligible to participate in that residence's community
outreach and educational activities regarding AIDS or related diseases, as provided in Sec.

Eligible State (CPD) - means a State that has:

   1. More than 1,500 cumulative cases of AIDS in those areas of the State outside of eligible
      metropolitan statistical areas that are eligible to be funded through a qualifying city; and
   2. A consolidated plan prepared, submitted, and approved in accordance with 24 CFR part
      91 that covers the assistance to be provided under this part. (A State may carry out
      activities anywhere in the State, including within an EMSA.)

Eligibility Income (Section 8) – May 10, 1984, regulations deleted Eligibility Income, per se,
because Annual Income is now used for eligibility determination to compare to income limits.

Elist - Electronic mailing list (eList) available from HUD USER to assist in disseminating
research information, and to encourage subscribers to share information and exchange ideas with
one another.

Emergency Capital Repairs - Funding availability under the Emergency Capital Repair grants
program were first announced December of 2004, though a substantial capital repair program
was first authorized as part of the ALCP program in the HUD FY 2000 budget. According to the
initial HUD announcement, ECRP funds may only be requested
       • The problem poses an immediate threat to the quality of life
       of the residents;
       • Where evacuation or long-term displacement of residents
       would otherwise occur; and
       • Where the owner can demonstrate that the repair costs cannot be absorbed by the
       operating budget, use of reserve for replacement and/or residual receipts.

Emergency Shelter Grant (ESG) Program - A Federal grant program designed to help
improve the quality of existing emergency shelters for the homeless, to make available additional
shelters, to meet the costs of operating shelters, to provide essential social services to homeless
individuals, and to help prevent homelessness. HUDWEB, Continuum of Care and Veterans
Programs Glossary
Glossary of Housing Acronyms and Terms

Eminent Domain - The right of the government to acquire title to property for public use by
condemnation; the property owner receives compensation which is generally fair market value.

Employer Assisted Housing (LIHTC) - Employer assisted housing is housing assistance
provided by employers for their workers or the broader community. A growing number of
employers are extending employer assisted housing benefits to their workers by providing grants
or loans to assist with down-payments (for homebuyers) or security deposits (for renters),
offering homeownership education and counseling, and investing in the development of
affordable homes in the community.

Employer Identification Number (EIN) – The nine-digit taxpayer identifying number that is
assigned to an individual, trust, estate, partnership, association, company, or corporation.

Empowerment Zones and Enterprise Communities (EZ/EC) - Designated low-income areas
targeted to receive tax incentives, performance grants, and loans in order to create jobs, expand
business opportunities, and support people looking for work. Initially authorized by Title XIII of
the Omnibus Budget Reconciliation Act of 1993 (the Statute), additional EZ/ECs were
authorized by the Taxpayer Relief Act of 1997. HUD web site at

Encumbrance - A legal right or interest in land that affects a good or clear title and may
diminish the land's value. It can take numerous forms, such as zoning ordinances, easement
rights, claims, mortgages, liens, charges, a pending legal action, unpaid taxes, or restrictive
covenants. An encumbrance does not legally prevent the transfer of real property. It is up to the
buyer to determine whether to purchase with the encumbrance.

Encumbrance Certificate - This is a certificate that says that the land is not party to any legal

End Loan - The final mortgage loan to the ultimate purchaser of a property, as opposed to a
construction loan or other form of interim financing.

Endorsement/Datedown (Foreclosure) - A continuation of the trustee's sale guarantee that
reports any changes in the status of the property being foreclosed. Such "date downs" are
requested from the title company prior to preparation of the notice of trustee's sale and prior to
the trustee's sale.

Energy Assistance - A federal program administered by nonprofits that pays a portion of the
heating costs for very low income households in the cold weather months.

Energy Audit - Any process that identifies and specifies the energy and cost savings likely to be
realized through the purchase and installation of particular energy efficiency measures or
renewable energy measures
Glossary of Housing Acronyms and Terms
Energy Efficiency (CPD) - measure means any capital investment that reduces energy costs in
an amount sufficient to recover the total cost of purchasing and installing such measure over an
appropriate period of time and maintains or reduces non-renewable energy consumption.

Energy Efficient Mortgage (EEM) – an FHA program that helps homebuyers save money on
utility bills by enabling them to finance the cost of adding energy efficiency features to a new or
existing home as part of the home purchase.

Enhanced Life Estate Deed - An enhanced life estate deed is a variation of a quitclaim deed
that currently enables an individual to retain their homestead creditor and tax exemption, have
the home be exempt from Medicaid claims during their lifetime, while at the same time enable
named persons to receive the home upon death, free of Medicaid claims and liens.
It is a specially designed instrument that is only available in a few states, including Florida.
Generally, it works like a traditional Life Estate Deed, and there is often no capital gains tax if
the property is sold shortly after your death. It goes beyond a life estate deed, because not only
does the life tenant get to live there for life, that former owner also reserves more than just a life
estate. Also reserved are the rights to sell, commit waste, and almost everything else, except the
transfer on death to the "remainderman".

Enhanced Vouchers - As some for-profit owners began to “opt-out” of the Section 8 program,
Congress authorized enhanced vouchers for residents currently residing in formerly assisted
(Section 8 project-based) properties. This was done to prevent forced displacement as the owners
elected to not renew an expiring project-based rental assistance contract and to convert the
property to market rate, oftentimes raising the rent beyond the means of the current low income
tenants. At opt-out, current qualified low-income residents are issued tenant-based vouchers. If
they elect to remain at the current location, enhanced vouchers are issued to make up the
difference between previously subsidized and new market rent levels. If the resident elects to
leave the property, the voucher reverts to the normal payment standard for the area.

Enterprise - A complete business consisting of functions, divisions, or other components used to
accomplish specific objectives and defined goals. DAMA web site at

Enterprise Data - Data that is defined for use across a corporate environment.

Enterprise Data Warehouse - A single repository holding data from several operational sources
that serves many different users, typically in different divisions or departments. DAMA web site

Enterprise Income Verification (EIV) - Under the Rental Housing Integrity Improvement
Project (RHIIP) initiative, the Office of Housing is responsible for ensuring that the proper
subsidy is provided to low-income families through its rental assistance programs. The amount
of rental assistance paid on behalf of the family is calculated using the family's annual income,
less allowable deductions. Therefore, it is critical that Owners and Management Agents (O/As)
obtain and adequately verify annual income and benefit information in making rental housing
subsidy determinations.
Glossary of Housing Acronyms and Terms
Enterprise Modeling - The development of a common consistent view and understanding of
data elements and their relationships across the enterprise DAMA web site at

Enterprise Zone - An Enterprise Zone is a specific geographic area targeted for economic
revitalizing. Enterprise Zones encourage economic growth and investment in distressed areas by
offering tax advantages and incentives to businesses locating within the zone boundaries.

Entitlement - A Veterans Administration home loan benefit

Entitlement - An underlying formula governing the allocation of Block Grant funds to eligible
recipients. Entitlement grants are provided to larger urban cities (i.e., population greater than
50,000) and larger urban counties (greater than 200,000).

Entitlement Amount - means the amount of funds which a metropolitan city is entitled to
receive under the Entitlement grant program, as determined by formula set forth in Section 106
of the Act.

Entitlement Authority - Authority to make payments (including loans and grants) for which
Budget Authority is not provided in advance by Appropriation. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Entitlement Community - An urban county or metropolitan city eligible to receive a
community development block grant directly from HUD in an amount determined by HUD by

Entity Rule - Three entities can hold property: individuals, partnerships and corporations. In the
case of a property exchange, the way an exchanger holds property going into an exchange is the
way they must hold the property coming out of the exchange.

Environmental Assessment (HOPE VI) - All HOPE VI grants are subject to the environmental
regulations at 24 CFR part 58, "Environmental Review Procedures for Entities Assuming HUD
Environmental Responsibilities." Part 58 also applies to HUD Public Housing Capital Funds,
Mixed Finance Development projects, demolition, and disposition activities. Grantees may not
commit or expend HUD and/or non-HUD funds for a project proposed for HUD assistance prior
to HUD approval of form HUD 7015.15, "Request for Release of Funds and Certification" or (if
applicable), Form HUD 4128, "Environmental Assessment and Compliance Findings for the
Related Laws." These forms and information on environmental assessment are available on
HUD's website - or through HUDCLIPS:

Environmental Assessment (EA) - A preliminary, written, environmental analysis required by
EPA to determine whether a federal activity such as building airports or highways would
significantly affect the environment; an EA may require preparation of more detailed
Environmental Impact Statement. EPA Web site for Environmental/Biological-Related Technical
Glossary of Housing Acronyms and Terms
Environmental Hazard - Natural or man-made conditions that may be hazardous to the health
or safety of a homeowner. These conditions may adversely affect the value of the property.

Environmental Impact Report (EIR) - a study of all the factors which a land development or
construction project would have on the environment in the area, including population, traffic,
schools, fire protection, endangered species, archeological artifacts and community beauty.
Many states require such reports be submitted to local governments before the development or
project can be approved, unless the governmental body finds there is no possible impact, which
finding is called a "negative declaration."

Environmental Impact Statement (EIS) - A document prepared by or for EPA which identifies
and analyzes, in detail, environmental impacts of a proposed action. As a tool for decision-
making, the EIS describes positive and negative effects and lists alternatives for an undertaking,
such as development of a wilderness area. .EPA Web site for Environmental/Biological-Related
Technical Terms

Environmental Justice - Executive Order 12898, "Federal Actions to Address Environmental
Justice in Minority Populations and Low-Income Populations," is intended to focus Federal
attention on the environmental and human health conditions of minority and low-income
populations with the goal of achieving environmental protection for all communities.
Environmental Justice is the fair treatment and meaningful involvement of all people regardless
of race, color, national origin, or income. Fair treatment means that no group of people, including
a racial, ethnic, or socioeconomic group, should bear a disproportionate share of the negative
environmental consequences resulting from industrial, municipal, and commercial operations or
the execution of Federal, state, and local programs and policies.

Equal Credit Opportunity Act (ECOA) – A federal law that prohibits discrimination in the
extension of credit due to race, color, religion, national origin, sex, age or marital status.

Equal Employment Opportunity (EEO) - Term which refers to a variety of activities to ensure
non-discrimination in hiring, promoting, and managing employees.

Equal Employment Opportunity Commission (EEOC) - The federal agency responsible for
handling complaints of workplace discrimination. The organization was created by the Civil
Rights Act of 1964 to administer and enforce its prohibitions against discrimination in the

Equal Opportunity Housing Plan (EOHP) - Plan developed by Public Housing Agencies for
use in Section 8 and Moderate Rehabilitation programs.

Equalized Assessed Value - The value of a property determined by the local Tax Assessor. The
Tax Assessor utilizing estimates for construction cost may obtain estimates at the time of
building permit. Final equalized assessed value shall be determined at time of project
Glossary of Housing Acronyms and Terms

Equitable Lien - a lien on property imposed by a court in order to achieve fairness, particularly
when someone has possession of property which he/she holds for another.

Equitable Mortgage - An instrument that because of a technical error in its terms is not actually
a mortgage, but that encumbers property as security for the repayment of a debt. If the intent of
the parties was to create a mortgage, the instrument is enforceable under the law.

Equitable Redemption - A defaulted property owner recovering his or her property prior to its
sale by curing the default

Equitable Title - The legal right to possess property and to acquire legal title once certain
conditions are met.

Equity Capital - Money invested by owners or others who share in profits or tax breaks.

Equity Fund - a pool of capital managed by a syndicator, sometimes involving more than one
investor’s money, which is used to invest in a number of tax credit projects.

Equity Loan - A loan that uses the borrower's equity in real property as collateral. The loan may
be for a variety of purposes. Also known as a second or junior mortgage loan.

Equity Participation – A mortgage transaction in which the lender in addition to receiving a
fixed rate of interest on the loan acquires an interest in the borrower's real property and shares in
the profits derived from the income or upon the sale of the property.

Equity Participation Loan - See Co-venture loan

Equity Sharing (or Shared Appreciation Mortgage) – A mortgage in which the borrower
makes payments at an interest rate below the prevailing market rate. In return for accepting the
lower rate, the lender (or holder of the mortgage) receives the right to a predetermined share of
any future appreciation in the value of the property

Escalation Clause - A contract clause that provides for an upward or downward adjustment in
interest, rent, or other factors to cover specified contingencies

Escheat - The reversion of property to the state or county, as provided by state law, in cases
where a decedent dies intestate and there are no heirs capable of inheriting or when the property
is abandoned. In some states, bank accounts that are unused for more than seven years will
escheat to the government.

Escrow - A neutral third party holds the documents and money involved in a real estate
transaction and ensures that all conditions of a sale are met.. Escrow also refers to a special
account that a lender establishes to hold monthly installments from the borrower to cover
property taxes and insurance.
Glossary of Housing Acronyms and Terms
Escrow account - An account that a lender or mortgage servicer establishes to hold funds for the
payment of expenses such as homeowners insurance and property taxes. Also known as an
impound account.

Escrow agent - A neutral third party who ensures that all conditions of a real estate transaction
are met.

Escrow analysis - A lender's periodic examination of an escrow account to determine if the
lender is withholding enough funds from a borrower's monthly mortgage payment to pay for
expenses such as property taxes and insurance.

Escrow closing - Escrow closes when all conditions of a real estate transaction are met and the
title of the property is transferred to the buyer.

Escrow company - Firms that act as neutral third parties to ensure that all conditions that the
buyer, seller and lender establish in a real estate transaction are met.

Escrow payment - Funds that a mortgage servicer withdraws from a borrower's escrow account
to pay property taxes and insurance.

Escrowed-to-Maturity Bonds – Bonds secured by funds placed in an escrow account until their
stated maturity.

Essential Function Bond – A bond which is not a Private Activity Bond or a 501(C)(3) Bond.
Essential Function Bonds can be issued under Federal Tax Law by any governmental agency to
accomplish legitimate public purposes. Housing issuers typically utilize Essential Function
Bonds to finance property development projects which they will own.

Estate (tenancy) at Sufferance - The tenancy of a lessee who lawfully comes into possession of
a landlord's real estate but who continues to occupy the premises improperly after his or her lease
rights have expired.

Estate (tenancy) at Will - An estate (or tenancy) in which a person holds or occupies real estate
with the permission of the owner, for a term of unspecified or uncertain duration; i.e., there is no
fixed term to the tenancy.

Estate (tenancy) for Years - An interest for a certain, exact period of time in property leased for
a specified consideration.

Estate (tenancy) from Period to Period - An interest in leased property that continues from
period to period--week to week, month to month or year to year.

Estate in Reversion - An owner's right to re-occupy property after the time the owner granted to
someone else has expired.
Glossary of Housing Acronyms and Terms
Estoppel Certificate - Document in which the borrower verifies the remaining balance and
interest rate of a loan.

Evidence of Citizenship or Eligible Status (Section 8) – The documents which must be
submitted to evidence citizenship or eligible immigration status (See §5.508(b))

Event Level Architecture - The portion of an information architecture that supports the capture
and recording of transaction data on individual financial events. It includes the data element
structures and definitions, the valid values, and the mapping of financial events to system
transactions. (JFMIP Framework) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Exaction (LIHTC) - Discretionary fees, dedications, or off-site improvements imposed as a
condition of approval of a particular development project by the municipality or county. Like
impact fees, exactions are meant to mitigate off-site impacts of a development.

Examination of Title - A review of public records and title abstracts to determine the chain of
ownership of a property.

Examiner (Bankruptcy) - A court appointee with responsibilities to oversee certain parts of the

Exception - A provision in a title insurance binder or policy that excludes liability for a specific
title defect or an outstanding lien or encumbrance

Exception Clause - This is a clause in a deed were exceptions to title conveyed may be listed.
Example, "Less and Except a prior reservation of all oil, gas and mineral rights in the property

Exception to Deed - notation in a deed of title to real property which states that certain interests,
such as easements, mineral rights or a life estate, are not included in the transfer (conveyance) of

Excess Medical Expenses (Section 8) – Any medical expenses incurred by elderly families only
in excess of 3% of Annual Income which are not reimbursable from any other source.

Excess Rental Income (or Excess Rents) (in Section 236 Projects) - A HUD term applied to
Section 236 projects. Excess income or excess rent refers to the amount paid by residents which
is more than the Section 236 basic rent but less than the market rent. Currently excess rents are
returned to HUD and credited to the general account. Policies are being reviewed to allow
projects to retain excess rents for their own rehabilitation needs or other defined special purposes
OUTSIDE of the standard operational budget.

Excess Servicing – The typical coupon rate differential between the mortgage loan rate and the
rate on mortgage-backed securities is 50 basis points. If the Issuer agrees to a larger spread, the
additional amount is known as Excess Servicing and can be sold to the Servicer to generate funds
Glossary of Housing Acronyms and Terms
which can be used to provide down payment assistance or offset a portion of the costs of

Exculpatory Clause - The term of a mortgage giving the borrower the right simply to surrender
the property to the lender as payment for the loan without personal liability to the borrower for
any shortfall.

Executor - A male person appointed by a testator to carry out the directions and requests in his
or her last will and testament, and to dispose of his or her property according to the provisions of
the will. State probate laws generally refer to this person as a "personal representative of the

Executor’s Deed - A deed given by an executor of an estate.

Executory Contract or Lease (Bankruptcy) - Generally includes contracts or leases under
which both parties to the agreement have duties remaining to be performed. (If a contract or
lease is executory, a debtor may assume it or reject it.)

Executrix - A female person appointed by a testator to carry out the directions and requests in
his or her last will and testament, and to dispose of his or her property according to the
provisions of the will. State probate laws generally refer to this person as a "personal
representative of the decedent."

Exempt Assets (Bankruptcy) - Property that a debtor is allowed to retain, free from the claims
of creditors who do not have liens on the property.

Exempt Property (Bankruptcy) - The items of property you are allowed to keep if a creditor
wins a lawsuit against you or if you file for Chapter 7 bankruptcy. Most states let you keep
clothing, household furnishings, an inexpensive car (or an expensive car on which you still owe a
bundle), Social Security payments you haven't spent and other basic items. A few states let you
keep your house. Following are brief descriptions of specific types of exempt property.

Existing Building - An existing building is a building that has been previously placed in service.

Existing Conditions - Condition of the severely distressed public housing project at the time a
HOPE VI Revitalization grant application is submitted. If some or all of the targeted project has
been demolished as of the time of HOPE VI application, existing conditions are those as of the
date the demolition application was approved.

Expedited Permitting (LIHTC) - The process of streamlining permitting and review processes
to maximize efficiencies and allow new development to proceed in a timely manner

Expended Appropriations (Formally Accrued Expenditures) - Changes during a given period
that reflect the costs incurred and the need to pay for 1) services performed, 2) goods
received/accepted, 3) amounts to be owed in the future under programs for which no current
Glossary of Housing Acronyms and Terms
service or performance is required. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Expenditures - The balance in Standard General Ledger (SGL) account 4900, Expended
Appropriations. Paid and unpaid expenditures for (a) services performed by employees,
contractors, vendors, carriers, grantees, lessors, or other government funds; (b) goods and
tangible property received; and (c) amounts becoming owed under programs for which no
current service or performance is required (i.e., annuities, insurance claims, other benefit
payments). (JFMIP Core; SGL, definition of account 4900). According to GAO it is the same as
Outlay. HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Expense - The outflow of assets or incurrence of liabilities (or both) during a period as a result
of rendering services, delivering or producing goods, or carrying out other normal operating
activities. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Expired Account - An Appropriation or Fund Account in which the balance is no longer
available for incurring new Obligations because the time available for incurring such obligations
has expired. Expired accounts will be maintained by fiscal year identity for 5 years. During this
5-year period, obligations may be adjusted if otherwise proper and Outlays may be made from
these accounts. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Expired Budget Authority - Budget Authority which is no longer available to incur new
obligations. Such authority is still available for 5 years after the account expires for the payment
of those valid obligations which were incurred before the authority expired. Unobligated
Balances of expired budget authority remain available for 5 years after the account expires to
cover adjustments to prior obligations or obligations that should have been, but may not have
been, recorded at that time.

Expiring Section 8 Contracts -

Expiring Use Restrictions (EUR) - Low and moderate income affordability requirements
associated with subsidized mortgages under Section 221(d)3 BMIR and Section 236, which
terminate when the mortgage is prepaid.

Expropriation - The act of confiscating private property for a public use by a legally constituted
governing body. For example, property taken under eminent domain is expropriated.

Extended Low Income Housing Commitment - An extended low-income housing commitment
is any agreement between the taxpayer and the housing credit agency that extends the low-
income housing requirements for a full 30 years.

Extended Use Period (LIHTC) – Developments that received LIHTC allocations after January
1, 1990 must comply with eligibility requirements for the minimum compliance period of fifteen
Glossary of Housing Acronyms and Terms
(15) years plus an extended use period of a minimum of an additional fifteen (15) years, as
stipulated by a recorded Agreement As To Restrictive Covenants (Extended Use Agreement).

Extended Use Agreement (LIHTC) - An agreement between the owner and housing credit
agency extending the low-income housing restrictions an additional 15 (or more) years beyond
the initial Compliance Period. Federal extended use agreements are required for LIHTC projects
with credit allocations after 1989, and many states impose additional extended use restrictions.

Extent of Growth Lag - shall have the meaning provided in Section 102(a)(12) of the Act.
(The above streamlined text replaced the following language:... means the number of persons
who would have been residents in a metropolitan city or urban county, in excess of the current
population of the metropolitan city or urban county, if such metropolitan city or urban county
had a population growth rate between 1960 and the date of the most recent population count
available from the United States Bureau of the Census referable to the same point or period in
time equal to the population growth rate for that period of all metropolitan cities. Where the
boundaries for a metropolitan city or urban county used for the 1990 census have changed as a
result of annexation, the current population used to compute extent of growth lag shall be
adjusted by multiplying the current population by the ratio of the population based on the 1990
census within the boundaries used for the 1990 census to the population based on the 1990
census within the current boundaries.)

Extent of Housing Overcrowding - shall have the meaning provided in Section 102(a)(10) of
the Act. (The above streamlined text replaced the following language: means the number of
housing units with 1.01 or more persons per room based on data compiled and published by the
United States Bureau of the Census available from the latest census referable to the same point or
period in time.)

Extent of Poverty - means the number of persons whose incomes are below the poverty level
based on data compiled and published by the United States Bureau of the Census available from
the latest census referable to the same point or period in time and the latest reports from the
Office of Management and Budget. For purposes of this part, the Secretary has determined that it
is neither feasible nor appropriate to make adjustments at this time in the computations of "extent
of poverty" for regional or area variations in income and cost of living.

Exterior Envelope Physical Characteristics - means the physical nature of those elements of a
building which enclose conditioned spaces through which thermal energy may be transferred to
or from the exterior.

Extract Date - The date data was extracted. DAMA web site at

Extract Frequency - The latency of data extracts, such as daily versus weekly, monthly, or
quarterly. The frequency that data extracts are needed in the data warehouse is determined by the
shortest frequency requested through an order or by the frequency required to maintain
consistency of the other associated data types in the source data warehouse. DAMA web site at
Glossary of Housing Acronyms and Terms
Extract Specification - The standard expectations of a particular source data warehouse for data
extracts from the operational database system-of-record. A system-of-record uses an extract
specification to retrieve a snapshot of shared data and formats the data in the way specified for
updating the data in the source data warehouse. An extract specification also contains extract
frequency rules for use by the Data Access environment. DAMA web site at

Extraordinary Maintenance - Work that is not recurrent, is substantial in scope, and is
performed in connection with specific work programs. Whether performed by the owner or
regularly employed staff, specific labor force, or under contract, the expenditure involved would
otherwise materially distort the level trend of ordinary maintenance expense.

Extraordinary Site Costs - Construction costs related to unusual pre-existing site conditions
that are incurred, or anticipated to be incurred. If such costs are significantly greater than those
typically required for similar construction, are verified by an independent, certified engineer, and
are approved by HUD, they may be excluded from the TDC calculation. Extraordinary site costs
may be incurred in the remediation and demolition of existing property, as well as in the
development of new and rehabilitated units. Examples of such costs include, but are not limited
to: abatement of extraordinary environmental site hazards; removal or replacement of extensive
underground utility systems; extensive rock and/or soil removal and replacement; removal of
hazardous underground tanks; work to address unusual site conditions such as slopes, terraces,
water catchments, lakes, etc.; and work to address flood plains and other environmental
remediation issues. Costs to abate asbestos and remove lead-based paint from structures are
normal demolition costs. Extraordinary measures to remove lead-based paint that has leached
into the soil would constitute an extraordinary site cost.

Extremely Low-Income Family (Section 8) – A family whose annual income does not exceed
30 percent of the median income for the area, as determined by HUD, with adjustments for
smaller and larger families. HUD may establish income ceilings higher or lower than 30 percent
of median income if HUD finds such variations are necessary die to unusually high or low family
incomes (CFR 5.603)

Exurban (LIHTC) - A non-rural residential community located outside a city, beyond the

FADA - Federal Asset Disposition Association

FAQ – Frequently Asked Questions

FAR – Federal Acquisition Regulations

FAR – Floor Area Ratio

FASB – “Financial Accounting Standards Board”
Glossary of Housing Acronyms and Terms
FASS – Financial Assessment Subsystem

FCBA – Fair Credit Billing Act

FCR - Formula Characteristics Report

FCRA – Fair Credit Reporting Act

FDCPA – Fair Debt Collections and Practices Act

FDIC – Federal Deposit Insurance Corporation

FEMA – Federal Emergency Management Administration

FERA – Front-End Risk Assessments

FESG – Federal Emergency Shelter Grant

FFS – Federal Financial System

FHA - Federal Housing Administration

FHAA – Fair Housing Amendments Act

FHAP - Fair Housing Assistance Program (FHEO program)

FHEO – Fair Housing and Equal Opportunity (HUD Office of)

FHFB – Federal Housing Finance Board

FHIP - Fair Housing Initiatives Program

FHLB – Federal Home Loan Bank

FHLBB - Federal Home Loan Bank Board

FHLMC – “Freddie Mac” or Federal Home Loan Mortgage Corporation

FICA – Federal Insurance Contributions Act Social Security Taxes

FICO – Fair Isaac Corporation

FIPS - Federal Information Processing Standards

FIRREA - Financial Institutions Reform, Recovery, and Enforcement Act
Glossary of Housing Acronyms and Terms
FLMA – Family and Medical Leave Act

FLRA - Federal Labor Relations Authority

FLSA – Fair Labor Standards Act

FMC – Financial Management Center (Section 8; under PIH)

FmHA - Farmers Home Administration

FMLA – Family Medical Leave Act

FMR – Fair Market Rent

FMV – Fair Market Value

FNMA - Federal National Mortgage Association, also called “Fannie Mae”

FONSI – Finding of No Significant Impact

FPM – Field Policy and Management (HUD Office of)

FPM – Flexible Payment Mortgage

FR – Federal Register

FRB – Federal Reserve Board

FRC - Federal Regional Council

FREA – “Foundation of Real Estate Appraisers”

FRM – Fixed-Rate Mortgage

FRV – Full Rental Value

FSA - Farm Service Agency

FSI - Financial Systems Integration

FSLIC - Federal Savings and Loan Insurance Corporation

FSS – Family Self Sufficiency Program

FTC – Federal Trade Commission
Glossary of Housing Acronyms and Terms
FTE - Full Time Equivalent

FTHB – First Time Home Buyer

FY – Fiscal Year

FYE – Fiscal Year End

Face Amount – The par value (i.e., principal or maturity value) of a security appearing in the
face of the instrument.

Face Sheet Filing (Bankruptcy) - A bankruptcy case filed either without schedules or with
incomplete schedules listing few creditors and debts. (Face sheet filings are often made for the
purpose of delaying an eviction or foreclosure.)

Facility (Section 8) – All or any portion of buildings, structures, equipment, roads, walks,
parking lots, rolling stock or other real or personal property or interest in the property.

Fair Credit Billing Act (FCBA) - A federal law that governs credit and charge card billing
errors. If a credit or charge card company violates any provision, consumers can sue to recover

Fair Credit Reporting Act (FCRA) - A federal law passed in 1971 that regulates the activity of
credit bureaus. It is designed to prevent inaccurate or obsolete information from staying in a
consumer's credit file and requires credit bureaus to have reasonable procedures for gathering,
maintaining and disseminating credit information. The act also requires credit bureaus to show a
consumer their credit file if the consumer presents proper identification, although the bureau
reserves the right to charge a fee for doing so.

Fair Debt Collection Practices Act (FCDPA). - A federal law passed in 1977 which outlaws
debtor harassment and other types of collection practices. The act regulates collection agencies,
original creditors who set up a separate office to collect debts, and lawyers hired by the creditor
to help collect overdue bills. An original creditor--the company or individual that originally
granted the credit--is not covered by the act, but may be covered by similar measures approved
by state governments.

Fair Housing Act (Section 8) – Means Title VIII of the Civil Rights act of 1968, as amended by
the Fair Housing Amendments Acts of 1988 providing HUD Secretary with fair housing
enforcement and investigation responsibilities. See Civil Rights Act of 1968, Fair Housing Act,

Fair Housing and Neighborhood Deconcentration - This category refers to state and local
laws that prohibit discrimination based on race, color, religion, sex, handicap, familial status, and
national origin. It also refers to actions taken by state and local governments to enforce or evade
these laws.
Glossary of Housing Acronyms and Terms
Fair Housing Assistance Program (FHAP) - A Program to assist state and local agencies and
community housing resources boards in processing Fair Housing Act complaints.

Fair Housing Initiatives Program (FHIP) - A Program to assist states, local agencies, fair
housing groups, and community housing resource boards in bringing public and private efforts
together to combat housing discrimination.

Fair Isaac Corporation (FICO) Score - FICO is an abbreviation for Fair Isaac Corporation and
refers to a person's credit score based on credit history. Lenders and credit card companies use
the number to decide if the person is likely to pay his or her bills. A credit score is evaluated
using information from the three major credit bureaus and is usually between 300 and 850.

Fair Market Rent (FMR) – The rent limit published in the Federal Register for Section 8
Rental Assistance which includes utilities (except telephone) and ranges and refrigerators. It is
used as a standard to obtain privately owned, existing, decent, safe and sanitary rental housing of
modest (non-luxury) nature with suitable amenities. Separate FMRs are established for dwelling
units of varying sizes (number of bedrooms) and types. It is used as a maximum for Gross Rent
in the Certificate Program (without an exception rent). In the Voucher Program, it is used as a
cap for the Payment Standard, used in the ACC calculation of subsidy dollars, and is used to
calculate the administrative fee.
For the Section 8 Certificate Program, the FMR is published by HUD periodically in the Federal
Register in accordance with 24 CFR, part 888.

Fair Market Value (FMV) – The price that a property would sell for on the open market
between a willing buyer and a willing seller. FMV assumes both buyer and seller act freely and
have reasonable knowledge of the relevant facts.

Fair Share (LIHTC) - To promote an equitable distribution of affordable homes within a state
or region, fair share requirements assign each municipality a target number of affordable units to
produce. Progress towards this target may be enforced through imposition of a builder's remedy
or other expedited appeals process that facilitates development of affordable homes in
communities that haven't met their goal. New Jersey's fair share program, sometimes referred to
as the Mount Laurel decisions, is one of the best-known fair-share programs.

Familial Status - Familial status means one or more individuals (who have not attained the age
of 18 years) being domiciled with: a parent or other person having legal custody of such
individual(s); or the designee of such parent or other person having such custody. Also applies to
any person who is pregnant or is in the process of securing legal custody of any individual who
has not attained the age of 18 years. (see Fair Housing Amendments Act)

Family (Section 8) – Includes but is not limited to the following, and can be further defined in
PHA policy.
  • A family with or without children (the temporary absence of a child from the home due to
      placement in foster care is not considered in determining family composition and family
Glossary of Housing Acronyms and Terms
   •   An elderly family or near-elderly family
   •   The remaining member of a tenant family
   •   A single person who is nor an elderly or displaced person, or a person with disabilities, or
       the remaining member of a tenant family.

Family Farmer or Family Fisherman (Bankruptcy) - An individual, individual and spouse,
corporation, or partnership engaged in a farming or fishing operation that meets certain debt
limits and other statutory criteria for filing a petition under chapter 12.

Family Medical Leave Act (FMLA) – A federal law that requires employers to provide an
employee with 12 weeks of unpaid leave during a year's time for the birth or adoption of a child,
family health needs or personal illness. The employer must allow the employee to return to the
same position or a position similar to that held before taking the leave. There are exceptions to
the FMLA: the most notable is that only employers with 50 or more employees are covered--
about half the workforce.

Family Rent to Owner – In the voucher program, the portion of rent to owner paid by the

Family Self-Sufficiency Program (FSS program) (Section 8) – The program established by a
PHA in accordance with 24 CFR part 984 to promote self-sufficiency of assisted families,
including the coordination of supportive services (42 U.S.C. 1437u)

Family Share (Section 8) – The portion of rent and utilities paid by the family-For calculation
of family share See §982.515(a)

Family Unit Size (Section 8) – The appropriate number of bedrooms for a family, as determined
by the PHA under the PHA subsidy standards

Fannie Mae (FNMA) – The Federal National Mortgage Association is one of two private
corporations whose charger is authorized and guaranteed by (on an annual appropriations basis)
the Federal Government. Their charge is to provide liquidity to mortgage lenders by providing a
guaranty to mortgage lenders by providing a guaranty to mortgage loans which gives them
liquidity in the secondary mortgage market.

Fannie Mae (FNMA) Community Home Buyers Program - An income-based lending model,
under which mortgage insures and FNMA offer flexible underwriting guidelines to increase low-
to-moderate income families ability to buy homes and decrease the total amount of cash needed
to buy a home. Homebuyers who borrow from this program are required to attend pre-purchase
homebuyer education classes.

Farm Service Agency (FSA) - FSA was formerly known as the Farmers Home Administration
(FmHA). This agency of the U.S. Department of Agriculture ensures the well-being of American
agriculture, the environment and the American public through efficient and equitable
administration of farm commodity programs; farm ownership, operating and emergency loans;
Glossary of Housing Acronyms and Terms
conservation and environmental programs; emergency and disaster assistance; domestic and
international food assistance and international export credit programs.

Farmers Home Administration (FmHA) – An agency of the federal government which makes,
participates in, and insures loans for rural housing and other purposes. Now known as Farm
Service Agency. (See above)

Feasibility Study - A detailed investigation and analysis conducted to determine the financial,
economic, technical, or other advisability of a proposed project.

Federal Accounting Standards Advisory Board (FASAB) - Established to recommend federal
accounting principles and standards to the Director of OMB, Secretary of the Treasury, and the
Comptroller General. (JFMIP Framework) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Federal Acquisition Regulation (FAR) - The FAR is the Federal Government regulation that
establishes and directs procurement policies and procedures for all Federal agencies.

Federal Agency (Section 8) – A department of the executive branch of the Federal Government

Federal Asset Disposition Association (FADA) - A federal savings and loan association
chartered by the former Federal Home Loan Bank Board in November 1985. Although FADA
could accept deposits, it was chartered as a wholly owned subsidiary of the former Federal
Savings and Loan Insurance Corporation (FSLIC) for the sole purpose of liquidating and
disposing of assets of failed savings institutions acquired by the FSLIC in its role as receiver.
Since it was chartered under Section 406 of the National Housing Act, FADA was informally
known as a "406 corporation." Although FADA initially received a 10-year charter, it was turned
over to the Resolution Trust Corporation (RTC) in August 1990. The RTC liquidated FADA
during the next 180 days, as required by Subtitle A, Section 501 of the Financial Institutions
Reform, Recovery and Enforcement Act of 1989 (FIRREA).

Federal Assistance - Those functions providing monetary support to state governments, local
governments, private organizations, or individuals, including the functions of transfer payments,
Grants and Subsidies, loans, and insurance. (JFMIP Framework) HUDCAPS Core Financial
System Standard Accounting Interface, dated 9/30/97

Federal Deposit Insurance Corporation (FDIC) - An instrumentality of the federal
government which insures the deposits of member institutions.

Federal Emergency Management Agency (FEMA) - On March 1, 2003, the Federal
Emergency Management Agency (FEMA) became part of the U.S. Department of Homeland
Security (DHS). The primary mission of the Federal Emergency Management Agency is to
reduce the loss of life and property and protect the Nation from all hazards, including natural
disasters, acts of terrorism, and other man-made disasters, by leading and supporting the Nation
Glossary of Housing Acronyms and Terms
in a risk-based, comprehensive emergency management system of preparedness, protection,
response, recovery, and mitigation.

Federal Home Loan Bank Board (FHLBB) - Supervises Federal Home Loan Banks, which
supply member banks with credit to enhance their service as savings depositories and as lenders
of mortgage funds.

Federal Home Loan Mortgage Corporation (FHLB) (Freddie Mac) - A federally chartered
stockholder owned corporation which supports the secondary market for conventional mortgages

Federal Housing Administration (FHA) – The Federal Housing Administration is an agency of
the Federal Government whose charge is to assist in providing housing for underprivileged
citizens of the United States.

Federal Housing Finance Board (FHFB) - The governing body of the Federal Home Loan
Bank System.

Federal Information Processing Standards (FIPS) - Standards and guidelines issued by
National Institute of Standards and Technology (NIST) for use government-wide. NIST develops
FIPS when there are compelling Federal government requirements such as for security and
interoperability and there are no acceptable industry standards or solutions. (NIST Web site,

Federal Labor Relations Authority (FLRA) - An independent Agency which governs the labor
relations program in the Federal Government.

Federal National Mortgage Association (Fannie Mae) - A federally chartered, stockholder
owned corporation which supports the secondary market for both conventional mortgages and
mortgages insured by the FHA and guaranteed by VA.

Federal Preferences - With the QWHRA Act of 1998, the requirement to recognize the three
main Federal preferences (for person(s) who are: homeless/living in substandard housing; paying
more than half of their income for rent; involuntarily displaced) was permanently eliminated.
Owners still have the option to use any one or combination of the three.

Federal Regional Council (FRC) - Council of domestic agency heads, in various regions of the

Federal Register (FR) – The Federal Register, on GPO Access, is the daily publication for
Rules, Proposed Rules, and Notices of the Federal Government.

Federal Reserve Board - A group of economists and other experts who set the nation's
monetary policy. Its chief tool to control inflation is the power to control interest rates.
Glossary of Housing Acronyms and Terms
Federal Reserve System - The nation's central bank created by the Federal Reserve Act of 1913.
Its purpose is to help stabilize the economy through the judicious handling of the money supply
and credit available in this country. The system functions through a seven-member Board of
Governors (appointed by the President) and 12 Federal Reserve District Banks, each with its own
president. The system sets policies and works with the privately owned commercial banks.
Federal Reserve Website

Federal Savings and Loan Insurance Corporation (FSLIC) – An instrumentality of the
federal government which insures the savings accounts in member institutions.

Federal Tax Law (Bonds) – The Section of Federal Law which provides the authority for the
issuance of tax-exempt bonds and which specifies the rules for the various programs and features
which programs financed by them can contain.

Federal Tax Lien (General) - A lien attaching to property for nonpayment of a federal tax
(estate, income, etc.).

Federally Assisted Building - A federally assisted building is any building that is substantially
assisted, financed or operated under laws in effect the date of enactment of the Tax Reform Act
of 1986.

Federally Subsidized - Federally subsidized is a term used to describe a building that is
financed with a below-market federal loan or with a loan for which the interest income earned by
the holder of the loan is exempt from tax under Internal Revenue Code Section 13.

Fee Examiner (Bankruptcy) - Court appointee responsible for monitoring money as planned is
paid to the proper professional organizations

Fee Simple - This type of ownership is the maximum interest a person can have in a piece of real
estate. It entitles the owner to use the property in any manner they see fit, in accordance with
state and local laws.

Fee Simple Absolute - Entire bundle of rights to use and control real property.

Fee Simple Defeasible - The owner of the property holds a fee simple title contingent upon
certain conditions.

Fee Simple Determinable - A fee simple determinable is an estate in real property that exists
"so long as," "while" or "during the period" that a certain prescribed use continues. Such use is
described in the grant of conveyance. For example, a conveyance to the University of Knowitall
"so long as" the real estate is used for educational purposes would give the university title,
provided the granted land is used as prescribed. If, at some future time, the university were to
stop using the property for educational purposes, title would revert to the original grantor, if
living, or to his or her heirs if the grantor is deceased. A fee simple determinable automatically
Glossary of Housing Acronyms and Terms
ends when the purpose for which it has been prescribed terminates. Upon the grant of a fee
simple determinable, there remains in the grantor a possibility of reverter.

Fee Simple Estate - An unconditional, unlimited estate of inheritance that represents the greatest
estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When
the real estate is in a condominium project, the unit owner is the exclusive owner only of the air
space within his or her portion of the building (the unit) and is an owner in common with respect
to the land and other common portions of the property.

Fee Simple Subject to a Condition Subsequent - A fee simple subject to a condition
subsequent is an estate conveyed "provided that," "on the condition that" or "if" it is used for a
specific purpose. If it is no longer used for that purpose, it reverts to the original grantor or his
heirs. This type of estate is much the same as a fee determinable, except that in a fee
determinable conveyance, the words are of duration while a fee condition subsequent refers
strictly to a specific condition. In addition, unlike a fee determinable, when fee condition
subsequent property is no longer used for its prescribed purpose, the original grantor (or heirs)
must physically retake possession of the property within a reasonable period of time after the
breach (i.e., the grantor must exercise his or her right of reentry). Any transaction involving a fee
simple defeasible estate should be referred to an attorney for a professional opinion.

Fees and Dedications - This category contains state and local requirements for the payment of
fees, dedication of property, or installation of infrastructure to meet the increased demand on
public services that result from a particular development.

FHA Coinsured Mortgage - A mortgage (under FHA Section 244) for which the Federal
Housing Administration (FHA) and the originating lender share the risk of loss in the event of
the mortgagor's default.

FHA Fund - This fund is comprised of four separate funds to finance specific FHA mortgage
insurance programs: Mutual Mortgage Insurance Fund (MMI), Cooperative Management
Housing Insurance Fund (CMHI), General Insurance Fund (GI), and Special Risk Insurance
Fund (SRI).

FHA Loan - Mortgages that are insured by the Federal Housing Administration (FHA) and
made by approved private lenders to qualified borrowers, in accordance with its regulations. The
down payment on an FHA loan is usually less than that of a conventional mortgage. The FHA
does not lend money, but it does nominate approved lenders.

FHA Mixed-Income Housing Initiative - Underwriting Guidelines for using FHA-insured
loans in HOPE VI mixed-income projects can be found in HUD Notice H 97-12 (as extended by
Notice H 99-21), available through HUDCLIPS:

Fictitious Deed of Trust - A deed of trust recorded by a trustee which discloses all the terms of
the trust deed but does not relate to a specific transaction and is used for reference only.
Glossary of Housing Acronyms and Terms
Fiduciary - an individual who is entrusted with the duties and responsibilities of another. The
law requires the highest level of good faith, loyalty and diligence.

Fiduciary Deed - This is a deed to be executed by a fiduciary such as a trustee, guardian,
conservator, or similar person in their appointed capacity.

Fiduciary Duty - A requirement that a person in a position of trust, such as a banker, real-estate
agent, or title agent, must act in good faith and honesty on behalf of a client.

Filters - Saved sets of chosen criteria that specify a subset of information in a data warehouse.
DAMA web site at

Final Rule (HOME) - The Final HOME Rule was published at 24 CFR Part 92 on September
16, 1996, and became effective on October 16, 1996.

Financial Accountability - An accounting for the resources of an entity needed for legal
accountability for budgetary resources, stewardship over assets, protection of cash resources, and
management and control of costs. Financial accountability includes the functions of budget
execution, financial accounting, cash management, and cost management. (JFMIP Framework)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Financial Advisor – An individual or group of individuals who are hired by the Issuer to
represent their interests in structuring and bringing to market a single family mortgage revenue

Financial Data Integrity Control - The structural discipline over data used in the financial
accountability functions of budget execution, financial accounting, cash management, and cost
accounting that is designed into financial management systems to ensure consistency with data
used in the transaction tracking functions. Financial data integrity control provides the structural
framework to ensure Financial Accountability functions within an agency are maintained
consistently throughout the financial management systems. (JFMIP Framework) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Financial Event - Any occurrence having financial consequences to the federal government
related to the receipt of Appropriations or other financial resources; acquisition of goods and
services; payments or collections; recognition of guarantees, benefits to be provided, or other
potential Liabilities; or other reportable financial activities. (JFMIP Framework) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Financial Index - An index is a number to which the interest rate on an adjustable rate mortgage
(ARM) is tied. It is generally a published number expressed as a percentage, such as the average
interest rate or yield on U.S. Treasury bills. A margin is added to the index to determine the
interest rate that will be charged on ARMs. This interest rate is subject to any caps associated
with the mortgage. The interest rate changes on an ARM are tied to some type of financial index.
Some of the most common type of indexed ARMs are:
    • Treasury-Indexed ARMs
Glossary of Housing Acronyms and Terms
   •   CD-Indexed ARMs (Certificate of Deposit)
   •   Cost of Funds-Indexed ARMs (COFI)
   •   LIBOR-Based ARMsWhen comparing ARMs, look at how the index to which it is tied
       has performed recently. Your lender can provide information on how to track the index
       and a history of the index they use.

Financial Management Systems - The Financial Systems and the financial portions of Mixed
Systems necessary to support financial management. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Financial Management Systems Architecture - The blueprint for the logical combination of
Financial and Mixed Systems to provide government-wide and agency budgetary/financial
management support for program and financial managers. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Financial System - An information system comprised of one or more applications that is used
for collecting, processing maintaining, transmitting, and reporting data about financial events;
supporting financial planning or budgeting activities; accumulating and reporting cost
information; or supporting the preparation of financial statements. (JFMIP Framework)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Financial Systems Integration (FSI) - This is a major departmental effort to integrate HUD's
various financial management systems.

Financially Distressed PHA (Public Housing) - A local housing authority that has an operating
reserve level of 20% or less of its authorized maximum or other level as determined by HUD, as
shown on the latest year-end financial statement.

Financing - Those functions necessary to provide the financial resources to fund government
operations and federal assistance including the functions of taxation, fee and revenue generation,
public debt, deposit funds, and intra governmental collections. (JFMIP Framework) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Financing Agreement - The financing agreement is entered into between the bond issuer,
trustee and borrower. The agreement covers how the bonds will be issued, serviced by the trustee
and paid for by the borrower.

Financing Statement - An instrument filed with the Register of Deeds in order to give notice of
a security agreement regarding personal property. Fixtures and personal property related to a
business may affect interest in real estate associated with the business. See also, Uniform
Commercial Code.

Finding of No Significant Impact (FONSI) - A document presenting findings of an
Environmental Assessment that a proposed project will not result in an action which will
significantly affect the quality of human life Environmental Review: Public Housing and 24 CFR
Part 58 Directive Number: 97-8
Glossary of Housing Acronyms and Terms

First Mortgage - A mortgage that creates a lien against real property with the lien having first
priority against other claims in the event of foreclosure-Also called a senior mortgage.

First-Time Home Buyer (FTHB) – For MRBs, means a mortgagor who has not had a present
ownership interest in a principal residence of such mortgagor at any time during the three-year
period ending on the date the qualified mortgage is executed or assumed.

Fiscal Year (FY) - Any yearly accounting period, regardless of its relationship to a calendar
year. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Fixed Leg – Payment stream in a swap that depends on a pre-determined fixed rate. The fixed
rate is determined at the outset of the swap transaction and is based on current market conditions,
the floating rate index of the swap, the accrual frequency and the average life of the swap.

Fixed Period ARM - Provides a fixed rate for 3, 5, 7 or 10 years then adjusts annually based on
a financial index for the remaining loan term.

Fixed Rate Bond – A bond which will bear interest at one or more interest rates which are
known at the time the bonds are issued. While a Fixed Rate Bond can have more than one
interest rate, the date on which the interest rate changes and the new interest rate itself must be
specified with certainty.

Fixed Rate Mortgage (FRM) – a mortgage with payments that remain the same throughout the
life of the loan because the interest rate and other terms are fixed and do not change.

Fixed Rate Swap – An interest rate swap where the issuer (client) makes payments based on a
fixed rate and receives payments based on a floating rate index from the swap provider.
Typically used in conjunction with variable rate debt to create synthetic fixed rate exposure.

Flexible Payment Mortgage - A mortgage with unequal periodic payments, which may be more
or less than the prorated amount needed to amortize the loan over the life of the mortgage

Flexible Subsidy - The Flexible Subsidy (or Flex Sub) program was designed to maintain the
use of the property for low- and moderate-income people and is conditioned on the project
owner’s ability to provide management satisfactory to HUD.
It provides assistance for troubled multifamily projects, as well as capital improvements for both
troubled and stable projects. The program has two elements -- operating assistance for troubled
projects and capital improvement loans. The future of this program is uncertain.

Flipping - Buying a property with the intention of reselling it quickly at a profit, after fixing it

Float - Float is interest earned on bond payments made to the trustee that have yet to be remitted
to the bondholders. The borrower generally makes debt service payments monthly while
Glossary of Housing Acronyms and Terms
bondholders are paid semi-annually. The interest reduces the amount the borrower has to pay to
service the bonds, effectively reducing the interest rate.

Float Agreement – As mortgage loan payments or cash flow from other investments are
received into the Indenture they are invested in an Investment Agreement called the Float
Agreement. Deposits are made as funds are received and withdrawals are made when program
expenses or bond debt service is paid. The Float Agreement specifies an interest rate and the
terms and conditions for deposits and withdrawals.

Floating Easement - an easement (a right to use another's property for a particular purpose)
which allows access and/or egress but does not spell out the exact dimensions and location of the

Floating Leg – Payment stream in a swap that depends on some short-term interest rate index.
Common indices used in tax-exempt swaps are the BMA Index and LIBOR (defined below).
The interest rate changes for each accrual period of the swap and depends on where the floating
rate index sets for that period.

Floating Rate Bonds – See “Variable Rate Bonds”

Floating Rate Swap – An interest rate swap where the issuer (client) makes payments based on
a floating rate index and receives payments based on a fixed rate from the swap provider.
Typically used in conjunction with fixed rate debt to create synthetic floating rate exposure.

Floor Area Ratio (FAR) (LIHTC) - The ratio of the floor area of a building to the area of the
lot on which the building is located. For example, a one-story building which covers the entire
lot and a four-story building which covers a quarter of the lot both have a floor area ratio (FAR)
of 1.0 (or 1:1). This is a common way to compare density of development from one location to

Floor Space Fraction - The floor space fraction is obtained by dividing the total floor space of
the low-income units in the building by the total floor space of all residential units in the building
(whether or not occupied).

Flow of Funds – The manner, specified in the Indenture or Resolution, in which revenues are
directed so as to properly pay for Arbitrage Rebate, Program Expenses, Interest Payments,
Interest Payments on Senior Lien Bonds, Principal Payments on Senior Lien Bonds, Interest
Payments on Junior Lien Bonds and Principal Payments on Junior Lien Bonds. The Flow of
Funds creates a road map for the Trustee to follow in segregating, investing, and spending
program funds.

Forbearance - a lender may decide not to take legal action when a borrower is late in making a
payment. Usually this occurs when a borrower sets up a plan that both sides agree will bring
overdue mortgage payments up to date.
Glossary of Housing Acronyms and Terms
Forced Sale - The marketing of a property as a result of some outside influence, such as
bankruptcy, where the price obtained might not be optimum.

Foreclosure – A procedure whereby property pledged as security for a debt is sold to pay the
debt in the event of default in payments or terms.

Foreclosure Prevention (LIHTC) - Assistance provided to help struggling homeowners avoid a
foreclosure and possibly retain their home. Foreclosure prevention programs often include
counseling and financial assistance.

Foreclosure Sale - the actual forced sale of real property at a public auction (often on the
courthouse steps following public notice posted at the courthouse and published in a local
newspaper) after foreclosure on that property as security under a mortgage or deed of trust for a
loan that is substantially delinquent. The lender who has not been paid may bid for the property,
using his/her/its own unpaid note toward payment, which can result in a bargain purchase.

Forfeiture - The loss of a right, claim, interest or item of property as a result of one's failure to
meet one's legal obligations.

Forgivable Loan (LIHTC) - A loan that is forgiven if program requirements are met for a
specified period of time. The loan may be forgiven incrementally over time – for example, 20
percent per year for five years – or all at once at the end of the specified time period.

Formula Characteristics Report (FCR) - Provides data used by HUD to calculate PHA's share
of CGP funding.

Forward Commitment - A pledge made by a lender to make a loan to a homebuyer, purchase a
loan from another lender, or sell a loan to a secondary market participant.

Forward Delivery - The delivery of mortgages or mortgage-backed securities to satisfy the
settlement of cash or futures market transactions of an earlier date

Forward Delivery Bond – A bond which is not delivered on the Closing Date but which is
delivered at some known time in the future.

Forward Funding (Public Housing) - Procedures authorized in the Housing Act of 1970
providing that HUD pay a local Housing Authority the amount of subsidy obligated in the HUD-
approved operating budget of the Authority at intervals throughout the Authority's fiscal year.

Forward-Starting Swap - An interest rate swap with pre-determined specifications that begins
on a specified future date.

Foster Child Care Payment (Section 8) – Payment to eligible households by state, local, or
private agencies appointed by the State, to administer payments for the care of foster children.
Glossary of Housing Acronyms and Terms
Foundation of Real Estate Appraisers (FREA) - The Foundation of Real Estate Appraisers
(FREA) was founded in 1991 to fill a gap in the market for appraiser continuing education. At
the time, obtaining education was expensive and difficult. It involved earning a designation that
required thousands of dollars in classes from an association, and years of subservient service to
someone who was already designated. FREA began offering continuing education classes in the
San Diego area and within a few months had more than 150 instructors teaching classes all over
the country.

Fractional Basis - Each property in the improvement district is charged a prorated share of the
total amount of the special tax assessment. The share is determined either on a fractional basis
(four houses may equally share the cost of one streetlight) or on a cost-per-front-foot basis
(wider lots incur a greater cost than narrower lots for street paving and curb and sidewalk

Fractional Interest - A legal claim or right to a portion of a property.

Fraudulent Transfers (Conveyances) (Bankruptcy) - Transfer of property or an obligation
made within one year before the filing date of the bankruptcy petition that was made with the
intent to hinder, delay or defraud creditor(s).

Freddie Mac (FHLMC) – Federal Home Loan Mortgage Corporation is one of two private
corporations whose charter is authorized and guaranteed by (on an annual appropriations basis)
the Federal Government.. Their charge is to provide liquidity to mortgage lenders by providing
a guaranty to mortgage loans which gives them liquidity in the secondary mortgage market.

Freedom of Information Act (FOIA) - Generally refers to the process of securing available
documents from HUD or other federal agencies in accordance with required procedures. Certain
types of documents, including owner financial statements, are considered privileged and not are
not disclosable to the public under FOIA.

Freehold - Use of real estate for an indeterminate time

Fresh Start (Bankruptcy) - The characterization of a debtor's status after bankruptcy, i.e., free
of most debts. (Giving debtors a fresh start is one purpose of the Bankruptcy Code.)

Front-End Money (Front Money) - Funds required to start a project and generally advanced by
the developer or equity owner as a capital contribution to the project, also called "seed money."

Front-End Ratio - a percentage comparing a borrower's total monthly cost to buy a house
(mortgage principal and interest, insurance, and real estate taxes) to monthly income before

Front-End Risk Assessments (FERAs) – (FERAs) are documented reviews by management of
a component’s susceptibility to waste, fraud, abuse and mismanagement. FERAs are conducted
on new or substantially revised programs or administrative functions.
Glossary of Housing Acronyms and Terms

Full/Full Restructuring - A transaction carried out under Mark to Market involving both rent
reduction and bifurcation of the HUD-insured debt into performing and deferred loans.

Full-Time Student (Section 8) – A person who is carrying a subject load that is considered full
time for day students under the standards and practices of the educational institution attended.
An educational institution includes a vocational school with a diploma or certificate program, as
well as an institution offering a college degree. (CFR 6,603).

Fully Amortized Adjustable-Rate Mortgage - A home loan whose interest rate can change,
and whose amount is fully paid at the end of the term

Fully Amortizing Loan - A loan in which the principal and interest will be repaid fully through
regular installments by the time the loan's term ends.

Functional Obsolescence - Impairment of functional capacity or efficiency. For example, homes
without indoor plumbing (while they may contain working outdoor plumbing facilities) are
considered functionally obsolete.

Fund or Fund Account - A summary account established in the Treasury for each
Appropriation and/or fund showing transactions to such accounts. Each such account provides
the framework for establishing a set of balanced accounts on the books of the agency concerned.
As used in OMB Circular A-34, this phrase refers to general fund expenditure accounts, special
fund expenditure accounts, public enterprise revolving funds, Intra governmental revolving
funds, management funds, trust fund expenditure accounts, and trust revolving fund accounts.
(JFMIP Core; OMB Circular A-34, Part 11, Section 21.1, p. 11-4 and 5) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Funding (HUD) – Grants & Announcements -

Funding Increment (Section 8) – Each commitment of budget authority by HUD to a PHA
under the consolidated annual contributions contract for the PHA program.

GAAP – Generally Accepted Accounting Principals

GAAS – Generally Accepted Auditing Standards

GAGAS – Generally Accepted Government Auditing Standards

GAL – Guardian Ad Litem Program, SC (Lt. Gov. Office)

GAO – General Accountability Office

GDP – Gross Domestic Product
Glossary of Housing Acronyms and Terms

GEM - Graduated-Equity Mortgage

GEM – Growing-Equity Mortgage

GFC – Gross Family Contribution

GFE – Good Faith Estimate

GI – General Insurance Fund (one of four FHA insurance funds)

GIC - Guaranteed Investment Agreement

GIMS – Grant Interface Management System

GIN – General Information Notice

GIS – Geographic Information Systems

GLBA - Gramm-Leach-Bliley Financial Services Modernization Act of 1999

GMC - Grants Management Center (under Public and Indian Housing)

GMP – Grants Management Program

GMS – Grants Management System

GNMA - Ginnie Mae-The Government National Mortgage Association

GNP – Gross National Product

GOALS - Government Online Accounting Link System

GOR – General Operating Reserve

GP – General Partner

GPM – Graduated Payment Mortgage

GPRA – Government Performance and Results Act

GR – Gross Rent

GRI – Graduate Realtors Institute

GRM – Gross Rent Multiplier
Glossary of Housing Acronyms and Terms

GSA - General Services Administration

GSE – Government Sponsored Enterprises (Fannie Mae and Freddie Mac)

GTR - Government Technical Representative

Gap Financing - A loan required by a developer to bridge the gap i.e. to make up a deficiency
between the amount of mortgage loan due on project completion and the expenses incurred
during construction.

General Contractor – A duly licensed entity or individual licensed by the State of South
Carolina who agrees, for a specific period, to furnish all materials, labor and services related to
the renovation or new construction of a building or buildings.

General Controls - The structure, methods, and procedures that provide the overall control
environment affecting the financial management systems. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

General Insurance Fund (GI) - One of the four funds comprising the FHA fund, which is used
to finance most of the higher-risk mortgage insurance programs for low- and moderate-income

General Lien - A lien such as a tax lien or judgment lien, which attaches to all property of the
debtor rather than the lien of, for example, a trust deed, which attaches only to a specific property

General Mortgage - A general mortgage is a document in which the owner uses the title to real
property as security for a loan described in a promissory note. The mortgage must be signed by
the owner (borrower/mortgagor), acknowledged before a notary public, and recorded with the
County Recorder or Recorder of Deeds. If the owner fails to make payments on the promissory
note then the lender can foreclose on the mortgage to force a sale of the real property and receive
the proceeds, or receive the property itself at a public sheriff's sale.

General Obligation Bond – A bond secured by the pledge of the issuer’s full faith, credit and,
usually, also its taxing power.

General Partner (GP) - partner in a general or limited partnership which handles day-to-day
operations of the project and has the most liability for the project owned by the partnership.

General Partnership - In a general partnership, all the partners participate in the operation and
management of the business and share full liability for business losses and obligations.

General Services Administration (GSA) - The largest civilian Federal agency buyer of general
supplies and services-It provides operational supplies and services to the civilian Federal
agencies through its Federal Supply Service. Most of these supplies are furnished by independent
Glossary of Housing Acronyms and Terms
contractors. The GSA Small Business Centers provide advice to small businesses about GSA's
contracting opportunities. GSA Internet Site at

General Warranty Deed - A deed which conveys not only all the grantor's interests in - and title
to - the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it
(such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the
grantee may hold the grantor liable.

Gentrification (LIHTC) - A process in which a low-cost – and possibly deteriorating –
neighborhood undergoes revitalization through reinvestment in its physical assets. Gentrification
is often associated with an influx of higher-income residents, an increase in property values, and
the displacement of at least some of the original lower-income residents, which can make it

Geocoding - The process of identifying the coordinates of a location given its address.

Geographic Information Systems (GIS) - A computer system for the input, storage,
processing, applications development, retrieval, and maintenance of information about the
points, lines, and areas that represent the streets and roads, rivers, railroads, geographic entities,
and other features on the surface of the earth — information that previously was available only
on paper maps.

Gift Deed - A deed in which the consideration is "love and affection." Because the deed is not
supported by valuable consideration, the donee (recipient of the gift) may not be able to enforce
against the donor certain promises or agreements contained in the deed.

Ginnie Mae (GNMA) – The Government National Mortgage Association is a wholly owned
corporate instrumentality of the United States within the Department of Housing and Urban
Development. GNMA is charged with providing a guaranty to mortgage-backed securities
which are backed by a pool of mortgage loans insured by FHA, VA or USRD.

Global Debt Facility - designed to allow investors all over the world to purchase debt (loans) of
U.S. dollar and foreign currency through a variety of clearing systems.

GNMA-Collateralized Bonds – A housing revenue bond that is backed by an FHA insured
multifamily mortgage loan and further enhanced by a mortgage backed security (MBS). GNMA
is technically not an issuer of mortgage-backed securities, but rather acts as guarantor of the
FHA-insured MBS issued by private GNMA-approved lenders.

Good Faith Estimate (GFE) - Good faith estimate. A written estimate of expected closing costs
that a lender must provide a prospective home buyer within three days of the homeowner
submitting a mortgage loan application. Brokers and lenders are required by law to make as
accurate an estimate as they can.
Glossary of Housing Acronyms and Terms
Good Guy Clause - A good guy clause limits the liability of the personal guarantor for a tenant
when a lease is terminated early. If the tenant defaults on the lease but is current on rent
payments and surrenders the property in good condition, payment will not be sought from the
guarantor. It provides that the landlord will not enforce the personal guaranty as long as the
tenant has vacated the premises and has paid all rent up to the date of termination.

Government Escheat - Escheat means the forfeiture of property due to a failure to claim
ownership. In estate law, it means the forfeit of all property (including bank accounts) to the state
treasury if it appears certain that there are no heirs, descendants or named beneficiaries to take
the property upon the death of the last known owner. In some jurisdictions, carriers, innkeepers
and other designated bailees are authorized by statute to sell unclaimed freight, baggage or other
personal property under specified conditions. These statutes generally require that the property
remain unclaimed for a designated period and that notice of the sale be given. Most states have
enacted legislation providing for the escheat of abandoned and unclaimed property, or giving
custody of such property to the state. These statutes generally set forth procedures, whereby the
owner may file a claim and obtain restoration of the property within a designated period of time.

Government Mortgage - The Federal Housing Administration (FHA) offers 15 and 30 year
fixed-rate mortgages. FHA has both single family (1-4 unit homes) and multi-family (5 or more
units) mortgage lending programs. FHA also has 1 year adjustable mortgage, and also offers a
reverse mortgage to senior citizens through the "Home Equity Conversion Mortgage" program,
or "HECM".

Government National Mortgage Association (GNMA or Ginnie Mae) - Major Departmental
organization responsible for administering secondary market programs involving insured
mortgage loans such as the Mortgage-backed Securities Program.

Government Online Accounting Link System (GOALS) - The electronic network which ties
agencies to Treasury and each other for the exchange of information. Over the network, agencies
can transfer funds to each other and receive notification that Treasury has accomplished
disbursements. Also, agencies and Treasury can submit and receive reports once exchanged in
hard copy format by mail. The GOALS network can be used with a wide variety of terminals and
modems. (JFMIP Core; Common Term) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Government Operations - Those functions necessary to run the basic operational activities of
the government and to provide services, such as law enforcement and national defense, which are
non-monetary in nature. Government operations include the functions of personnel, acquisition,
property management, and inventory management. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Government-Sponsored Enterprises (GSEs) - Federally chartered, privately owned
corporations which carry an implicit guarantee of the federal government. Examples are FNMA
and FHLMC.
Glossary of Housing Acronyms and Terms
Government Technical Representative (GTR) - HUD program office employees who support
contracting personnel in technical and programmatic matters related to contracts. GTRs are
chiefly responsible for monitoring contractor performance, inspecting contract products and
contractor services, preparing documentation to support acceptance or rejection of contractor
work, alerting the CO to potential and actual contract problems, and recommending corrective
action (e.g., changes to the contract).

Government-wide Financial Management System - A system which contains information on
the federal government as a whole or which handles particular financial management services for
multiple agencies by a single, designated service provider. These systems support government-
wide decision-making, centralized processing, and consolidated information requirements.
(JFMIP Framework) HUDCAPS Core Financial System Standard Accounting Interface, dated

Government Performance and Results Act (GPRA) – Requires Federal Agencies to establish
performance standards and report on results.

Governmental Purpose Bond – See “Essential Function Bond”

Grace Period - A time allowed, usually 15 days, for making late payments without a penalty.

Gramm-Rudman-Hollings - Legislation originally passed in 1985 to provide for systematic
reduction in the budget deficit by sequestering (permanently withholding from availability)
calculated percentages of new budget authority for each program, project, or activity receiving
appropriations, if the Administration and Congress do not meet the targets through other means.
(Pub.L. 99-177, title II, Stat. 1038, 2 U.S.C. § 900)

Grandfather Clause - The clause in a law permitting the continuation of a use, business, etc.,
which was permissible but because of a change in the law is now no longer permissible

Graduated-Equity Mortgage (GEM) - A loan for which payments increase according to a
prearranged schedule and the increases repay the debt faster than a conventional, fixed-payment

Graduated-Payment Mortgages (GPM) - mortgages that begin with lower monthly payments
that get slowly larger over a period of years, eventually reaching a fixed level and remaining
there for the life of the loan. Graduated payment loans may be good if you expect your annual
income to increase.

Grandfather Clause - A provision in a new law that limits its application to people who are new
to the system; people already in the system are exempt from the new regulation. For example,
when Washington, D.C. raised its drinking age from 18 to 21, people between those ages, who
could drink under the old law, were allowed to retain the right to legally consume alcohol under
a grandfather clause.
Glossary of Housing Acronyms and Terms
Grant - A federal grant maybe defined as a form of assistance authorized by statute in which a
federal agency (the grantor) transfers something of value to a party (the grantee) usually, but not
always, outside of the federal government, for a purpose, undertaking, or activity of the grantee
which the government has chosen to assist, to be carried out without substantial involvement on
the part of the federal government. The "thing of value" is usually money, but may, depending
on the program legislation, also include property or services. The grantee, again depending on
the program legislation, may be a state or local government, a nonprofit organization, or a private
individual or business entity. Programs administered by state governments comprise the largest
category, involving federal outlays of over $100 billion a year. Principals of Federal
Appropriations Law, Volume II GAO/OGC-92-13

Grant Deed - A type of deed in which the grantor warrants to the grantee, that he has not
previously conveyed the estate, that he has not encumbered the property (except as noted in the
deed) and that he will convey any title to the property he may later acquire.

Grantee – A grantee in the context of real property law is a person to whom an estate or interest
in real property passes, in or by a deed. The person who passes the property is called a grantor.
Laws affecting the rights and obligations of grantees are primarily governed by state laws, which
vary by state.

Grantor - A grantor in the context of real property law is a person from or by whom an estate or
interest in real property passes, in or by a deed. The person to whom the property passes is called
a grantee. Laws affecting the rights and obligations of grantors are primarily governed by state
laws, which vary by state.

Grants Management Center (GMC) - A HUD organization which processes competitive grant
applications, determines formula grant allocations, and supports the public housing operating
subsidy program. GMC Homepage on the HUDWEB

Green Building (LIHTC) - Green building refers to a set of building design and construction
practices that seek to reduce a building’s environmental impacts by improving energy efficiency
and indoor air quality, reducing water use and consumption, choosing sustainable building
materials, and situating the home in a manner that takes advantage of sunlight and other natural

Green Card - A green card identifies its holder as a U.S. permanent resident, with rights to
enter, exit, work, and live here for their entire life. But before you think about applying, make
sure you're eligible under one of the following categories, such as a close relative of a U.S.
citizen, a preferred employee, or a refugee or asylee. You might also be eligible for a green card
under the diversity visa lottery, or based on having lived in the United States for many years.

Grievance (Public Housing) - A tenant's right to seek a hearing from an objective person or
panel concerning any public housing authority action or failure to act involving the tenant's base
rent or housing authority regulations that adversely affect the individual tenant's rights, duties,
welfare, or status.
Glossary of Housing Acronyms and Terms

Gross Family Contribution (GFC) (Section 8) – [Has been replaced by the term Total Tenant
Payment (TTP)].

Gross Lease - A commercial real estate lease in which the tenant pays a fixed amount of rent per
month or year, regardless of the landlord's operating costs, such as maintenance, taxes and
insurance. A gross lease closely resembles the typical residential lease. The tenant may agree to a
"gross lease with stops," meaning that the tenant will pitch in if the landlord's operating costs rise
above a certain level. In real estate lingo, the point when the tenant starts to contribute is called
the "stop level," because that’s where the landlord’s share of the costs stops.

Gross Potential Rent – The total revenue generated over a period of time if an apartment is
100% occupied.

Gross Rent (Section 8) – The sum of the Contract Rent and the Utility Allowance. If there is no
utility allowance, Contract Rent equals Gross Rent.

Ground Rent - Rent paid to the owner for use of land, normally on which to build a building.
Generally, the arrangement is that of a long-term lease (e.g. 99 years) with the lessor retaining
title to the land.

Group Home – a dwelling unit that is licensed by the State as a group home for the exclusive
residential use of two to twelve persons who are elderly or persons with disabilities (including
any live-in aide). A special housing type: See §982.610 to §982.614

Group Net Order – Typically the highest priority of order an investor can place with a member
of the Underwriting Group during the pricing of a bond issue. The members of the Underwriting
Group will receive credit for the order on the basis of the liability percentages which the issuer
has determined for each of the members. Typically, all Group Net Orders must be filled before
any Priority Orders or Member Orders can be filled.

Growing-Equity Mortgage (GEM) - A loan in which the monthly payments increase annually,
with the increased amount being used to reduce directly the principal balance outstanding and
thus shorten the overall term of the loan.

Guaranteed Investment Agreement (GIC) – A Guaranteed Investment Agreement is an
agreement between a private corporation and the Trustee pursuant to which funds held under the
Indenture are invested. Funds invested in a Guaranteed Investment Agreement are secured by
the full faith and credit of the provider of the Agreement. Since a Guaranteed Investment
Agreement involves a significant portion of the assets of the Indenture, the rating on the bonds is
often dependent upon the credit rating of the Guaranteed Investment Agreement provider.

Guaranteed Loan Funds (CPD) - means the proceeds payable to the borrower from the
issuance of debt obligations under this subpart.

Guaranteed Mortgage - A home mortgage guaranteed by the government or third party.
Glossary of Housing Acronyms and Terms

Guarantor - A person who makes a legally binding promise to either pay another person's debt
or perform another person's duty if that person defaults or fails to perform. The guarantor gives a
"guaranty," which is an assurance that the debt or other obligation will be fulfilled.

Guaranty Fee - payment to Fannie Mae from a lender for the assurance of timely principal and
interest payments to MBS (Mortgage Backed Security) security holders.

Guaranty of Title - The opinion of a title company backed by its assets as to the true condition
of the title to a certain piece of land at a particular time, as shown by the public records in the
recording office.

HA – Housing Agency

HAC - Housing Assistance Council

HAP – Housing Assistance Payment

HAP Plan – Housing Assistance Plan. Housing Plans required by CDBG Program.

HART – HUD Assistance and Recovery Team

HCDA – Housing and Community Development Amendments of 1981

HCV – Housing Choice Voucher

HDS – Housing Development Software

HECM - Home Equity Conversion Mortgage (Reverse Mortgage)

HEL – Home Equity Loan

HELOC – Home Equity Line of Credit

HELP – Homebuyer Education Learning Program (FHA program)

HFA – Housing Finance Agency

HHS – Health and Human Services (US Dept. of)

HMDA – Home Mortgage Disclosure Act

HMFA – HUD Metro Fair Market Rent (FMR) Area
Glossary of Housing Acronyms and Terms
HMO – Housing Management Officer (in HUD Field Office)

HOA – Home Owner’s Association

HOC – Homeownership Center (FHA – Single Family Housing field structure)

HoDAG - Housing Development Grant Program

HOEPA - Home Ownership and Equity Protection Act

HOLC - Home Owners' Loan Corporation

HOME – Home Investment Partnerships Program (CPD program)

HOPE – Homeownership and Opportunity for People Everywhere (Program)

HOPE VI – Program for Revitalization of Severely Distressed Public Housing (PIH program)

HOPWA – Housing Opportunities for Persons with AIDS (CPD program)

HOZ – Homeownership Zone Program

HPC – Housing Program Coordinator

HQS – Housing Quality Standards

HUB – Offices that oversee multifamily field offices

Hub/PC – Hub (Greensboro, NC) Program Center

HUD – U.S. Department of Housing and Urban Development

HUDAR - HUD Acquisition Regulation

HUDCAPS – HUD Central Accounting Processing System

HUDCLIPS – HUD Client Information and Policy System

HUDNET - HUD Teleprocessing Network

HUD PM – HUD Project Manager

HUDVET - HUD Veteran Resource Center

HUDweb - HUD's intranet - an internal web site available only to HUD employees.
Glossary of Housing Acronyms and Terms
HURRA – Housing and Urban/Rural Recovery Act of 1983

HV – Housing Voucher

HVAC - Heating, Ventilation, and Air Conditioning

Habendum Clause - That part of a deed beginning with the words "to have and to hold,"
following the grantor is conveying.

Habitat for Humanity - International organization working through local affiliates, which use
volunteer labor and donations to build or rehabilitate affordable homes. Habitat makes no-
interest loans to purchasers.

Handicap (Section 8) – Any condition or characteristic that renders a person an individual with
handicaps. See 24 CFR 8.3

Handicap Assistance (Section 8) – Anticipated costs for care attendants and auxiliary apparatus
for handicapped or disabled family members which enable a family member (including the
handicapped family member) to work.

Handicap Assistance Expense (Section 8) – See “Disability Assistance Expense”

Handicapped Person – A person having a physical or mental impairment which:
   1.      Is expected to be of long-continued and indefinite duration;
   2.      Substantially impedes his or her ability to live independently; and
   3.      Is of such a nature that such ability could be improved by more suitable housing

Hard Cost - The cost of land acquisition and improvement

Hatch Act - Act prohibiting partisan political activity on the part of federal employees.

Head of Household (Section 8) – The adult member of the family who is the head of household
for purposes of determining income eligibility and rent.

Healthy Homes - Healthy Homes is the implementation of Executive Order 13045 ("Protection
of Children from Environmental Health Risks and Safety Risks"). The program encourages the
funding of activities that promote healthy homes or that promote education on what is a healthy
home. These activities may include, but are not limited to, the following:
    1. educating homeowners or renters about the need to protect children in their home from
    dangers that can arise from items such as curtain cords, electrical outlets, hot water, poisons,
    fire, and sharp table edges, among others;
    2. incorporating child safety measures in the construction, rehabilitation or maintenance of
    housing, which include but are not limited to child safety latches on cabinets, hot water
    protection devices, properly ventilated windows to protect from mold, window guards to
    protect children from falling, proper pest management to prevent cockroaches which can
Glossary of Housing Acronyms and Terms
  cause asthma, and activities directed to control of leadbased paint hazards. The National
  Lead Information Hotline is 1-800-424-5323.
More information on Healthy Homes can be found on HUD's website - - or by calling 800-483-7342.

Healthy Homes for Healthy Children - A new life-saving initiative to help parents protect their
children from potentially deadly hidden dangers in their homes. TV home improvement expert
Bob Vila appears in television and print ads that tell parents how to make their homes safe from

Heir - A person who inherits under a will or a person who succeeds to property by the state laws
of descent if the decedent dies intestate.

Heir at Law - A person entitled to inherit property under intestate succession laws.

Heirs and Assigns - One who might inherit or succeed to an interest in a property under the
rules of law applicable when a property owner dies

Hereditaments - Any and all kinds of estates, interest and rights in real estate that can be

Hold-Harmless Clause - A contract provision whereby one party agrees to indemnify and
protect the other party from any injuries or lawsuits arising out of the particular transaction. Such
clauses are usually found in leases in which the lessee agrees to "indemnify, defend and hold
harmless" the lessor from claims and suits of third persons for damage resulting from the lessee's
negligence on the leased premises.

HOME-Assisted Units - Units within a HOME project for which rent, occupancy, and/or long-
term affordability restrictions apply. The number of units designated as HOME-assisted affects
the maximum HOME subsidies that may be provided to a project.

Home Builders Association of South Carolina - The Home Builders Association of South
Carolina (HBASC) is a professional, non-profit association committed to promoting housing for
people of all income levels and the production of quality homes.

HOME Compliance Period - For rehabbed units, the compliance period is 15 years and for new
construction, 20 years. Tenant files are required to be maintained for an additional 3-year period
after move-out. The Partnership should confirm with their local HOME administrator on the
monitoring requirements in years 16-20. It is assumed that HOME agencies will monitor HOME
units after year 15.

Home Equity Line of Credit (HELOC) – A line of credit extended to a homeowner that uses
the borrower's home as collateral. Once a maximum loan balance is established, the homeowner
may draw on the line of credit at his or her discretion. Interest is charged on a predetermined
variable rate, which is usually based on prevailing prime rates.
Glossary of Housing Acronyms and Terms
Home Equity Conversion Mortgage (HECM) (Reverse Mortgage) - the reverse mortgage is
used by senior homeowners age 62 and older to convert the equity in their home into monthly
streams of income and/or a line of credit to be repaid when they no longer occupy the home. A
lending institution such as a mortgage lender, bank, credit union or savings and loan association
funds the FHA insured loan, commonly known as HECM.

HOME Funds - Units within a HOME project for which rent, occupancy, and/or long-term
affordability restrictions apply. The number of units designated as HOME-assisted affects the
maximum HOME subsidies that may be provided to a project.

HOME Investment Trust Fund - The term given to the two accounts -- one at the Federal level
and one at the local level -- that "hold" the participating jurisdiction’s HOME funds. The Federal
HOME Investment Trust Account is the U.S. Treasury account for each participating
jurisdiction. The local HOME Investment Trust Fund account includes repayments of HOME
funds, matching contributions, and payment of interest or other returns on investment.

HOME Investment Partnerships Act - The act that created a formula-based allocation program
intended to support State and local affordable-housing programs. The goal of the program is to
increase the supply of affordable rental and ownership housing through acquisition, construction,
reconstruction, and moderate or substantial rehabilitation activities (Title II, National Affordable
Housing Act of 1990).

Home Investment Partnerships (HOME) Program – HOME provides formula grants to States
and localities that communities use, often in partnership with local nonprofit groups, to fund a
wide range of activities that build, buy, and/or rehabilitate affordable housing for rent or
homeownership or provide direct rental assistance to low-income people.

Home Mortgage Disclosure Act (HMDA) - The Home Mortgage Disclosure Act of 1975, as
amended in 1989, requires most financial institutions and mortgage lenders that make mortgage
loans, home improvement loans, or home refinance loans to collect and disclose information
about their lending practices. Office Of The Assistant Secretary For Housing-Federal Housing
Commissioner Mortgagee Letter 94-22, May 4, 1994

Home Owners' Loan Corporation (HOLC) - A federally chartered corporation established in
1933 and administered by the Federal Home Loan Bank Board to refinance mortgages of
economically distressed homeowners. The HOLC legally expired in 1954.

Home Ownership and Equity Protection Act - A federal law designed to discourage predatory
lending in mortgages and home equity loans.

Homebuyer Education Learning Program (HELP) - An educational program initiated by the
FHA that teaches people about the home buying process. This program covers topics like
budgeting, finding a home, getting a loan, and home maintenance. This program is a requirement
Glossary of Housing Acronyms and Terms
for people applying for an FHA insured loan. Many who complete the program may be entitled
to a reduced initial FHA mortgage insurance premium – from 2.25% to 1.75% of the home
purchase price.

Homebuyer Protection Plan - A HUD package of home appraisal reforms that will increase the
level of consumer confidence in the homebuying process and benefit 800,000 families who get
Federal Housing Administration mortgages each year. HUD web site at

HomeKeeper (SM) - Fannie Mae's adjustable-rate conventional reverse mortgage, which allows
older homeowners to borrow against the value of their homes and receive the proceeds according
to the payment option they select. The amount available is based on the number of borrowers and
their ages and the adjusted property value. Anyone 62 years or older who either owns his or her
own home free and clear or has very low mortgage debt is eligible.

Homeless - HUD’s definition of homeless is (in general) a person or family lacking a fixed,
regular, and adequate nighttime residence and is residing in places not meant for human
habitation, in an emergency shelter or in transitional housing for the homeless, or is being
evicted within a week from a private dwelling, or is being discharged within a week from an
institution in which they have been a resident for more than 30 consecutive days, or is fleeing a
domestic violence situation; in the case of children and youth, it also includes sharing the
housing of other persons due to loss of housing, economic hardship or a similar reason, or
awaiting foster care placement. Consult the specific housing program to determine eligibility.

Homeless Prevention - means activities or programs designed to prevent the incidence of
homelessness, including (but not limited to):
      • Short-term subsidies to defray rent and utility arrearages for families that have
          received eviction or utility termination notices;
      • Security deposits or first month's rent to permit a homeless family to move into its
          own apartment;
      • Mediation programs for landlord-tenant disputes;
      • Legal services programs for the representation of indigent tenants in eviction
      • Payments to prevent foreclosure on a home; and
      • Other innovative programs and activities designed to prevent the incidence of

Homeless Veteran - A person who once served in the military forces and does not have a
permanent residence or is in immediate danger of losing his or her home.

Homeowner’s Association - An organization comprising neighbors concerned with managing
the common areas of a subdivision or condominium complex. These associations take on issues
such as salting and sanding a subdivision when it snows and collecting dues from residents. The
homeowners' association is also responsible for enforcing any covenants, conditions &
restrictions that apply to the property.
Glossary of Housing Acronyms and Terms
Homeowner’s Association Dues - Monthly or quarterly fees paid to a homeowners’ association
that pay for operating expenses.

Homeownership (HOME) - means ownership in fee simple title or a 99 year leasehold interest
in a one- to four-unit dwelling or in a condominium unit, or equivalent form of ownership
approved by HUD. The ownership interest may be subject only to the restrictions on resale
required under 92.254(a); mortgages, deeds of trust, or other liens or instruments securing debt
on the property as approved by the participating jurisdiction; or any other restrictions or
encumbrances that do not impair the good and marketable nature of title to the ownership
interest. For purposes of the insular areas, homeownership includes leases of 40 years or more.
For purposes of housing located on trust or restricted Indian lands, homeownership includes
leases of 50 years. The participating jurisdiction must determine whether or not ownership or
membership in a cooperative or mutual housing project constitutes homeownership under State

Homeownership Education Classes - classes that stress the need to develop a strong credit
history and offer information about how to get a mortgage approved, qualify for a loan, choose
an affordable home, go through financing and closing processes, and avoid mortgage problems
that cause people to lose their homes.

Homeownership Zone Program (HOZ) - Allows communities to reclaim vacant and blighted
properties, increase homeownership, and promote economic revitalization by creating entire
neighborhoods of new, single-family homes, called HOZs.

Homestead - (1) The house in which a family lives plus any adjoining land and other buildings
on that land. (2) Real estate which is not subject to the claims of creditors as long as it is
occupied as a home by the head of the household. After the head of the family dies, homestead
laws often allow the surviving spouse or minor children to live on the property for as long as
they choose. (3) Land acquired out of the public lands of the United States. The term
"homesteaders" refers to people who got their land by settling it and making it productive, rather
than purchasing it outright.

Homestead Credit - property tax credit program, offered by some state governments, that
provides reductions in property taxes to eligible households.

Homestead Declaration - A form filed with the county recorder's office to put on record your
right to a homestead exemption. In most states, the homestead exemption is automatic--that is,
you are not required to record a homestead declaration in order to claim the homestead
exemption. A few states do require such a recording, however.

Homestead Exemption - The amount of homestead protection from unsecured creditors—
$50,000 for single persons, $75,000 for families, $100,000 for persons 65 years of age, and
$100,000 for disabled persons unable to work.
Glossary of Housing Acronyms and Terms

Homestead Waiver - A homestead waiver is a document wherein the homeowner of spouse of a
homeowner gives up the statutory homestead rights under applicable state law, often required in
certain contracts, such as mortgages. A bank often includes a homestead waiver in a mortgage so
that they can recoup their losses up to the full loan amount in case of foreclosure, rather than
having part of the property exempt from the claims of creditors under a homestead exemption.

HOPE I - No longer funded. Provided financial assistance for public housing authorities in the
form of planning and implementation grants to be used in conjunction with the development of
affordable homeownership programs for public housing residents involving the sale of public
housing units.

HOPE II - Provided financial assistance for the creation of homeownership opportunities for
low to moderate income families in government-insured or -owned of FHA multifamily

HOPE III - Provided financial assistance for the creation of home ownership opportunities for
low to moderate income, first-time homebuyers utilizing single family properties.

HOPE VI - HOPE VI, or the Urban Revitalization Program, enables demolition of obsolete
public housing, revitalization of public housing sites and distribution of supportive services to
the public housing residents affected by these actions.

Horizontal Property Acts - The laws enacted by states which permit the creation of the
condominium form of real property ownership.

Housing (CPD) - includes manufactured housing and manufactured housing lots, permanent
housing for disabled homeless persons, transitional housing, single-room occupancy housing,
and group homes. Housing also includes elder cottage housing opportunity (ECHO) units that are
small, free-standing, barrier-free, energy-efficient, removable, and designed to be installed
adjacent to existing single-family dwellings. Housing does not include emergency shelters
(including shelters for disaster victims) or facilities such as nursing homes, convalescent homes,
hospitals, residential treatment facilities, correctional facilities and student dormitories.

Housing Affordability Index - A measure of the percentage of the United States population
who can afford to purchase a home; based on average income and average home price

Housing Agency (HA or PHA) – Any state, county, municipality, or other governmental entity
or public body that is authorized to engage in or assist in the development or operation of
housing for low-income families

Housing and Community Development Act of 1974 (HCDA) (Section 8) – Act in which the
U.S. Housing Act of 1937 (sometimes referred to as the Act) was re-codified, and which added
the Section 8 Programs
Glossary of Housing Acronyms and Terms
Housing and Economic Recovery Act of 2008 (HR 3221) Public Law No: 110-289; Approved
by Congress on July 26, 2008; Signed by President Bush on July 30, 2008 -

Housing and Economic Recovery Act of 2008 – This law was signed by the President of the
United States in August 2008. The program will begin on October 1, 2008 and sunset on
September 30, 2011.

Housing and Urban Development (HUD) Audit – An audit of the books, records, or
performance of contractors or grantees and others doing business with HUD.

Housing and Urban/Rural Recovery Act of 1983 (HURRA) (Section 8) - (97 Stat. 1153). An
act making supplemental appropriations for the fiscal year ending September 30, 1984. Created
housing voucher program as an alternative to Section 8 rent certificates. Created Rental
Rehabilitation Program. November 30, 1983. Legislation that created most of the 1984 HUD
regulation changes in income, allowances, and rent calculations.

Housing Assistance Council (HAC) - A private organization which provides funds, training,
and other types of assistance to non-profit groups to facilitate construction of lower-income
housing in rural areas

Housing Assistance Payment (HAP) (Section 8) – The monthly assistance payment by a PHA,
which includes: (1) A payment to the owner for rent to the owner under the family’s lease; and
(2) An additional payment to the family if the total assistance payment exceeds the rent to owner

Housing Assistance Payment Contract (Section 8) – A written contract between HUD or a
Contract Administrator and an owner for the purpose of providing housing assistance payments
to the owner on behalf of an eligible family (sometimes referred to as the HAP Contract).
For Section 8 Existing, the Housing Assistance Payment Contract is executed between the PHA
and the private owner.

Housing Assistance Payment on Behalf of Eligible Family (Section 8) – The amount of
housing assistance payment on behalf of an eligible family, determined in accordance with
schedules and criteria established by HUD.
For the Section 8 Program, it is the difference between the Contract Rent and the Tenant Rent.

Housing Assistance Payment (HAP) Contracts – Created under Section 8 and entered into
between HUD and the project owners originally for periods between 20 and 40 years. The
contracts specify the rent levels to be supported by the government subsidy. Expiring contracts
may currently be renewed at adjusted rent levels for a period of one to five years under the
Multi-family Assisted Housing Reform and Affordability Act of 1997 (MAHRA).

Housing Assistance Plan (HAP) - Housing Plans required of recipients of block grant funds.
The Housing and Community Development Act of 1974 required that assisted housing program
funds, including Section 8 assistance, be distributed on the basis of HAPs.
Glossary of Housing Acronyms and Terms

Housing Credit Agency - The housing credit agency is a state or local housing agency that has
the authority to allocate and commit federal low-income housing tax credits to a building.

Housing Development Software (HDS) - A system for processing Section 8 housing assistance
payments (HAP).

Housing Discrimination - The illegal practice of denying an individual or group the right to buy
or rent a home based on race, color, religion, national origin, sex, disability or family status.

Housing Finance Agencies (HFA) - State or local agencies responsible for financing and
preserving privately owned low- and moderate-income housing within the state or locality.

Housing for Older Persons - The term “Housing for Older Persons” is a legal one used for the
purpose of claiming an exemption from the familial status provisions of the Fair Housing
Amendments Act. The three categories include HUD Secretary designated state or federally
assisted elderly housing programs; housing exclusively for persons 62 or older; and, 55 and over

Housing for the Elderly and Handicapped - Housing for the Elderly and Handicapped
Program authorized by Section 202 of the National Housing Act. This program provides direct
Federal loans to nonprofit sponsors for construction and mortgage financing of housing for
elderly and handicapped.

Housing Market Index - An index of over 300 home builders, which shows the demand for new
homes. The index runs from 0-100, so a rating of 50 would mean that demand for new homes
was average.

Housing Opportunities for Persons with AIDS (HOPWA) - Provides housing assistance and
supportive services to low-income people with HIV/AIDS and their families. HOPWA funds
may also be used for health care and mental health services, chemical dependency treatment,
nutritional services, case management, assistance with daily living, and other supportive

Housing Quality Standards (HQS) (Section 8) – The HUD minimum quality standards for
housing assisted under the Section 8 Programs.

Housing Trust Fund - A dedicated fund established by a state or locality to provide a stable
source of revenue reserved solely for affordable homes. Because housing trust fund revenue is
locally-generated, it is not encumbered by the restrictions associated with federal resources and
thus may be used more flexibly to fulfill locally-determined housing goals.

HUD-1 Uniform Settlement Statement - A closing statement or settlement sheet that outlines
all closing costs on a real estate transaction or refinancing.
Glossary of Housing Acronyms and Terms
HUD Acquisition Regulation (HUDAR) - The HUDAR is HUD's regulation to implement the
Federal Acquisition Regulation (FAR). The HUDAR does not repeat the requirements of the
FAR. Rather, it supplements the FAR by establishing HUD-specific procurement requirements.

HUD Approved Housing Counseling Agencies in S.C. (Listing current as of 11/20/2008) -

HUD Income Guidelines - Income levels used for determining eligibility for HUD assistance
programs, typically expressed as a percentage of the area median income.
       Very Low Income: Households whose income does not exceed 50% of the area median
       Low Income: Generally, a household whose income does not exceed 80% of the area
       median income.
       Moderate Income: Generally, households whose incomes range between 80% and 100-
       120% of the area median income.

HUD Manager or Management Team - The person(s) wearing the hats of: HUD rules and
regulation implementer, counselor, social worker, mediator, service coordinator, maintenance
person, front-line emergency response person, activity and/or transportation director/enabler,
driver, confidante, salesperson, interviewer, lease reviewer/enforcer, record-keeper, project
budget preparer/reviewer/authority, rent collector, accountant, computer expert (or not-so-
expert), resident council advisor, and general trouble-shooter for whatever should arise.

HUD Metro Fair Market Rent (FMR) Area (HMFA) - Indicates that only a portion of the
OMB-defined core-based statistical area (CBSA) is in the area to which the income limits or
FMRs apply. HUD is required by OMB to alter the name of metropolitan geographic entities it
derives from the CBSAs when the geography is not the same as that established by OMB.

HUD Teleprocessing Network (HUDNET) - Nationwide telecommunications network linking
Field Offices with HUD Computer Center and other mainframe computer sites.

HUD User - An information resource from HUD's Office of Policy Development and Research
offering a wide range of low- and no-cost content of interest to housing and community
development researchers, government officials, academics, policymakers, and the American
public. HUD USER is the primary source for federal government reports and information on
housing policy and programs, building technology, economic development, urban planning, and
other housing-related topics.

HUD Veteran Resource Center (HUDVET) - HUDVET was established by Secretary Andrew
Cuomo in cooperation with National Veteran Service Organizations (VSOs) to provide
information concerning veterans’ programs. HUDVET is housed within the HUD Office of
Community Planning and Development,. Participating VSOs include: American Ex-Prisoners of
War; American GI Forum of the U.S.; American Gold Star Mothers; American Legion;
American Veterans Committee; American Veterans of WWII, Korea and Vietnam (AMVETS).
Information is provided through an 800 number and the internet. HUD web site at
Glossary of Housing Acronyms and Terms

Hybrid Financing - The joining together of two forms of finance, such as combining a
convertible loan with a participation loan, under which the lender has the right at loan maturity to
convert the debt to a 50 percent ownership in the property.

Hybrid Mortgage - one that has elements of both a fixed-rate mortgage and an adjustable-rate
mortgage. Example A 5/25 is a hybrid mortgage that requires 5 years at a low fixed interest rate,
after which time the interest rate rises to the market rate for the next 25 years. Also popular are
the 3/27 and 7/23 hybrids

Hypothecate - To pledge something as security without having to give up possession of it.
Through a mortgage or deed of trust, the borrower hypothecates his/her new home to the lender
or trustee and still retains control the home.

IAN - Index Amortizing Note

IBR – Incorporation by Reference

IBS – Integrated Business System

ICDBG – Indian Community Development Block Grant Program

IDAs – Individual Development Accounts

IDIS – Integrated Disbursement and Information System (CPD system)

IESNA – “Illuminating Engineering Society of North America”

IFB - Invitation for Bids

IG – Inspector General (HUD Office of)

IGR – Independent Group Residence

IHAs – Indian Housing Authorities

IHBG – Indian Housing Block Grants Program

IIP – Initial Implementation Period

INS – Immigration and Naturalization Service

INV – Investor Sponsored Co-op
Glossary of Housing Acronyms and Terms
IPA – Intergovernmental Personnel Act.

IPA – Independent Public Accountant

IPO - Initial Public Offering

IPS – Initial Payment Standard (applies to the Housing Voucher Program)

IRA – Individual Retirement Account

IREF – International Real Estate Federation

IREM – Institute of Real Estate Management

iREMS – Integrated Real Estate Management System

IRF – Insurance Reserve Fund, SC Office of

IRM - Informational Resources Management

IRP – Interest Reduction Payment

IRR – Internal Rate of Return

IRS – Internal Revenue Service (of the U.S. Treasury)

ISDA – International Swaps and Derivatives Association

IT – Information Technology

ITMO –Information Technology Management Office, SC (Div. of CIO)

I-94 Card - A small green or white card given to all nonimmigrants when they enter the United
States. The I-94 card serves as evidence that a nonimmigrant has entered the country legally. It is
stamped with a date indicating how long the nonimmigrant may stay for that particular trip. It is
this date--and not the expiration date of the visa--that controls how long a nonimmigrant can
remain in the United States. A new I-94 card with a new date is issued each time the
nonimmigrant legally enters the United States. Canadian visitors are not normally issued I-94

Identity of Interest - The system whereby the builder and sponsor of a housing project
subsidized by the government have ownership interests in each other.

Illegal Immigrant - An illegal immigrant is a person who has entered the country without
official authorization. Federal immigration law provides means by which certain aliens can
Glossary of Housing Acronyms and Terms
become naturalized citizens with full rights of citizenship. Immigration law determines who may
enter, how long they may stay and when they must leave.

Illuminating Engineering Society of North America (ASHRAE/IESNA) - 90.1-1989, as
amended means the building design standard published in December 1989 by the American
Society of Heating, Refrigerating and Air-Conditioning Engineers, and the Illuminating
Engineering Society of North America titled "Energy Efficient Design of New Buildings Except
Low-Rise Residential Buildings," with Addenda 90.1b-1992; Addenda 90.1d-1992; Addenda
90.1e-1992; Addenda 90.1g-1993; and Addenda 90.1i-1993, which is incorporated by reference
in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. The availability of this incorporation by
reference is given in Sec. 420.6(b).

Immigration and Naturalization Service (INS) – Now known as U.S. Citizenship and
Immigration Services (USCIS) and formerly known as Immigration and Naturalization Service
(INS), the federal agency in the Department of Justice that administered and enforced
immigration and naturalization laws. In 2003, however, the INS officially ceased to exist, and its
functions were taken over by various branches of the Department of Homeland Security.

Immovable Property - It is land or any permanent feature or structure above or below the

Impact Fees - Impact fees are imposed to charge the owners of newly developed properties for
the "impact" the new development will have on the community. Fees can be used for such things
as transportation improvements, new parks, and expansion of schools. Impact fees are not used
to maintain existing facilities, but instead are used to create new facilities in proportion to the
number of new developments in the area.

Implied Warranty of Habitability - A legal doctrine that requires landlords to offer and
maintain livable premises for their tenants. If a landlord fails to provide habitable housing,
tenants in most states may legally withhold rent or take other measures, including hiring
someone to fix the problem or moving out. See constructive eviction.

Impound Account - Account held by a lender for payment of taxes, insurance or other related
expenses-Also known as an escrow account

Imprest Fund - A fixed-cash or petty-cash fund in the form of currency, coin, or Government
check, which has been advanced as Funds Held outside of Treasury and charged to a specific
Appropriation account by a Government agency official to an authorized cashier for cash
payment or other cash requirement as specifically authorized. The fund may be a revolving type,
replenished to the fixed amount as spent or used, or may be of a stationary nature such as a
change-making fund. (JFMIP Core; TFM 4-3020) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Imputed Asset (Section 8) – Asset disposed of for less than Fair Market Value during two years
preceding examination or reexamination.
Glossary of Housing Acronyms and Terms

Imputed Income (Section 8) – HUD passbook rate x total cash value of assets. Calculation
used when assets exceed $5,000.00.

Imputed Welfare Income (Section 8) – An amount of annual income that is not actually
received by a family as a result of a specified welfare benefit reduction, but is included in the
family’s annual income and therefore reflected in the family’s rental contribution.

In Rem (Foreclosure) – Latin term meaning “Against the thing”. Used to describe a legal
action which is taken against land rather than against the land owner, such as a bank’s
foreclosure on a defaulted mortgage.

In-Lieu Fee (LIHTC) - A cash payment some municipalities allow developers to pay instead of
including affordable units within a particular development, as required under an inclusionary
zoning policy. In-lieu fees are often deposited into a housing trust fund, where they are used to
fund other affordable housing initiatives.

Incentive Performance Fee - An annual distribution to the owner of a Mark to Market property
subject to satisfactory project operation and management and equal to 3 percent of Effective
Gross Income. The amount is subordinate to regular operating expenses, replacement reserves,
debt service and Capital Recovery Payments with a minimum of $100 a unit and a maximum of
$200 a unit.

Incentive Zoning - Zoning that offers incentives to developers, such as retail shops on the first
floor of multistory office buildings if a plaza for public use is included.

Inclusionary Zoning (LIHTC) - A requirement or incentive to reserve a specific percentage of
units in new residential developments for moderate-income households.

Income (Section 8) – Income from all sources of each member of the household, as determined
in accordance with criteria established by HUD.

Income Eligibility Limit (LIHTC) - The highest income level at which a household qualifies
for participation in a subsidy program. In most housing programs, income limits are expressed as
a percentage of the area median income, as determined by HUD.

Income for Eligibility (Section 8) – Annual Income

Income Information (Section 8) – means information relating to an individual’s income,
    • All employment income information known to current or previous employers or other
       income sources
    • All information about wages, as defined in the State’s unemployment compensation law,
       including any Social Security Number; name of employee; quarterly wages of the
       employee; and the name, full address, telephone number, and, when known, Employer
Glossary of Housing Acronyms and Terms
       Identification Number of an employer reporting wages under a State unemployment
       compensation law
   •   Whether an individual is receiving, has received, or has applied for unemployment
       compensation, and the amount and the period received
   •   Unearned IRS income and self-employment, wages and retirement income
   •   Wage, social security, and supplemental security income data obtained from Social
       Security Administration

Income Property - Property used to generate income from residential or commercial rentals
including profits attributable to real estate other than rent.

Income Ratio - The relationship between a person's total income and the amount needed to
make one month's mortgage payment.

Income Targeting (Section 8) - With the QWHRA Act of 1998, the requirement to recognize
the three main Federal preferences was permanently eliminated. However, as implemented in
April 2000, it is required that no less than 40% of new Section 8 assisted unit leases each year
are to be targeted to extremely low income families.

Income Targeting (LIHTC) - A policy designed to prioritize families with incomes below a
specified level for a certain percentage of newly available assistance. Under federal law, for
example, 40 percent of newly available public housing units must be provided to families with
incomes below 30 percent of the area median income (AMI). The balance of units may be rented
to families with incomes as high as 80 percent of AMI – the income eligibility limit. Local
communities may target assistance more deeply than required by federal law.

Incurable Defect - A flaw in real property that cannot be repaired or is too expensive to repair in
relation to the value of the property

Indefeasible - A right or title in property that cannot be made void, defeated or canceled by any
past event, error or omission in the title.

Indefinite Authority - Budget Authority of an unspecified amount of money, usually stated as
"such sums as may be necessary".

Indemnification - to secure against any loss or damage, compensate or give security for
reimbursement for loss or damage incurred. A homeowner should negotiate for inclusion of an
indemnification provision in a contract with a general contractor or for a separate indemnity
agreement protecting the homeowner from harm, loss or damage caused by actions or omissions
of the general (and all sub) contractor.

Indemnity Agreement - An agreement by which one party agrees to repay another for any loss
or damage the latter may suffer.

Indemnity Deed of Trust - An indemnity deed of trust is a real estate recordable document used
in Maryland to avoid payment of recordation and transfer taxes in real estate transactions. The
Glossary of Housing Acronyms and Terms
state and each local jurisdiction impose recordation taxes and transfer taxes on the recordation
documents that transfer an interest in land. Recordation and transfer taxes are due when the deed
of trust is recorded. The taxes are based on the consideration passing under the document to be
recorded, which is usually the amount of the debt secured.

Indenture – An Agreement between the Trustee representing the investors and the Issuer which
specifies all of the terms under which the bond proceeds will be utilized and the terms under
which the bonds will be repaid.

Independent Housing for the Elderly - Facilities that provide a secure residential environment
for elderly individuals who do not need or want the higher levels of care and supervision found
in sub-acute care facilities, such as nursing homes. The elderly residents of housing facilities
have their own apartments, each providing maximum privacy and independence.

Index - A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The
index is generally a published number or percentage, such as the average interest rate or yield on
Treasury bills. A margin is added to the index to determine the interest rate that will be charged
on the ARM. Some lenders provide caps that limit how much the interest rate or loan payments
may increase or decrease.

Index Amortizing Note (IAN) - A note that repays principal over a period of time that lengthens
or shortens according to an amortization schedule linked to a specific index, usually LIBOR. As
interest rates increase, the IAN's maturity extends longer, an effect similar to what happens to a
collateralized mortgage obligation when prepayment rates decrease. An IAN is a type of
structured note.

Indian Housing Authority - A housing agency established either: By exercise of the power of
self-government of an Indian Tribe, independent of State law, or by operation of State law
providing specifically for housing authorities for Indians.

Individual with Handicaps (Section 8) – Any person who has a physical or mental impairment
that substantially limits one or more major life activities; has a record of such an impairment; or
is regarded as having such impairment.

Inducement Resolution - An inducement resolution is the resolution passed by the bond issuer
communicating the intent to issue bonds for a specific activity.

Industrial Development Bond - A security issued by a state, certain agencies or authorities, a
local government, or development corporation to finance the construction or purchase of
industrial plants or equipment which will be leased to a private corporation and backed by the
credit of the private corporation.

Industrial Revenue Bond – A security issued by a state, certain agencies or authorities, a local
government or development corporation to finance the construction or purchase of industrial
plants and/or equipment to be leased to a private corporation; and backed by the credit of the
private corporation rather than the credit of the issuer.
Glossary of Housing Acronyms and Terms

Infill (LIHTC) - Development that occurs on vacant or abandoned lots, in spaces between
buildings, or through the redevelopment of existing lots in an urban area, rather than on
previously undeveloped land outside of developed area boundaries. (See also Abandoned

Inflation - The number of dollars in circulation exceeds the amount of and goods and services
available for purchase. It is the sustained increase in prices for goods and services and is
measured as an annual percentage increase. As the inflation-rate increases the purchasing power
of a dollar decreases.

Inflation Coverage - endorsement to a homeowner's policy that automatically adjusts the
amount of insurance to compensate for inflationary rises in the home's value. This type of
coverage does not adjust for increases in the home's value due to improvements.

Information - Data that has been processed in such a way that it can increase the knowledge of
the person who receives it. Information is what individuals start with before it is fed into a data
capture transaction processing system. Information is also the output of information systems.
DAMA web site at

Information System - The organized collection, processing, transmission, and dissemination of
information in accordance with defined procedures, whether automated or manual. (JFMIP
Framework) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Information Technology (IT) - Any equipment or interconnected system or subsystem of
equipment, that is used in the automatic acquisition, storage, manipulation, management,
movement, control, display, switching, interchange, transmission, or reception of data or
information by the executive agency. For purposes of the preceding sentence, equipment is used
by an executive agency if the equipment is used by the executive agency directly or is used by a
contractor under a contract with the executive agency which (i) requires the use of such
equipment, or (ii) requires the use, to a significant extent, of such equipment in the performance
of a service or the furnishing of a product. It does not include any equipment that is acquired by a
Federal contractor incidental to a Federal contract. Information Technology Reform Act, Sec

Informational Resources Management (IRM) - Term used to refer to current Federal efforts to
improve the integration and management of automated and other data.

Infrastructure - Facilities and services of a community as they relate to providing
transportation, water, sewer and recreation or community services.

Infrastructure Costs (LIHTC) - The cost of providing the various systems and facilities needed
to support the operation of a community (e.g., sewer and water systems, electric systems,
communication lines, roads). Some municipalities charge impact fees to developers or
purchasers of new homes to help pay for the costs associated with the initial servicing of these
Glossary of Housing Acronyms and Terms

Inheritance Tax – An "estate" tax imposed by the state on heirs for their right to inherit
property. The tax is not levied on the property itself, but rather on the heirs for their right to
acquire the property by succession or devise. Therefore, the rates or the deductions may vary
depending on the degree of the relationship. At the time of a person's death, a statutory lien
usually attaches to all real property interests owned by the decedent, which lien remains in effect
until the inheritance taxes have been paid and a "tax clearance" is issued. This applies even if
property was held in joint tenancy with right of survivorship.

Initial Implementation Period (IIP) – for rules requiring documentation of citizenship and/or
eligible alien status

Initial Payment Standard (Section 8) – The payment standard at the beginning of the HAP
contract term

Initial PHA (Section 8) – In portability, the term refers to both: (1) A PHA that originally
selected a family that later decides to move out of the jurisdiction of the absorbing PHA

Initial Public Offering (IPO) - An initial public offering (IPO) refers to when a company first
sells its shares to the public. By their nature, investing in an IPO is a risky and speculative
investment. The IPOs of all but the smallest of companies are usually offered to the public
through an "underwriting syndicate," a group of underwriters who agree to purchase the shares
from the issuer and then sell the shares to investors.

Initial Rent to Owner (Section 8) – The rent to owner at the beginning of the HAP contract

Injunction - A legal action whereby a court issues a writ that forbids a party defendant from
doing some act or compels the defendant to perform an act. An injunction requires the person to
whom it is directed to refrain from doing a particular thing, such as violating deed restrictions or
house rules.

Injunction (Foreclosure) - A court decision intended to prevent harm. In judicial foreclosure an
injunction is used to postpone an ongoing foreclosure action so that a judge can determine that
the proceedings are just and proper.

Insider (of individual debtor) (Bankruptcy) - Any relative of the debtor or of a general partner
of the debtor; partnership in which the debtor is a general partner; general partner of the debtor;
or a corporation of which the debtor is a director, officer, or person in control.

Insider (of corporate debtor) (Bankruptcy) - A director, officer, or person in control of the
debtor; a partnership in which the debtor is a general partner; a general partner of the debtor; or a
relative of a general partner, director, officer, or person in control of the debtor.

Inspection Report - The documentation of an objective visual inspection of a homes structure
and systems. An inspection report is complied to determine if there are any problems or
Glossary of Housing Acronyms and Terms
conditions that exist at the time of the inspection. The inspection is conducted before the home is
purchased. Inspections include areas of a homes interior and exterior, from the roof to the
foundation and the exterior drainage and retaining walls.

Inspector General (IG) - The head of the Department's Office of Inspector General, appointed
by the President, responsible for conducting audits and investigations of HUD programs and

Institutional Investor – An investor which is not investing their own personal funds but who is
investing either corporate funds or funds of multiple individuals.

Insurable Title - A property title that a title insurance company agrees to insure against defects
and disputes

Insurance Binder - A temporary insurance arrangement usually put in force until a permanent
policy can be obtained.

Insured Mortgage - A mortgage that is protected by the Federal Housing Administration (FHA)
or by private mortgage insurance (PMI). If the borrower defaults on the loan, the insurer must
pay the lender the lesser of the loss incurred or the insured amount.

Integrated Disbursement and Information System (IDIS) - IDIS is the draw down and
reporting system for the four CPD formula grant programs: CDBG, HOME, ESG, and HOPWA.

Integration - The use of common processes, transmission, and standardized data to effectively
and efficiently manage and report on the use of financial resources and to track the financial
implications of activities of the federal government. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Inter-Pleader - The procedure occurs when two parties are involved in a lawsuit over the rights
to collect a debt from a third party. The third party admits that money is owed but does not know
whom to pay. The third party or debtor deposits the funds owed with the court and asks the court
to dismiss them from the lawsuit and lets the two parties fight over the money in court.

Interest – (1) Compensation for the use of borrowed money, generally expressed as an annual
percentage of the principal amount; or (2) share, right, or title in property.

Interest Accrual Rate - The percentage rate at which interest accrues on the mortgage. In most
cases, it is also the rate used to calculate the monthly payments.

Interest Escalation Clause - Provides for variable rate of interest according to a standard index.

Interest Only Strip – A type of investment which is secured by a portion of the interest on
mortgage-backed securities. As such, the Interest Only Strip will only provide a return to an
investor as long as the mortgage-backed securities remain outstanding.
Glossary of Housing Acronyms and Terms

Interest Payment Date – The date on which interest is paid on the bonds. Typically, single
family mortgage revenue bonds pay interest with semi-annual interest payment dates.

Interest Payment Notification (1098) - A federal tax form that lenders use at year end to notify
borrowers of the interest that was paid on their mortgage over the last year.

Interest Rate – The annual percentage of the principal amount payable for the use of borrowed

Interest Rate Buy-Down Plan - A temporary buydown gives a borrower a reduced monthly
payment during the first few years of a home loan and is typically paid for in an initial lump sum
made by the seller, lender, or borrower. A permanent buydown is paid the same way but reduces
the interest rate over the entire life of a home loan.

Interest Rate for HECMs - The interest rate on a Home Equity Conversion Mortgage (HECM)
adjusts monthly or yearly. It is tied to the weekly average yield of U.S. Treasury securities
adjusted to a constant maturity of one year. The interest charged on the HECM loan will be
payable to your lender when the loan terminates.

Interest Rate Swap – A contractual agreement between two parties to exchange a series of cash
flows based on a specified notional amount and specified interest rates (either a fixed rate or a
floating rate index).

Interest Reduction Payment (IRP) - The federal write-down of the interest payments due on
Section 236 loans, typically reducing the effective interest rate to 1%.

Interest Reduction Payment Decoupling or IRP Strip - A transaction whereby the actual
Section 236 loan is repaid, but the stream of IRP funds that would have been used to write down
the interest payments if the loan had remained in place are separated from the original debt and
used to support a new loan on the property.

Interest Reduction Subsidies (Section 8) – The monthly payments or discounts made by HUD
to reduce the debt service payments and, hence, rents required on Section 236 and 221(d)(3)
BMIR projects. This includes monthly interest reduction payments made to mortgagees of
Section 236 projects and front-end loan discounts paid on BMIR projects.

Intergovernmental Personnel Act (IPA) - Permits temporary assignment of employees to
public and private sector.

Interim Rule - When an interim rule is published, it is in effect until comments are taken in and
a final rule is published. A proposed rule, on the other hand, is suggestive language up for
comment that is not effective until final language is published.

Intermediary Cost (LIHTC) - Those costs associated with third party services relating to the
project development (eg., architect/engineer/appraiser/historic consultant, etc.)
Glossary of Housing Acronyms and Terms

Intermediate Term Mortgage - a mortgage loan with a contractual maturity from the time of
purchase equal to or less than 20 years

Internal Control - process, affected by the management and other personnel of an entity,
designed to provide reasonable assurance regarding the achievement of objectives in the
following categories: (i) effectiveness and efficiency of operations and programs, (ii) reliability
of information and financial reporting, and (iii) compliance with applicable laws and regulations.
(JFMIP Framework). According to GAO, internal control is a plan of organization, methods, and
procedures adopted by management to ensure that (1) resource use is consistent with laws,
regulations, and policies; (2) resources are safeguarded against waste, loss, and misuse; and (3)
reliable data are contained, maintained, and fairly disclosed in reports. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Internal Control System Monitoring - The process of assessing the quality of the Internal
Control system over time. This is accomplished by ongoing monitoring in the course of
operations and/or separate evaluations based on an assessment of risks and the effectiveness of
the ongoing monitoring. (JFMIP Framework) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Internal Rate of Return - The percentage rate earned on each dollar that remains in an
investment each year. The IRR of an investment is the discount rate at which the sum of the
present value of future cash flows equals the initial cap ital investment.

Internal Revenue Service (IRS) Expenses - A table of national and regional expense estimates
published by the IRS. Debtors whose current monthly income is more than their state's median
family income must use the IRS expenses to calculate their average net income in a Chapter 7
case, or their disposable income in a Chapter 13 case.

International Swaps and Derivatives Association (ISDA) – is the principal trade group for
swaps and derivatives dealers as well as allied organizations.

Interpleader – A judicial proceeding where an innocent third party, such as an escrow agent or
broker, can deposit with the court property or money that he or she holds and that is subject to
adverse claims. The court can then distribute it to the rightful claimant.

Intestate - The condition of a property owner who dies without leaving a valid will. Title to the
property will pass to the decedent's heirs as provided in the state law of descent.

Intestate Succession - The method by which property is distributed when a person dies without
a valid will. Each state's law provides that the property be distributed to the closest surviving
relatives. In most states, the surviving spouse, children, parents, siblings, nieces and nephews,
and next of kin inherit, in that order.

Inverse Condemnation - A property owner forcing a government to take a property by eminent
domain when that government's actions resulted in the owner's inability to use the property.
Glossary of Housing Acronyms and Terms

Inverse Floater - An asset, such as a mortgaged backed bond, paying an adjustable interest rate
that rises or falls in the opposite direction of the movement of general market interest rates. The
floating coupon rate is calculated as the difference between a constant interest rate and a
designated index. For example, the floating rate might be 14 percent minus the current rate of
LIBOR. As LIBOR increases, the bond's coupon payment rate decreases and vice versa. An
inverse floater is a type of structured note.

Investment Agreement – See “Guarantee Investment Agreement”

Investment Banker – A firm or an individual member of a firm that underwrites new issues of
municipal securities.

Investment Grade – The broad credit designation given bonds which have a high probability of
being paid. Such bonds have few, if any, speculative features and are rated at least “Baa” by
Moody’s Investors Service or “BBB” by Standard & Poor’s. Bank examiners require that most
bonds held in bank portfolios be investment grade.

Investor Sponsored Co-op (INV) – An investor who agrees to construct/rehabilitate and operate
a multifamily property and to transfer the property to a nonprofit cooperative mortgagor within
two years of the final endorsement date.

Invitation for Bids (IFB) - An IFB is the instrument used to solicit bids for proposed contracts
using the sealed bidding procurement method.

Involuntary Conversion - Loss of land through natural forces or through government action.

Involuntary Lien - A lien that attaches to property without the consent of the owner such as tax

Issuer – A state, political subdivision, agency, or authority which borrows money through the
sale of bonds or notes.

Issuer’s Counsel – A lawyer or group of lawyers hired by the Issuer to represent the Issuer’s
interest in all of the agreements which the Issuer will enter into to complete a bond transaction.

JEDA – Jobs-Economic Development Authority, SC

JFMIP - Joint Financial Management Improvement Program

JTPA – Job Training Partnership Act

JTWROS - Joint Tenants With Rights of Survivorship
Glossary of Housing Acronyms and Terms
Jingle Mail (Foreclosure) - Some homeowners who fall behind in mortgage payments don't
resist foreclosure and don't wait to be evicted. Instead, they move out, drop the house keys into
an envelope and mail it to the servicer. This is known as "jingle mail." Maybe some jingle
mailers believe they're preventing foreclosure, but they're not. The lender goes ahead and
forecloses on the property, and it goes on the borrower's credit record as a foreclosure.

Job Training Partnership Act - The Job Training Partnership Act of 1983 was designed to
improve the employment status of disadvantaged young adults, dislocated workers, and
individuals facing barriers to employment. Program components include on-the-job training, job
search assistance, basic education, and work experience, and improving participants’
occupational skills. An experimental evaluation shows that participation in the Job Training
Partnership Act increased the receipt of employment and training services, and, for females only,
increased levels of educational attainment. However, there were no net benefits for youth, as
certain outcomes that participation in the program did not impact (short- and long-term earnings,
males’ educational attainment) or impacted negatively (arrest rates of never-before-arrested
males). In the follow up study, wages of male youth arrestees and educational attainment of both
men and women were discussed more thoroughly.

Joint Administration (Bankruptcy) - A court-approved mechanism under which two or more
cases can be administered together. (Assuming no conflicts of interest, these separate businesses
or individuals can pool their resources, hire the same professionals, etc.)

Joint and Several Liability - A responsibility where two or more parties are liable for the full
payment of a debt or obligation and where the creditor may enforce payment against all of the
parties together (jointly) or against each individually (severally).

Joint Financial Management Improvement Program (JFMIP) - A joint and cooperative
undertaking of OMB, GAO, the Department of the Treasury, and OPM, working in cooperation
with each other and with operating agencies to improve financial management. (JFMIP
Framework) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Joint Mortgage - A joint mortgage is a mortgage with more than one mortgagor (borrower in a
mortgage agreement). With a joint mortgage, both or all the borrowers will be equally liable for
making the repayments, even if someone moves out. The lender can recover money owed from
any one of them if someone fails to pay. It's also likely to be important to have mortgage
protection insurance to pay off the loan if one of the borrowers dies.

Joint Ownership - A general term describing ownership by two or more parties

Joint Petition (Bankruptcy) - One bankruptcy petition filed by a husband and wife together

Joint Property - Joint property is property with more than one owner. In divorce law, joint
property is distinguished from a marital asset, which refers to all property acquired during the
course of the marriage, regardless of ownership or who holds the title to it. Marital assets may
consist at least partly of joint assets.
Glossary of Housing Acronyms and Terms
Joint property may be owned under different forms of ownership. For example, in real estate law,
joint property may be held as tenants in common, tenants by the entireties, or joint tenants. For
example, In Florida, unlike most other states, all types of property, including all real property,
tangible personal property, and intangible personal property, may be owned by a married couple
as tenants by entireties.

Joint Survivorship Agreement - A joint survivorship agreement is one in which spouses may agree
between themselves that all or part of their property, then existing or to be acquired, becomes the property
of the surviving spouse on the death of a spouse.
If an agreement in writing is signed by both spouses, the agreement is usually sufficient to create a right
of survivorship in the community property described in the agreement if it includes any of the following
           1.    "with right of survivorship";
           2.    "will become the property of the survivor";
           3.    "will vest in and belong to the surviving spouse"; or
           4.    "shall pass to the surviving spouse."
Laws governing survivorship agreements vary by state, so local laws should be consulted for the specific
requirements in your area.

Joint Tenancy – Joint Tenancy is a way for two or more people to share ownership of real estate
or other property. When two or more people own property as joint tenants and one owner dies,
the other owners automatically own the deceased owner's share. For example, if a parent and
child own a house as joint tenants and the parent dies, the child automatically becomes full
owner. Because of this right of survivorship, no will is required to transfer the property; it goes
directly to the surviving joint tenants without the delay and costs of probate.

Joint Venture - An agreement between two or more parties to invest in a business or property.

Judgment - The judicial decree which is issued by the trial judge after the hearing and
presentation of the evidence and which states the specific outcome of the lawsuit, specifically
whether the plaintiff lost or won and the sums owed, if any, between the parties to the lawsuit. A
judgment can be appealed to a higher court for review of the decision if there was an error of law
during the judicial proceedings.

Judgment Revival (Bankruptcy) - The revival (renewal) of a judgment. Typically, judgments
that are recorded as liens against real property expire after a fixed number of years. Creditors are
usually able to revive judgments for additional time periods.

Judicial Foreclosure - Foreclosure proceedings in which a mortgage lacks the power of sale
clause. In such an instance, many states require the foreclosure to be processed through the
state's courts. If the court confirms that the debt is in default, an auction is held for the sale of
the property in order to acquire funds to repay the lender.

Jumbo Loan - or non-conforming loan, is a loan that exceeds Fannie Mae's and Freddie Mac's
loan limits. Freddie Mac and Fannie Mae loans are referred to as conforming loans.
Glossary of Housing Acronyms and Terms
Junior Lien Bonds – Bonds which are structured so that they will only be repaid with funds
which are available after all of the debt service requirements of an issue or issues of senior lien
bonds have been provided for.

Junior Lien/Mortgage - An obligation, such as a second mortgage, that is subordinate in right
or lien priority to an existing lien (senior loan) on the same real estate.

Junk Fees - Nebulous charges assessed at the closing of a mortgage that go to the originator or
lender but serve little function. These fees are hidden in the mortgage documents and are usually
assessed as raw dollars rather than "points" or a percentage of the loan. Junk Fees may or may
not pay for an actual service to the borrower, but they typically are not known to the borrower
prior to signing. Some common fees that may be considered junk fees include settlement fees,
signup fees, underwriting fees, funding fees, translation fees and messenger fees.

Jurisdiction (Section 8) – The area in which the PHA has authority under State and local law to
administer the program

Kick-Back - A fee or rebate paid to an agent or other participant in a transaction as an incentive
to refer customers to a particular vendor. The referring party provides not service to the customer
other than referral. Kickbacks to brokerage agents from mortgage lenders are prohibited by the
Real Estate Settlement Procedures Act (RESPA).

Kick-out Clause - A provision of a lease that permits a tenant to cancel a lease if the landlord
fails to comply with stated conditions, obligations or standards.

Kicker - A payment that is required by a mortgage in addition to the normal principle and

Kids Next Door - A HUD web site where kids can learn more about being good citizens, meet
cool people, see neat things, and visit awesome places. HUD web site at

LAA – Landlord Accountability Act

LAC – Legislative Audit Council, SC

LAN - Local Area Network

LAS – Loan Accounting System; direct loans

LASS – Lender Assessment Subsystem
Glossary of Housing Acronyms and Terms

LBP – Lead-Based Paint

LD – Limited Dividend

LIBOR – London Interbank Offered Rate

LIHEAP - Low-Income Home Energy Assistance Program

LIHPRHA – Low Income Housing Preservation and Resident Homeownership Act

LIHTC – Low Income Housing Tax Credit

LLC – Limited Liability Company

LLP – Limited Liability Partnership

LLR – Labor, Licensing and Regulation, S.C. Department of

LM – Loan Management

LMR - Labor-Management Relations

LMSA - Loan Management Set-Aside

LOC – Letter of Credit

LOCCS – Line of Credit Control System

LOD - Letter of Determination

LOF - Letter of Findings

LOI – Letter of Intent

LOLA - Low Income Housing Tax Credit On-Line Application

LP – Limited Partnership

LR - Labor Relations

LTV - Loan-to-Value Ratio

LUI - Land Use Intensity

LURA – Land Use Restriction Agreement
Glossary of Housing Acronyms and Terms

Labor Relations (LR) – Usually in reference to HUD programmatic compliance with Davis-
Bacon and related Acts

Laches - An equitable doctrine used by courts to bar a legal claim or prevent the assertion of a
right because of undue delay or failure to assert the claim or right.

“Lady Bird” Deed - A "Lady Bird" deed is a nickname for an enhanced life state deed. It is
named after Lady Bird Johnson, because allegedly President Johnson once used this type of deed
to convey some land to Lady Bird. An enhanced life estate deed is a variation of a quitclaim deed
that currently enables an individual to retain their homestead creditor and tax exemption, have
the home be exempt from Medicaid claims during their lifetime, while at the same time enable
named persons to receive the home upon death, free of Medicaid claims and liens. It is a
specially designed instrument that is only available in a few states, including Florida. Generally,
it works like a traditional Life Estate Deed, and there is often no capital gains tax if the property
is sold shortly after your death. It goes beyond a life estate deed, because not only does the life
tenant get to live there for life, that former owner also reserves more than just a life estate. Also
reserved are the rights to sell, commit waste, and almost everything else, except the transfer on
death to the "remainderman".

Lag payment – A payment of funds which is required due to the delayed basis on which
mortgage loans or mortgage-backed securities pay interest. Because of this delay in the period of
time between the purchase of a mortgage loan or mortgage-backed security and the receipt of the
first payment, there will be a shortfall equal to approximately one-month’s interest payment
when the first bond interest payment is due. Funds need to be put on deposit to provide for this
program loss.

Land Bank - Land banks are governmental or quasi-governmental entities dedicated to
assembling properties – particularly vacant, abandoned, and tax-delinquent properties – and
putting them to productive use. Land bank authorities acquire or facilitate the acquisition of
properties, hold and manage properties as needed, and dispose of properties in coordination with
city planners and in accordance with local priorities for land use.

Land Development Loan - An advance of funds, secured by a mortgage, to finance the making,
installing, or constructing of the improvements necessary to convert raw land into construction-
ready building sites.

Land Sale Leaseback - An arrangement where a person sells property to another but
immediately rents it from the purchaser.

Land Trusts - A trust created to effectuate a real estate ownership arrangement in which the
trustee holds legal and equitable title to the property subject to the provisions of a trust
agreement setting out the rights of the beneficiaries whose interests in the trust are declared to be
personal property.
Glossary of Housing Acronyms and Terms
Land Use Restriction Agreement (LURA) (LIHTC) – The document containing Affordability
Restrictions and other restrictions placed on the project.

Landlord (Section 8) – Either the owner of the property or his/her representative or the
managing agent or his/her representative, as shall be designated by the owner.

Landlord Accountability Act (LAA) - The Landlord Accountability Act (LAA) of 2005
amends the United States Housing Act of 1937 with respect to the section 8 rental housing
voucher program. Under the LAA, a housing unit is considered to be in noncompliance with
housing quality standards if: (1) the public housing agency (PHA) or authorized inspector
determines the unit to be in noncompliance and notifies the owner in writing; and (2) the owner
fails to make necessary repairs within 90 days of notice.
The Act requires a public housing authority (PHA) to withhold owner assistance until the repairs
are completed. It also authorizes a PHA to make such repairs and subtract the costs from the
amount subsequently released to the owner. It further prohibits an owner from terminating a
tenant lease because of any such withholding. If amounts are withheld, the owner fails to correct
the noncompliance, and the lease is not renewed, the PHA must pay the withheld amount to the
Secretary of Housing and Urban Development (HUD).

Landlord Tenant Disclosures - The federal Environmental Protection Agency (EPA) and
Housing and Urban Development (HUD) issued joint regulations, known as the "Disclosure
Rule," which became effective September 6, 1996. The rule requires that landlords and their
agents of certain rental housing disclose the possible presence of lead based paint on the
premises before the effective date of any lease or rental agreement. Landlords and their agents
must provide the tenant with an EPA approved lead hazard information pamphlet and comply
with other requirements.

Landlord Tenant Subordination - A subordination agreement is a written contract in which a
lender who has secured a loan by a mortgage or deed of trust agrees with the property owner to
subordinate the first loan to a new loan. Therefore, in the case of foreclosure, the new loan has
priority to be paid ahead of the old loan. The agreement must be notarized and recorded county
recorder's office.

Landlord’s Lien - the right of a landlord to sell abandoned personal property left on rented or
leased premises by a former tenant to cover unpaid rent or damages to the property. However, to
exercise this lien the landlord must carefully follow procedures which differ in each state, but
generally require written notice to the ex-tenant and a public sale.

Large Very Low Income Family (Section 8) – Prior to the 1982 regulations, this meant a very
low income family which included six or more minors.

Layered Subsidy - Refers to programs/projects which have more than one type of assistance, for
example a 221(d)(3) mortgage insurance program and a Section 8 rental assistance subsidy.
Glossary of Housing Acronyms and Terms
From a Congressional and administrative point of view, subsidy layering can be problematic
when funding for project development or programming comes from more than one source and
may have overlapping or contradictory use restrictions.
Developers must be vigilant in subsidy layering so that total project/programming finances do
not exceed total project need. (see Federal Register May 3, 1996 p 19946)

Lead Manager – See “Book Running Senior Manager”

Lead Safe Housing - a new standard for cleaning up lead-contaminated housing that recognizes
that lead paint that is intact is not hazardous to children while lead paint that is deteriorating can
cause a child to become lead poisoned. Under this standard, education about lead hazards and
safe clean-up, are seen as critical to preventing children from becoming lead poisoned. Lead-safe
clean-up is much less costly, much more practical, and more child-protective than "lead-free"
(also called abatement) clean-up.

Lead Underwriter – “Runs the books of the account” for a group of underwriters (syndicate)
which unites for purposes of buying and selling a bond.

Lease (Section 8) – A written agreement between an owner and a tenant for the leasing of a
dwelling unit to the tenant. The lease establishes the conditions for occupancy of the dwelling
unit by a family with housing assistance payments under a HAP contract between the owner and
the PHA.
The Section 8 Certificate and Voucher Program have an Addendum to Lease that has mandatory
language which must be incorporated into any lease the PHA uses. The Addenda are different
for the Certificate and Voucher Programs.

Lease Commencement Date - The date usually constitutes the commencement of the term of
the Lease for all purposes, whether or not the tenant has actually taken possession, so long as
beneficial occupancy is possible.

Lease-Hold Estate - An arrangement in which the borrower does not own the property but
possesses a long-term lease

Lease-Purchase Mortgage Loan - An alternative Fannie Mae financing option that allows low-
and moderate-income home buyers to lease a home from a nonprofit organization with an option
to buy. Each month's rent payments consists of PITI payments on the first mortgage, plus an
extra amount that is earmarked for deposit to a savings account in which money for a down
payment will accumulate.

Lease-Purchase Option - Nonprofit organizations may use the lease-purchase option to
purchase a home that they then rent to a consumer, or "leaseholder." The leaseholder has the
option to buy the home after a designated period of time (usually three or five years). Part of
each rent payment is put aside toward savings for the purpose of accumulating the down
payment and closing costs.
Glossary of Housing Acronyms and Terms
Lease-To-Own – A homeownership program in which an Issuer or 501(C)(3) purchases a home
and rents it to a tenant until such time as the tenant can purchase the home.

Leasehold - A possessory legal interest in real property acquired by a tenant (lessee) when she
enters into a rental agreement with the owner of the property (landlord or lessor).

Leasehold Estate - A way of holding title to a property wherein the mortgagor does not actually
own the property but rather has a recorded long-term lease on it

Leasehold Improvements – Additions to a rented premises made by the tenant, often in the
nature of a fixture, which may be removed by the tenant at the end of the lease term if no damage
ensues to the premises and if the lease permits.

Leasehold Interest - The right to hold or use property for a fixed period of time at a given price
without transfer of ownership

Leasehold Mortgage - A loan secured against a tenant's interest in a property.

Leasing Cooperative - The title of a building is held by someone other than the co-op members.
The title owner leases the units back to the co-operators generally for a period of time. This gives
the co-operators management responsibility while allowing for the cooperative to get certain
benefits. Applicable in the case of Low-Income Housing Tax Credit Syndicated projects. The
title holder benefits from the tax write-offs available for low-income housing while the
cooperative retains management of the building and gets some of the syndication proceeds.

Legal Blemish - Blemishes on a piece of property, such as a zoning violation or fraudulent title
claim or a lien on the title.

Legal Description - An expanded and unique description of a property that is used on legal
documents, such as deeds and deeds of trust. Recorded documents generally require a legal

Legal Life Estate - A legal life estate is not created voluntarily by an owner. Rather, it is a form
of life estate established by state law. It becomes effective automatically when certain events

Legal Opinion – an opinion concerning the validity of a securities issue with respect to statutory
authority, constitutionality, procedural conformity, and usually the exemption of interest from
Federal Income Taxes. The legal opinion is usually rendered by a law firm recognized as
specializing in public borrowings, often referred to as “bond counsel.”

Lien - A legal claim against property for payment of a debt or for services rendered. The person
or entity who holds a lien has the legal right to sell the property to obtain money or recover
money when the property is sold.
Glossary of Housing Acronyms and Terms
Lien Theory - Is a legal concept where a property acts as the security for a loan transaction. The
lending institution, in the name of the borrower, holds the title of the property until the property
is paid off and the lien can be released.

Lendable Proceeds – Bond sale proceeds available for direct loans, mortgage purchases, or
loans to lenders.

Lender – An intermediary which is authorized to underwrite mortgage loans to either FHA, VA,
USRD, FNMA or FHLMC standards, to fund such mortgage loans, and to sell them to a
secondary market source.

Lender Option Commitments - an agreement giving a lender the option to deliver loans or
securities by a certain date at agreed upon terms.

Leniency Clause - A leniency clause is a provision written into a promissory note spelling out
the lender's willingness to adjust loan payments temporarily if a borrower is experiencing severe
financial difficulties through no personal fault.

Letter of Commitment – An original letter or contract from the funding source verifying that
the applicant has a commitment of funds for a specific project.

Letter of Credit (LOC) – A form of credit enhancement in which funds are reserved in a
prescribed amount which can be drawn down as necessary to provide for cash flow deficiencies.

Letter of Determination (LOD) - Civil Rights statutes, other than the Fair Housing Act, use a
different two step process to communicate findings: a Letter of Findings (LOF), which may be
subject to challenge by the parties, followed by a Letter of Determination (LOD). HUD Directive
Number: 96-1, Subject: Multi-jurisdictional Complaints issued May 24, 1996

Letter of Findings (LOF) - Civil Rights statutes, other than the Fair Housing Act, use a
different two step process to communicate findings: a Letter of Findings (LOF), which may be
subject to challenge by the parties, followed by a Letter of Determination (LOD). HUD Directive
Number: 96-1, Subject: Multi-jurisdictional Complaints issued May 24, 1996

Letter of Intent - A formal notification that a buyer intends to buy property. It is not legally

Level Payment (Self Amortizing) Mortgage – A level (or fixed) payment mortgage is a
standard, fully amortized mortgage with a fixed term and fixed payments to term.

Leveraged Buy Out (LBO) (Bankruptcy) - A transaction where a purchaser uses the assets of
the corporation to be acquired (target) as collateral for the loan to buy the stock of the target.
LBOs stand a significant risk of bankruptcy because, after the transaction, they have little net
worth to weather a business downturn. Unsecured creditors of a bankrupt LBO often argue that
the lenders and former shareholders received a fraudulent transfer.
Glossary of Housing Acronyms and Terms
Leveraging - Using a small amount of funds to attract other funds, including loans, grants and
equity investments. The premise of leveraging is to use public dollars in conjunction with private
dollars to increase the number of affordable housing units that can be produced.

Liability - Assets owed for items received, services received, assets acquired, construction
performed (regardless of whether invoices have been received), an amount received but not yet
earned, or other Expenses incurred. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

LIBOR-based ARMs - The London Interbank Offered Rate (LIBOR) is based on the interest
rate that major international banks are willing to lend and borrow funds for a specified period of
time in the London interbank market. The LIBOR is similar to the prime-lending rate posted by
major U.S. banks. You can select an adjustable rate mortgage (ARM) that adjusts to the LIBOR
at specified periods, usually every six months. This type of ARM typically has a per-adjustment
period cap of 1 percent and is offered with either a 5 percent or a 6 percent lifetime rate cap.

Lien - a legal claim against property that must be satisfied when the property is sold. A claim of
money against a property, wherein the value of the property is used as security in repayment of a
debt. Examples include a mechanic's lien, which might be for the unpaid cost of building
supplies, or a tax lien for unpaid property taxes. A lien is a defect on the title and needs to be
settled before transfer of ownership. A lien release is a written report of the settlement of a lien
and is recorded in the public record as evidence of payment.

Lien Theory - Is a legal concept where a property acts as the security for a loan transaction. The
lending institution, in the name of the borrower, holds the title of the property until the property
is paid off and the lien can be released.

Lien Waiver - A document that releases a consumer (homeowner) from any further obligation
for payment of a debt once it has been paid in full. Lien waivers typically are used by
homeowners who hire a contractor to provide work and materials to prevent any subcontractors
or suppliers of materials from filing a lien against the homeowner for nonpayment.

Life of Loan Cap - The maximum interest rate that can be charged during the life of the loan.
Also called Lifetime Cap. This value is often expressed as an increment above the initial loan
rate. For example, an adjustable rate loan with an initial rate of 7.25% and a 6% lifetime cap will
never adjust above a rate of 13.25% (7.25+6.0).

Life Estate - An interest in real property, which is held for the duration of the life of some
certain person. It may be limited by the life of the person holding it or by the life of some other

Life Tenant - One who has a life estate in real property.

Lifetime Cap – See Life of Loan Cap
Glossary of Housing Acronyms and Terms
Like-Kind Exchange - A tax-deferral mechanism involving a "swap" of the project being sold
with a replacement project. Capital gains tax is deferred until the replacement property is sold.

Limitation - A funding restriction, imposed by OMB, a department, or an agency, that places a
ceiling for Obligational/spending Authority. The limitation may exist at any level within a
funding structure or may be imposed using an independent structure. (JFMIP Core; Common
Term) HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Limited Dividend (LD) – A for profit ownership entity (usually a partnership) whose
distributions are limited under a mortgage insurance or subsidy program, usually to 6% or 10%
of initial owner’s equity.

Limited Equity Cooperative (LIHTC) - In this shared equity homeownership arrangement,
households buy a "share" in the cooperative and in return receive the right to occupy one unit and
share in decision-making for the development. Share prices are set by a formula specifically
designed to keep membership affordable for future purchasers.

Limited Equity Housing - An arrangement designed to encourage low-and moderate-income
families to purchase housing, in which the housing is offered at an extremely favorable price
with a low down payment. The catch is that when the owner sells, she gets none of the profit if
the market value of the unit has gone up. Any profit returns to the organization that built the
home, which then resells the unit at an affordable price.

Limited Liability Company (LLC) - LLCs are a relatively recent form of business
organization. An LLC combines the most attractive features of limited partnerships and
corporations. The members of an LLC enjoy the limited liability offered by a corporate form of
ownership and the tax advantages of a partnership. In addition, the LLC offers flexible
management structures without the complicated requirements of S corporations or the
restrictions of limited partnerships. The structure and methods of establishing a new LLC, or of
converting an existing entity to the LLC form, vary from state to state.

Limited Liability Partnership (LLP) - A type of partnership recognized in a majority of states
that protects a partner from personal liability for negligent acts committed by other partners or by
employees not under his or her direct control. Many states restrict this type partnership to
professionals, such as lawyers, accountants, architects and healthcare providers.

Limited Life Estate - A special type of lease agreement between a non-profit organization
which owns an apartment building and an individual or couple who wish to lease a unit as
though they are purchasing a condominium. Because the property is owned by the non-profit
organization that has tax-exempt status, no property taxes are levied. The legal descriptions
read, “part of lot 1, Country Wood,” or “part of lot 1, CSM 3456,” and the viewer would have to
look at the document for the unit number since it is not officially part of the plat. If the lease is
for less than 99 years, the customer may use the statement, “This document is not a transfer as
per 77.21(1),” and a transfer return not required.
Glossary of Housing Acronyms and Terms
Limited Partnership (LP) - Consists of one or more general partners as well as limited partners.
The business is administered by the general partners and funded, for the most part, by limited or
silent partners. Each limited partner can be held liable for business losses only to the extent of his
or her investment.

Limited Power of Attorney - Power is limited to acts or items and time periods specified in the
instrument establishing the Power of Attorney.

Line/Loan Amount - The entire HELOC or Fixed Rate Second mortgage loan amount.

Linkage Fee (LIHTC) - Linkage fees are adopted by local governments to ensure that the
additional housing needs generated through economic development and new job creation are
met. In communities with linkage fee requirements, developers of non-residential buildings pay a
fee, often based on project type (manufacturing, commercial, retail, etc.) and square footage,
which is generally deposited in a housing trust fund and used to support affordable housing

Liquidated Claim (Bankruptcy) - A creditor's claim for a fixed amount of money.

Liquidated Damages - An amount specified in a purchase agreement that one party must pay
the other if the contract is breached.

Liquidation (Bankruptcy) - sale of a debtor's property with the proceeds to be used for the
benefit of creditors.

Liquidity Agreement – An agreement associated with variable rate bonds which provide funds
so that an Issuer or a Remarketing Agent can purchase bonds from an investor at their principal
amount at any time.

Lis Pendens - A recorded legal document that gives constructive notice that an action affecting a
particular piece of property has been filed in a state or federal court. Lis pendens is Latin for
"action pending' and is in the nature of a "quasi lien." A person who subsequently acquires an
interest in that property takes it subject to any judgment that may be entered; that is, a purchaser
pending a lawsuit is bound by the result of the lawsuit.

Lite/OMHAR Lite - A transaction carried out under the rubric of Mark to Market involving rent
reduction but no debt restructuring. Lite transactions may or may not involve refinancing of the
existing debt.

Live-In Aide (Section 8) –A person who resides with one or more elderly persons, or near-
elderly persons, or persons with disabilities, and who:
    • Is determined to be essential to the care and well-being of the persons;
    • Is not obligated for the support of the persons; and
    • Would not be living in the unit except to provide the necessary supportive services.
Glossary of Housing Acronyms and Terms
Living Trust - A trust agreement into which the title to property and assets can be transferred to
avoid probate. The Living Trust was the first of the Trusts. A Trust is created when a living
person (the Trustor) agrees to let someone (the Trustee) hold title to property for the benefit of
someone (the Beneficiary).

Livery of Seizin - Under common law, the process of transferring title.

Loaded Couponing - The practice of a lender including the cost of mortgage insurance in the
interest rate stated in the loan note, rather than listing it as a separate monthly charge. The
practice permits a lender to cancel the mortgage insurance at a later date, while continuing to
collect the monthly insurance premium from the homeowner/borrower. The practice was
prohibited in 1985 by the Federal Home Loan Mortgage Corporation.

Loan Acceleration - an acceleration clause in a loan document is a statement in a mortgage that
gives the lender the right to demand payment of the entire outstanding balance if a monthly
payment is missed.

Loan Fraud - purposely giving incorrect information on a loan application in order to better
qualify for a loan; may result in civil liability or criminal penalties.

Loan Management - Function of administering insured loans and servicing the portfolio of
FHA-insured mortgages which have been assigned to the Secretary subsequent to default by

Loan Management Set-Aside (LMSA) (Section 8) – This Section 8 program was designed in
the early 1980s for HUD held mortgages, properties financed under FHA Insurance programs
and Section 202 properties that needed additional assistance to address immediate or potentially
serious financial problems. The Section 8 contracts for projects assisted under this program limit
owner distributions to 6% or 10% on initial owner’s equity. The rents are adjusted through the
budget-based rent increase mechanism.

Loan Modification - A modification to an existing loan made by a lender in response to a
borrower's long-term inability to repay the loan. Loan modifications typically involve a
reduction in the interest rate on the loan, an extension of the length of the term of the loan, a
different type of loan or any combination of the three. A lender might be open to modifying a
loan because the cost of doing so is less than the cost of default.

Loan Origination Fee - charge by the lender to cover the administrative costs of making the
mortgage. This charge is paid at the closing and varies with the lender and type of loan. A loan
origination fee of 1 to 2 percent of the mortgage amount is common.

Loan Servicer - the company that collects monthly mortgage payments and disperses property
taxes and insurance payments. Loan servicers also monitor nonperforming loans, contact
delinquent borrowers, and notify insurers and investors of potential problems. Loan servicers
may be the lender or a specialized company that just handles loan servicing under contract with
the lender or the investor who owns the loan.
Glossary of Housing Acronyms and Terms

Loan-to-Value (LTV) Ratio - The ratio of the amount of funds borrowed when financing a
property relative to the total sales price. The lower the ratio, the larger the share of owner equity
and presumably the less risk involved in making the loan.

Loan Workout - A series of steps taken by a lender with a borrower to resolve the problem of
delinquent loan payments. Steps can include rescheduling loan payments into lower installments
over a longer period of time so that the entire outstanding principal is eventually repaid.

Loans-to-Lenders - A mortgage financing method used by bond issuers in which loans are made
to lenders under conditions which set the mortgage contract rate and the borrower eligibility
standards under which the funds will be reloaned to the ultimate borrowers.

Local Area Network (LAN) - Network in a local office linking microcomputer workstations
and providing shared access to centralized local data bases.

Local Authorities – Refers to local housing finance or other municipal agencies which issue tax-
exempt bonds.

Local Preference – A preference used by the PHA to select among applicant families.

Lock-in – Since interest rates can change frequently, may lenders offer an interest rate lock-in
that guarantees a specific interest rate if the loan is closed within a specific time.

Lock-In Period - the length of time that the lender has guaranteed a specific interest rate to a

London Interbank Offered Rate (LIBOR) – is the rate that banks charge each other for
borrowing money. It is set by the British Bankers Association at 11:00 AM London time each
day. Libor is conventionally used as the index for taxable rate notes and for taxable swaps.

Long Term Mortgage - "Term" refers to the time for which money (a secured loan) is required
and the period over which the loan repayment is scheduled. The definition of a long-term
mortgage varies, but is generally a mortgage which lasts for 25 or more years. Long-term
mortgages can be considerably more expensive than shorter mortgages because of the greater
risks involved in lending for a longer period of time and because of the additional interest which
compounds over such a long period of time.

Loss Mitigation (Foreclosure) - Reduction in risk of home mortgage foreclosure. The
Department's loss mitigation approaches generally fall into two broad categories - (a) those
which (if utilized successfully) would result in curing the default and retaining homeownership,
and (b) those which would result in the relinquishment of homeownership, by means of a sale to
a third party or by a voluntary conveyance of the property by deed in lieu of foreclosure. HUD
Mortgagee Letter, Subject: FHA Loss Mitigation Procedures - Special Instructions dated
November 12, 1996
Glossary of Housing Acronyms and Terms
Low-Documentation Loan - Low-doc or no-documentation mortgage applicants have to have
excellent credit histories but their income and assets are not verified. Low-documentation loans
are designed for the entrepreneur or the self-employed. A substantial down payment is needed
and a higher interest rate will be charged.

Low-Down Mortgages - A loan where the down payment is under 10 percent. The US
government has made these types of loans more available through agencies like Fannie Mae, to
help more people own a home

Low-Down Payment Loan - A mortgage or loan in which the buyer puts down a small down
payment and borrows a very high percentage of the purchase price

Low Income – In program eligibility determinations, defined as some percentage (usually 80%)
of median income.

Low Income Family (Section 8) – A family whose income does not exceed 80% of the median
income for the area as determined by HUD with adjustments for smaller or larger families,
except that HUD may establish income limits higher or lower than 80% for areas with unusually
high or low incomes.

Low Income Housing Preservation and Resident Homeownership Act (also known as Title
VI or LIHPRHA) - Enacted by Congress in 1992, LIHPRHA is designed to keep owners of
older assisted housing from buying out of subsidized mortgages, and thus reducing the number
of available affordable housing units. Part of the National Affordable Housing Act, the law
codifies steps an owner of a property must take in order to sell it or end HUD's affordability
restrictions, provides incentives to owners to stay in HUD's programs, and gives advantages to
tenants and nonprofits in purchasing buildings should the owner choose to sell.

Low Income Housing Tax Credit 8609 Form - IRS document that is filed with a partnership
tax return, for each year during the Compliance Period, declaring the amount of tax credits for
each building and the placed in service date. This is issued after construction is completed and all
costs are accounted for.

Low Income Housing Tax Credit (Tax Credit) (LIHTC) - A credit against ordinary income
taxes which is permitted under Section 42 of the Internal Revenue Code for certain investments
in low income rental housing.

Low Income Housing Tax Credit On-Line Application (LOLA) - An on-line system used by
developers to submit tax credit applications.

Low Income Unit - A low-income unit is (1) rent restricted and (2) has individuals occupying it
who meet the income limitation applicable under the elected minimum set-aside test.
Glossary of Housing Acronyms and Terms
Low and Moderate Income Person - means a member of a family having an income equal to or
less than the Section 8 low-income limit established by HUD. Unrelated individuals will be
considered as one-person families for this purpose.

“Lower Floaters” – Refer to adjustable rate tender bonds (usually 30-year bonds) tied to short-
term rates by allowing the bondholder to “put” the bonds back to the issuer at the bondholder’s

Lower Income Family (Section 8) – A family whose income does not exceed 80% of the
median income for the area as determined by HUD with adjustments for smaller or larger
families, except that HUD may establish income limits higher or lower than 80% on the basis of
its findings that such variations are necessary because of the prevailing levels of construction
costs or unusually high or low incomes.

M2M – Mark-to-Market

M&M – Management and Marketing.

MA – Metropolitan Area

MACRS - Modified Accelerated Cost Recovery System

MAHRA – Multifamily Assisted Housing Reform and Affordability Act of 1997

MAN – Management Type Co-op

MAP – Multifamily Application Processing

MARS – Multifamily Accounting Report and Servicing System a/k/a CSMS; hud-held loans

MASC - Municipal Association of South Carolina

MBA or MBAA – “Mortgage Bankers Association of America”

MBB - Mortgage-Backed Bond

MBE – Minority Business Enterprise

MBO - Mortgage-Backed Obligation

MBS – Mortgage-Backed Securities

MCC – Mortgage Credit Certificate
Glossary of Housing Acronyms and Terms
MDDR – Multifamily Delinquency and Default Reporting System

MF HQ – Multifamily Head Quarters

MF Hub/PC – Multifamily Hub/Program Center

MFHRHIIP – Multifamily Housing Rental Housing Integrity Improvement Project

MFI – Median Family Income

MFIS – Multifamily Insurance System a/k/a F47-insured loans

MGIC - Mortgage Guaranty Insurance Corporation

MIO – Management Improvement and Operating Plan

MIP – Mortgage Insurance Premium/Claim

MIPS – Multifamily Information Processing System

MIS – Management information System

MLIS – Mortgage Lending Information System

MLP - Master Limited Partnership

M&M – Management and Marketing

MMD – Municipal Market Data

MMIF or MMI – Mutual Mortgage Insurance Fund

MMKT – Money Market

MMO – Materials and Management Office, SC

MOR – Management Occupancy Review (HUD form 9834)

MOU – Memorandum of Understanding

MPC - Master Planned Community

MRA – Master Residential Appraiser

MRB – Mortgage Revenue Bond
Glossary of Housing Acronyms and Terms
MROP - Major Reconstruction of Obsolete Project

MSA – Master Senior Appraiser

MSA – Metropolitan Statistical Area

MSIL - Municipal Securities Information Library

MSPB - Merit Systems Protection Board

MSR - Mortgage Servicing Rights

MSRB - Municipal Securities Rulemaking Board

MTCS – Multifamily Tenant Characteristics System

Major Reconstruction of Obsolete Project (MROP) - Major Reconstruction of Obsolete
Project funds, awarded by HUD to PHAs for rehabilitation of public housing projects. Although
the MROP Program ended in the early 1990's, remaining MROP funds have been converted to
the Capital Fund and may be used in mixed-finance public housing development
projects, provided such use has been approved by HUD.

Major Rehabilitation – Major or substantial rehab refers to residential rehabilitation which
involves substantial structural renovation (e.g. of a gutter building), and therefore implying
major costs to complete the work. Means rehabilitation that involves costs in excess of 75
percent of the value of the building before rehabilitation

Managed Care - Concept in which an organization negotiates with a limited or select group of
health care and other providers of service for preferred or set charges for services and care.
AAHSA’s official managed care definition is a method of providing care and services through
financing mechanisms which coordinate care across time, place, and provider. Managed care
emphasizes prevention, risk/reward sharing and appropriate utilization of services based on
consumer and community needs for an outcome of maximum health and well-being at lower
overall costs.

Management and Marketing (M&M) – Single family program to manage and market acquired
properties using contractors.

Management Fee – A portion of the Underwriter’s Fee which is intended to pay the
Underwriters for their work in providing services to the Issuer.

Management Plan – A document that stipulates the duties and terms of the management
company or individual handling the property.
Glossary of Housing Acronyms and Terms
Management Type Co-op (MAN) – Normally a non-profit housing corporation or trust that
restricts the permanent occupancy of its dwelling units to the members of the corporation or the
beneficiaries of the trust.

Mandatory Delivery - A type of loan purchase program offered by the Federal Home Loan
Mortgage Corporation in which delivery of loans by the seller/servicer to Freddie Mac is

Mandatory Delivery Commitment - an agreement that a lender will deliver loans or securities
by a certain date at agreed-upon terms.

Mandatory Meals - HUD Handbook 4350.1 Chapter 31 covers requirements of the HUD
approved mandatory meals program in HUD-assisted projects for the elderly or handicapped
persons which were approved prior to April 1, 1987. After April 1, 1987, no HUD-assisted
projects have been approved for operating a mandatory meals program. This chapter provides
guidance based on the regulatory language found in covered by 24 CFR Part 278

Mandatory Redemption – A Type of Redemption described in the Indenture for which there is
little if any options. While the Indenture will always describe how to calculate the funds which
must be used for a Mandatory Redemption, often the Issuer has the ability to determine which
bonds are redeemed with the Mandatory Redemption funds.

Manufactured Home (Section 8) – A manufactured structure that is built on a permanent
chassis, is designed for use as a principal place of residence, and meets the HQS. A special
housing type: See §982.620 and §982.624

Manufactured Home Space (Section 8) – In manufactured home space rental: A space leased
by an owner to a family. A manufactured home owned and occupied by the family is located on
the space. See §982.622 to §982.624

Manufactured Housing – Residential structures built to federal standards that are constructed
entirely in the factory and transported to the home site. Such structures have been regulated by
the U.S. Department of Housing and Urban Development (HUD) since the 1970’s.

Manufactured Housing Institute of South Carolina - The Manufactured Housing Institute of
South Carolina is a non-profit business association representing more than 1,000 member
companies involved in the manufactured and modular housing industries in the Palmetto State.
Founded in 1967, MHISC is the official voice of the industry in South Carolina. The association
is a non-profit organization dedicated to creating a business climate which maximizes the ability
of South Carolina citizens to enjoy the quality and value of modern-day manufactured and
modular homes.

Maps and Plats - Subdivided land in urban areas is often described merely by reference to a
surveyor's plat or map that describes the parcels in an area together with streets and public areas.
Lots in such maps or plats are numbered, and the deed to a particular numbered lot that
incorporates by reference a map or plat containing a legal description of the boundaries of such
Glossary of Housing Acronyms and Terms
numbered lot is a sufficient description of the property. Although such plats are usually recorded,
an unrecorded plat is sufficient to describe property so long as it is clearly incorporated in the
deed, and a copy of the plat can be found.
The parcel number is the primary identification for a specific piece of real estate property in a
particular county. The county recorder's office typically can locate the plat for a particular piece
of property through looking up information about the parcel number in order to locate the book
and page number of the book that contains that plat.

Margin - The difference between the interest rate and the index on an adjustable rate mortgage.
The margin remains stable over the life of the loan. It is the index which moves up and down.

Market Analysis - A regional and neighborhood study of economic, demographic and other
factors made to determine supply and demand, market trends, and other factors important to
leasing and operating a specific property.

Market-Data Approach - Estimating a property's value based on a comparison of the property
with similar properties in the same locale that have sold recently. Also known as the direct sales
comparison approach.

Market Rent (Section 8) – The rent HUD authorizes the owner of FHA insured/subsidized
multi-family housing to collect from families ineligible for assistance. For Section 236 units, the
market rent is shown on the project’s HUD-approved rent schedule. For Rental Supplement,
Section 202 and Section 8 units, the Market Rate Rent is the same as the contract rent.
For BMIR units, market rent varies by whether the project is a rental or cooperative, as follows:
1) For BMIR Rentals, market rent equals 110% of the BMIR contract rent; 2) For BMIR
Cooperatives, market rent equals the contract rent plus any surcharge established by the
cooperative and approved by HUD. If the cooperative did not receive HUD approval of a plan
for purchasing its over-income members, market rent equals 110% of the contract rent.

Market Risk – The risk that market movements cause the mark-to-market value of the swap to
move against the issuer. Market Risk exposes the issuer to the possibility that it will have to
make a payment if it wants to terminate the swap early.

Market Study – Research done to review market conditions in a specified area and a study of
the economic forces of supply and demand and their impact on real estate returns, risks, and

Market Value - The price at which a property could be sold on the open market, with buyer and
seller free from abnormal pressure.

Marketability - a subjective measure of the ease with which a security can be sold in the
secondary market.

Marketable Title - A title that is free and clear of objectionable liens, clouds, or other title
defects. A title that enables an owner to sell his property freely to others and one which others
will accept without objection.
Glossary of Housing Acronyms and Terms

Marketing Plan – A document that consists of actions to provide information and attract eligible
persons from all racial, ethnic, and gender groups in the housing area to the available housing.

Mark-To-Market (M2M) - A program enabling owners of above-market Section 8 properties
with HUD-insured mortgages to reduce rents, restructure the existing debt, and generally renew
project-based Section 8 subsidy contracts. Authorized by MAHRA and administered by PAEs
under contract to HUD/OMHAR. Owners who participate in debt restructuring must agree to 30-
year Section 8 renewals, and underlying use restrictions for a portion of the units. Tenants and
state/ local governments have an opportunity to participate in the restructuring plans.

Mark-to-Market Value – The market value of the swap. Compares the fixed rate in the
existing swap to the on-market mid rate for a replacement swap. The difference is multiplied by
the present value of a basis point. Reflects whether the issuer is paying (or receiving) an above-
market rate in its existing swap. For fixed rate swaps, if the issuer is paying an above-market
rate, the mark-to-market value will be negative. For floating rate swaps, if the issuer is receiving
an above-market rate, the mark-to-market value will be positive. Mark-to-market value will be
positive. Mark-to-Market values are not the same as the Termination Value.

Master Association - A homeowners' association in a large condominium or planned unit
development (PUD) project that is made up of representatives from associations covering
specific areas within the project. In effect, it is a "second-level" association that handles matters
affecting the entire development, while the "first-level" associations handle matters affecting
their particular portions of the project.

Master Deed - The principal conveyance document used by the owners of land on which
condominiums are located.

Master Indenture – A type of Indenture which allows multiple issues of bonds to be issued
under a standard of set documents. Some types of Master Indentures provide for different issues
of bonds which stand alone from a security perspective and some types of Master Indentures
provide for different issues of bonds which are secured by all of the assets under the Indenture.
Some Master Indentures allow any bonds to be redeemed from any of the assets, and other
Master Indentures allow only certain bonds to be redeemed from certain assets.

Master Limited Partnership (MLP) - A master limited partnership is a limited partnership that
is publicly traded. It often involves a business vehicle that combines individual limited
partnerships into one large entity, often in the context of real estate or oil and gas ventures, to
make the ownership interests more marketable.
Most master limited partnerships (MLPs) deal with oil & gas related businesses, including
energy processing and distribution. They may also involve a variety of businesses including coal,
timber, other minerals, real estate, and some miscellaneous businesses. Most trade on the New
York Stock Exchange. MLPs are pass-through entities or businesses that are taxed at the
unitholder level on their individual tax returns and generally are not subject to federal or state
income tax at the partnership level.
Glossary of Housing Acronyms and Terms

Master-Planned Community - A suburban plan that includes homes and commercial, work,
educational and community facilities

Master Servicer – A Master Servicer is a Servicer who has agreed to purchase and service
mortgage loans which have been originated by any if the lenders who qualify under the terms of
the Mortgage Origination Agreement.

Match - Match is a PJ’s contribution to the HOME Program - the local, non-Federal
contribution to the partnership. The PJ’s match contribution must equal not less than 25 percent
of the HOME funds drawn down for projects in that fiscal year.

Maturity Date – The date on which the principal amount of a bond must be repaid to the

McKinney Act – The Stewart B. McKinney Act (PL100-77) --This act was the first, and
remains the only, major federal legislative response to homelessness.

“McKinney Act” Programs - A series of programs enacted by Congress to address the needs of
homeless persons and to prevent homelessness

Means Test (Bankruptcy) - Section 707(b)(2) of the Bankruptcy Code applies a "means test" to
determine whether an individual debtor's chapter 7 filing is presumed to be an abuse of the
Bankruptcy Code requiring dismissal or conversion of the case (generally to chapter 13). Abuse
is presumed if the debtor's aggregate current monthly income (see definition above) over 5 years,
net of certain statutorily allowed expenses is more than (i) $10,950, or (ii) 25% of the debtor's
nonpriority unsecured debt, as long as that amount is at least $6,575. The debtor may rebut a
presumption of abuse only by a showing of special circumstances that justify additional expenses
or adjustments of current monthly income.

Mechanic’s Lien - A lien created by statute for the purpose of securing priority of payment for
the price or value of work performed and materials furnished in construction or repair of
improvements to land, and which attaches to the land as well as the improvements.

Median Family Income – the annual gross income above which and below which lie an equal
number of family incomes. Income eligibility for subsidized housing programs is often set as a
percentage (%) median.

Median Sales Price – The home price in a defined market area above which and below which
lie an equal number of home sales by price for a period of time.

Medicaid Waiver - The U.S. Department of Health and Human Services 1115 waiver is for
research and demonstration, and allows state to experiment with new options and models that
have not been tested before, or could be tested under a more limited waiver = e.g. 1915 c.
Glossary of Housing Acronyms and Terms
Medical Expenses (Section 8) – Medical expenses, including medical insurance premiums that
are anticipated during the period for which Annual Income is computed, and that are not covered
by insurance. A deduction for Elderly or Disabled Households only-These allowances are given
when calculating adjusted income for medical expenses in excess of 3% of annual income.

Medium Term Notes - unsecured general obligations of Fannie Mae with maturities of one day
or more and with principal and interest payable in U.S. dollars.

Member Order – An order for bonds placed by an investor for which 100% of the credit for the
order goes to the member of the Underwriting Group which received the order. A Member
Order can only be filled after all Group Net Orders and Priority Orders have been filled, but must
be filled before any Stock Orders can be filled.

Merger Date (Section 8) – October 1, 1999

Merger of Title - The combination of two estates. Also refers to the joining of one estate
burdened by an encumbrance and another estate benefited by the encumbrance. Whenever a
benefit and a burden are merged, the encumbrance is dissolved.

Meta data - Data about data, i.e., name, length, valid values, or description of a data element.
Meta data is stored in a data dictionary and repository. It insulates the data warehouse from
changes in the schema of operational systems. DAMA web site at

Metes and Bounds Description - A legal description of a parcel of land that begins at a well
marked point and follows the boundaries, using directions and distances around the tract, back to
the place of beginning.

Metropolitan Area (MA) - A large population nucleus, together with adjacent communities that
has a high degree of economic and social integration with that nucleus

Metropolitan Planning Organization (CPD) - means that organization required by the
Department of Transportation, and designated by the Governor as being responsible for
coordination within the State, to carry out transportation planning provisions in a Standard
Metropolitan Statistical Area.

Metropolitan Statistical Area established by the U.S. Census Bureau (MSA) – The United
States Office of Management and Budget (OMB) designates areas as metro on the basis of
standards released in January 1980. Each Metropolitan Statistical Area (MSA) must include at
least: 1) one city with 50,000 or more inhabitants, 2) an urbanized area (defined by the Bureau of
Census) with at least 50,000 inhabitants and a total MSA population of at least 100,000 (75,000
in New England).

Micropolitan Statistical Area - An area with at least one urban cluster of at least 10,000 but
less than 50,000 population, plus adjacent territory that has a high degree of social and economic
integration with the core, as measured by commuting ties.
Glossary of Housing Acronyms and Terms
Midlands Housing Alliance – Midlands Housing Alliance is a 501 (c) (3) non-profit
organization formed in an effort to alleviate homelessness in the Midlands of South Carolina.

Military Affidavit (Foreclosure) - A written and sworn statement that, to the best of the
homeowners association’s knowledge, the property owner is not in active military service and
entitled to any rights under the Soldier’s and Sailor’s Relief Act of 1940.

Minimum Payment Option Mortgage - A mortgage where the borrower can choose to pay a
low monthly payment. The payment, in most cases, will be insufficient to pay the interest due
and will result in a higher loan balance the following month.

Minimum Rent - In 1995, legislation was passed requiring residents of HUD housing to pay a
minimum amount. Currently, the policy for public housing, allows for a minimum of up to $50
to be set by the local PHA. In assisted housing, a determination was made that all persons would
pay a $25 minimum, unless they fall under one of the exemptions including head, spouse or co-
head being over the age of 62 or disabled. (See also, Total Tenant Payment

Minimum Servicing Spread - The minimum amount of mortgage interest income to be retained
by the originating lender (seller/servicer) as compensation for servicing mortgages purchased in
whole by Freddie Mac.

Minimum Set-Aside - the minimum percentage of units in a project which must be occupied by
low- or very low-income households in order for the project to qualify for the tax credit. The
sponsor/owner elects whether the project will qualify for tax credit by setting aside at least 20
percent of the units for households with income at or below 50 percent of Area Median Income,
or at least 40 percent of the units for households with incomes at or below 60 percent of Area
Median Income. Also know as the 20/50 test (or rule) and the 40/60 test (or rule).

Minor (Section 8) – A member of the family household (excluding foster children other that the
family head or spouse who is under 18 years of age.

Minority Business Enterprise/Women's Business Enterprise (MBE/WBE) - HOPE VI
Grantees must take all necessary affirmative steps to assure that small and minority firms,
women's business enterprises, and labor surplus area firms are used when possible. 24 CFR
85.36(e) provides that affirmative steps include:
   1. Placing qualified small and minority businesses and women's business enterprises on
   solicitation lists;
   2. Assuring that small and minority businesses, and women's business enterprises are
   solicited whenever they are potential sources;
   3. Dividing total requirements, when economically feasible, into smaller tasks or quantities
   to permit maximum participation by small and minority business, and women's business
   4. Establishing delivery schedules, where the requirement permits, which encourage
   participation by small and minority business, and women's business enterprises;
Glossary of Housing Acronyms and Terms
   5. Using the services and assistance of the Small Business Administration, and the Minority
   Development Agency of the Department of Commerce; and
   6. Requiring the prime contractor, if subcontracts are to be let, to take the affirmative steps
   listed in paragraphs 1 - 5 above.

Mitigation - term usually used to refer to various changes or improvements made in a home; for
instance, to reduce the average level of radon.

Mixed Family (Section 8) – A family whose members include those with citizenship or eligible
immigration status, and those without citizenship or eligible immigration status

Mixed Finance Development - A method of public housing development that involves a
combination of public and private financing sources, and may include the ownership of public
housing units by a PHA, a PHA affiliate, or an entity other than the PHA in which the PHA may
or may not have an ownership interest. Mixed finance development of public housing units is
administered in accordance with regulations at 24 CFR 941 subpart F. Such units may be
developed with public housing Capital Funds in combination with other financing sources,
public or private. Alternatively, units may be developed without public housing Capital Funds
but still be considered public housing in a mixed-finance project and receive operating subsidy
from the PHA under the ACC, if approved by HUD.

Mixed Income Development - A mixed-finance housing development that includes a
combination of public housing and non-public housing units. Mixed-income developments
combine public housing families with other residents in order to decrease the economic and
social isolation of these families.

Mixed System - An information system that supports both Financial and Non-financial functions
of the federal government or components thereof. (JFMIP Framework) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Mixed-Use – Properties on which various office, commercial, institutional, and residential are
combined in an integrated development project with significant functional interrelationships and
a coherent physical design. Mixed-use projects can be placed in a single building or on a single
site. A “single site” may include contiguous properties.

Mobile Home - A mobile home may be defined as a movable or portable dwelling built on a
chassis, connected to utilities, designed without a permanent foundation, and intended for year-
round living. Mobile homes and the land used for mobile home park purposes have seen
increasing demand and therefore, the need for laws governing their sale, lease, utilities,
recreational facilities, parks, etc., has also risen.

Model Code (LIHTC) - Model codes are building codes developed by building and code
enforcement industry associations. Many local governments choose to adopt a model code to
avoid the time and expense associated with creating and maintaining their own building codes,
while retaining the flexibility to add any amendments needed to ensure the code suits local
Glossary of Housing Acronyms and Terms
conditions. In addition, model codes promote uniformity and consistency in code requirements
and enforcement, allowing builders to more easily anticipate the level of work, timeframe, and
costs associated with a proposed project before submitting their plans for review.

Moderate Income – Households whose incomes are between 81 percent and 95 percent of the
median income for the area, as determined by HUD, with ad-justments 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.

Moderate Rehabilitation - The purpose of the Moderate Rehabilitation program was to upgrade
substandard rental housing and to provide rental subsidies for low-income families that occupy
the rehabilitated units. This program is no longer receiving new funding. It is considered
inactive, but facilities still exist which were funded under this program.

Modernization - Program authorized by the Housing Act of 1937 for upgrading low-rent public
housing projects.

Modernization Funds - HUD funds used for rehabilitation of public housing projects. The term
includes funds that were previously provided to PHAs under section 14 of the Act, including the
former CIAP and Comprehensive Grant Programs, and the Capital Fund (effective FY 2000),
authorized by section 5 of the Act.

Modification Agreement (Foreclosure) - a written document, signed by the beneficiary and the
borrower that alters the terms of either the note of deed of trust

Modified Accelerated Cost Recovery System (MACRS) - Also known as MACRS
(pronounced "makers"), the depreciation method generally used since 1986 to figure the
deductions you get over the life of tangible property. Depreciation deductions for property in use
between 1980 and 1986 are determined under the Accelerated Cost Recovery System (ACRS).

Modular Homes - Modular homes are homes that are built in sections in a factory and then
transported to a building site on truck beds, then joined together by local contractors. Modular
homes are built to conform to all state, local or regional building codes at their destinations.
Local building inspectors are responsible for verifying that a modular home's structure meets
requirements and that all finish work is done properly. Modular homes are sometimes less
expensive per square foot than site built houses, but may endure and increase in value if properly

Modular Housing Institute of South Carolina - The South Carolina Modular Housing Institute
represents the modular industry in South Carolina. The organization is a resource for modular
homeowners, manufacturers, residential builders and retailers. This site is designed for both
consumers and members of the modular industry.

Modular Unit – Also called “factory-built housing.” A factory-fabricated, transportable
building or major component designed for use singly or for incorporation with similar units on
Glossary of Housing Acronyms and Terms
site into a structure for residential, commercial, educational, or industrial use. Unlike mobile
homes and manufactured housing, modular units are subject to state standards.

Mold - Molds are microscopic organisms found virtually everywhere, indoors, and outdoors.
Mold spores are tiny, lightweight, and easily detached by airflow, vacuuming, walking on a
carpet or sitting on a couch. In indoor environments, they grow in air-conditioning ducts, carpets,
pots of household plants, etc. They produce and release millions of spores, which are small
enough to stay airborne threatening to invade the human respiratory system. Due to the health
risks associated with mold exposure, certain laws may apply, dealing with such issues as
warranties, insurance rights, torts, and others.
Due to the health and safety concerns involved with toxic mold, there is a growing pressure to
enact laws which deal with the presence of mold on property. One state's mold legislation
includes such provisions as requiring disclosure by sellers of property of known mold on the
premises to prospective buyers and guidelines for identification and removal of mold.

Monthly Adjusted Income (Section 8) – 1/12 of the Annual Income after Allowances
(Adjusted Income)

Monthly Income (Section 8) – 1/12 of the Annual Income

Monthly Insurance Premium (MIP) - For properties which have FHA insurance, borrowers
pay a monthly insurance premium as part of the monthly mortgage payment to the mortgagee,
which in turn forwards that insurance premium to HUD to create a reserve fund. This fund is
used to pay a mortgagee should a default occur and the mortgagee exercises its option to assign
the mortgage to the Department and request reimbursement of the outstanding mortgage

Moody’s Investors Service - Moody's Investors Service is a widely utilized source for credit
ratings, research and risk analysis. Moody’s provides research data and analytic tools for
assessing credit risk, and publishes market-leading credit opinions, deal research and
commentary, serving more than 9,300 customer accounts at some 2,400 institutions around the

Moody Rating– A Moody rating (Aaa or lower) (Moody’s Investors Service) provides investors
with a current professional assessment of the credit-worthiness of a loan issuer with respect to a
specific debt issue.

Moral Obligation Bond – A type of municipal security that is not backed by the full faith and
credit of a state, but state law provides that the state will replenish the issue’s debt service
reserve fund if necessary.

Moratorium - Temporary suspension, usually by statute, of the enforcement of liability for an
Glossary of Housing Acronyms and Terms
Mortgage – The instrument which secures a mortgage loan and creates a first lien on a residence
subject to certain permitted encumbrances which shall be in the form permitted by FHA, VA,

Mortgage Acceleration Clause - a clause allowing a lender, under certain circumstances,
demand the entire balance of a loan is repaid in a lump sum. The acceleration clause is usually
triggered if the home is sold, title to the property is changed, the loan is refinanced or the
borrower defaults on a scheduled payment.

Mortgage Back - Also known as a "vendor take-back mortgage". Financing of a purchase of
property whereby the vendor accepts only a portion of the purchase price up front and accepts a
mortgage (with periodic payments and interest chargeable) for the remainder.

Mortgage-Backed Bond (MBB) - Bond collateralized by a pledge of mortgages and payable
from the issuer's general funds.

Mortgage-Backed Certificate - A mortgage-backed certificate is a security that allows investors
to participate in a portfolio of mortgage loans. The security is supported by an underlying pool of
mortgages, so that investors earn income as repayments are made on those mortgages. Mortgage-
backed certificates are also known as mortgage-backed securities (MBS)

Mortgage-Backed Security (MBS) – Securities which are backed by pools of mortgage loans
and are guaranteed by GNMA, FNMA, or FHLMC.

Mortgage-Backed Passthrough Securities - Securities that convey ownership of a fractional
part of each mortgage in a pool of mortgages backing the securities. Mortgage payments are sent
to the issuer of the securities and then passed through to those who bought the securities. Each
security owner shares proportionally the interest and principal payments generated by the
underlying pool of mortgages.

Mortgage-Backed Securities Program - Mortgage-backed Securities Program A program
administered by GNMA, which guarantees timely payment of principal and interest on trust
certificates or other securities backed by a trust pool of FHA insured or VA guaranteed
mortgages and issued by approved private corporate entities.

Mortgage-Backed Security (MBS) Trustee - The MBS trustee holds the MBS that collateralize
the bonds. The MBS trustee remits the proceeds from the MBS to bond trustee, who then pays
the bondholders.

Mortgage Banker – A private company which originates and services mortgage loans which are
sold to primary or secondary market institutions.

Mortgage Bankers Association of America (MBA or MBAA) - National organization which
seeks to improve mortgage practices and marketing activities.
Glossary of Housing Acronyms and Terms
Mortgage Bond – A mortgage bond is a corporate debt instrument that's supported by real estate
property collateral. Bondholders have a claim on the collateral property if the corporate borrower

Mortgage Broker - One who, for a fee, brings together a borrower and lender, and helps them
out with the necessary paperwork like helping the borrower obtain a loan against real property by
giving a mortgage or deed of trust as security.

Mortgage Constant - The mortgage constant is the quotient of the total annual debt payments
on a mortgage divided by that mortgage's original balance. The mortgage constant is also known
as the mortgage capitalization rate.

Mortgage Contingency - A contingency in the offer to purchase and/or the purchase and sale
agreement which protects the buyers in case they are unable to get a mortgage commitment by a
date specified in the contract. In this case, the buyers would be able to cancel the contract to
purchase and receive back all deposits made.

Mortgage Credit Certificate (MCC) – A Certificate provided by an Issuer authorized to utilize
Private Activity Bond Volume Cap which entitles a homeowner to take credit on their Federal
income taxes in an amount equal to a certain percentage of the interest paid on their mortgage

Mortgage Deed - This is a legal document that states the lender's legal charge over a property
unless the loan is repaid. It contains the loan principal amount to be paid over a period of time.

Mortgage Derivative - Any of several types of securities that pay their investors with cash flows
generated by the payments of principal and interest to an underlying pool of mortgages.
Mortgage derivative products include collateralized mortgage obligations (CMOs), real estate
mortgage investment conduits (REMICs), stripped mortgage-backed securities such as interest-
only securities (IOs) and principal-only securities (POs), and pass-through mortgage-backed
securities with senior/subordinated structures.

Mortgage Discount - The amount paid by the borrower to increase the yield of a mortgage to
the lender. Sometimes called points, loan brokerage fee, or new loan fee. The discount is
computed on the amount of the loan, not the selling price of the property.

Mortgage Excess Servicing - Mortgage excess servicing, on a mortgage-backed security, is the
percentage of interest that's left after subtracting the MBS coupon rate and servicing and
underwriting fees from the underlying mortgage note rate. The mortgage excess servicing, which
would be a fraction of 1 percent, is paid to the loan servicer

Mortgage Forbearance Agreement - An agreement made between a mortgage lender and
delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a
mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring
the borrower current on his or her payments. A forbearance agreement is not a long-term
Glossary of Housing Acronyms and Terms
solution for delinquent borrowers; it is designed for borrowers who have temporary financial
problems caused by unforeseen problems such as temporary unemployment or health problems.

Mortgage Forgiveness – A method by which an issuer adjusts the terms of a borrower’s
Mortgage Loan to change them in a manner favorable to a borrower to satisfy Federal Tax Law
requirements. Typically Mortgage Forgiveness will result in either a cancellation of the
requirement to repay the mortgage principal which remains outstanding, or in a reduction on the
interest rate which will be paid on the mortgage principal which remains outstanding. Mortgage
Forgiveness usually is triggered by an event such as the final tax exempt program bond is retired.

Mortgage Guarantor – FHA for an FHA Mortgage Loan, the Veteran’s Administration for VA
Mortgage Loans, USRD for USRD Mortgage Loans, a Primary Insurance Provider, FNMA or
FHLMC for conventional mortgage loans.

Mortgage Index - The benchmark interest rate an adjustable-rate mortgage's fully indexed
interest rate is based on. An adjustable-rate mortgage's interest rate, known as the fully indexed
interest rate, is comprised of an index value plus a margin. The margin tends to be constant, but
the index's value is variable. Several benchmark interest rates serve as mortgage indexes.

Mortgage Insurance Programs - FHA Mortgage Insurance is a credit enhancement tool which
insures mortgage lenders against default. A mortgagee must be approved for participation in the
mortgage insurance programs. The mortgagee files an application with the HUD office for
mortgage insurance on behalf of a for-profit or nonprofit borrow, or mortgagor. In exchange for
the insurance, a mortgagee can offer a reduced interest rate to the borrower. The owners of
properties insured through an FHA mortgage insurance program are responsible for maintaining
the habitability of the property and adhering to prescribed HUD requirements. Mortgage
insurance programs most often used to finance elderly housing include Section 221(d)(3) Below
Market Interest Rate and Section 236.

Mortgage Interest Deduction (LIHTC) - The mortgage interest deduction is a tax break for
homeowners. Homeowners with deductions that are large enough to warrant itemizing can
deduct the amount of interest on their mortgage when they file their taxes. The mortgage interest
deduction is the largest subsidy for housing in the United States.

Mortgage Life and Disability Insurance - term life insurance bought by borrowers to pay off a
mortgage in the event of death or make monthly payments in the case of disability. The amount
of coverage decreases as the principal balance declines. There are many different terms of
coverage determining amounts of payments and when payments begin and end.

Mortgage Loan – A loan made by a Lender on behalf of an Issuer to finance the purchase of a
quantifying home, evidenced by a Note and secured by a Mortgage, which meets the
requirements of the Program.

Mortgage Modification – a loss mitigation option that allows a borrower to refinance and/or
extend the term of the mortgage loan and thus reduce the monthly payments.
Glossary of Housing Acronyms and Terms
Mortgage Note - A mortgage note is a document that details the terms of a promise to repay a
real estate loan. The note will list the names of all borrowers and lenders, as well the loan
amount, rate of interest, and structure and timing of repayments

Mortgage Origination Agreement – An Agreement between the Issuer, the Lenders, and the
Servicers and/or Master Servicer which sets out the program features for qualifying Mortgages,
the terms under which the Mortgages can be originated, and the terms under which they will be
sold to the Servicer.

Mortgage Pass-Through Security - A mortgage pass-through security is an investment vehicle
that's backed by a pool of mortgage loans, where the investor receives principal and interest
payments (less a fee) as payments are made on the underlying mortgage loans

Mortgage Recast - A mortgage recast is a permanent alteration of a mortgage's payoff structure.
Some mortgage loans allow for recasting under certain situations, such as when the borrower is
financially distressed. In this case, the maturity could be extended, or the interest rate could be
reduced. Mortgages that allow unpaid interest to be added into the principal balance (e.g., option
ARMs), have to be recast so that the debt is eventually repaid.

Mortgage Reservation – The method for allocating program funds when Commitment Fees are
not charged to provide specific pools of funds which can be originated by specific Lenders.
Typically used in first-come, first-serve programs to track mortgage originations and to
determine when program funds have all been allocated to specific borrowers.

Mortgage Reserve Fund – A pool of funds invested pursuant to an Indenture which are to be
utilized to pay any losses associated with a portfolio of mortgage loans.

Mortgage Revenue Bond (MRB) – A tax exempt security issued by a state, certain agencies, or
authorities, or a local government to make or purchase loans (including mortgages or other
owner-financing) with respect to single-family residences.

Mortgage Score - a score based on a combination of information about the borrower that is
obtained from the loan application, the credit report, and property value information. The score is
a comprehensive analysis of the borrower's ability to repay a mortgage loan and manage credit.

Mortgage Servicing Rights (MSR) - A contractual agreement where the right, or rights, to
service an existing mortgage are sold by the original lender to another party who specializes in
the various functions of servicing mortgages. Common rights included are the right to collect
mortgage payments monthly, set aside taxes and insurance premiums in escrow, and forward
interest and principle to the mortgage lender.

Mortgage Yield – The interest rate at which the present value of all of the mortgage payments
are equal to the principal amount of the mortgage loans adjusted for any origination fees,
discount points or down payment assistance paid by or to the borrowers.
Glossary of Housing Acronyms and Terms
Mortgagee - In a mortgage transaction, the party who receives and holds a mortgage as security
for a debt, the lender-A lender or creditor who holds a mortgage as security for payment of an

Mortgagor – In a mortgage transaction, the buyer/borrower is the mortgagor. The mortgagor is
required to sign a promissory note for the amount borrowed and to execute a mortgage to secure
the debt. The mortgage note creates a personal liability for payment on the part of the mortgagor.

Mortgagor’s Affidavit - A mortgagor's affidavit is a sworn statement by a borrower used by the
Federal Housing Administration to insure the loan, or by the Veterans Administration to
guarantee the loan, or by a Private Mortgage Insurance Company to insure the loan. This
document also states whether the borrower intends to occupy the property as a primary residence
and determines if a property is located in a Special Flood Hazard Area. At time of closing,
borrower will sign a mortgagor’s affidavit stating the number of persons who will occupy the
home, and their combined incomes. By completing the affidavit, the borrower ensures that there
have been no significant changes to their financial situation, ownership status or condition of the
property. This document will need to be signed and notarized.

Motion to Lift the Automatic Stay (Bankruptcy) - A request by a creditor to allow the creditor
to take action against the debtor or the debtor's property that would otherwise be prohibited by
the automatic stay

Multidwelling Property - A property that contains individual units for several households but
carries only one mortgage

Multifamily (LIHTC) - A type of property that is designed for more than one family, such as a
condominium or apartment building

Multifamily Assisted Housing Reform and Affordability Act of 1997 (MAHRA) - A
legislative act enacted to preserve low-income rental housing affordability while reducing the
long-term costs of Federal rental assistance, including project-based assistance, and minimizing
the adverse effect on the FHA insurance funds. HUD established the Office of Multifamily
Housing Assistance Restructuring (OMHAR) to administer the Mark-to-Market program and to
implement the requirements of the act. Federal Register 9/11/1998 posted on HUD web site at

Multifamily Housing – Usually refers to rental housing in five or more unit buildings

Multifamily Housing (HUD) - Division within HUD’s Office of Housing, the Multifamily
Housing Division is responsible for the production and management of multifamily housing
developments that are built and privately owned and insured under a section of the National
Housing Act or assisted with Section 8 rental assistance payments.
The Multifamily Housing Division is comprised of two Branches. The Production Branch assists
private developers in building or rehabilitating properties with Federal mortgage insurance. The
Asset Management Branch assures that FHA insured properties are managed in a manner that
Glossary of Housing Acronyms and Terms
ensures the mortgage security is protected, and residents are provided decent, safe and sanitary
housing from initial occupancy until the mortgage is terminated or paid in full.

Multifamily Mortgage - A mortgage on a multifamily dwelling with more than four families,
typically an apartment building.

Multiple-Year Authority - Budget Authority which is available for a specified period of time in
excess of 1 fiscal year. This authority generally takes the form of 2-year, 3-year, etc., availability
but may cover periods that do not coincide with the start or end of a fiscal year. Also known as
"forward funding"

Muniments of Title - Written evidence (documents) that an owner possesses to prove his or her
title to property.

Municipal Association of South Carolina (MASC) - Formed in 1939, the Municipal
Association of South Carolina represents and serves the state's 270 incorporated municipalities.
The Association is dedicated to the principle of its founding members: to offer the services,
programs and products that will give municipal officials the knowledge, experience and tools for
enabling the most efficient and effective operation of their municipalities in the complex world
of municipal government.

Municipal Bonds - Municipal bonds are debt instruments used to raise money to build schools,
highways, hospitals, sewer systems and other public projects. When you purchase a municipal
bond, you are lending money to a state or local government to finance these public projects. The
state or local government promises to pay you a specified amount of interest (usually paid
semiannually) and return the principal they borrowed to you on a specific maturity date. Most
municipal bonds offer income that is exempt from federal, state and city taxes if applicable,
provided you reside in the state or city that is issuing the municipal bonds.
Not all municipal bonds offer income exempt from both federal and state taxes. There is an
entirely separate market of municipal issues that are taxable at the federal level, but still offer a
state, and often local, tax exemption on interest paid to residents.

Municipal Bond Insurance – See “Bond Insurance”

Municipal Market Data (MMD) - Thomson Municipal Market Data (MMD) has provided a
broad range of benchmark data and technical/fundamental analysis to the municipal market. Our
analytical services offer a unique perspective on the municipal bond market, highlighting key
areas of value and opportunity. Our analysis provides comprehensive coverage of the municipal
cash, derivatives and U.S. Treasury markets.

Municipal Securities Information Library (MSIL) - The central repository of information
regarding bond issues and continuing disclosure of financial information related to them.

Municipal Securities Rule-Making Board (MSRB) – An independent self-regulatory
organization established by the Securities Acts Amendments of 1975, which is charged with
Glossary of Housing Acronyms and Terms
primary rulemaking authority over dealers, dealer banks and brokers in municipal securities. Its
15 members are divided into three categories – securities firms representatives, bank dealer
representatives, and public members, each category having equal representation on the Board.

Mutual Housing (Section 8) – Included in the definition of “Cooperative”

Mutual Mortgage Insurance Fund (MMI) - One of four separate funds within the FHA Fund;
provides funds for home mortgage insurance.

NACO – “National Association of County Officials”

NAHA – National Affordable Housing Act

NAHASDA - Native American Housing Assistance Self-Determination Act

NAHB – “National Association of Home Builders”

NAHMA – “National Affordable Housing Management Association”

NAHP – “National Affordable Housing Professional”

NAHRO – “National Association of Housing and Redevelopment Officials”

NAIPC – “National Aging in Place Council”

NAMB – “National Association of Mortgage Brokers”

NAPA – “National Academy of Public Administration”

NAR – “National Association of Realtors”

NAREA – “National Association of Real Estate Appraisers”

NAREB – “National Association of Real Estate Brokers”

NASDAQ – “National Association of Securities Dealers Automated Quotation (system)

NASD – “National Association of Securities Dealers”

NAV – Net Asset Value

NCH – “National Coalition for the Homeless”
Glossary of Housing Acronyms and Terms
NCHS – National Center for Health Statistics

NCHV – “National Coalition for Homeless Veterans”

NCSBCS – “National Conference of States on Building Codes and Standards”

NCSHA – “National Council of State Housing Agencies”

NFC - National Finance Center

NFCC – “National Foundation of Credit Counseling”

NFCC – “National Foundation for Consumer Credit”

NFFE – “National Federation of Federal Employees”

NHBC – “National House Building Council”

NHF – “National Homeownership Foundation”

NHLP – National Housing Law Project

NHTF – National Housing Trust Fund

NIA - Net Internal Area

NIBS – “National Institute of Building Sciences”

NIC - Net Interest Cost

NIM - Net Income Multiplier

NIMBY - Not In My Back Yard

NLA - Net Leasable Area

NLC – “National League of Cities”

NLHA – “National Leased Housing Association”

NLIHTC – “National Low Income Housing Coalition”

NMTC – New Markets Tax Credits

NNN – Triple Net (Lease)
Glossary of Housing Acronyms and Terms
NOAAH – “National Organization of African- Americans in Housing”

NOD – Notice of Default

NOFA – Notice of Funding Availability (HUD)

NOI – Net Operating Income

NP - Non-Profit

NPR - National Partnership for Reinventing Government (f/k/a the National Performance

NPV – Net Present Value

NRMSIR - Nationally Recognized Municipal Securities Information Repository

NRHC – “National Rural Housing Coalition”

NRS – Neighborhood Revitalization Strategy

NRV – Net Realizable Value

NSF – “National Science Foundation”

NSP – Neighborhood Stabilization Program

NTO – “National Tenants Organization”

NTS – Notice of Trustees Sale

Naked Title - Bare title to the property, lacking the usual rights and privileges of ownership. A
trustee in a deed of trust securing instrument may hold the title to a secured property, but only
such title as is needed to carry out the terms of the lien document. (See Deed of Trust)

National (Section 8) – A person who owes permanent allegiance to the United States, for
example, as a result of birth in a United States territory or possession

National Affordable Housing Act of 1990 (NAHA) - Legislation that created the HOME
Program. Also known as the “The Cranston-Gonzalez Act.-It changed Section 202 from a direct
loan to a capital advance program with a 40 year term, created a new subsidy known as the
project rental assistance contract (PRAC), and restricted eligibility for 202/PRAC’s to
household in which the head or spouse is at least 62 (creating an 811/PRAC program for person
with disabilities.)
Glossary of Housing Acronyms and Terms
National Affordable Housing Management Association (NAHMA) – is the leading voice for
affordable housing, advocating on behalf of multifamily property managers and owners whose
mission is to provide quality affordable housing. As an advocate for professional standards for
affordable housing providers, NAHMA holds a unique position in the industry. Founded in 1990,
NAHMA's membership today includes the industry's most distinguished multifamily managers,
owners, and industry stakeholders.

National Affordable Housing Training Institute (NAHTI) - NAHTI is a non-profit
organization composed of seven national public interest groups (listed on right) who provide
technical assistance and training to their respective members in the area of affordable housing.
NAHTI is currently funded through a cooperative agreement with the Department of Housing
and Urban Development (HUD) to provide TA and training related to the HOME Investment
Partnerships (HOME) Program.

National Aging in Place Council (NAIPC) - The National Aging in Place Council is a
membership organization founded on the belief that an overwhelming majority of older
Americans want to remain in their homes for as long as possible, but lack awareness of home and
community-based services that make independent living possible. NAIPC has created a national
forum for individuals from the aging, healthcare, financial services, legal, design and building
sectors to work together to help meet the needs of our growing aging population, so they
can continue living in the housing of their choice.

National Alliance to End Homelessness - The National Alliance to End Homelessness is a
leading voice on the issue of homelessness. The Alliance analyzes policy and develops
pragmatic, cost-effective policy solutions. We work collaboratively with the public, private, and
nonprofit sectors to build state and local capacity, leading to stronger programs and policies that
help communities achieve their goal of ending homelessness. We provide data and research to
policymakers and elected officials in order to inform policy debates and educate the public and
opinion leaders nationwide.

National Association of County Officials (NACO) - An organization of officials in county
governments which provides research and reference services for such officials and represents
their interests at the national level.

National Association of Home Builders (NAHB) - An organization which represents home
builders at all levels of government and provides information on new developments in the
housing industry. It is also responsible for initiating the Homeowners Warranty Corporation
which provides a guarantee of workmanship in residential homes.

National Association of Housing and Redevelopment Officials (NAHRO) - An organization
which develops new techniques related to the finance, design, construction and management of
housing. The NAHRO also plays a key role by consulting with Federal Agencies and the
Congress on U.S. housing policy.
Glossary of Housing Acronyms and Terms
National Association of Mortgage Brokers (NAMB) - The National Association of Mortgage
Brokers is the voice of the mortgage broker industry, representing the interests of mortgage
brokers and homebuyers since 1973.

National Association of Real Estate Brokers (NAREB) - The oldest minority trade association
in America founded in 1947 on the principle that all citizens have the right to equal housing
opportunities, regardless of race, creed, or color. Internet Site:

National Association of Realtors (NAR) - An organization which represents the interests of
realtors and promotes education, professional standards, and modern techniques in real estate

National Association of Real Estate Appraisers (NAREA) - The National Association of Real
Estate Appraisers (NAREA) is a Professional Organization founded in 1966, making available
highly qualified real estate Appraisers for both residential and commercial properties. In
addition, many members are expert witnesses, review appraisers, educators and published
authors. NAREA is one of the largest Professional Associations in the United States.

National Coalition for the Homeless (NCH) - The National Coalition for the Homeless,
founded in 1982, is a national network of people who are currently experiencing or who have
experienced homelessness, activists and advocates, community-based and faith-based service

National Coalition for Homeless Veterans (NCHV) - a 501(c)(3) nonprofit organization
governed by a 13-member board of directors — is the resource and technical assistance center
for a national network of community-based service providers and local, state and federal
agencies that provide emergency and supportive housing, food, health services, job training and
placement assistance, legal aid and case management support for hundreds of thousands of
homeless veterans each year.

National Council of State Housing Agencies (NCSHA) – The nation’s State Housing Finance
Agencies (HFAs) created the National Council of State Housing Agencies (NCSHA) as a
nonprofit organization more than 30 years ago to coordinate and leverage their federal advocacy
efforts for affordable housing.

National Credit Repositories - currently, there are three companies that maintain national credit
- reporting databases. These are Equifax, Experian, and Trans Union, referred to as Credit

National Federation of Federal Employees (NFFE) - One of two (NFFE, AFGE) labor
organizations having bargaining representation for selected HUD employees.
Glossary of Housing Acronyms and Terms
National Foundation for Consumer Credit (NFCC) - The NFCC is a nonprofit organization
that educates consumers about using credit wisely. The NFCC is the parent group for the
Consumer Credit Counseling Service.

National Foundation for Credit Counseling (NFCC) - Each year, more than one million
people receive counseling and educational services from NFCC member agencies. More than
one-third of all consumers who come to an NFCC agency for counseling are able to manage their
debt on their own after receiving financial education and counseling.

National Homeownership Foundation (NHF) - An organization which encourages private and
public organizations at the national, state, and local levels to provide increased homeownership
opportunities in urban and rural areas for low-income families.

National Housing Law Project (NHLP) - The National Housing Law Project (NHLP) is a
national housing law and advocacy center. The goal of NHLP is to advance housing justice for
the poor by increasing and preserving the supply of decent affordable housing, by improving
existing housing conditions, including physical conditions and management practices, by
expanding and enforcing low-income tenants' and homeowners' rights, and by increasing
opportunities for racial and ethnic minorities. NHLP works to achieve that goal by providing
legal assistance, advocacy advice and housing expertise to legal services and other attorneys,
low-income housing advocacy groups, and others who serve the poor.

National Housing Trust Fund (NHTF) – This is a provision of the Housing and Economic
Recovery Act of 2008 and the first new federal housing production program since the HOME
program was created in 1990 and the first new production program specifically targeted to
extremely low income households since the Section 8 program was created in 1974.

National Institute of Building Sciences (NIBS) - A nonprofit organization engaged in
improvements in the area of building science and technology.

National League of Cities (NLC) - The country's largest and most representative organization
serving municipal governments. Founded in 1924, today its direct members include 49 state
municipal leagues and 1,500 communities of all sizes. Through the membership of the state
municipal leagues, NLC represents more than 18,000 municipalities.

National Leased Housing Association (NLHA) - The National Leased Housing Association is
a national organization representing all major participants, private and public, in the affordable
multifamily rental housing industry. NLHA is a vital and effective advocate for 550 housing
provider organizations and their consultants, specializing in federally assisted rental housing.

National Low Income Housing Coalition (NLIHTC) - The National Low Income Housing
Coalition is dedicated solely to ending America's affordable housing crisis. We believe that this
is achievable, that the affordable housing crisis is a problem that Americans are capable of
Glossary of Housing Acronyms and Terms
solving. While we are concerned about the housing circumstances of all low income people, we
focus our advocacy on those with the most serious housing problems, the lowest income

National Organization of African- Americans in Housing (NOAAH) - HUD has entered into
a Cooperative Agreement with the National Organization of African- Americans in Housing, to
reach out and identify minority professionals (developers, program managers, lenders,
accountants, attorneys, etc.) who are interested in participating in the HOPE VI Program.
NOAAH's website is

National Partnership for Reinventing Government (formerly known as the National
Performance Review) (NPR) - A review of the federal government led by Vice President Al
Gore which resulted in improvement recommendations. The report, “Creating a Government that
Works Better & Costs Less”, was issued September 7, 1993. (JFMIP Framework) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

National Rural Housing Coalition (NRHC) –In 1969, a group of concerned rural community
activists, public officials, and non-profit developers formed the National Rural Housing
Coalition (NRHC) to fight for better housing and community facilities for low-income rural

National Tenants Organization (NTO) - Organization which represents tenants in subsidized

Nationally Recognized Municipal Securities Information Repository (NRMSIR) – Each then
existing Nationally Recognized Municipal Securities Information Repository within the meaning
of SEC Rule 15c2-12. NRMSIR’s are required to collect disclosure information on existing
bond issues and distribute this information to investors at their request.

Native American Housing Assistance and Self-Determination Act of 1996 (NAHASDA) -
Legislation enacted on October 26, 1996. NAHASDA reorganizes the system of Federal housing
assistance to Native Americans by eliminating several separate programs of assistance and
replacing them with a single block grant program. In addition to simplifying the process of
providing housing assistance, the purpose of NAHASDA is to provide Federal assistance for
Indian tribes in a manner that recognizes the right of Indian self-determination and tribal self-

Near Elderly Family – A family whose head, spouse, or sole member is a person who is at least
50 years of age but below the age of 62; or two or more persons, who are at least 50 years of age
but below the age of 62, living together; or one or more persons who are at least 50 years of age
but below the age of 62 living with one or more live-in aides.

Negative Amortization – In the case of mortgage loans, refers to a payment plan in which
interest payments are insufficient and therefore increases the outstanding loan balance above the
Glossary of Housing Acronyms and Terms
original amount of the mortgage. Usually a mortgage which allows for negative amortization
early in mortgage life will provide for increased payments later to ensure full payment of
principal and interest at term.

Negative Arbitrage – The cost associated when in a single family mortgage revenue bond issue
the earnings rates on the program investments are less that the average bond coupon rate.

Negative Declaration - A declaration by a developer that a project will not have a negative
impact on the environment

Negative Easement - An easement where the owner of a servient estate is prohibited from doing
something on his or her estate that is otherwise lawful, because it will affect the dominant estate.

Negative Equity - Negative equity occurs when the value of an asset securing a loan dips below
the loan balance. For example, an individual could take out a mortgage loan to finance 100
percent of a home purchase. If the home's value subsequently drops, due to recession, for
example, the homeowner would have negative equity. Selling the home would require the
homeowner to pay out of pocket to cover the difference between the sales price and the loan

Negative Leverage - Situation where the cost of funds exceeds the rate of return on the real

Negative Points - Negative points are used by a lender to rebate either a mortgage broker, or a
mortgage borrower, for a mortgage that carries a higher-than-par interest rate. This rebate might
be paid as a fee to the mortgage broker, or can be paid to the borrower to offset closing costs.
No-cost mortgage loans use negative points; the borrower essentially trades a higher interest rate
for lower upfront costs

Negative Rent (Section 8) – Now called Utility Reimbursement.

Negotiable Instrument - A negotiable instrument is a written document that represents an
unconditional promise to pay a specified amount of money upon the demand of its owner.
Examples include checks and promissory notes. Negotiable instruments can be transferred from
one person to another, as when you write "pay to the order of" on the back of a check and turn it
over to someone else.

Negotiated Bid Sales – Sales in which issuer chooses one underwriter or group of underwriters
to sell its bonds to investors. There is no competitive bid for the issue.

Negotiated Sale – The sale of a new issue of municipal securities by an Issuer through an
exclusive agreement with a previously selected underwriter or Underwriting Syndicate. A
negotiated sale should be distinguished from a competitive sale, which requires public bidding
by underwriters. Primary points of negotiation for the Issuer are the interest rate and purchase
price, which reflect the Issuer’s costs of offering its securities in the market. The sale of a new
issue of bonds in this manner is also known as a negotiated underwriting.
Glossary of Housing Acronyms and Terms

Neighborhood (CPD) - means a geographic location designated in comprehensive plans,
ordinances, or other local documents as a neighborhood, village, or similar geographical
designation that is within the boundary but does not encompass the entire area of a unit of
general local government; except that if the unit of general local government has a population
under 25,000, the neighborhood may, but need not, encompass the entire area of a unit of general
local government.

Neighborhood Networks - Launched by HUD's Office of Multifamily Housing Programs in
September 1995, Neighborhood Networks is a community-based program that encourages the
development of resource and community technology centers in HUD insured and assisted
housing. HUD guidance (Notice H 95-81) encourages use of outside grants, but also directs that
sites may use residual receipts, loans from reserve for replacement account and/or budget-based
rent increases to fund computer hardware, software, distance learning, security costs, etc. More
information on the requirements of Neighborhood Networks is available on HUD's website:

Neighborhood Revitalization Strategy (HOME) - A comprehensive approach to addressing
economic development needs in a neighborhood within a community, submitted as part of (or an
amendment to) a PJ's Consolidated Plan.

Neighborhood Stabilization Program (NSP) – HUD’s new Neighborhood Stabilization
Program will provide 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 Neighborhood Stabilization Program (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.

Net Family Assets (Section 8) –(1) Net cash value after deducting reasonable costs that would
be incurred in disposing of real property, savings, stocks, bonds, and other forms of capital
investment, excluding interests in Indian trust land and excluding equity accounts in HUD
homeownership programs. The value of necessary items of personal property such as furniture
and automobiles is excluded:
    • In cases where a trust fund has been established and the trust is not revocable by, or under
       the control of, any member of the family or household, the value of the trust fund will not
       be considered an asset so long as the fund continues to be held in trust. Any income
       distributed from the trust fund shall be counted when determining annual income under
    • In determining net family assets, PHAs or owners, as applicable shall include the value of
       any business or family assets disposed of by an applicant or tenant for less than fair
       market value (including a disposition in trust, but not in a foreclosure or bankruptcy sale)
       during the two years preceding the date of application for ht program or reexamination,
Glossary of Housing Acronyms and Terms
       as applicable, in excess of the consideration received therefore. In the case of a
       disposition as part of a separation or divorce settlement, the disposition will not be
       considered to be for less than fair market value if the applicant or tenant receives
       important consideration not measurable in dollar terms.

Net Family Contribution (Section 8) – Former Name for Tenant Rent

Net Interest Cost (NIC) – A method of computing the interest expense an Issuer will incur by
issuing bonds. NIC is computed by determining the average coupon rate weighted to reflect the
time until repayment of principal and adjusted for any premium or discount.

Net Lease - A commercial real estate lease in which the tenant regularly pays not only for the
space (as he does with a gross lease) but for a portion of the landlord’s operating costs as well.
When all three of the usual costs--taxes, maintenance and insurance--are passed on, the
arrangement is known as a "triple net lease." Because these costs are variable and almost never
decrease, a net lease favors the landlord. Accordingly, it may be possible for a tenant to bargain
for a net lease with caps or ceilings, which limits the amount of rent the tenant must pay. For
example, a net lease with caps may specify that an increase in taxes beyond a certain point (or
any new taxes) will be paid by the landlord. The same kind of protection can be designed to
cover increased insurance premiums and maintenance expenses.

Net Operating Income (NOI) – Net rental income less all operating expenses, which generally
includes a deposit to a replacement reserve.

Net Rental Income – Gross potential rent less losses attributable to vacancy, concessions and
bad debt or write-offs.

Netting of Payments – Swap payments are netted on each swap payment date so that case flow
only goes in one direction. In swaps where the accrual periods are different, the payments are
only netted when the two payment dates for the two swaps legs correspond.

New Building - A new building is a building whose original use begins with the taxpayer. A new
building also includes qualifying substantial rehabilitation costs incurred with respect to existing

New Construction - The creation of new dwelling units. Any project that includes the creation
of additional dwelling units outside the existing walls of a structure is also considered new

New Construction and Substantial Rehabilitation - Authority for the various Section 8 new
construction and substantial rehabilitation programs was repealed by the Housing and Urban-
Rural Recovery Act of 1983, except in connection with the old Section 202 direct loan program
(for elderly and handicapped) and projects in the pipeline.

New Markets Tax Credits (NMTC) - New Markets Tax Credits. The New Markets Tax Credit
(NMTC) Program permits taxpayers to receive a credit against Federal income taxes for making
Glossary of Housing Acronyms and Terms
qualified equity investments in designated Community Development Entities (CDEs).
Substantially all of the qualified equity investment must in turn be used by the CDE to provide
investments in low-income communities.

New Money Bond – A bond which is not a refunding bond issued pursuant to an unused source
of Private Activity Bond Volume Cap.

New Urbanism - A design concept that incorporates the goals of walkable neighborhoods, local
access to jobs, services, stores, and recreational facilities; and a mix of housing types that include
apartments, townhouses, single family houses, and other housing choices appropriate to the
neighborhood. Information on design and New Urbanism can be found at:

Next Available Unit Rule - Rule established in Section 42 which mandates that, should a low-
income occupant’s income rise to 140 percent or more of the maximum eligible income, then the
next available unit of comparable or smaller size must be rented to an income-eligible household
in order to retain the building’s qualified basis and remain in compliance with the tax credit

Niche Banks - Smaller banks that cater to particular communities or certain industries. These
banks have been thriving in the fallout from mega-bank mergers.

No-Asset Case (Bankruptcy) - A chapter 7 case where there are no assets available to satisfy
any portion of the creditors' unsecured claims.

No Cash Out Refinance - a refinance of an existing loan only for the amount remaining on the
mortgage. The borrower does not get any cash against the equity of the home. Also called a "rate
and term refinance."

No Closing Cost Loan - A loan in which the fees the borrower(s) are not required to pay cash
out-of-pocket at closing for the normal closing costs. The lender typically includes the closing
costs in the principal balance or charges a higher interest rate than for a loan with closing costs to
cover the advance of closing costs.

No Cost Loan - there are many variations of a no cost loan. Generally, it is a loan that does not
charge for items such as title insurance, escrow fees, settlement fees, appraisal, recording fees or
notary fees. It may also offer no points. This lessens the need for upfront cash during the buying
process however no cost loans have a higher interest rate.

No-Documentation Loan - A mortgage in which an applicant provides a minimum of
information. The underwriter bases his/her decision on the applicant’s credit history, the
appraised value of the house, and down payment amount.

No-Ratio Mortgage - A no-ratio mortgage doesn't require the calculation of the borrower's debt-
to-income ratio during the approval process. The lender will, instead, base the mortgage
underwriting on other factors, such as the borrower's downpayment and credit history. This may
Glossary of Housing Acronyms and Terms
be appropriate in cases where the borrower has a volatile income stream. No-ratio mortgages are
considered riskier than conventional mortgages and, therefore, are more expensive

No-Year Authority - Budget Authority that remains available for Obligation for an indefinite
period of time, usually until the objectives for which the authority was made available are

Non-AMT Bond – A tax-exempt bond which is not subject to the Alternative Minimum Tax.
Generally all new money tax-exempt bonds which were issued prior to 1987 are Non-AMT

Non-Amortized Loan - A loan in which the periodic payments are sufficient to cover only the
interest due and, thus, do not reduce the outstanding principal.

Non-Amortizing Assistance - Funding sources such as grants or where principal and/or interest
is deferred until a capital transaction occurs or payment is not required or forgiven.

Non-Asset Bonds – When a single family program is under parity, the Non-Asset Bonds are that
portion of the bond issue which is equal to the difference between the amount of assets invested
under the indenture and the principal amount of bonds outstanding.

Non-Assumption Clause - A loan provision that prohibits the transfer of a mortgage to another
borrower without lender approval

Non-Callable Bond – A bond that cannot be called either for redemption by or at the option of
the issuer before its specified maturity date

Non-Citizen (Section 8) – A person who is neither a citizen nor national of the United States

Non-Conforming Loan - is a loan that exceeds Fannie Mae's and Freddie Mac's loan limits.
Freddie Mac and Fannie Mae loans are referred to as conforming loans.

Non-Conforming Use - A use of land that lawfully existed before a zoning ordinance that is
legally continued after the effective date of the ordinance, even though the use no longer
conforms to the new zoning regulations

Non-Contiguous - referring to two or more parcels of real property which are not connected.

Non-Cumulative Zoning - Zoning that allows only the stated use and not more restrictive uses.

Non-Dishargeable Debts (Bankruptcy) - Debts that cannot be erased by filing for bankruptcy.
If you file for Chapter 7 bankruptcy, these debts will remain when your case is over. If you file
for Chapter 13 bankruptcy, the non-dischargeable debts will have to be paid in full during your
plan or you will have a balance at the end of your case. Examples of non-dischargeable debts
include alimony and child support, most income tax debts, many student loans and debts for
personal injury or death caused by drunk driving. Compare dischargeable debts.
Glossary of Housing Acronyms and Terms

Non-Disturbance Clause - An agreement where the mortgagee agrees to honor a tenant's lease
in the event that the mortgage is foreclosed

Non-Entitlement Public Entity (CPD) - means any unit of general local government in a non-
entitlement area.

Non-Exempt Assets (Bankruptcy) - Property of a debtor that can be liquidated to satisfy claims
of creditors

Non-Exempt Property (Bankruptcy) - The property you risk losing to your creditors when you
file a Chapter 7 bankruptcy or when a creditor sues you and wins a judgment. Nonexempt
property typically includes valuable clothing (furs) and electronic equipment, an expensive car
that's been paid off and most of the equity in your house. Compare exempt property.

Non-Financial System - An information system that supports non-financial functions of the
federal government or components thereof; any financial data included in the system are
insignificant to agency financial management and/or not required for the preparation of financial
statements. (JFMIP Framework) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Non-Immigrant - People who come to the United States temporarily for some particular
purpose but do not remain permanently. There are many types of non-immigrants. Students,
temporary workers and visitors are some of the most common.

Non-Immigrant Visa - A non-immigrant visa is a U.S. visa that allows an individual to come to
the United States temporarily and for a limited purpose. Each nonimmigrant visa comes with a
different set of privileges, such as the right to work or study. In addition to a descriptive name, a
letter of the alphabet and a number identifies each type of nonimmigrant visa. Student visas, for
example, are F-1 or M-1 and investors are E-2. Nonimmigrant visas also vary according to how
long they permit you to stay in the United States. For example, on an investor visa, you can
remain for many years, but on a visitor's visa, you can stay for only six months at a time.

Non-Judicial Foreclosure - The process of selling real property under a power of sale in a
mortgage or deed of trust that is in default. One disadvantage is that the lender cannot obtain a
deficiency judgment. Also, some title insurance companies are reluctant to issue a policy unless a
court has judicially foreclosed the mortgagor's interest. (See Judicial Foreclosure; Strict

Non-Military Affidavits (Foreclosure) - a sworn statement, in writing from the beneficiary or
his agent which declares that the property owner is not entitled to any rights under the Soldier's
and Sailors Civil Relief Act of 1940

Non-Origination Redemption – A bond redemption which is funded with bond proceeds which
have not been used to purchase mortgage loans or mortgage-backed securities
Glossary of Housing Acronyms and Terms
Non-Perfected Liens - when a creditor does not take all steps required to perfect its lien (the lien
is not legally sufficient).

Non-Profit (NP) – A nonprofit ownership entity whose distribution is limited under a mortgage
insurance or subsidy program. Normally, no distributions are permitted; however, under the
Preservation Program (LIHPRHA) some non-profits are permitted to make distributions of up to
8% of the “assessed preservation equity.”

Non-Profit Housing – Non-profit housing is developed by nonprofit corporations with a
community board of directors and mission. Most housing developed by nonprofit housing
developers is affordable with rents or prices below market-rate. Income generated from the
housing is put back into the mission of the organization, rather than being distributed to
stockholders or individual investors as would be the case in for-profit housing.

Non-Profit Housing Developer - A nonprofit organization with a mission that involves the
creation, preservation, renovation, operation or maintenance of affordable housing

Non-Profit Law - A nonprofit corporation is a corporation formed to carry out a charitable,
educational, religious, literary or scientific purpose. A nonprofit can raise funds by receiving
public and private grant money and donations from individuals and companies. Certain federal,
state, and local income, property and sales tax exemptions are available to nonprofit
corporations. The federal and state governments do not generally tax nonprofit corporations on
money they make that is related to their nonprofit purpose, because of the benefits they
contribute to society.
The most common federal tax exemption for nonprofits comes from Section 501(c)(3) of the
Internal Revenue Code, which is why nonprofits are sometimes called 501(c)(3) corporations.
Tax exempt nonprofit organizations offer donors an individual deduction for contributions.
(Private donors can claim personal federal income tax deductions of up to 50% of adjusted gross
income for donations made to 501 (c) (3) organizations.)

Non-Profit Organization - means any nonprofit organization (including a State or locally
chartered, nonprofit organization) that:
    1. Is organized under State or local laws;
    2. Has no part of its net earnings inuring to the benefit of any member, founder,
       contributor, or individual;
    3. Has a functioning accounting system that is operated in accordance with generally
       accepted accounting principles, or has designated an entity that will maintain such an
       accounting system; and
    4. Has among its purposes significant activities related to providing services or housing to
       persons with acquired immunodeficiency syndrome or related diseases.
Glossary of Housing Acronyms and Terms
Non-Profit Recipient - means any private nonprofit organization providing assistance to the
homeless, to which a State or unit of general local government distributes emergency shelter
grant amounts.

Non-Profit Set-Aside - 10 percent of each state’s allocable tax credits must be set aside for
nonprofit use annually.

Non-Profit Sponsor – A group organized to undertake one or more housing projects for reasons
other than making a profit. Generally groups are incorporated as 501 (C) 3 corporations to enable
tax-free charitable contributions for their operation.

Non-Qualified Non-Recourse Financing (LIHTC) - Nonqualified nonrecourse financing is
nonrecourse financing that is not qualified commercial financing. This definition is used for
purposes of low-income housing tax credit at-risk rules.
Nonqualified Substantial Improvement
Nonqualified substantial improvement is a term used to determine if an existing building is
eligible for the acquisition credit; is any substantial improvement for which Section 167 (k) was
elected or pre- 1986 Tax Reform Act depreciation rules apply.

Non-Recourse Loan - A type of mortgage loan in which the lender’s remedies in the event of
the borrower’s default are limited to foreclosing the mortgage; the borrower is not personally

Non-Resident Alien - A person who is not a permanent resident or a citizen of the United States,
and who is generally taxed on income from U.S. sources

Non-Substantial Rehabilitation - means rehabilitation that involves costs that are less than or
equal to 75 percent of the value of the building after rehabilitation.

Non-Qualified Substantial Improvement - Nonqualified substantial improvement is a term
used to determine if an existing building is eligible for the acquisition credit; is any substantial
improvement for which Section 167 (k) was elected or pre- 1986 Tax Reform Act depreciation
rules apply.

Non-Substantial Rehabilitation - means rehabilitation that involves costs that are less than or
equal to 75 percent of the value of the building after rehabilitation.

Not In My Back Yard (NIMBY) - A term, usually used derisively by people who don't live in
the affected vicinity, to describe residents' opposition to the introduction of something they don't
want in their neighborhood, such as a group home, toxic waste incinerator, prison, proposed
changes or developments.

Note - A written instrument acknowledging a debt and promising payment

Notes - Short-term promise to pay specified amounts of money, secured by specific sources of
future revenues, such as taxes, Federal and state aid payments, and bond proceeds.
Glossary of Housing Acronyms and Terms

Notice for Tender (Bonds) – An invitation by the Issuer of bonds, or its representatives, for
bondholders to offer the Issuer’s bonds at a predetermined price, or a price at which the
bondholder is willing to sell to the Issuer. The Notice for Tender usually authorizes the Issuer to
reject tender offers in whole or in part.

Notice of Commencement - A document used in some states and recorded after a construction
loan mortgage has been recorded. All mechanics' liens relate back to the date the notice of
commencement was recorded, thus enabling the construction mortgage to remain a first lien, not
subordinated to any labor or supplier claim for nonpayment of bills.

Notice of Completion - A document recorded to evidence that a work of improvement on real
property other than public works is completed.

Notice of Default (NOD) (Foreclosure) - A lender's initial action when a mortgage payment is
late and attempts to reconcile the issue out of court have failed.

Notice of Funding Availability (NOFA) (Section 8) – For budget authority that HUD
distributes by competitive process, the Federal Register document that invites applications for
funding. This document explains how to apply for assistance and the criteria for awarding the

Notice of Housing Assistance Availability – The notice published by HUD announcing
available contract authority for an allocation area, the number of units by household, and housing
types for which applications will be accepted.

Notice of Intent to Cure (Foreclosure) - Notifies the lender, trustee or any other party involved
in the foreclosure process of the intent of the borrower to cure a pending default or bring a
defaulted loan current. In some areas this notice is required to reinstate the loan.

Notice of Intent to Foreclose (Foreclosure) - An alternate term for Notice of Default used in
title theory states to notify borrowers that they are delinquent on their payments. If the
delinquency and the costs of preparing the legal papers for the default are not paid within a
specified time, foreclosure proceedings may move forward.

Notice of Intent to Redeem (Foreclosure) - Notifies the lender, trustee or any other party
involved in the foreclosure auction sale that the borrower, who has been foreclosed upon, intends
to exercise their right of redemption and reclaim the foreclosed property. In order to reclaim the
property the borrower has to pay the loan in full and any other costs incurred during the
foreclosure process.

Notice of Levy/Writ/Attachments & Executions - A document recorded to notify a party
served with writ of execution that specific property is taken in satisfaction of a debt.

Notice of Non-Responsibility - A legal notice designed to relieve a property owner of
responsibility for the cost of improvements ordered by another person (such as a tenant). The
Glossary of Housing Acronyms and Terms
owner usually gives notice that he or she will not be responsible for the work done by posting
notice in some conspicuous place on the property, and by recording a verified copy in the public

Notice of Redemption – A publication of the Issuer’s intention to call outstanding bonds prior to
their stated maturity dates, in accordance with the bond contract.

Notice of Rescission (Foreclosure) - a written document that cancels or annuls the effect of a
notice of default when a default has been cured (reinstated). This document does not require the
acknowledgment of a notary public, but must be recorded with the county recorder in the county
in which the property is located.

Notice of Sale (Bonds) - An official document disseminated by an issuer of municipal securities
that gives pertinent information regarding an upcoming bond issue and invites bids from
prospective underwriters

Notice of Sale (Foreclosure) - Also known as Notice of Foreclosure Sale. Generally used in
Judicial Foreclosure it is the final judgment of foreclosure and announces the public sale of a
property to recover a debt owed by the owner of the property. The Notice of Sale specifies the
time, date, description of the property, gives an estimate of the unpaid debt, and the location of
the sale. It is mailed to all of the parties involved in the foreclosure action, advertised in the local
papers, displayed in public view at the county courthouse, and recorded in public records.

Notice of Trustee (Foreclosure) - A written document used in the Non-Judicial Foreclosure
process that contains the name and contact information of the trustee in a foreclosure.

Notice of Trustee’s Sale (NTS) (Foreclosure) - The final phase in the Non-Judicial Foreclosure
process. It announces the public sale of a property to recover a debt owed by the owner of the
property. The Notice of Trustee Sale gives an estimate of the unpaid debt, describes the property
and specifies the time, date, and location of the auction sale. It is mailed to all of the parties
involved in the foreclosure action, advertised in the local papers, recorded in public records, and
displayed in public view at the county courthouse.

Notice to Quit - the notice given by a landlord (owner) to a tenant to leave the premises (quit)
either by a certain date (usually 30 days) or to pay overdue rent or correct some other default
(having pets, having caused damage, too many roommates, using the property for illegal
purposes, etc.) within a short time (usually three days). A notice to quit must contain certain
information, such as: names of the persons to leave, whether their tenancy is by written or oral
agreement, an amount of any financial delinquency and the period it covers, and to whom they
should surrender the premises. If the tenant is month-to-month, a notice to quit without reference
to default usually requires no reason. Although state laws vary, generally the notice must be
served personally on the tenant or posted in a prominent place like the front door with a copy
sent by certified mail. Such notice and failure of the tenant to quit (leave) is a requirement to
bring a lawsuit for unlawful detainer (often referred to as "eviction").
Glossary of Housing Acronyms and Terms
Notional – Principal amount in swap transactions used to calculate interest payments. Notional
amount is never exchanged. Periodic swap payments and the mark-to-market value of the swap
depend on the notional amount.

Notorious Possession - occupation of real property or holding personal property in a way which
anyone can observe is as if the person is the owner.

Novation - Substituting a new obligation for an old one or substituting new parties to an existing

O/A – Owner/Agent

OAHP – Office of Affordable Housing Preservation

OCAF – Operating Cost Adjustment Factor

OCS - Office of Community Service within Federal Department of Health and Human Services.

ODOC – Office of Departmental Operations and Coordination (HUD)

OEPP – Executive Policy and Programs, SC Governor’s Office of

OER - Operating Expense Ratio

OFHEO - Office of Federal Housing Enterprise Oversight

OGC – Office of General Counsel (HUD)

OHR – Office of Human Resources, SC

OHHLHC – Office of Healthy Homes and Lead Hazard Control (HUD)

OIG – Office of Inspector General

OLHC – Office of Healthy Homes and Lead Hazard Control

OLR – Office of Labor Relations (HUD)

OMB - U.S. Office of Management and Budget

OMHAR – Office of Multifamily Housing Assistance Restructuring (HUD)

ONAP – Office of Native American Programs
Glossary of Housing Acronyms and Terms
OPIIS – Online Property Integrated Information Suite formerly NASS

OSDBU - Office of Small and Disadvantaged Business Utilization

OSHA - Occupational Safety and Health Administration OR Occupational Safety and Health Act
of 1970

OTA – Office of Technology Assessment

OTAR - Office of Troubled Agency Recovery

OTC - Over-the-Counter Market

OTS - Office of Thrift Supervision

OUP – Office of University Partnerships (HUD)

OVP - (SC OVP) South Carolina OSHA Voluntary Programs

OMHAR/OAHP - The Multifamily Assisted Housing Reform and Affordability Act of 1997
(MAHRA), Title V of the HUD Fiscal Year 1998 Appropriations Act, Pub. L. 105-65, enacted
October 27, 1997, established new policies for the renewal of project-based Section 8 contracts
based on market rents as determined under a new standard of rent comparability instead of the
former Fair Market Rent.
For most projects with rents above market, the Act transferred processing and oversight
functions from the Multifamily Hubs and Program Centers to the new Office of Multifamily
Housing Assistance Restructuring (OMHAR). In fiscal 2005, the OMHAR authorization
expired and the duties of restructuring projects with rent higher than comparable rents was given
to a new office within the Office of Multifamily Housing, known as the Office of Affordable
Housing Preservation (OAHP).

Object Classification - A method of classifying Obligations and Expenditures according to the
nature of services or articles procured, e.g., personal services, supplies and materials, and
equipment. (JFMIP Core) HUDCAPS Core Financial System Standard Accounting Interface,
dated 9/30/97

Objection to Dischargeability (Bankruptcy) - A trustee's or creditor's objection to the debtor
being released from personal liability for certain dischargeable debts. Common reasons include
allegations that the debt to be discharged was incurred by false pretenses or that debt arose
because of the debtor's fraud while acting as a fiduciary.

Objection to Exemptions (Bankruptcy) - A trustee's or creditor's objection to the debtor's
attempt to claim certain property as exempt from liquidation by the trustee to creditors.

Obligated Balance - Obligations already incurred for which payment has not yet been made.
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms

Obligational Authority - The sum of (1) Budget Authority provided for a given fiscal year, (2)
Unobligated Balances of amounts brought forward from prior years, (3) amounts of offsetting
collections to be credited to specific funds or accounts during that year, and (4) Transfers
between funds or accounts. The balance of obligational authority is an amount carried over from
one year to the next because not all obligational authority that becomes available in a fiscal year
is obligated and paid out in that same year. Balances of obligational authority are described as:
Obligated, Unobligated, and Unexpended. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Obligations - An amount corresponding to an order placed, contract awarded, services received,
and similar transaction for bona fide needs existing during a given period that will require
payment during the same or future period and that complies with applicable laws and
regulations. (JFMIP Core; A-34, Sec. 21.1,p. 11-7) (SGL, corresponds to Account 4800,
Undelivered Orders)

Obligations Incurred - Amounts of orders placed, contracts awarded, services received, and
similar transactions during a given period that will require payments during the same or a future
period. Such amounts will include Outlays to liquidate those obligations. (GAO) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Obligatory Advance - Any advance which, under the terms of the credit line deed of trust or
other agreement, the secured party has legally obligated itself to make in the absence of a default,
breach, or other such event. Obligatory advances include, but are not limited to, advances which
the secured party has agreed to make as a term or condition of the credit line deed of trust or
other related agreement; obligations arising out of the occurrence of a condition, event or
circumstance contemplated by the agreement; obligations arising on a specified date or time; or
advances made upon application therefore by the grantor under the credit line deed of trust or by
another obligor whose indebtedness is secured by the deed of trust.

Obsolescence - Impairment of desirability and usefulness brought about by changes in the art,
design or process or from external influencing circumstances that make a property less desirable
and valuable for a continuity or use.

Occupancy Rate - The percentage of space or units that are leased or occupied.

Off Calendar (Foreclosure) - A foreclosure that has been removed from the trustee’s sale
calendar. A new Notice of Trustee’s Sale notice will have to be filed in order to set a new sale

Offering Price - The price at which members of an underwriting syndicate for a new issue will
offer securities to investors.

Office of Fair Housing (HUD) (FHEO) - The Office of Fair Housing and Equal Opportunity
administers federal laws and establishes national policies that make sure all Americans have
equal access to the housing of their choice.
Glossary of Housing Acronyms and Terms

Office of Federal Housing Enterprise Oversight (OFHEO) - A government agency
responsible for ensuring the financial safety and soundness of the nation's two largest players in
the secondary mortgage market, the Federal National Mortgage Association (Fannie Mae) and
the Federal Home Loan Mortgage Corporation (Freddie Mac). OFHEO is an independent office
of the Department of Housing and Urban Development, and was established by the Federal
Housing Enterprises Financial Safety and Soundness Act of 1992.

Office of Healthy Homes and Lead Hazard Control (OHHLHC) - In 1991, Congress
established HUD's Office of Healthy Homes and Lead Hazard Control to eliminate lead-based
paint hazards in America's privately-owned and low-income housing.

Office of Management and Budget (OMB) - An Executive Agency which, assists the President
in overseeing the preparation of the Federal budget and to supervise its administration in
Executive Branch agencies. In addition, OMB oversees and coordinates the Administration's
procurement, financial management, information, and regulatory policies.

Office of Multifamily Housing (HUD) - HUD's Office of Multifamily Housing Programs is
responsible for the overall management, development, direction and administration of HUD's
Multifamily Housing Programs.

Office of Multifamily Housing Assistance Restructuring (OMHAR) - The Office of
Multifamily Housing Assistance Restructuring (OMHAR) was established by the Multifamily
Assisted Housing Reform and Affordability Act of 1997 (MAHRA) to administer the Mark-to-
Market program until sunset on September 30, 2004.

Office of Policy Development and Research (PD&R) - HUD's Office of Policy Development
and Research (PD&R) maintains current information on housing needs, market conditions, and
existing programs, as well as conducts research on priority housing and community development
issues. The office provides reliable and objective data and analysis to help inform policy
decisions. In 1978, PD&R established HUD USER, an information resource for housing and
community development researchers, government officials, academics, policymakers, and the
American public.

Office of Small and Disadvantaged Business Utilization (OSDBU) - OSDBU is responsible
for the development and administration of HUD's Procurement Opportunity Program (POP).
OSDBU helps small businesses understand HUD's operations and needs, and will direct them to
appropriate sources of information.

Office of Technology Assessment (OTA) - The research organization of the Congress
specializing in technology issues.

Office of Thrift Supervision (OTS) - The federal regulatory agency responsible for
examination and regulation of federally and state chartered savings institutions.
Glossary of Housing Acronyms and Terms

Office of University Partnerships (OUP) - HUD's Office of University Partnerships facilitates
the formation of campus-community partnerships by sharing information about community
partnership development in general, and about OUP's various funded programs, in particular.
OUP is committed to helping colleges and universities join with their neighbors to address urban
problems. The resulting partnerships enable students, faculty, and neighborhood organizations to
work together to revitalize local economies, generate jobs, and rebuild healthy communities.

Officer Next Door - A HUD Program designed to revitalize distressed neighborhoods by
encouraging police officers to live in them. The homes have been acquired through foreclosure
on defaulted mortgages insured by the Federal Housing Administration (FHA) at half off the
FHA-listed price. Each participating officer signs a contract agreeing to live in the home at least
three years. Those who receive an FHA-insured mortgage can buy homes with a down payment
of as little as $100. Working with local elected officials, HUD designates neighborhoods as
revitalization areas -- of which there are now over 500 -- for participation. The neighborhoods
are typically in low- and moderate-income areas, have many vacant properties, and often have
high crime rates, but are considered good candidates for economic development and
improvement. HUD web site at

Official Statement (LIHTC) - The official statement is a marketing prospectus used by
underwriters to sell the bonds. The official statement summarizes the terms of the bonds and
other information relevant to the investment decision.

Official Statement or Offering Circular (Bonds) – The disclosure document which describes
the issue to the Investors who purchase the bonds. The Official Statement includes all of the
information which investors feel is important in determining the value of the bonds.

Offsite Improvements - Improvements in land development that are off the development site,
such as utility lines, sidewalks, gutters and curbs, that enhance the value of the development.

Older Workers Benefit Protection Act - A federal law that makes it illegal for an employer to
use an employee's age to discriminate in benefits or for a company to target older workers for
layoffs. This law also requires employers to allow employees at least 21 days to consider waivers
not to sue offered by an employer in exchange for early retirement benefits.

OMB Circular A-76 – Policies and procedures to determine if work should be contracted or
performed in-house.

OMB Circular A-102 – Policies for Federal Departments for establishing and maintaining
internal controls in program and administrative activities.

OMB Circular A-123 - Official Office of Management and Budget (OMB) rule prescribing
policies for Federal Departments and Agencies to follow in establishing and maintaining internal
controls in program and administrative activities.
Glossary of Housing Acronyms and Terms

One Unit Family Dwelling - Real estate upon which is located a structure or structures designed
primarily for residential use and consisting of one (1) dwelling unit, occupied by the owner
thereof. Such one unit family dwelling may be a single condominium unit.

Onsite Improvements - Any construction of buildings or other improvements within the
boundaries of a property that increases the value of the property.

Open Mortgage - A mortgage loan that can be paid off, without penalty, at any time prior to

Open-End Lease - A lease that requires a balloon payment based on the value of the leased
property when the lease expires.

Open-End Mortgage - A mortgage permitting the mortgagor to borrow additional money under
the same mortgage, with certain conditions

Operational Database - The database-of-record, containing data that continually change as
updates are made and that reflect the current value of the last transaction. The operational
database is the source of data for the data warehouse. DAMA web site at

Operating Cost Adjustment Factor (OCAF) - Percentage factor used to adjust Section 8
project-based rents. Published by HUD on an annual basis. The OCAF percentage is applied to
the Section 8 gross rents less debt service, i.e. to operating expenses plus cash flow.

Operating Subsidies - Payments authorized by the U.S. Housing Act of 1937 for operating costs
of low-rent public housing projects to assure the low-income character of the projects involved.

Operating Subsidy Only Units - Public housing units that are developed without public housing
monies, but which receive operating subsidy. Because the units are public housing units, they
must be developed in compliance with the statutory requirements of the Public Housing
Development Program (24 CFR part 941), including Davis-Bacon wage rate requirements,
environmental assessment requirements, etc., even though no public housing funds are used for

Opinion of Title - An opinion of the marketability of a title given by an attorney based on the
abstract of title. (See Abstract of Title)

Opt-Out - When a project-based Section 8 contract expires, the owner has a number of contract
renewal options, including the right to elect not to renew, which is considered as “opting-out” of
the Section 8 program. In the case of an opt-out, enhanced vouchers allow existing Section 8
tenants to remain in their current units with a newly issued tenantbased Section 8 voucher at an
enhanced level of rental assistance.
Glossary of Housing Acronyms and Terms
Option Risk - The downside of giving a borrower an option, such as the possibility that she may
prepay an open mortgage and reduce the income generated to the lender by the accumulation of
interest over the life of the mortgage

Option to Purchase Leased Property - A clause of a rental agreement allowing the tenant the
right to buy the leased property upon terms and conditions set out in the agreement.

Optional Delivery - A mortgage loan purchase program offered by the Federal Home Loan
Mortgage Corporation in which the seller/servicer may decide not to deliver the loans and thus
not consummate the sale.

Optional Redemption (Bonds) – A bond redemption which is undertaken at the direction of the
Issuer. Presumably an Issuer will only give such direction if they perceive that there is some
advantage in redeeming the bonds. Typically an Optional Redemption can only be accomplished
at the earliest agreed opportunity if the investor whose bond is being redeemed is paid a

Optional Termination (Bonds) – The Issuer has the right to terminate the swap at market at any
time throughout the term of the swap contract. The issuer will either make or receive a payment
based on the Termination Value.

Oral Agreement - A spoken, unwritten legal agreement that is as valid as a written agreement,
in most cases, though its existence is more difficult to prove. Oral agreements are not
enforceable in real estate transactions.

Ordinance (LIHTC) - A law adopted by a local government pertaining to an issue within its
legal power.

Original Issue Discount – The difference between the purchase price of a Discount Bond and its
Principal Amount.

Origination - The process through which a mortgage lender creates a mortgage secured by some
amount of the mortgagor's real property.

Origination Fee – A fee paid to a lender for the work involved in originating a mortgage loan.

Origination Period – The period of time after the delivery date in which lenders originate
mortgage loans and can sell them to the Servicer or Master Servicer.

Origination Points - A type of fee borrowers pay to lenders or loan officers in order to
compensate them for the role they play in evaluating, processing and approving mortgage loans.
Credit history is one factor that plays a role in the amount of origination points a borrower needs
to pay. Unlike the other types of points (for example, discount points), origination points are not
tax deductible.
Glossary of Housing Acronyms and Terms
Outlay - The measure of government spending for budget purposes. Payments to liquidate
obligations (other than the repayment of debt). Except where outlay figures are labeled as gross,
they are stated net of any related refunds and offsetting collections. Outlays generally are equal
to cash Disbursements, but they are also recorded for cash-equivalent transactions, such as the
subsidy cost of direct loans and loan guarantees, and interest accrued on public issues of the
public debt. (JFMIP Core; A-11, Section 14.1, p. 35) (Note that, although not technically correct,
the terms 'expenditures' and 'net disbursements' are sometimes used interchangeably with
'outlays') According to GAO, outlays are the issuance of checks, disbursement of cash, or
electronic transfer of funds made to liquidate a federal obligation. Outlays also occur when
interest on the Treasury debt held by the public accrues and when the government issues bonds,
notes, debentures, monetary credits, or other cash-equivalent instruments in order to liquidate
obligations. Outlays are stated both gross and net of offsetting collections. (GAO) HUDCAPS
Core Financial System Standard Accounting Interface, dated 9/30/97

Over-Collateralized – The situation which exists when the total of all of the program assets
exceeds the principal amount of bonds outstanding and other liabilities.

Over-the-Counter Market (OTC) - A securities market that is conducted among dealers
throughout the country through negotiation rather than through the use of an auction system as
represented by a stock exchange

OVER-FMR TENANCY (OFTO) - In the pre-merger Certificate program: A tenancy for
which the initial gross rent exceeds the FMR/exception rent limit.

Over-Zoned - The zoning of real property to permit development that exceeds the practical
present highest and best use of the land.

Overlay District (LIHTC) - An overlay district is a specific geographic area upon which
additional land use requirements are applied, on top of the underlying zoning code, in order to
promote a specified goal. Overlay districts may be used to allow greater flexibility in
development types without undergoing a large-scale rezoning.

Overlying Mortgage - An overlying mortgage is a second mortgage, characterized by having a
subordinate claim to the first mortgage on the same piece of real estate property.

Owner (Section 8) - Any persons or entity having the legal right to lease or sublease a unit to a

Owner-Occupied Housing – A single-family unit in which the owner of the unit lives in as its
principal residence

P&F – Program and Funding (budget table)

P&L – Profit and Loss Statement
Glossary of Housing Acronyms and Terms

PAC – Project Assistance Contract (202/162)

PAE – Participating Administrative Entity

PAS – Program Accounting System

PASS – Plan for Achieving Self-Support

PASS – Physical Inspection Assessment Subsystem

PATH – Partnership for Advancing Technology in Housing (PD&R program)

PB – Public Body

PBCA – Performance Based Contract Administration

PBSC – Performance-Based Service Contracting

PCD - Planned Commercial Development

PD – Position Description. Description of the functions of a position

PD – Property Disposition.-Disposition of real property.

PD&R – Policy Development and Research (HUD Office of)

PE - Price to Earnings (Ratio)

PFS – Performance Funding System

PHA – Public Housing Authority

PHADA – “Public Housing Authority Directors' Association”

PHAS – Public Housing Assessment System (under REAC)

PHDEP – Public Housing Drug Elimination Program (PIH program)

PHMAP – Public Housing Management Assessment Program (under PIH)

PI – Physical Inspection

PIC – PIH Information Center

PID - Planned Industrial Development
Glossary of Housing Acronyms and Terms

PIG – Public Interest Group

PIH – Public and Indian Housing (HUD Office of)

PILOT: Payment in Lieu of Taxes

PITI – Principal, Interest, Taxes and Insurance

PJ – Participating Jurisdiction (HOME program)

PLC - Permanent Loan Certificate

PLC – “Partners for Livable Communities”

PLAM - Price-Level-Adjusted Mortgage

PM - Profit Motivated

PMDT – Purchase Money Deed of Trust

PMI - Private Mortgage Insurance (PMIs are regulated by state)

PMS - Purchased Mortgage Servicing Rights

PMSA – Primary Metropolitan Statistical Area established by the U.S. Census Bureau

PO – Principal Only

POA – Plan of Action

POB – Point of Beginning

POP - Procurement Opportunity Program (HUD)

POP - Public Offering Price

PPA - Program, Project, or Activity

PRAC – Project Rental Assistance Contract (202/811)

PRES - See Preservation

PS – Payment Standard

PSA – Public Securities Association Standard Prepayment Model
Glossary of Housing Acronyms and Terms

PSF – Per Square Foot

PSP - Profit Sharing Plan

PUD – Planned Unit Development

PUPM – Per Unit Per Month

PV – Present Value

Package Mortgage - A package mortgage is a loan secured by real estate and in which the
personal property and furniture is included in the purchase price of the house. The personal
property included in the loan, such as refrigerator, washer and dryer, etc., make the value of the
house go up, and therefore increases the amount of the loan. The personal property is used as
collateral, and cannot be sold without the approval of the lender.

Package Provision - An optional mortgage clause that allows the borrower to finance chattels
such as major household appliances, carpeting, drapery and equipment under the original home
mortgage and make a single monthly payment for the entire package.

Panic Pedding - The illegal practice of inducing homeowners to sell their properties by making
representations regarding the entry or prospective entry of persons of a particular race or national
origin into the neighborhood. See also Blockbusting.

Par Bond – A bond which is sold to an investor at a price equal to its principal amount

Par Value (Bonds) - The principal amount of bond or note due at maturity

Paramount Title - a right to real property which prevails over any other person's claim of title

Parcel - A specific tract of real estate defined by a legal description and used for taxing
purposes, among others. Also termed a surveyor's parcel and a tax parcel

Parent Appropriation - The appropriation from which the Allocation was made.

Parity Bonds – Bonds which when issued are commonly secured with other bonds already

Parity Clause - A provision in a mortgage contract stating that all notes are equally secured and
that no holder of the collateral will receive preferential treatment in the event of default or

Partial Bankruptcy - does not exist in the law. However, this is a term clients use to indicate
that they want to keep their assets (ie: home and car) and receive them of their debt.
Glossary of Housing Acronyms and Terms
Partial Claim - a loss mitigation option offered by the FHA that allows a borrower, with help
from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to

Partial Release - An instrument which discharges a portion of the property, or one of the
debtors, from a mortgage obligation. For example, a mortgagee may release specified parcels
from the lien upon payment of a certain sum and the remainder of the property continues to
secure the loan.

Partial Release Clause - A mortgage provision under which the mortgagee agrees to release
certain parcels from the lien of the blanket mortgage upon payment of a certain sum of money by
the mortgagor. The clause is frequently found in tract development construction loans.

Partially Amortizing Loan - A loan in which the periodic payments cover all of the interest
charges but only part of the principal, therefore leaving an unpaid principal balance when the
loan matures

Participant – A tenant family that has been admitted to the HA program, and is currently
assisted in the program

Participating Administrative Entity (PAE) - A public agency (including a State housing
finance agency, a local housing agency, or a community development corporation), a nonprofit
organization, or a non-public entity (including a law firm or an accounting firm), or a
combination of such entities, that meets the statutory and regulatory requirements under section
513(b) of MAHRA to implement mortgage restructuring and rental assistance sufficiency plans
(Restructuring Plans) for eligible multifamily housing properties. 04/19/99 Glossary of Mark to
Market Program Procedures Operating Guide

Participating Jurisdiction (HOME) – The term given to any State or local government that
HUD has designated to administer a HOME Program. HUD designation as a PJ occurs if a State
or local government meets the funding thresholds, notifies HUD that it intends to participate in
the program, and obtains approval by HUD of a Consolidated Plan.

Participating Party - Any person, firm, corporation, or public or private entity that agrees to
provide financial or other resources to carry out an approved mixed finance development
proposal, or certain activities contained in the proposal, or who otherwise participates in the
development and/or operating of public housing units in a mixed finance development and
receives HUD funds for doing so.

Participation Certificates – Certificates issued by Freddie Mac backed by pools of mortgages

Participation Financing - Where a lender becomes a partner in a development.

Participation Loan - mortgage loan in which one institution makes the original loan in which
one or more other institutions purchase an interest
Glossary of Housing Acronyms and Terms
Partition - Co-tenants who wish to terminate their co-ownership may file an action in court to
partition the property. Partition is a legal way to dissolve the relationship when the parties do not
voluntarily agree to its termination. If the court determines that the land cannot be divided
physically into separate parcels without destroying its value, the court will order the real estate to
be sold. The proceeds of the sale will then be divided among the co-owners according to their
fractional interests.

Partners for Livable Communities (PLC) - Partners for Livable Communities is a national,
nonprofit organization working to restore and renew our communities. Partners has over twenty-
five years of experience in solving community problems by providing information, leadership
and guidance that help communities help themselves. We welcome the opportunity to bring our
experience to your community.

Partnership - An association of persons joined by contract to combine their property, resources,
labor or skills, to provide for sharing of profits or losses in a pre-determined and proportionate
manner. The profits and losses are passed through to the partners who report them on their
individual income tax returns. The partnership itself pays no taxes.

Partnership Agreement - the document governing all interaction between and responsibilities
among partners in a limited partnership

Partnership for Advancing Technology in Housing (PATH) - HUD encourages participation
in the Partnership for Advancing Technology in Housing (PATH). PATH's goal is to achieve
dramatic improvement in the quality, affordability, and energy efficiency of American housing
by the year 2010. PATH promotes participation by leaders from the home building, product
manufacturing, insurance and financial industries and representatives from Federal agencies
dealing with housing issues to work together to spur innovation in housing design and
construction. With its FY 2001 budget of $10 million, PATH may provide technical support in
design and cost analysis of advanced technologies to be incorporated in project construction. The
PATH website - - provides additional information, the list of
technologies, latest PATH Newsletter, results from field demonstrations, and PATH projects.
HOPE VI Grantees are encouraged to employ PATH-identified technologies to exceed
prevailing national building practices by reducing costs, improving durability, increasing energy
efficiency, improving disaster resistance, and reducing environmental impact. HUD may provide
technical assistance to Grantees in the form of architectural, engineering, and financial analysis
to incorporate the specific technologies appropriate to the type of construction and climate.

Party in Interest (Bankruptcy) - A party who has standing to be heard by the court in a matter
to be decided in the bankruptcy case. The debtor, the U.S. trustee or bankruptcy administrator,
the case trustee and creditors are parties in interest for most matters.

Pass-Throughs - Payments on securities sold in the secondary market that are sent directly to
investors. (See Secondary Market)
Glossary of Housing Acronyms and Terms
Pass-Through Certificate - Fixed-income securities that represent an undivided interest in a
pool of federally insured mortgages put together by the Government National Mortgage
Association (Ginnie Mae).

Pass Through Rate (Bonds) – The interest rate on the mortgage-backed securities which secure
the bonds.
The rate calculated by deducting the servicing fee and the MBS guaranty fee from the mortgage
rate on the loan. It represents the amount ultimately passed along to the trustee for bondholders.

Pass-Through Security - A pool of fixed-income securities backed by a package of assets. A
servicing intermediary collects the monthly payments from issuers, and, after deducting a fee,
remits or passes them through to the holders of the pass-through security. Pass-Through Security
is also known as a "pass-through certificate" or "pay-through security."

Passive Losses - Losses or deductions generated by a property which exceed the amount needed
to offset taxable income. Since the Tax Reform Act of 1986, passive losses can no longer be
used to shelter ordinary income from taxation; however, they can be used to offset "phantom
income" or capital gains tax liability when the property is sold.

Paying Agent/Registrar – The entity which is responsible for keeping track of which investors
own bonds and for making debt service payments to them.

Payment Change Date - the date when a new monthly payment amount takes effect on an
adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the
payment change date occurs in the month immediately after the interest rate adjustment date.

Payment Due Date - Contract language specifying when payments are due on money borrowed.
The due date is always indicated and means that the payment must be received on or before the
specified date. Grace periods prior to assessing a late fee or additional interest do not eliminate
the responsibility of making payments on time.

Payment in Lieu of Taxes (PILOT) - Payment in Lieu of Taxes, an arrangement whereby a
PHA agrees to make a predetermined payment at set intervals to a locality in lieu of property
taxes for its public housing property. The PILOT agreement also specifies the type and amount
of services, if any, to be provided by the locality to the public housing development.

Payment Standard (Section 8) – The amount used to calculate the housing assistance a family
will receive in the PHA’s Housing Voucher Program.

Payoff Deed - A "payoff deed" is used when a seller and buyer contract for a real estate sale
through an "agreement of sale." If the buyer of the property stops making payments on the
property they were purchasing, an agreement of sale allows the seller to foreclose the property in
a certain time period. Therefore, an agreement of sale allows a seller who receives a low down
payment to more quickly access the foreclosed property. A payoff deed is used to release a deed
to the buyer upon full or partial payment made on a property. It is generally a faster procedure
than a mortgage foreclosure.
Glossary of Housing Acronyms and Terms

Peaceable Possession - in real estate, holding property without any adverse claim to possession
or title by another

Penal Rent - It is the financial punishment meted out to a tenant for failing to honor his
obligation to pay rent at the proper time, taking the form of a vastly higher figure being payable
during the period of default.

Percent-of-LIBOR Fixed Rate Swaps – Fixed rate swaps where the floating rate index is based
on a percentage of LIBOR. The BMA Index has averaged about 67% of IM LIBOR over the
past ten years. Many tax-exempt issuers choose to enter into fixed rate swaps based on 67% if
IM LIBOR rather than on the BMA Index. The issuer can also choose a different percentage of
LIBOR rather that on their risk preferences. The fixed swap rate that the issuer pays is higher for
higher percentages of LIBOR.

Percentage Lease - Refers to a provision in the lease asking the lessee to pay the landlord a
percentage of the tenant's gross sales as a component of rent. There is usually a base rent amount
to which "percentage" rent is added. This type of clause is more common in retail leases.

Percentile Rent Estimates (50th) - Calculated for all FMR areas. These are not fair market rents.
Under certain conditions, as set forth in the Interim Rule (Federal Register Vol. 65, No. 191,
Monday October 2, 2000, pages 58870—58875), these 50th percentile rents can be used to set
success rate payment standards.

Perfecting Title - The removing of a cloud or claim against a real estate title.

Perfection - the act by which a secured creditor has taken all required and appropriate legal steps
to perfect its lien (The lien is legally sufficient).

Performance Based Contract Administration (PBCA) –

Performance Bond - A bond is an obligation, expressed in writing, to pay a fixed and liquidated
sum on the happening or non-occurrence of a specified condition or event. The term "bond" is
conditioned on the performance of duties, or other obligations undertaken by the principal
obligor in the bond or collateral things to be done by the principal obligor; and indemnity and
fidelity bonds or undertakings to indemnify the obligee against loss from conduct of the

Period of Redemption - The period of time during which a mortgagor may reclaim the title and
possession of his or her property by paying the debt the property secures.

Performance Funding System (PFS) - Formula used to calculate the amount of operating
subsidies required by each PHA to operate its public housing units.
Glossary of Housing Acronyms and Terms
Periodic Rate Cap or Periodic Payment Cap - For an adjustable-rate mortgage, a limit on
the amount that the interest rate can increase or decrease during any one adjustment period,
regardless of how high or low the index might be.

Permanent Authority - Budget Authority that is available as the result of previously enacted
legislation and which does not require new legislation for the current year.

Permanent Financing - Mortgage loan covering the total development cost of a project. It is a
long term obligation which generally goes in place after the project is constructed and open for

Permanent Loan Certificate (PLC) – Long term GNMA security for which all CLCs are
exchanged upon the completion of a project and final endorsement of the mortgage by FHA.
The date on which this exchange occurs is referred to as the PLC delivery date.

Permanent Resident – A permanent resident is a non-U.S. citizen who has been given
permission to make his or her permanent home in the United States. If you acquire permanent
residence, you will be issued a green card to prove it. The terms permanent resident and "green
card holder" mean exactly the same thing. You cannot be a permanent resident without a green
card and you cannot have a green card without being a permanent resident. As a permanent
resident, you may travel as much as you like, but your place of residence must be the United
States and you must keep that residence on a permanent basis. If you leave the United States and
stay away for more than a year, you risk losing your green card.

Permit - means a license granted by a landholding agency to use unutilized or underutilized
property for a specific amount of time under terms and conditions determined by the landholding

Perorations - The allocation of expenses, such as taxes between buyer and seller at closing
based on the number of days the property is owned during the month of closing.

Persons with Disabilities (Section 8) – A person who has a disability as defined in 42 U.S.C.
423 or a developmental disability as defined in 42 U.S.C. 6001. Also includes a person
determined, under HUD regulations, to have a physical or mental impairment that is expected to
be of long-continued and indefinite duration, substantially impedes the ability to live
independently, and is of such a nature that the ability to live independently could be improved by
more suitable housing conditions. For purposes of reasonable accommodation and program
accessibility for persons with disabilities, means and “individuals with handicaps” as defined in
24 CFR 8.3. Definition does not exclude persons who have AIDS or conditions arising from
AIDS, but does not include a person whose disability is based solely on drug or alcohol
dependence (for low-income housing eligibility purposes). See “Individual with handicaps”

Petition (Bankruptcy) - a legal document drawn by an attorney for a court of equity such as the
bankruptcy court.
Glossary of Housing Acronyms and Terms
Petition Preparer (Bankruptcy) - A business not authorized to practice law that prepares
bankruptcy petitions.

Phantom Income - Income taxable to a property owner in an amount greater than the cash flow
distributions actually received. Phantom income creates an incentive for owners to refinance or

Physical Occupancy – Generally reflects the ratio of the number of apartment units that are
physically occupied at a specific point in time to the total number of apartment units within the
apartment project.

Piggyback Mortgage - Using a piggyback mortgage allows a borrower to avoid expensive
mortgage insurance who do not want to put a lot of money into their down payment. This type of
mortgage will close long with your first mortgage and is considered a second mortgage. This
second mortgage is used to supplement the amount that exceeds what the buyer can supply for
the 20 percent down payment.

“Pipeline” - Projects “in the pipeline” are currently in the process somewhere between
application and final funding. This term is also refers to specific projects where proposals were
submitted under authority of one program and do not reach final closing until after that program
has expired and/or a new program has begun. “Pipeline” projects may assume a slightly different
nature than projects which are clearly within one specific program.

Placed-in-Service (LIHTC) - The placed-in-service date for a new or existing building is the
date on which the building is ready and available for its specifically assigned function. This is
usually the date the first unit in the building is certified as being suitable for occupancy under
state or local law. Substantial rehabilitation expenditures are treated as placed-in-service at the
close of any 24-month period elected by the owner over which the minimum expenditures are

Plan (Bankruptcy) - A debtor's detailed description of how the debtor proposes to pay creditors'
claims over a fixed period of time.

Plan Review (LIHTC) - Plan review is the process of looking over development plans prior to
submitting an application for a building permit to ensure new development meets safety,
environmental, and other standards. Early plan review can help to expedite the issuance of
building and other development permits by identifying any problems with an application early in
the development process.

Planned Amortization Class Bond (or PAC Bond) – A type of bond which is designed to have
the same average life when the mortgage loans which secure a bond issue prepay within a certain
prescribed range of prepayment speeds.

Planned Communities - The concept began in the 19th century and describes any town or
neighborhood built with certain guidelines and goals.
Glossary of Housing Acronyms and Terms
Planned-Unit Development (PUD) - Residents own the home and the land, and share the use
and financial responsibility for common areas.

Planned Unit Development (PUD) (LIHTC) - A land development project involving a mixture
of land uses and densities that is approved as a unit, rather than on a lot-by-lot basis. Among
other things, the planned unit development process can be a vehicle for adopting cluster zoning
that preserves open space without reducing the supply of housing through increased density on
the portion of the development reserved for housing.

Planning and Growth Restrictions - This refers to barriers and solutions included relate to the
process of developing a comprehensive land use plan and the restrictions placed on future
development based on a map of the community. The topic also covers activities such as smart
growth programs, sewer and building permit moratoriums, or requirements for fiscal impact

Planning Commission - A local or regional organization, normally a government agency,
responsible for preparing and adopting comprehensive, long-term general plans for the physical
development of property within its jurisdiction.

Plat or Plot - A map or chart of a lot, subdivision or community drawn by a surveyor showing
boundary lines, buildings, improvements on the land, and easements.

Pledge (Bonds) - The pledge grants a security interest or lien to provide security for the
repayment of the bond principal and interest.

Pledged Account Mortgage - A type of mortgage loan in which the borrower's payments are
supplemented by payments from a savings account pledged as additional collateral for the loan.
The savings account is established with part of the downpayment.

Point of Beginning (POB) - In a metes-and bounds legal description, the starting point of the
survey, situated in one corner of the parcel; all metes-and-bounds descriptions must follow the
boundaries of the parcel back to the point of beginning.

Points - A percentage of the principal conventional loan amount. A lender often charges a
borrower "service-charge" points for making a loan. Points may cover expenses in origination of
the loan to increase a lender's yield or to "buy down" the rate. In conventional financing, points
may be paid by the buyer or seller.

Political Subdivision - means a unit of government within a State, including a county,
municipality, city, town, township, parish, village, local public authority, school district, special
district, council of governments, or any other regional or intrastate governmental entity or
instrumentality of a local government exclusive of institutions of higher learning and hospitals.

Pool Insurance – A policy which will cover any losses in a portfolio for mortgage loans which
are not recovered by the sale price of the residence and the primary mortgage insurance.
Glossary of Housing Acronyms and Terms
Population - means total resident population based on data compiled by the U.S. Census and
referable to the same point in time.

Portability (Section 8) – Renting a dwelling unit with Section 8 housing voucher outside the
jurisdiction of the initial PHA.

Possibility of a Reverter - the potential that the title to a real property interest will return to the
original grantor or giver or to his/her lineal descendants. Examples of events which could cause
the title to revert: A gift of property to a hospital on condition that it be used forever for health
care, but if the building is no longer used for that purpose the property will revert to the family of
the original grantor; the real property is given to a daughter and her children, but will revert to
her brother's descendants if her line dies out without further issue. (See Reversion)

Post-Petition Transfer (Bankruptcy) – A transfer of the debtor's property made after the
commencement of the case.

Postponement (Foreclosure) - a verbal announcement made at the time and place of the
scheduled trustee's sale that establishes a new date or time for the trustee's sale. The sale cannot
be changed from the originally noticed location.

Power of Attorney - A written instrument authorizing a person to act as the agent of the person
granting it, and a general power authorizing the agent to act generally in behalf of the principle.
A special power limits the agent to a particular or specific act as: a landowner may grant an agent
special power of attorney to convey a single and specific parcel of property. Under the provisions
of a general power of attorney, the agent having the power may convey any or all property of the
principal granting the general power of attorney.

Power of Sale Clause - A clause in a mortgage authorizing the holder of the mortgage to sell the
property in the event of the borrower's default. The proceeds from the public sale are used to pay
off the mortgage debt first, and any surplus is paid to the mortgagor. A power-of-sale clause is
also found in trust deeds, giving the trustee authority to sell the trust property under certain

Pre-Approved Mortgage - A commitment from a lender to provide a mortgage loan on stated
terms to a borrower before the borrower has found a property to buy. The pre-approved mortgage
allows the borrower to make a firm, cash offer on the property of choice.

Pre-Bankruptcy Planning - The arrangement (or rearrangement) of a debtor's property to allow
the debtor to take maximum advantage of exemptions. (Pre-bankruptcy planning typically
includes converting nonexempt assets into exempt assets.)

Pre-Foreclosure - A pre-foreclosure is the period before the foreclosure auction when the
borrower is more than 90 days delinquent on their mortgage payment and a notice of default has
been recorded. The main purpose for this phase of foreclosure is to give the borrower time to sell
their property or to pay back their loan to the lender. This is often the first phase that an investor
Glossary of Housing Acronyms and Terms
or homebuyer has an opportunity to negotiate with the homeowner or lending institution to
purchase the property.

Pre-Foreclosure Sale – A Pre-Foreclosure Sale is a procedure in which the borrower is allowed
to sell a property for an amount less than what is owed on it to avoid a foreclosure. This sale
fully satisfies the borrower's debt.

Pre- or Post- Universe - This terminology is used only when referring to Section 8 and PRAC
projects. These “universes” are the result of legislation passed in 1981 which divided Section 8
programs based on the original HAP contract date. Those HAP contracts effective before
October 1, 1981 are considered “pre-universe” and those effective on or after October 1, 1981
are considered “post-universe.”
       Pre-universe rules limit the admission of low-income tenants to 25 percent of the units
       under contract at the specified date. However, no project by project limitation on
       admissions has been imposed.
       Post-universe rules limit new admissions to only very low-income applicants, unless
       HUD approves an exception.

Pre-Petition (Bankruptcy) - facts or circumstances arising prior to the filing of the bankruptcy
petition with the United States Bankruptcy Court. Generally speaking only pre-petition debts will
be discharged in bankruptcy.

Pre-Publication Period (Foreclosure) - the three month period following the recording of the
notice of default. Prior to 1986 this period was called the reinstatement period.

Pre-Qualification - A preliminary analysis of a borrower's ability to afford the purchase of a
home. An affordability analysis takes into consideration factors such as income, liabilities, and
available funds, along with the type of home loan, the likely taxes and insurance for the home,
and the estimated closing costs.

Pre-Qualified Homebuyers – An individual or family who has completed a housing counseling
course and whose income the applicant has certified according to the federal guidelines for
income qualifications.

Pre-Ullman Bond – A bond which was issued prior to the effective date of the Mortgage
Subsidy Bond Tax Act

Prearranged Refinancing Agreement - A formal or informal arrangement between a lender
and a borrower wherein the lender agrees to offer special terms (such as a reduction in the costs)
for a future refinancing of a mortgage being originated as an inducement for the borrower to
enter into the original mortgage transaction.

Predatory Lending - abusive lending practices that include a mortgage loan to someone who
does not have the ability to repay. It also pertains to repeated refinancing of a loan charging high
interest and fees each time.
Glossary of Housing Acronyms and Terms
Predictive Variables - The variables that are part of the formula comprising elements of a
credit-scoring model. These variables are used to predict a borrower's future credit performance.

Preemptive Purchase Rights - Right to make an offer to purchase, typically within a specified
time frame, whether or not the property has been offered for sale. Owner may or may not be
required to accept under specified conditions.

Preexisting Use - A land use that existed prior to and does not comply with a newly established
zoning classification

Prefabricated Housing - Housing with structural or mechanical components manufactured and
assembled away from the construction site.

Preference or Preferential Debt Payment (Bankruptcy) - A debt payment made to a creditor
in the 90-day period before a debtor files bankruptcy (or within one year if the creditor was an
insider) that gives the creditor more than the creditor would receive in the debtor's chapter 7

Preliminary Injunction (Foreclosure) - A judicial order granted by a judge of the Superior
Court, which prohibits the trustee from proceeding with any further action on a specific
foreclosure file until a trial is held or settlement reached. This occurs when there is a dispute
between the owner of a property and the beneficiary. A Trustee's Sale cannot be held any sooner
than seven (7) days from the dismissal of the action or the expiration of a restraining order,
injunction or stay from any court of competent jurisdiction. However, the order or any
amendment thereto may expressly provide for an earlier sale date.

Preliminary Official Statement (Bonds) – The disclosure document which describes the issue
and is sent to potential investors prior to their making an investment decision. The Preliminary
Official Statement includes all of the information which an investor will feel is important in
determining the value of the bonds.

Preliminary Title Commitment (Mortgages) - A preliminary title commitment is a preliminary
commitment to issue a title insurance policy after payment of a premium, which occurs at
closing. After the close of escrow, the title insurance company issues an owner's policy which is
paid for by the seller and benefits the new owner. Records are searched by examining the official
courthouse records, where all recorded documents, judgments, liens, tax assessments, special
taxes, and other matters, such as divorce and bankruptcy, are filed. The results of this
examination are set forth in a preliminary title report or "commitment" to insure the property.
The preliminary title commitment is a means for the title company to inform all parties of all
known burdens affecting the property and committing to issue its policy when certain
requirements have been met. This assurance of a title commitment by a title company provides a
safe procedure for purchasers and lenders to close transactions before the actual title policies
have been issued.

Preliminary Title Report - A title report that is made before a title insurance policy is issued or
when escrow is opened. A preliminary report or policy of title insurance reports only on those
Glossary of Housing Acronyms and Terms
documents having an affect on the title and should not be relied on as being an abstract. An
abstract of title, on the other hand, reflects all instruments affecting title from the time of the
original grant and also includes a memorandum of each instrument, and makes no attempt to
determine which of the documents currently affects record title. The "preliminary" is not a binder
or commitment that the title company will insure the title to the property, although this
commitment may be obtained at an added cost. (See Abstract of Title)

Premises (Section 8) – The building or complex in which the dwelling unit is located, including
common areas and grounds

Premium – The amount by which the price paid for a security exceeds par value, generally
representing the difference between the nominal interest rate and the actual or effective return to
the investor.

Premium Bond – A bond which is sold to an investor at a price which is greater that the
principal amount of the bonds.

Premium Rent - Premium Rent is a rent above the normal level, which a property could
command in the open market on normal terms. Such rents are made possible in instances where
the tenant receives a present or expects a future benefit against the market.

Prepaid Interest - Prepaid interest is the interest charged to borrowers at loan closing to pay for
the cost of borrowing for a partial month. For example, if a loan closes on the 15th of the month
and the first payment is due 45 days later, the lender will charge 15 days of prepaid interest.

Prepay - Used in conjunction with low-income rental units that will become eligible for their
owners to pay off the underlying HUD mortgages and convert the units to market-rate housing.

Prepayment Assumption - A calculated guess of the future performance of a portfolio of single
family loans, relative to the incidence of recoveries of principal. The assumption is often
expressed as a percentage of the long-term FHA loan performance experience with the rate of
recoveries of principal in a particular state or region.

Prepayment Clause - A provision in a promissory note stating the amount a borrower may
repay ahead of schedule without incurring a penalty.

Prepayment-HUD Insured Properties - Several of HUD’s multifamily mortgage insurance
programs provide subsidies to projects so that units will be affordable by low- and moderate-
income families. These programs include the Section 221(d)(3) Below Market Interest Rate
(BMIR) program, the Section 236 program, and, when combined with Section 8 or rent
supplement assistance, the Section 221(d)(3) Market Rate program. Regulations applicable to
these programs generally provide that the mortgage may be prepaid during the first 20 years of
the mortgage with HUD’s consent and, after that, without HUD’s consent.
In 1983, Congress established criteria that must be met before HUD may consent to the
prepayment of a Section 221(d)(3) BMIR mortgage, Section 236 mortgage, or Section 221(d)(3)
market rate mortgage with rent supplement assistance.
Glossary of Housing Acronyms and Terms
Subsequent legislation and guidance now authorize eligible insured properties to “decouple” the
mortgage interest reduction payment (IRP) from the original capital financing program and retain
the IRP when the capital is refinanced.
In 1999, HUD first issued guidance allowing Section 202 facilities to prepay their mortgages.
The latest guidance is Notice H 2000-26, which is due to be updated based on legislation
included in the HUD Fy2001 appropriations act. (See Prepayment - Section 202 below)

Prepayment Penalty Mortgage (PPM) - a type of mortgage that requires the borrower to pay a
penalty for prepayment, partial payment of principal or for repaying the entire loan within a
certain time period. A partial payment is generally defined as an amount exceeding 20% of the
original principal balance.

Prepayment-Section 202 Properties - In 1999, HUD first issued guidance allowing Section 202
facilities to prepay their mortgages. The latest guidance is Notice H 2000-26, which is due to be
updated based on legislation included in the HUD Fy2001 appropriations act.
HUD Notice H 2002-16 (“Notice”) provides that its purpose is to provide guidance with respect
to the prepayment and refinancing of two types of projects: (1) Section 202 direct loans, i.e.,
projects funded with direct loans from HUD under the Housing Act of 1959; and, (2) Section 202
direct loans with project-based section 8 Housing Assistance Payments (“HAP”) contracts. In
both categories of covered projects, HUD provided the non-profit borrower a direct loan of
Federal funds for the purpose of developing a project for the elderly either through new
construction or substantial rehabilitation.
Prepayment of the Section 202 loan may help increase cash flow to the property to pay for
capital repair needs and services to residents. Prepayment through refinancing may help leverage
equity in older projects needed for significant capital improvements/modernization and/or to help
finance services or other programs beneficial to project residents, and may (on occasion) help
pay for development of additional affordable housing in the immediate area.

Prescriptive Easement - A right to use another's property that is not inconsistent with the
owner's rights and that is acquired by an open, notorious, adverse and continuous use for the
statutory period, for example 20 years.

Preservation (LIHTC) - The term preservation has several meanings in the housing context. It
can refer to historic preservation, in which efforts are made to preserve and retain historic
structures in a community, or to the preservation of rental housing, in which efforts are made to
stem the loss of affordable rental homes. Rental housing preservation can focus on physical
maintenance and repairs, the maintenance of a development’s affordability, or both.

Preserved Housing Unit – An affordable (usually subsidized) housing unit that was threatened
with demolition or conversion to market rents through termination of subsides, but which is
preserved as an affordable unit through purchase, renewed subsidy or rehabilitation.

Pretermitted Heir - A child or spouse who is not mentioned in a will and whom the court
believes was accidentally overlooked by the person who made the will. For example, a child
born or adopted after the will is made may be deemed a pretermitted heir. If the court determines
Glossary of Housing Acronyms and Terms
that an heir was accidentally omitted, that heir is entitled to receive the same share of the estate
as she would have if the deceased had died without a will. A pretermitted heir is sometimes
called an "omitted heir."

Price-Level-Adjusted Mortgage (PLAM) - A form of home loan in which payments are
adjusted for inflation not by changing the interest rate but by changing the amount of outstanding
principal. The loan is fully amortized, meaning the principal is repaid in a fixed number of years.
Initial payments are low because the real rate of interest - typically between 3 and five percent -
does not include a factor for inflation. Instead, inflation or deflation increases or decreases the
amount of outstanding principal, and correspondingly, the amount of the monthly payment. The
payment is adjusted each month based on a predetermined index, such as the Consumer Price
Index. It is assumed that the value of the home and the borrower's income increases or decreases
in tandem with fluctuations in the amount of unpaid principal. A PLAM offers monthly
payments that are substantially lower and less volatile than mortgages with adjustable interest
rates, while assuring the lender will be repaid all the principal, plus interest, plus whatever
inflation eats away.

Primary Market – The market in which bonds are purchased and sold on their delivery date

Primary Metropolitan Statistical Area (PMSA) - An area that qualifies as a metropolitan
statistical area has a census population of 1 million or more; two or more PMSAs may be
designated within it if they meet published official standards and local opinion favors the

Primary Mortgage Insurance – A policy of insurance issued by a private mortgage insurer
providing for coverage on losses realized as a result of default in payment of principal of and
interest on a mortgage loan.

Primary Mortgage Market - The market where borrowers and mortgage originators come
together to negotiate terms and effectuate mortgage transaction. Mortgage brokers, mortgage
bankers, credit unions and banks are all part of the primary mortgage market.

Prime Rate - The minimum interest rate a commercial bank will charge to its largest clients.
Prime rates are determined in part by the rate the bank pays for the money they lend to
borrowers. Decisions of the Federal Reserve Bank (The Fed) to increase or decrease the supply
of money can cause the prime rate that banks charge to fluctuate. (See Federal Reserve System)

Principal Amount (Bonds) – The face amount or par value of a bond or issue of bonds payable
on stated dates of maturity

Principal, Interest, Taxes, Insurance (PITI) - When a buyer applies for a loan, the lender will
calculate the principal, interest, taxes and insurance. The figure is designed to represent the
borrower's actual monthly mortgage-related expenses.

Prior Lien - A mortgage that ranks ahead of another
Glossary of Housing Acronyms and Terms
Prioritization of Debt (Bankruptcy) - Prioritization of debt is the placement of amounts owed
in primary, secondary, and tertiary positions. Primary debt is the first to be repaid if the borrower
becomes insolvent and must liquidate assets to pay off creditors.

Priority (Bankruptcy) - The Bankruptcy Code's statutory ranking of unsecured claims that
determines the order in which unsecured claims will be paid if there is not enough money to pay
all unsecured claims in full. For example, under the Bankruptcy Code's priority scheme, money
owed to the case trustee or for pre-petition alimony and/or child support must be paid in full
before any general unsecured debt (i.e. trade debt or credit card debt) is paid.

Priority Claim (Bankruptcy) - An unsecured claim that is entitled to be paid ahead of other
unsecured claims that are not entitled to priority status. Priority refers to the order in which these
unsecured claims are to be paid.

Priority of Liens - The priority of liens is determined by the chronological order in which the
lien documents are recorded, except for tax liens which have priority even over previously
recorded liens.

Priority Order – A Designated Order or Group Net Order which is given by an investor to a
member of the Underwriting Group. All Priority Orders will be filled before any Member
Orders have been filled.

Priority Purchaser (HOME) - A resident council organized to acquire a project in accordance
with a resident homeownership program, or any nonprofit organization or State or local agency
that agrees to maintain low-income affordability restrictions for the remaining useful life of the
project. Organizations or agencies affiliated with a for-profit entity for the purposes of
purchasing a property do not qualify as priority purchasers.

Private Activity Bond – A bond for which more than 10% of the Bond Proceeds are to be used
directly or indirectly in a trade or business carried on by persons other than governmental units,
and for which more than 10% of the debt service on the bonds is directly or indirectly secured by
a private business. Private Activity Bonds are taxable unless specifically exempted. As used in
reference to single family housing issues, Private Activity Bonds refer to Exempted Private
Activity Bonds which are Private Activity Bonds for which there is a specific exemption from
the normal taxable rule. The Tax Reform Act of 1966 grouped mortgage revenue bonds with all
other categories of Exempted Private Activity Bonds and set a cap on the amount of such bonds
which could be issued in any one year. As a result of the intense competition for Private Activity
Volume Cap, the available supply of tax-exempt bonding authority is significantly exceeded by
the demand.

Private Activity Bond Volume Cap – The amount of Exempted Private Activity Bonds which
can be issued in any State within a given calendar ear. The amount of Private Activity Bond
Volume Cap each State is authorized to use is based on the population of the State and is equal to
$50 per capita with a minimum of $150,000,000 for each State.
Glossary of Housing Acronyms and Terms
Private Mortgage Insurance (PMI) - Private mortgage insurance, usually providing coverage
for loans with less than 20% down payment, up to 95% loan-to-value ratio.

Private Offering - An offering of securities to no more than 25 persons and sale to no more than
10 persons.

Private Placement – A type of bond offering where the bonds are sold to a limited number of
investors, sometimes by the Issuer directly to investors and sometimes through the Underwriters

Private Placement Memorandum - A private placement memorandum is a document used in
connection with a private placement transaction, instead of the official statement.

Private Resources (LIHTC) - Development funds from sources other than the federal
government, state, public agencies and local municipalities.

Private Sector - That portion of the economy composed of businesses and households, and
excluding government.

Private Space (Section 8) – In shared housing: The portion of a contract unit that is for the
exclusive use of an assisted family

Probate - The court process following a person's death that includes
   • proving the authenticity of the deceased person's will
   • appointing someone to handle the deceased person's affairs
   • identifying and inventorying the deceased person's property
   • paying debts and taxes
   • identifying heirs, and
   • distributing the deceased person's property according to the will or, if there is no will,
       according to state law.
Formal court-supervised probate is a costly, time-consuming process-a windfall for lawyers-
which is best avoided if possible.

Probate Court - A specialized court or division of a state trial court that considers only cases
concerning the distribution of deceased persons' estate. Called "surrogate court" in New York
and several other states, this court normally examines the authenticity of a will -- or if a person
dies intestate, figures out who receives her property under state law. It then oversees a procedure
to pay the deceased person's debts and to distribute her assets to the proper inheritors. See

Probate Sale - Sale of property after the death of the owner, supervised by a court, with
proceeds divided among creditors and heirs.

Proceeds for Damaged Exempt Property (Bankruptcy) - In a bankruptcy proceeding, money
collected through insurance, arbitration, mediation, settlement or a lawsuit to pay for exempt
property that's no longer exemptible because it has been damaged or destroyed.
Glossary of Housing Acronyms and Terms
Processing Entity (Section 8) – The person or entity that, under any of the programs covered, is
responsible for making eligibility and related determinations and any income reexamination-In
Section 8 program, the “processing entity” is the “responsible entity”

Procurement Opportunity Program (POP) - Administered by the Office of Small and
Disadvantaged Business Utilization (OSBDU), the POP seeks to provide direct contracting and
subcontracting opportunities to businesses and organizations that have been designated as
eligible for preferential treatment (e.g., small, small disadvantaged, and women-owned small

Profit Motivated (PM) – A for profit ownership structure that is not limited as to its ability to
distribute surplus cash.

Pro Forma - A statement showing the projected annual income and operating expenses of a

Program - An organized set of activities directed toward a common purpose or goal that an
agency undertakes or proposes to carry out its responsibilities. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Program Activity (HOME) - Gross income received by the PJ, State recipient, or a sub-
recipient directly generated from the use of HOME funds or matching contributions.

Program Administrator – The entity responsible for monitoring and promoting the originations
of mortgage loans throughout the origination period

Program Execution - The processes necessary to carry out program objectives and provide
information to monitor and manage program execution activities. (JFMIP Framework)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Program Expenses – The expenses which must be paid by the program for its administration.
Such expenses as Trustee’s Fees, Program Administrator Fees, Issuer Administration Fees,
Credit Enhancement Fees, and Paying Agent/Registrar Fees are examples.

Program Income (HOME) - Gross income received by the PJ, State recipient, or a sub-recipient
directly generated from the use of HOME funds or matching contributions.

Program Manager - An entity the PHA procures to represent its interests and to assume
responsibility for coordinating some or all of the participants in a HOPE VI or mixed-finance
development project, including the PHA, HUD, third party consultants, and fundraising sources.
A PM may also assist the PHA in its negotiations with a developer.

Program, Project, or Activity (PPA) - An element within a budget account. For annually
appropriated accounts, the PPAs are defined by the Appropriations Acts and accompanying
reports and documentation; for accounts not funded by annual appropriations, they are defined
by the program and financing schedules provided in the "Detailed Budget Estimates" in the
Glossary of Housing Acronyms and Terms
Federal Budget. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Program Structure - The budget programs, activities, etc. on which budgetary decisions are
made, whether legally binding, as in Appropriation limitations, or in the nature of policy
guidance, as in Presidential pass backs, Congressional markup tables, or internal agency
decisions. (JFMIP Core; SGL p. IV-1) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Project - A planned undertaking of something to be accomplished, produced, or constructed,
having a finite beginning and finite end. Examples are a construction project or a research and
development project. (JFMIP Core; SGL p. IV-7) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Project Assistance Contract (202/162) (PAC) – This loan based rental assistance program
provides rental subsidies to Section 202 properties for the disabled under Section 162. The
program pays for both debt service and operating expenses.

Project-Based Rental Assistance (CA) - Payments made to owners of private housing on behalf
of qualified low- and very low-income tenants, generally through project-based Section 8 or

Project Completion – All necessary title transfer requirements and construction work have been
performed; the final draw down has been disbursed for the project; and the project completion
information has been submitted to and received by the Authority.

Project Completion (HOME) – The stage at which all necessary title transfer requirements and
construction work have been performed; the project complies with all HOME requirements; the
final draw-down has been disbursed for the project; and the project completion information has
been entered in the Integrated Disbursement and Information System (IDIS) established by
HUD. For tenant-based rental assistance (TBRA), project completion means the final draw-down
has been disbursed for the project.

Project Costs – The sum total of all costs incurred in the development of a project

Project Fund – See “Acquisition Fund”

Project Fund Investment Agreement – See “Acquisition Fund Investment Agreement”

Project Note - Short-term tax-exempt securities issued under a program of the U.S. Department
of Housing and Urban Development to fund local housing and urban renewal projects that are
secured by both revenues from those projects and the full faith and credit of the U. S.

Project Owner (Section 8) – The person or entity that owns the housing project containing the
assisted dwelling unit
Glossary of Housing Acronyms and Terms

Project Rental Assistance Contract (202/811) (PRAC) – This rental assistance program
provides direct capital advances to private nonprofit corporations to finance acquisition and
development of supportive housing for elderly and disabled persons. Unlike the contracts under
its counterpart PAC (Section 202/162), PAC (202/811) contracts provide only for the payment of
operating expenses.

Project Sponsor - means any nonprofit organization or governmental housing agency that
receives funds under a contract with the grantee to carry out eligible activities under this part.
The selection of project sponsors is not subject to the procurement requirements of 24 CFR

Promissory Note - An unconditional written promise of one person to pay a certain sum of
money to another person, order or bearer at a future specified time. A broker who accepts a
promissory note as a deposit from a prospective purchaser must generally disclose to the seller
that the buyer's deposit is in the form of a promissory note.

Proof of Claim (Bankruptcy) - a form normally found on the backside of the 11 USC §341
Meeting of Creditors Notice which must be filled out and filed with the court in an asset case to
receive payment from the case trustee.

Propagated Data - Data that is transferred from a data source to one or more target
environments according to propagation rules. Data propagation is normally based on transaction
logic. DAMA web site at

Property - means real property consisting of vacant land or buildings, or a portion thereof, that
is excess, surplus, or designated as unutilized or underutilized in surveys by the heads of
landholding agencies conducted pursuant to section 202(b)(2) of the Federal Property and
Administrative Services Act of 1949 (40 U.S.C. 483(b)(2)).

Property Disposition (PD) (Section 8) - The purpose of the PD program is to provide Section 8
assistance in connection with the disposition of HUD-owned multifamily projects, in order to
maintain the amount of decent, safe, and sanitary housing affordable by low-income families and
to minimize displacement. This program is open only to those projects already in decent, safe,
and sanitary condition, and to those needing moderate rehabilitation.
When a borrower of an FHA-insured property has defaulted on an insured mortgage, the lender
may assign a mortgage to HUD and file a claim for payment. The claim is made against the
insurance fund, which is funded through the payment of mortgage insurance premiums (MIP).
FHA would then pay the lender 99 percent of the unpaid mortgage balance and most of the
delinquent interest, and FHA would assume all collection and loan servicing responsibility. In
effect, FHA becomes the new lender for the mortgage and attempts to collect outstanding
amounts and restore financial soundness to the project. Often HUD must then negotiate a
workout plan that will.

Property of the Estate (Bankruptcy) - All legal or equitable interests of the debtor in property
as of the commencement of the case
Glossary of Housing Acronyms and Terms

Property Tax and Insurance Escrow - Money collected monthly by the lender and held to pay
taxes and insurance when due.

Proposed Rule - A proposed rule is suggestive language up for comment that is not effective
until final language is published. On the other hand, when an interim rule is published, it is in
effect until comments are taken in and a final rule is published.

Proprietary Lease - A proprietary lease is a property use arrangement provided by a corporation
to a co-op owner. When an individual buys into a co-op building, the ownership arrangement
gives the owner a certain number of shares in the co-op, along with a proprietary lease for one of
the residences in the building

Protected Class - Any group of people designated as such by the Department of Housing and
Urban Development (HUD) in consideration of federal and state civil rights legislation.
Currently includes ethnic minorities, women, religious groups, the handicapped and others.

PSA Speed – A measure of the prepayments projected to occur in a mortgage portfolio. 100%
PSA is equal to annual prepayments of 0.2% of the mortgage portfolio for the first month of the
mortgage portfolio’s life. The amount of monthly prepayments then increases by an annual rate
of 0.2% per month for the first 30 months of the portfolio’s life and remains constant at an
annual rate of 6.0% of the portfolio for its remaining life.

Public Assistance (Section 8) – Welfare or other payments to families or individuals, based on
need, which are made under programs funded, separately or jointly, by Federal, State, or local

Public Body (PB) – A Federal, State or local government agency or quasi-governmental body,
such as a state housing finance agency or public housing authority. The Farmers Home
Administration (which has been replaced by the Rural Housing Service) is also a “public body”

Public Building - means any building which is open to the public during normal business hours

Public Housing - Low-income housing developed, owned and operated by public housing
authority (PHAs), and financed through the sale of tax-exempt bonds HUD provides debt service
contributions, operating subsides, modernization funds, and technical assistance to support

Public Housing Agency (PHA) – Any state, county, municipality, or other governmental entity
or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in
the development or operation of housing for low-income families.

Public Housing Authority Directors' Association (PHADA) - A professional trade association
representing local housing authorities from across America. The association was founded in
1979 and now represents nearly 1,700 members. PHADA serves as liaison between its
Glossary of Housing Acronyms and Terms
membership, the Department of Housing and Urban Development and the United States
Congress. PHADA Webpage at

Public Housing Disposition - Refers to the sale or other legal action that a Public Housing
Authority takes to release itself from ownership of a public housing project.

Public Housing Unit - A rental housing unit that is eligible to receive operating subsidy from
HUD pursuant to Section 9 of the Act (42 U.S.C. 1437g). It must be included in and governed by
the terms and conditions of the ACC.
    1. Public Housing (non-tax credit) Units: Dwelling units developed with funding from
    various public housing and other sources, but not including equity funds invested in
    connection with Low Income Housing Tax Credits (LIHTC – see above). These units are
    under an ACC and receive public housing operating subsidy, must serve persons who are
    public housing eligible, and must comply with public housing regulations.
    2. Public Housing/Low-Income Housing Tax Credit Units: Units that are funded with both
    Public Housing funds (HOPE VI, Development, Capital Fund, and/or MROP funds) and
    equity invested in connection with LIHTC. These units are under an ACC and receive
    operating subsidy; however, they must be operated in compliance with requirements of the
    LIHTC program as well.

Public Offering – A type of bond offering where the bonds are sold by the Issuer to the
Underwriters who in turn sell the bonds to investors.

Public Sector - That portion of the economy composed of all levels of government, and
excluding businesses and households.

Public Securities Association Standard Prepayment Model (PSA) – An assumed monthly
rate of prepayment that is annualized to the outstanding principal balance of a mortgage loan.

Publication Letter (Foreclosure) - this letter is sent to the lender by the trustee. When
completed and returned, it authorizes the trustee to proceed with the scheduling of the trustee's
sale and preparation of the notice of trustee's sale.

Publication Period (Foreclosure) - this is the interval beginning the day after the pre-
publication period expires and ending with the conducting of the trustee's sale. During the
publication period, the notice of trustee's sale is published, posted, recorded, and copies are
mailed to all entitled parties. The publication period is normally 30 to 40 days.

Publicly-Owned Land (LIHTC) - Developed or undeveloped land owned by a government
entity. Examples include school buildings, public hospitals, parking lots, surplus properties, tax-
foreclosed properties, and other gifted land.

Punch List - A punch list is an account of items that need to be addressed. In construction
projects, punch lists are used to document unfinished items or items that need repair. Punch lists
can also be used to document repairs that need to be made before a property sale is finalized.
Glossary of Housing Acronyms and Terms
Pur Autre Vie - Legal French meaning "for another's life." It is a phrase used to describe the
duration of a property interest. For example, if Bob is given use of the family house for as long
as his mother lives, he has possession of the house pur autre vie.

Purchase Agreement - a written proposal by a buyer to purchase real estate that becomes
binding upon acceptance by the seller.

Purchase Money-Mortgage – A mortgage issued to the borrower by the seller of the home as
part of the purchase transaction. This is usually done in situations where the buyer cannot
qualify for a mortgage through traditional lending channels. This is also known as seller or
owner financing.

Purchase Money Note - Obligation to pay the seller a portion of the purchase price on a
deferred basis, either over time or at a future date certain. The Purchase Money Note may be
secured by a mortgage or, more typically for subsidized properties, by a pledge of the partnership

Purchase Mortgage Market – A mortgage market for home financing transactions. The
primary mortgage market is broken into two types of transactions: purchases and refinances.
Both fall under the overall category of mortgage originations.

Purchased Mortgage Servicing Rights (PMS) - The right, acquired from another, to service a
mortgage and collect a fee. The value of that right is listed on the books as an intangible asset.

Put Options - A contract which gives its owner the right to sell a security at a specific price,
within a defined time period.

Pyramiding - A process of acquiring additional properties by refinancing existing properties

QA – Quality Assurance

QAP – Qualified Allocation Plan

QC – Quality Control

QCT – Qualified Census Tract

QHWRA – Quality Housing and Work Responsibility Act of 1998 (also known as the Public
Housing Reform Act)

QMR – Quality Management Review Program (for oversight of field operations)

Qualified Allocation Plan (QAP) - A required plan which a state allocating agency must use to
allocate (LIHTC) Low Income Housing Tax Credits.
Glossary of Housing Acronyms and Terms

Qualified Basis - the amount of eligible development costs (or Eligible Basis) multiplied by the
percentage of units which will be reserved for low-income households

Qualified Census Tract - A Qualified Census Tract is any census tract in which 50 percent or
more of the households have an income which is less than 60 percent of area median gross

Qualified Commercial Financing - Qualified commercial financing is the exception to the at-
risk rules. To qualify, financing must generally be non-recourse, the lender must generally be
actively engaged in the business of lending, the lender must not have previously owned the
property, and the lender must not earn a fee in connection with the acquisition of the property.

Qualified Contract - A qualified contract is a bona fide contract to acquire a LIHTC project for
the sum of the existing debt, adjusted investor equity and other capital contributions, less project
cash distributions.

Qualified Covenant - A restriction contained in a legal document which limits the rights of a
person having an interest in the land but, by its wording includes the possibility of removing the
limitation with respect to terms agreed between the parties. A covenant by a lessee not to assign
or sublet without the landlord's written consent is a good example.

Qualified Disclaimer - Qualified disclaimer, in the U.S., is a legal refusal to accept an
ownership interest in property, usually for the purposes of avoiding an estate tax liability.
Qualified disclaimers are governed by restrictions and requirements as set forth in the IRS Tax
Reform Act of 1976.

Qualified Low-Income Building - A qualified low-income building is part of a qualified low-
income housing project throughout the compliance period and for which prior law depreciation
rules do not apply.

Qualified Low-Income Housing Project – Means any project for residential rental property if
the project meets the "20-50 Test" or the "40-60 Test," whichever is elected by the taxpayer. Any
such election, once made, is irrevocable.
   20-50 Test This test is satisfied if at least 20 percent of the residential units in a project are
   both rent-restricted and occupied by individuals whose income is no more than 50 percent of
   the area median gross income as adjusted for family size.
   40-60 Test This test is satisfied if at least 40 percent of the residential units in a project are
   both rent-restricted and occupied by individuals whose income is no more than 60 percent of
   the area median gross income as adjusted for family size.

Qualified Non-Profit Organization - A qualified non-profit organization, which is described in
Section 501 (C)(3) or (4), is exempt from tax under Section 501(a). Its exempt purpose is to
foster low-income housing, among other purposes.
Glossary of Housing Acronyms and Terms
Qualifying Guidelines - There are two main elements lenders consider when determining
whether you and any co-borrowers qualify for a specific mortgage. The first is your monthly
mortgage costs, including mortgage payments, property taxes and insurance. If you're
considering buying a condominium or cooperative, any associated fees are also considered. Your
mortgage costs should not exceed 28 percent of your gross monthly (pre-tax) income. The
second qualifying guideline relates to your total monthly housing costs and other debts you and
any co-borrowers have. These costs should not exceed 36 percent of your gross monthly income.
Lenders follow these guidelines because they believe these percentages allow homeowners to
pay off their mortgages fairly comfortably without the worry of loan defaults and foreclosures.
However, these guidelines can be exceeded in certain cases, such as borrowers with a good credit
history or with a larger down payment.

Qualifying Ratios - guidelines utilized by lenders to determine how much money a homebuyer
is qualified to borrow. Lending guidelines typically include a maximum housing expense to
income ratio and a maximum monthly expense to income ratio.

Quality Housing and Work Responsibility Act of 1998 (QWHRA) - The Quality Housing and
Work Responsibility Act of 1998 mandated certain changes to the admission and occupancy
requirements for the public housing and Section 8 assisted housing programs; established income
targeting for new category of “extremely low income” (at least 40% of all new rentals of Section
8 assisted units must go to families with incomes of less than 30% AMI), permanently eliminated
requirement for use the three Federal preferences (more than 50% of income to housing,
displaced, living in substandard housing – now options); and made permanent provisions
allowing occupancy by police officers.

Query - A usually complex SQL SELECT statement created to retrieve data from a database.
The retrieved data is used in decision support. DAMA web site at

Query Governor - A facility that terminates a database query when it has exceeded a predefined
threshold. DAMA web site at

Query Response Time - The time it takes for the warehouse engine to process a complex query
across a large volume of data and return the results to the requester. DAMA web site at

Quiet Title Action - A court action brought to establish title from a questionable claim or to
remove a defect or cloud on the title to property.

Quit-Claim Deed - A document that releases a party from any interest in a piece of real estate.

R&R – Reserve for Replacement Acct./Residual Receipts Acct.

RAD – Regional Accounting Division (HUD)
Glossary of Housing Acronyms and Terms
RAM – Reverse Annuity Mortgage

RAP - Rental Assistance Payment

RBC - Regulatory Barriers Clearing House

RCAC – Residential Care Apartment Complex

RCS – Rent Comparability Study

RD – Rural Development

REA – Reciprocal Easement Agreement

REAC – Real Estate Assessment Center (HUD)

REAP – Resource Estimation and Allocation Process (under Chief Financial Officer)

REC – Real Estate Commission

REIT – Real Estate Investment Trust

REMIC - Real Estate Mortgage Investment Conduits (under Ginnie Mae)

REMS – Real Estate Management System (under REAC)

REO – real estate owned (in reference to defaulted FHA-insured properties)

RESPA - Real Estate Settlement Procedures Act

RFLA – Request for Lease Approval

RFP - Request for Proposal

RFQ – Request for Qualifications (CA)

RFQ - Request for Quotations

RFTA – Request for Tenancy Approval

RHD – Rental Housing Development

RHIIP – Rental Housing Integrity Improvement Project

RHP – Relocation Housing Payment
Glossary of Housing Acronyms and Terms
RHS – Rural Housing Service

RIF - Reduction-in-Force

RIGI – Regional Inspector General for Investigation

ROE - Return on Equity

ROI - Return on Investment

ROM – Roll-Over Mortgage

ROSS – Resident Opportunity and Supportive Services

RPM – Rental Property Management System

RREI – Residential Real Estate Inspector

RRM - Renegotiable Rate Mortgages

RRP – Rental Rehabilitation Program

RTC – Resolution Trust Corporation

Range Bonds - Bonds that stop paying an investor when the bond's reference rate is higher or
lower than a predetermined range on an established index. The bonds pay an above-market
coupon rate as long as the reference rate falls within the range. For example, if LIBOR is the
index, a range bond might pay LIBOR plus 75 basis points for each day LIBOR is between 3.5
and 5 percent. When LIBOR is less than 3.5 percent or more than 5 percent, the bond accrues no
interest. A range bond is a type of structured note.

Rate Cap - The limit on the amount the interest rate can be increased at each adjustment period
in an adjustable rate loan. The cap may also set the maximum interest rate that can be charged
during the life of the loan. (See Adjustable Rate Mortgages (ARMS))

Rate Factor - The number of dollars required to pay off each $1,000 of a mortgage loan.

Rate Improvement Mortgage - A fixed-rate mortgage that includes a provision that gives the
borrower a one-time option to reduce the interest rate (without refinancing) during the early
years of the mortgage term.

Rate Lock - A commitment issued by a lender to a borrower or other mortgage originator
guaranteeing a specified interest rate for a specified period of time at a specific cost.

Rating – Evaluations of the credit quality of notes and bonds usually made by independent
rating services, although many financial institutions also rate bonds for their own purposes.
Glossary of Housing Acronyms and Terms
Ratings generally measure the probability of the timely repayment of principal and interest on
municipal bonds. Ratings are initially made before issuance and are continuously reviewed and
may be amended to reflect changes in the Issuer’s credit position. The information required by
the rating agencies varies with each bond issue, but generally includes demographics, debt
burden, economic base, finances, and management structure. The information is evaluated and
the issue is assigned a letter rating which reflects the creditworthiness of the bonds. The higher
the credit rating, the more favorable the effect on the marketability of the bond.

Rating Agency (Bonds) – A private corporation which analyzes bond issues and assigns a
Rating to indicate to prospective bondholders the investment quality of the issue. There are
currently three nationally recognized rating agencies: Standard & Poor’s Corporation, Moody’s
Investor’s Service, and Fitch Investor’s Service.

Reaffirm (Bankruptcy) - the process by which the debtor enters into an agreement with a
creditor(s) reestablishing a debt that the bankruptcy has severed.

Reaffirmation Agreement (Bankruptcy) - An agreement by a debtor to continue paying a
dischargeable debt after the bankruptcy, usually for the purpose of keeping collateral or
mortgaged property that would otherwise be subject to repossession.

Real Estate Assessment Center (REAC) - As part of its commitment to management reform,
HUD has improved its oversight of important housing programs by consolidating many
assessment functions within REAC. Listed below are descriptions of all the assessment products
that REAC produces for HUD and our industry partners.

Real Estate Assessment Center (REAC) Score – A HUD-developed score on a scale from 1 to
100 which rates the overall physical condition of an apartment project.

Real Estate Investment Trust (REIT) - nicknamed REIT, a real estate investment organization
which finds investors and buys real property and gives each investor either a percentage interest
in the property itself or an interest in a loan secured by a mortgage or deed of trust on the
property. Usually the loan is used to develop the property and build upon it, and then there is a
division of profits upon sale-if there is a profit.

Real Estate Mortgage Investment Conduits (REMICs) - A REMIC is an entity which holds a
pool of mortgage loans and issues securities representing interests in those mortgages. This
entity enables a pool of mortgages to be split into different ownership interests offering a range
of maturities, thereby giving greater choice as to the length of investment. Income generated by
the mortgage pools is taxed not at the entity level but at the investor level.

Real Estate Settlement Procedures Act (RESPA) - Requires that all borrowers under Federal
mortgage loan or insurance programs must receive specified information regarding the loan
Glossary of Housing Acronyms and Terms
Real Estate Transfer Tax (LIHTC) - State and/or local taxes that are assessed on real property
when ownership of the property is transferred between parties. Real estate transfer tax revenue is
sometimes used to fund state or local housing trust funds.

Reallocation - Changing the allocation of taxable deductions or benefits during the Compliance
Period. One method to reduce exit taxes to a limited partner is by reallocating losses from the
limited partner to the general partner.

Reapportionment - A revision of a previous Apportionment of budgetary resources for an
Appropriation or Fund Account. This must be approved by OMB. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Reasonable Accommodation – a change, exception, or adjustment to a rule, policy, practice, or
service that may be necessary for a person with a disability to have an equal opportunity to use
and enjoy a dwelling including public and common use spaces.

Reasonable Rent (Rent Reasonableness) - a rent to owner that is not more than:
   •   The rent charged for comparable units in the private unassisted market; or
   •   The rent charged by the owner for a comparable unassisted units in the premises.

Reasonable Wear and Tear - commonly used in leases to limit the tenant's responsibility (and
therefore liability to repair or repaint) upon leaving. It is subjective, but the considerations
include the length of time of tenancy (the longer the occupancy the more wear and tear can be
expected), the lack of unusual damage such as a hole in the wall or a broken window, and the
condition of the premises when the tenant moved in. This is often a source of conflict between
landlord and tenant, particularly when there is a deposit for any damages "beyond reasonable
wear and tear."

Rebate - A rebate is payment of the excess arbitrage proceeds to the federal government to retain
the tax-exempt status of the bonds. Special rules allow a borrower to avoid a rebate of arbitrage

Recapitalize (LIHTC) - To inject new financial resources into an older property to ensure its
long-term viability. Many multifamily developments need to be recapitalized after a certain
number of years to cover the costs of deferred maintenance and upgrades to bring them into
conformity with current living standards. Affordable multifamily homes also need to be
recapitalized periodically, but because of legal or practical limitations on permissible rents, it is
difficult to support new debt for this purpose. One option for recapitalizing affordable
multifamily homes is to combine tax-exempt bonds with 4 percent tax credits.

Recapture - in income tax, the requirement that upon sale of property the taxpayer pay the
amount of tax savings from past years due to accelerated depreciation or deferred capital gains.

Recapture - Provision under MRB program by which an MRB borrower who sells his or her
house within 10 years of initial purchase must count a certain portion of the profit as taxable
Glossary of Housing Acronyms and Terms

Recapture Clause - A clause in some percentage leases where the lessor has the right to
terminate a lease if a tenant does not obtain a desired gross.

Recapture Rate - A periodic allowance for the recovery of investment capital from the
property's income stream.

Recapture of Tax Credits (LIHTC) - The owner is obligated to maintain the required
percentage of low-income units in the project, and by building, through annual tenant income
certifications and rent restrictions. Failure to meet this obligation can result in the filing of form
8823 (LIHTC Agencies Report of Noncompliance or Building Disposition) with the IRS and the
recapture of credits for the unqualified units. General partners are generally obligated to provide
tax credit guaranties if any units fall out of compliance. Foreclosure on the Project or sale of the
Project (or a partnership interest) before the end of the Compliance Period can also cause
recapture unless a bond is posted and the Project remains low-income.

Receiver - An independent party appointed by a court to impartially receive, preserve and
manage property that is involved in litigation, pending final disposition of the matter before the

Receivership - the process of appointment by a court of a receiver to take custody of the
property, business, rents and profits of a party to a lawsuit pending a final decision on
disbursement or an agreement that a receiver control the financial receipts of a person who is
deeply in debt (insolvent) for the benefit of creditors. Thus, the term "the business is in

Receiving PHA (Section 8) – In portability: A PHA that receives a family selected for
participation in the tenant-based program of another PHA. The receiving PHA issues a voucher
and provides program assistance to the family.

Recertification (Section 8) – The documentation and verification process required to be
performed by HUD managers at least once each year. The “annual recertification” begins
approximately 90 -120 days prior to each resident’s anniversary date. “Interim recertifications”
take place when a resident informs management of a significant change in income during the
course of the rental contract year. (see also Certification)

Reciprocal Immunity Doctrine - The doctrine that many legal experts believe provides the
constitutional basis for the exemption for Federal taxation of the interest earned on municipal
securities. The doctrine holds that the states are immune from Federal interference in their
affairs, just as Federal government is immune from state interference.

Recision - The cancellation of a contract. With respect to mortgage refinancing, the law that
gives the homeowner three days to cancel a contract in some cases once it
is signed if the transaction uses equity in the home as security.
Glossary of Housing Acronyms and Terms
Recision of Notice of Default - A document that nullifies removes or abrogates the notice of

Recital - Setting forth in a deed or other writing some explanation for the transaction.

Recognition Clause - A clause found in some blanket mortgages used to purchase a tract of land
for subdivision development providing for protection of the rights of the ultimate buyers of
individual lots in case of default by the developer. (See Blanket Mortgages)

Reconfiguration - Altering the physical structure of housing units during the course of
rehabilitation in a manner that permanently changes the public housing bedroom distribution or
unit count (e.g., creating five 2-bedroom units from ten 1-bedroom units or converting dwelling
units to non-dwelling units).

Reconstruction (also rehabilitation) - The rebuilding, on the same lot, of housing standing on a
site at the time of project commitment (see definition of "commitment" above). The number of
housing units on the lot may not be changed as part of the reconstruction project, but the number
of rooms per unit may change. Reconstruction also includes replacing an existing substandard
unit of manufactured housing with a new or standard unit of manufactured housing.

Reconveyance - Reconveyance is a term used in some states which use deeds of trust as a
mortgage on real property to secure payment of a loan or other debt. A deed of reconveyance is
used in conjunction with a deed of trust and its purpose is to clear the title of any liens pertaining
to the note and deed of trust which secures that note. The parties involved in the deed of trust are
the Trustor (the Borrower), the Trustee (title company, bank, or third party), and the Beneficiary
(the lender).

Record Date – The fifteenth day of the calendar month next preceding any Interest Payment
Date, or in the case of any proposed redemption of bonds, the fifteenth day of the calendar month
preceding the date of the mailing of the notice of such redemption, The owner of record on the
Record Date is the entity to whom any payments due are paid.

Recourse - The right of the holder of a note secured by a mortgage or deed of trust to look
personally to the borrower or endorser for payment.

Recourse Servicing - Mortgage servicing in which the company servicing a mortgage has
assumed the financial risk in the event the borrower defaults on the loan.

Recycling – The process of reutilizing Private Activity Volume Cap through one of two
methods. Internal Recycling is accomplished when mortgage repayments are reloaned to
homebuyers instead of being used to redeem bonds. External Recycling is accomplished when
refunding bonds are issued and the proceeds are utilized to redeem bonds from another program
for which mortgage repayments to effect the redemption are already on hand. The accumulated
mortgage repayments are then transferred to the refunding bond issue and are used to fund new
mortgage loans.
Glossary of Housing Acronyms and Terms
Red Herring - A preliminary prospectus which does not include the price at which the securities
are to be offered to the public. It is issued to obtain an indication of interest in an offer. It gets
its name from the statement, printed in red ink on its format cover, that it is a preliminary

Redaction - The act of going over a document with a fine-toothed comb in order to find any
ambiguities or areas that are not to your advantage.

Redemption – The right of a defaulted property owner to recover his or her property by curing
the default. (See Equitable Redemption, Statutory Redemption)

Redeem (Foreclosure) - to buy back, as when an owner who had mortgaged his/her real
property pays off the debt. The term also refers to paying the amount due and all charges after a
foreclosure (because of failure to make payments when due) has begun.

Redemption Period (Foreclosure) - A period of time established by state law during which a
property owner has a right to redeem real estate after a foreclosure or tax sale by paying the sales
price, interest and costs. Note that many states do not have such statutory redemption periods.

Redemption Provision (Bonds) – The terms of the Bond giving the Issuer the right or requiring
the Issuer to redeem or call all or a portion of an outstanding issue of bonds prior to their stated
dates of maturity at a specified price, usually at or above par.

Redevelopment/Infill (LIHTC) - This refers to the rules under which abandoned or underused
property is redeveloped. This topic includes inner city redevelopment, single lot infill, and
brownfields redevelopment, as well as the process for obtaining the state and local government
authorization to proceed with such work.

Redlining (LIHTC) - A discriminatory and illegal practice in which financial institutions deny
mortgages and other types of financing to residents of predominantly poor or minority
neighborhoods, without regard to individual creditworthiness.

Reduction Certificate (Pay-Off Statement) - The document signed by a lender indicating the
amount required to pay a loan balance in full and satisfy the debt; used in the settlement process
to protect both the seller's and the buyer's interests.

Reduction-in-Force (RIF) - Action by management to reduce or adjust an agency's workforce.
RIFs may involve reassigning employees to different organizations or positions, downgrading
employees, or separating employees from service.

Reentry - taking back possession and going into real property which one owns, particularly
when a tenant has failed to pay rent or has abandoned the property, or possession has been
restored to the owner by judgment in an unlawful detainer lawsuit. Reentry may also be allowed
when a buyer defaults on payments on a contract of sale or upon foreclosure of a mortgage or
deed of trust which secured a loan on the property. The right of reentry is usually written into
leases and sometimes in mortgages.
Glossary of Housing Acronyms and Terms

Reexamination (Section 8) – Sometimes called Re-certification. The process of securing
documentation of total tenant family income used to determine the rent the participant will pay
for the next 12 months if no interim changes are reported by the participant family.

Refinance Transaction - The process of paying off one loan with the proceeds from a new loan
using the same property as security.

Reformation - An action by a court to revise a contract to read as it was intended by the parties
to read rather than as stated.

Refresh Technology - A process of taking a snapshot from one environment and moving it to
another environment overlaying old data with the new data each time. DAMA web site at

Refunding - A procedure by which a bond issue is redeemed with funds from a new bond issue
under conditions generally more favorable to the issuer. This results in the proceeds of the new
bonds (there refunding bonds) being substituted for the proceeds of the old bonds (the refunded
bonds), which may or may not be redeemed.

Refunding Bond – A bond which is being issued, the proceeds of which will be used to redeem
outstanding bonds within 90 days from the delivery date of the refunding bonds.

Regional Council of Governments (SCRCOG) – are voluntary associations of local
governments in Chester, Lancaster, Union, and York counties of South Carolina. The COG
serves as a forum for intergovernmental cooperation and as a central staffing resource.

Regional Inspector General for Investigation (RIGI) – Handles fraud and program abuse
matters for HUD at the Regional Office level.

Registered Bond - A bond whose owner is registered with the issuer or its agents, either as to
both principal and interest or as to principal only. Transfer of ownership can be accomplished
only when the securities are properly endorsed by the registered owner.

Regressive (LIHTC) - A regressive tax consumes a greater proportion of the income of lower-
income individuals than of higher-income individuals. An example is the sales tax, which taxes
all covered spending at the same rate, regardless of income, and therefore takes up a larger share
of a lower-income consumer's overall income.

Regulation D - Regulation D is a securities law regulation that explains the rules for three
private offering exemptions from the general rules that requires securities registration.

Regulation Z - The federal code issued under the Truth-in-Lending Act which requires that a
borrower be advised in writing of all costs associated with the credit portion of a financial
Glossary of Housing Acronyms and Terms

Regulatory Agreement - A regulatory agreement is an agreement entered into between the
borrower, bond issuer and trustee specifying the income rent and income restrictions a project
owner must comply with for the bonds to retain their tax exempt status.

Regulatory Barriers Clearing House (RBC) - Collects, processes, assembles, and disseminates
information on the barriers faced in the creation and maintenance of affordable housing. The
Clearinghouse is hosted by HUD USER.

Rehab Code (LIHTC) - Special building codes designed to make it easier to renovate older
homes, while ensuring that modern safety concerns are addressed.

Rehabilitation - means the labor, materials, tools, and other costs of improving buildings, other
than minor or routine repairs. The term includes where the use of a building is changed to an
emergency shelter and the cost of this change and any rehabilitation costs does not exceed 75
percent of the value of the building before the change in use.

Rehabilitation Expenditures - Rehabilitation expenditures are amounts incurred in improving
or making additions to property in connection with the rehabilitation of an existing building.

Rehabilitation Mortgage - mortgage that covers the costs of rehabilitating (repairing or
Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower
to roll the costs of rehabilitation and home purchase into one mortgage loan.

Reimbursable Order - May also be known as Customer Order. Order for goods and services to
be provided by the agency to another entity in return for payment. (JFMIP Core; Common Term)
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Reimbursement - A sum (1) that is received by the federal government as a repayment for
commodities sold or services furnished and (2) that is authorized by law to be credited directly to
specific Appropriation and Fund Accounts. These amounts are deducted form the total
Obligations Incurred (and Outlays) in determining net obligations (and outlays) for such
accounts. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Reinstatement (Foreclosure) - a curing of a default and restoration of the loan to current status
through payment of past-due amounts together with the fee and expenses of the trustee

Reinstatement Period (Foreclosure) - this is the interval from the date the notice of default is
recorded until five business days prior to the date of sale during which time a default may be

Related Facilities (HUD) - New structures suitable for use by elderly or handicapped families,
such as cafeterias or dining halls, community rooms or buildings, workshops, infirmaries or other
inpatient or outpatient health facilities, and other essential service facilities and structures
Glossary of Housing Acronyms and Terms
suitable for such uses provided by rehabilitation, alteration, conversion, or improvement of
existing structures that are otherwise inadequate for such uses.

Release - (1) the discharge of property from a mortgage lien. (2) a written statement that an
obligation has been satisfied.

Release Clause - A provision found in many blanket mortgages enabling the mortgagor, upon
payment of a specific sum of money, to obtain a partial release of particular portions or parcels
of the collateral.

Release Deed - This deed, also known as a deed of re-conveyance, transfers all of the rights
granted to a trustee under a deed of trust loan back to the grantor after the loan has been fully

Release of Liability - The release of an old borrower from further responsibility for repayment
of an assumed loan

Release of Lis Pendens - A publicly recorded notice of a pending lawsuit against a property
owner that may affect the ownership of a property. Release of same

Release of Mechanic’s Lien - A document recorded to remove the lien (mechanic’s lien) against
real property.

Relief from Automatic Stay (Bankruptcy) - this is where a creditor brings a motion on the
basis of lack adequate protection or lack of payment asking the bankruptcy court judge to lift the
automatic stay of protection pursuant to 11 USC §362 so that the creditor can repossess or
foreclose against the secured asset. If the judge agrees, he will sign an order to that effect.

Relocation Mortgage - A relocation mortgage, or relo, is a real estate property loan designed
specifically for transferred employees. Relos have special characteristics, such as discounted
closing costs or closing costs paid for by the employer. Relos can also trade at a premium on the
secondary market. Because data indicates that relocated employees tend to move at regular
intervals, the prepayment rate on these mortgages tends to be more predictable

Remainder - The right of future possession and use that goes to someone other than the grantor
upon termination of a life estate.

Remainder Estate – A future interest in real estate created at the time and by the same
instrument of the original estate, but limited its immediate authority upon the termination of the
prior estate. For example, Hoe Phigg owns a property in fee simple and conveys the property "to
Barry Clink and upon Clink's death, to Cora Quibb and her heirs." Cora Quibb has a remainder
estate, which is vested because the estate automatically passes to Cora Quibb and her heirs upon
the death of Barry Clink.
Glossary of Housing Acronyms and Terms
Remainder Interest - The remnant of an estate that has been conveyed to take effect and be
enjoyed after the termination of a prior estate, such as when an owner conveys a life estate to one
party and the remainder to another.

Remainderman - Someone who will inherit property in the future. For instance, if someone dies
and leaves his home "to Alma for life, and then to Barry," Barry is a remainderman because he
will inherit the home in the future, after Alma dies.

Remaining Member of Tenant Family (Section 8) – Person left in assisted housing who may
or may not normally qualify for assistance on own circumstances (i.e., an elderly spouse dies,
leaving a widow age 47 who is not disabled or handicapped)

Remarketing – The delivery of bonds to fund a program; the terms for the issuance of which are
specified in the Bond Documents of an outstanding issue of bonds.

Remarketing Agent – The Remarketing Agent is responsible for finding a new investor for
bonds which have been tendered by investors or for which the Issuer has sent out a Mandatory
Tender Notice. Most of the time a Remarketing Agent is associated with variable rate bonds.

Remarketing Agreement – An agreement between an Issuer and the Remarketing Agent which
explains the terms under which the Remarketing Agent will remarket the Issuer’s bonds.

Renegotiable Rate Mortgages (RRM) - A mortgage where the interest rate is renegotiated at
intervals, usually every three to five years.

Renewal Communities - The Omnibus Consolidation & Emergency Supplemental
Appropriations Act for FY 2001 (P.L. 106-554), signed into law on December 21, 2000, enacted
the provisions of a number of bills of the 106th Congress. Among them was the Community
Renewal Tax Relief Act of 2000 (CRTR Act), which authorizes the designation of 40 Renewal
Communities (RCs - 28 urban and 12 rural)

Renewable Energy Measure - means any capital investment that reduces energy costs in an
amount sufficient to recover the total cost of purchasing and installing such measure over an
appropriate period of time and that results in the use of renewable energy to replace the use of
non-renewable energy.

Renovation - means rehabilitation that involves costs of 75 percent or less of the value of the
building before rehabilitation.

Rent Comparability Study (RCS) - The Multifamily Assisted Housing Reform and
Affordability Act of 1997 (MAHRA), established new policies for the renewal of Section 8
project-based contracts based on market rents (instead of using the old Fair Market Rent
standard). Under MAHRA, Section 524(a)(1) renewals require a Rent Comparability Study
(RCS), a study performed by a third-party, non-identity of interest, state-licensed appraiser The
RCS is key to determining the contract renewal options available to individual project owners
and sets a permanent cap on contract renewal rents.
Glossary of Housing Acronyms and Terms

Rent Controls - Defined as state and local government actions that restrict rent increases or
service fee charges to tenants.

Rent Loss Insurance - Insurance that protects a landlord against loss of rent or rental value due
to fire or other casualty that renders the leased premises unavailable for use and as a result of
which the tenant is excused from paying rent.

Rent-Restricted Unit - A rent-restricted unit is a unit for which the rent charged to tenants is
limited to 30 percent of the income limitation applicable under the elected minimum set-aside

Rent Roll – A listing of all apartment units generally containing the names of all tenants and the
amount of rent being charged.

Rent Supplement - Supplemental payments to owners of private housing on behalf of qualified
low-income tenants, authorized by Section 101 of the Housing and Urban Development Act of
1965. New contracts are no longer available and have been replaced generally by the Section 8

Rent to Owner (Section 8) – The total monthly rent payable to the owner under the lease for the
unit (also known as contract rent). Rent to Owner covers payment for any housing services,
maintenance and utilities that the owner is required to provide and pay for

Rental Assistance Payment (RAP) - The Rental Assistance Payments (RAP/"deep subsidy")
program, authorized by the Housing and Community Development Act of 1974, was designed to
aid very low-income families in Section 236 projects by permitting HUD to provide additional
subsidies equal to the difference between the basic rent and 30 percent of income for a certain
percentage of units in a project. Most insured projects receiving RAP funding have converted to
Section 8 assistance. The remaining inventory of RAP assisted projects is largely limited to
State-aided, bond-financed, projects which continue to receive amendment funding from a
special set-aside.

Rental Housing Integrity Improvement Project (RHIIP) – The Rental Housing Integrity
Improvement Project (RHIIP) is in response to one item on the President's Management Agenda.
The objective of RHIIP is to reduce errors in the administration of HUD's rental assistance funds
by taking actions that better assure the "right benefits go to the right persons."

Rental Rehabilitation - Grants to cities and states for rental housing rehabilitation. These
grants, authorized by Section 17 of the Housing Act of 1937, as amended by the Housing and
Urban-Rural Recovery Act of 1983, are designed to attract private financing to rehabilitation.

Rental Subsidy - A Section 8 housing assistance payment (HAP) is usually equal to the
difference between the tenant’s share of the rent and the rent charged by the owner.
Glossary of Housing Acronyms and Terms
The tenant rent contribution is generally the highest of: a) 30% of adjusted monthly income; b)
10% of the person’s monthly income; or c) the welfare assistance payment adjusted for or
designated as housing cost
The project rental assistance contract (PRAC) is another form of subsidy, also limited to 30% of
adjusted income, though there are no fixed market or unsubsidized units rents so resident rents
are not capped by some unit-based rent value.

Rental Supplement Program - Supplemental payments to owners of private housing on behalf
of qualified low-income tenants, authorized by Section 101 of the Housing and Urban
Development Act of 1965. A fixed amount that does not change over the years and is allocated
as available. At the discretion of the owner, it can be spread thinly to assist greater numbers of
residents or applied in greater amounts which results in assisting fewer residents. New contracts
are no longer available and have been replaced generally by the Section 8 program.

Rental Value - the amount which would be paid for rental of similar property in the same
condition in the same area. Evidence of rental value becomes important in lawsuits in which loss
of use of real property or equipment is an issue, and the rental value is the "measure of
damages." In divorce cases in which one of the spouses stays in the family residence, the use of
the property has rental value which is considered in balancing the income of the parties,
determining division of property or setting the amount of alimony to be paid.

Renunciation - An act or instance of relinquishing, abandoning, repudiating or sacrificing
something, as a right, title, person, etc.

REO/Tenancy By Entireties - This is the end of the foreclosure process. Real Estate Owned by
the lender, this status indicates the property is now owned by the lender, bank or investor as a
result of a foreclosure.

Reobligation - Obligation of deobligated funds for another purpose. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Repayment Plan - An agreement between a lender and a delinquent borrower regarding
mortgage payments, in which the borrower agrees to make additional payments to pay down past
due amounts while still making scheduled payments.

Replacement Reserve (LIHTC) – An amount of money, the size of which is generally
determined by the completion of a third-party property condition report, set aside in anticipation
of future replacement and capital expenditures. Usually quoted in terms of dollars per unit per

Replacement for Reserves - Sometimes also referred to a Reserve Replacements or the R&R
account. This is a separate account which is added to regularly through unit rent receipts. The
unit cost has a built in amount which is set-aside for expected/projects needs of the plant
structure or infrastructure over the years, such as roof replacement, elevator replacement, etc.
Glossary of Housing Acronyms and Terms
Replacement Units - Rental Units will be deemed to be public housing replacement units and
qualify for operating subsidy only if:
   1. combined with public housing homeownership replacement units, the units do not exceed
   the lesser of: a. the number of units under ACC on August 21, 1996; or b. the number of units
   for which the PHA was receiving operating subsidy on August 21, 1996; and
   2. the units that are to be placed under an ACC and operated as public housing units.
   Homeownership Units: HOPE VI funds may be used to provide appropriate replacement
   homeownership assistance for displaced public housing residents or other public housing-
   eligible low income families. Homeownership units may be deemed replacement units only
   if, when combined with ACC rental replacement units as described above, they do not exceed
   the total number of units demolished and/or disposed of at the targeted severely distressed
   public housing project.

Replicated Data - Data that is copied from a data source to one or more target environments
based on replication rules. Replicated data can consist of full tables or rectangular extracts.
DAMA web site at

Repository - An integrated holding area for enterprise meta data. The contents should be
definable, loadable, and retrievable regardless of the originating tool, platform, programming
language, or DBMS. DAMA web site at

Repossess - to take back property through judicial processes, foreclosure, or self-help upon
default in required payments.

Reprogramming - Shifting funds within an Appropriation or Fund Account to use them for
different purposes than those contemplated at the time of appropriation, e.g., different Object
Class. While a transfer of funds involves shifting funds from one account to another,
reprogramming involves shifting funds within an account. (GAO) HUDCAPS Core Financial
System Standard Accounting Interface, dated 9/30/97

Request for Notice of Default - A document whereby the junior lenders require the senior
lender to notify them when the borrower defaults on their loan.

Request for Proposals (RFP) - A RFP is the instrument used to solicit proposals/offers for
proposed contracts using the negotiated procurement method.

Request for Qualifications (RFQ) - Request for Qualifications: a procurement document that
may be used by a PHA to solicit competitive offers from prospective service providers in cases
where price is not one of the evaluation factors. This alternate procurement process is also
referred to as "qualifications-based selection" (QBS). Under the QBS method, the solicitation
does not request prices, because only technical qualifications are reviewed, and the best firm is
selected on that basis. The PHA then negotiates fair and reasonable compensation with the best
qualified firm. If agreement cannot be reached, the PHA may negotiate with the next best
qualified firm.
Glossary of Housing Acronyms and Terms
Request for Quotations (RFQ) - A RFQ is the instrument used to solicit price quotes for
proposed contracts using the simplified acquisition procurement method.

Rescission - An option in the discharge of a contract. If both parties agree, they may rescind a
contract in a process called rescission.

Rescission - Legislation enacted by Congress that cancels the availability of budgetary resources
previously provided by law before the authority would otherwise lapse. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Rescission of a Notice of Default (Foreclosure) - When signed by the agent and recorded by
the trustee, this document removes the effect of the previously recorded Notice of Default.

Rescue Fraud - This is a version of predatory lending in which an entity claims to “rescue” a
homeowner who already has a predatory loan. While there are variations, the most harmful
variety involves a “rescuer” who induces a homeowner to transfer legal title to the home in
exchange for paying off the current mortgage. The “rescuer” then offers some type of option to
repurchase the property, but these terms are never affordable and the original homeowner often
ends up losing both his or her home and tens (or hundreds) of thousands of dollars of equity.

Reservation - A set-aside of funds without the detail of what it will be used for. That is, funds
for a particular initiative that are removed from availability although the specific needs for the
initiative are not yet defined and the procurement process for that initiative will not be begun
until some later date.

Reservation - a provision in a deed which keeps (reserves) to the grantor some right or portion
of the property. The language might read: "Sarah Sims reserves to herself an easement of access
to lots 6, 7 and 8," or "reserves mineral rights," or "except she reserves lot 5."

Reserve Fund (LIHTC) – The reserves of state or local housing finance agencies (HFAs) are
funds saved through income generated in the course of their operations. Among other sources,
reserves are built through fees that HFAs charge on outstanding bonds and the spreads between
the cost of funds to the HFA and the rates charged to borrowers.

Residential Care Apartment Complex (RCAC) - RCACs are independent apartment units in
which the following services are provided: 1) room and board, and 2) up to 28 hours per week of
supportive care, personal care, and nursing services

Residential Mortgage - A residential mortgage is a document in which the owner uses the title
to residential property as security for a loan described in a promissory note. The mortgage must
be signed by the owner (borrower/mortgagor), acknowledged before a notary public, and
recorded with the County Recorder or Recorder of Deeds. If the owner fails to make payments
on the promissory note then the lender can foreclose on the mortgage to force a sale of the real
property and receive the proceeds, or receive the property itself at a public sheriff's sale.
Glossary of Housing Acronyms and Terms
Residential Real Estate Inspector (RREI) - Residential Real Estate Inspector (RREI) or
Commercial Real Estate Inspector (CREI) are both members of the Foundation of Real Estate
Appraisers (FREA).

Residency Preference (Section 8) – A PHA preference for admission of families that reside
anywhere in a specified area, including families with a member who works or has been hired to
work in the area (“residency preference area”)

Resident Alien - A person who is a legal permanent resident, but not a citizen, of the United

Resident Assistant (Section 8) – A person who lives in an Independent Group Residence and
provides on a daily basis some or all of the necessary services to elderly, handicapped, and
disabled individuals receiving Section 8 housing assistance and who is essential to these
individuals’ receiving care or well-being. A Resident Assistant shall not be related by blood,
marriage or operation of law to individuals receiving Section 8 assistance nor contribute to a
portion of his/her income or resources towards the expenses of these individuals. (See Sections
8.82109(n), 882.106(c) and 882.102 definitions in Appendix 1 of 7420.7.)

Resident Management - Involvement of public housing residents in the day-to-day management
and maintenance functions of their housing properties through a contract between the Public
Housing Agency and a nonprofit, democratically-selected tenant management corporation.

Resident Ownership - A program to provide full homeownership opportunities for residents of
public housing and surrounding low-income communities through a combination of direct sales
to tenants and conversions, utilizing resident management, corporations and other nonprofit
entities. (Also, see "Urban Homesteading").

Residential Mortgage - Residential mortgage is a loan that's secured by residential property. A
residential mortgage is generally a long-term debt facility that can be structured with either fixed
or adjustable interest. In the U.S., residential mortgage interest is tax-deductible

Residual Receipts - Amounts received by the facility through subsidy payments which are over
the gross unit rent. These amounts historically are the property of HUD. Certain projects are
required to routinely turn these back to HUD for redistribution to other programs. Some project
types keep these amounts in separate accounts and may be authorized to access them for HUD
approved expenditures which may include funding for CNA’s, service coordinators, etc.
In the event of prepayment, projects may be requested to return the funds to HUD.

Residuary Beneficiary - A person who receives any property by a will or trust that is not
specifically left to another designated beneficiary. For example, if Antonio makes a will leaving
his home to Edwina and the remainder of his property to Elmo, then Elmo is the residuary

Resolution (Bond Resolution) - Formal board action authorizing the issuance of bonds. This is
an alternative to indenture.
Glossary of Housing Acronyms and Terms

Resolution Trust Corporation (RTC) - A federal corporation created to sell or liquidate
(“resolve”) failed savings and loan associations.

Responsible Entity – For the public housing and the Section 8 tenant-based assistance, project-
based certificate assistance, and moderate rehabilitation programs, the responsible entity means
the PHA administering the program under an ACC with HUD. For all other Section 8 programs,
the responsible entity means the Section 8 owner.

Restoration - An Unobligated amount previously withdrawn (that is, Transferred out of an
Appropriation account) by administrative action that is returned to the account and again made
available for Obligation and Outlay (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Restraint on Alienation - an attempt in a deed or will to prevent the sale or other transfer of real
property either forever or for an extremely long period of time. Such a restraint on the freedom to
transfer property is generally unlawful and therefore void or voidable (can be made void if an
owner objects), since a present owner should not be able to tie the hands of future generations to
deal with their property. This ban on a restraint on alienation (transfer) is called "the rule against
perpetuities." Examples: Oliver Oldtimer sells his ranch to his son with the condition that title
may never be transferred to anyone outside of the family. Martha Oldtimer in her will gives her
home to her daughter Jacqueline on condition that "Jacqueline's descendants must never sell the
place." However, one is generally allowed to limit transfer to a maximum period calculated by
"lives in being, plus 21 years." Restraints on alienation (so-called restrictive covenants) based on
race ("only Caucasians may hold title") were declared unconstitutional in 1949.

Restricted Yield – While the proceeds of a tax exempt bond issue which are not invested in
Mortgage Loans or Mortgage Backed Securities can be invested at a yield which is higher than
the yield on the tax exempt bonds, the earnings which represent the difference between the
invested yield and the Bond Yield have to be rebated to the Federal Government. The Bond
Yield is therefore the “Restricted Yield” for these types of investments.

Restructuring (Bankruptcy) - Out-of-court attempt by the debtor to reorganize financial
matters in order to pay off what is owed.

Resyndication - The process of applying for new tax credits once a project’s Compliance Period
is over. Note: The IRS allows projects to receive new tax credits following the end of the
Compliance Period if they are eligible under the State’s Qualified Allocation Plan (QAP). Some
State QAP’s provide special set asides to preserve affordability. The IRS has special regulations
regarding the ownership structure with resyndicated projects and the Sponsor should consult with
their attorney and/or CPA to review the requirements.

Retail Investor – An investor which purchases bond investments for their own personal account.
Glossary of Housing Acronyms and Terms
Retaliatory Eviction - An eviction due to a tenant's complaints to the landlord, a public agency
or tenant association. It is illegal for a landlord to decrease services, increase rent or evict the
tenant within 180 days of such a complaint.

Retention – A portion of a bond issue which is determined by the Issuer to be exclusively
reserved for a certain member of the Underwriting Group. The individual member is assigned
the responsibility of finding an investor to purchase the bonds and such an order is not subject to
the normal priority of order rules spelled out in the Agreement Among Underwriters.

Retroactive Liability - A liability is not limited to the current owner of a property, but includes
people who have previously owned the property.

Return on Average Common Equity - net income available to common stockholders, as a
percentage of average common stockholder equity.

Revenue Anticipation Notes (RANs) - are issued in anticipation of other sources of future
revenue, typically Federal or State aid.

Revenue Bonds – Bonds payable from a specific source of revenue and which do not pledge the
full faith and credit of the Issuer. Revenue bonds do not permit the bondholders to compel
taxation or legislative appropriation of funds not pledged for payment of debt service. Pledged
revenues may be derived from the operation of the financed project, grants, and excise or other
specified non-ad valorem taxes. Generally, no election is required prior to issuance or validation
of revenue bonds.

Revenue Ruling – a published opinion of the Internal Revenue Service stating what it would
rule on future tax questions based on the same circumstances. These rulings are of general use to
taxpayers, tax preparers, accountants and attorneys in anticipating tax treatment by the IRS. They
have the force of law until otherwise determined by the federal tax court or a new revenue ruling.

Reverse Annuity Mortgage (RAM) - A loan under which the homeowner receives monthly
payments based on his or her accumulated equity rather than a lump sum. The loan must be
repaid at a prearranged date or upon the death of the owner or the sale of the property.

Reverse Mortgage - A special type of loan available to equity-rich, older owners. Repayment is
not necessary until the borrower sells the property or moves into a retirement community.

Reversion - The right to future possession or enjoyment of an estate by the person who created it
or his or her heirs.

Reversionary Interest - A type of interest a person may have in lands or other property upon the
termination of the preceding estate.

Reversionary Right - The return of the rights of possession and quiet enjoyment to the lessor at
the expiration of a lease
Glossary of Housing Acronyms and Terms
Reverter Clause (LIHTC) - A provision in a land sale agreement mandating that the land will
revert back to public ownership if not used in accordance with the terms of the agreement.

Revitalization of Severely Distressed Public Housing (HOPE VI) - Through the HOPE VI
program, HUD provides grants to eligible applicants for the demolition, construction, and
rehabilitation of public housing; development of replacement housing; and community and
supportive services that provide public housing residents with resources to support their progress
toward sufficiency. The HOPE VI program encourages PHAs to seek new partnerships with
private entities to create mixed-finance and mixed-income affordable housing that is a departure
from traditional public housing.

Revolving Fund - means a separate fund (with a set of accounts that are independent of other
program accounts) established for the purpose of carrying out specific activities which, in turn,
generate payments to the fund for use in carrying out the same activities.

Revolving Liability - A credit arrangement, such as a credit card, that allows a customer to
borrow against a pre-approved line of credit when purchasing goods and services. The borrower
is billed for the amount that is actually borrowed plus any interest due.

Rezoning (LIHTC) - The process and action of reclassifying a parcel, parcels or geographic
area from one zone classification to a new zone classification. Some localities have expanded the
supply of housing by rezoning land from industrial use to residential use.

RHS Letters of Priority Entitlement (LOPE) - A letter issued to tenants displaced by rent
increases as a result of prepayment, natural disaster or uninhabitable situation that allows them
priority placement on the waiting list of USDA or HUD-sponsored rental housing.

Rider - an attachment to a document which adds to or amends it. Typical is an added provision
to an insurance policy, such as additional coverage or temporary insurance to cover a public
event. 2) in legislatures, an amendment tacked on to a bill which has little or no relevance to the
main purpose of the legislation, but is a way to get the amendment passed if the basic bill has

Right of Foreclosure – Right of Foreclosure is the right of a lending institution to take over
mortgaged property and close out the mortgagor's interest in it if the mortgagor violates the terms
of the mortgage or loan note.

Right of Ingress or Egress - The right to enter or leave designated premises.

Right of Redemption (Foreclosure) - The period after the foreclosure during which the
homeowner can redeem the property

Right of Rescission - The borrower's statutory right under the Truth-in-Lending law to change
his or her mind and cancel a loan within three business days from the date of the loan
Glossary of Housing Acronyms and Terms
Right of Survivorship - The distinctive characteristics of a joint tenancy (also tenancy by
entirety) by which the surviving joint tenant(s) succeeds to all right, title and interest of the
deceased joint tenant without the need for probate proceedings.

Right-of-Way - The right to cross over or under another person's property for ingress, egress,
utility lines, or sewers.

Riparian - Pertaining to the water's edge. It is generally used to describe the rights of land
owners whose property is adjacent to rivers, lakes or other bodies of water.

Riparian Rights - The rights that an owner of land that borders on a river, stream or waterway
has to use and enjoy the water which is adjacent to the land or flows over it provided that use
does not cause any injure to riparian owners downstream.

Risk Assessment - The identification and analysis of relevant external and internal risks to
achievement of established objectives, forming a basis for determining how risks should be
managed. (JFMIP Framework) HUDCAPS Core Financial System Standard Accounting
Interface, dated 9/30/97

Risk Based Capital - an amount of capital needed to offset losses during a ten-year period with
adverse circumstances.

Risk-Based Financing - When the lender sets loan terms based on potential risk. Borrowers that
show little risk of default would be entitled to a better rate and terms than a borrower where a
higher probability of default is indicated.

Risk Based Pricing - Fee structure used by creditors based on risks of granting credit to a
borrower with a poor credit history.

Risk Management - Evaluation and selection of appropriate property and other Insurance

Risk Scoring - an automated way to analyze a credit report verses a manual review. It takes into
account late payments, outstanding debt, credit experience, and number of inquiries in an
unbiased manner.

Risk-Sharing (Mortgages) - A concept by which HFAs insure mortgages they issue in
partnership with entities such as private insurers or FHA.

Ritzy Maes - Slang for mortgage-backed securities sold by the Resolution Trust Corporation.

Roll Over Mortgage - A loan having a call date earlier than the full amortization period.

Roll Up Query - Query that summarizes data at a level higher than the previous level of detail.
DAMA web site at
Glossary of Housing Acronyms and Terms
Rule 10b-5 – A regulation of the Securities and Exchange Commission, adopted pursuant to the
Securities and Exchange Act of 1934, which makes it unlawful for any person to employ any
device, scheme, or artifice to defraud; to make any untrue statement of a material fact, or to omit
a material fact necessary in order to make the statements made, in the light of the circumstances
under which they were made, misleading; or to engage in any act, practice, or course of business
which operates or would operate as a fraud or deceit upon any person, in connection with the
purchase or sale of any security.

Rule Against Perpetuities - the legal prohibition against tying up property so that it cannot be
transferred or vest title in another forever, for several future generations, or for a period of
centuries. The maximum period in which real property title may be held without allowing title to
vest in another is "lives in being plus 21 years." Therefore, a provision in a deed or will which
reads, "Title shall be held by David Smith and, upon his death, title may only be held by his
descendants until the year 2200, when it shall vest in the Trinity Episcopal Church," is invalid,
but a provision that "the property will be held by my son George for his life, and thereafter by his
son, Thomas, and for 20 years by his future children, before it may be conveyed (transferred) [or
title shall then vest in the church]" is acceptable under the rule.

Runs With The Land - A covenant which grants either the right to take advantage of the land or
the liability to perform something and which passes to the subsequent grantees of that land is
said to run with the land.

Rural - An area outside larger and moderate-sized cities and surrounding population
concentrations that typically has farms, ranches, small towns and unpopulated regions. See

Rural Development (RD) - Formerly the Farmers Home Administration, RD is part of the U. S.
Department of Agriculture. It administers grant and loan programs to promote and support
housing and essential community facilities development in rural communities.

Rural Housing - Rural housing programs, such as Section 515, were very recently placed under
the jurisdiction of the Rural Housing Service (RHS), but the name and acronym of Farmers
Home is expected to be better associated with these programs for a long time.
Rural areas usually have a population between 1-10,000 and are defined as an area not part of or
associated with an urban area. There are eligibility breakdowns for areas with populations under
2,500; 10,000; and occasionally 20,000.

Rural Housing (RHS) Loans - The Rural Housing Service (RHS), a branch of the U.S.
Department of Agriculture, offers low-interest-rate homeownership loans with no down payment
requirements to low- and moderate-income persons who live in rural areas or small towns. Check
with your local RHS office or a local lender for eligibility requirements. For the location of RHS
State Offices and details on RHS loans, see the RHS home page.

Rural Housing Service - Formerly the Farmers Home Administration (FmHA), the RHS is the
part of the U.S. Department of Agriculture which administer loans, grants and related assistance
Glossary of Housing Acronyms and Terms
for housing and community facilities for low-income rural persons and their communities.
AAHSA members with assisted rural housing projects are usually in the Section 515 program.

S&E – Salaries and Expenses Appropriation

S&L - Savings and Loan Association

S&P – Standard & Poor’s Rating Service

S – Sales Type Co-op

SA - Subarea

SAC - Special Applications Center (under PIH)

SAHMA – “Southeastern Affordable Housing Management Association”

SAM - Shared Appreciation Mortgage

SAMA – Site Appraisal and Market Analysis

SAS – Statistical Analysis Software

SBA – “Small Business Administration”

SCAIPC – “South Carolina Aging in Place Coalition”

SCANPO – “South Carolina Association of Non Profit Organizations”

SCCH – “South Carolina Council on Homelessness”

SCHC – “South Carolina Homeless Coalition”

SCRDC – “South Carolina Rural Development Council”

SCSHFDA – South Carolina State Housing Finance and Development Authority

SEC – “Securities and Exchange Commission”

SEM – Shared Equity Mortgage

SEMAP – Section 8 Management Assessment Program
Glossary of Housing Acronyms and Terms
SEQUINS - Select Equity Indexed Notes

SGL – Standard General Ledger

SHOP - Self-Help Homeownership Opportunity Program

SHP - Supportive Housing Program

SIFMA – Securities Industry and Financial Markets Association

SISA – State Income/Stated Asset Mortgage

SLED – State Law Enforcement Division

SMSA – Standard Statistical Metropolitan Area

SRI – Special Risk Insurance Fund (of FHA)

SRO – Single-Room Occupancy

SSA – Social Security Administration

SSI – Supplemental Security Income

SSMA - Standard Statistical Metropolitan Area

STARS – System for tracking calls requesting computer-related assistance

SUPP – See Rent Supplement

SWICA - State Wage Information Collection Agency

S Corporation - A term that describes a profit-making corporation organized under state law
whose shareholders have applied for and received subchapter S corporation status from the
Internal Revenue Service. Electing to do business as an S corporation lets shareholders enjoy
limited liability status, as would be true of any corporation, but be taxed like a partnership or sole
proprietor. That is, instead of being taxed as a separate entity (as would be the case with a regular
or C corporation) an S corporation is a pass-through tax entity: income taxes are reported and
paid by the shareholders, not the S corporation. To qualify as an S corporation a number of IRS
rules must be met, such as a limit of 75 shareholders and citizenship requirements.

Safe Harbor - “Safe Harbor” refers to Internal Revenue Service (IRS) estimates issued for the
MRB and MCC programs which are used to determine purchase price limits for homes eligible
to be bought under the programs. The estimates are developed from federal data samples and
may be appealed by individual agencies seeking to use their own limits (based on a more
accurate, comprehensive, and timely data base than the official limits).
Glossary of Housing Acronyms and Terms

Sale Leaseback - when a seller deeds property to a buyer for a payment, and the buyer
simultaneously leases the property back to the seller.

Sales Type Co-op (S) - Normally, a non-profit housing corporation or trust organized for the
purpose of building homes for members.

Sallie Mae - Nickname for the Student Loan Marketing Association.

Sandwich Lease - A sandwich lease is a property use arrangement between a lessee and
property owner, where the lessee subleases the property to a third party.

Satisfaction of Mortgage - When all mortgage loan payments have been made and the note has
been paid in full, a satisfaction of mortgage (also known as a release of mortgage or mortgage
discharge) returns to the mortgagor all interest in the real estate, which was conveyed to the
mortgagee by the original recorded mortgage document.

Savings and Loan Association (S&L) - A financial intermediary which receives savings and
invests those savings mainly in mortgage loans. Always a corporation, it may be either a mutual
or capital stock institution and may be either state-chartered or federally chartered.

Savings Bank - A financial intermediary which receives savings and invests these deposits in
mortgages and other securities allowed by law. The banks, with the exception of few in New
Hampshire, and mutual institutions and are governed by self-perpetuating boards of trustees.

Savings Institutions - Savings and loans savings banks which historically have been primary
investors in residential mortgage loans.

Scattered Site Project – A scattered site project is a qualified low-income housing project
located on multiple sites.

Schedule A - An excepted appointment made to positions for which it is not practical to examine
(attorney positions are included by law).

Schedule B - An excepted appointment made to positions for which there are no competitive
exams; many Schedule B appointments may later lead to conversion to competitive appointments
(e.g., cooperative education program appointments).

Schedule C - Type of appointment, exempt from competitive procedures, used for hiring
individuals involved in setting Presidential policies and those serving in confidential positions
reporting to policy makers.

Schedules (Bankruptcy) - Detailed lists filed by the debtor along with (or shortly after filing)
the petition showing the debtor's assets, liabilities, and other financial information. (There are
official forms a debtor must use.)
Glossary of Housing Acronyms and Terms
Scire Facias (Foreclosure) - A judicial writ that requires a defendant to appear in court to prove
why an existing judgment should not be executed against her/him. It is brought in a case that has
already been before a court and commands the person that it is being brought against to appear
before the court and show why the judgment brought against them should not stand. In some
states this writ is used in foreclosure proceedings. It requires the defaulting borrower to prove
that the loan is not in default as opposed to the defaulting lender being required to prove that the
loan is in default.

Screen - means the process by which GSA surveys Federal agencies, or State, local and non-
profit entities, to determine if any such entity has an interest in using excess Federal property to
carry out a particular agency mission or a specific public use.

Seasoned Mortgage - A mortgage that has been in effect at least one year and on which
principal and interest payments are being made on time.

Secondary Financing – A loan secured by a second mortgage or deed of trust on real property.

Secondary Market - Market for issue previously offered or sold.

Second Mortgage - A mortgage (or trust deed) that is junior or subordinate to a first mortgage;
typically, an additional loan imposed on top of the first mortgage, taken out when the borrower
needs more money. Because the risk involved to the lender is greater with the second mortgage,
the lender's conditions are usually more stringent, the term is shorter and the interest rate is
higher than for the first mortgage.

Secondary Market – The market in which bonds are purchased after the delivery date

Secondary Mortgage Market - A market of packaged home loans that are resold as securities to
investors. Major players are Fannie Mae and Freddie Mac.

Secretary – The Secretary of Housing and Urban Development

Secretary’s Award Program - Awards from the HUD Secretary for best in residential housing
design, excellence in historic preservation, and excellence produced through cooperative
public/private efforts that expand homeownership opportunities for underserved American

Section 3 – The purpose of Section 3 of the Housing and Urban Development Act of 1968
(Economic Opportunities for Low and Very Low-Income Persons in Connection with assisted
Projects) is to ensure that, to the greatest extent feasible, and consistent with existing Federal
State, and local laws and regulations, training, employment, and other economic opportunities
generated by certain HUD financial assistance will be directed to low- and very low-income
persons, particularly those who are recipients of government assistance for housing, and to
business concerns which provide economic opportunities to low- and very low-income persons.
Program regulations are at 24 CFR part 135. More information about Section 3 can be found on
HUD's website:
Glossary of Housing Acronyms and Terms

Section 5(h) – Permits PHAs to sell all or part of a public housing development to eligible

Section 8 – Program established under the U.S. Housing Act that authorized the Department of
Housing and Urban Development (HUD) to pay rental subsidies to owners of qualified housing
on behalf of eligible tenants.. The program was repealed in 1983 under the Housing and Urban-
Rural Recovery Act, but the federal subsidy contracts entered into prior to 1983 continue to carry
ongoing obligations for the remaining terms of their contracts.

Section 8 Covered Programs (Section 8) – All HUD programs which assist housing under
Section 8 of the 1937 Act, including Section 8 assisted housing for which loans are made under
Section 202 of the Housing Act of 1959.

Section 8 Existing Rental Assistance - A Federal program that provides rental assistance to
low-income families who are unable to afford market rents-Assistance may be in the form of
vouchers or certificates

Section 8 Homeownership Program - Allows low-income families who qualify for Section 8
rental assistance to use their certificates or vouchers to pay for homeownership costs under a

Section 8 Lower Income Rental Assistance Program - Program under which HUD makes up
the difference between what a low- and very-low income household can afford and approved

Section 8 Management Assessment (SEMAP) - The section eight management assessment
program (SEMAP) measures the performance of the public housing agencies (PHAs) that
administer the housing choice voucher program in 14 key areas. SEMAP helps HUD target
monitoring and assistance to PHA programs that need the most improvement.

Section 8 Moderate Rehabilitation Program - A HUD program under which PHAs
administering the program advertise fund availability and select participating landlords based on
a competitive process. The landlords agree to rehabilitate the properties to certain standards, and
the PHAs set rents based on a number of factors.

Section 8 Project-Based Assistance - Section 8 project based assistance is a federal rent subsidy
program in which rent assistance is attached to specific privately-owned units. Families that live
in units with Section 8 project-based assistance typically contribute about 30 percent of
household income towards the monthly rent, and the administering public housing agency pays
the remainder of the contracted rent directly to the landlord. When the family moves, the subsidy
remains with the unit, keeping it affordable for the next family.

Section 8 Project Based Vouchers - Administered by HUD's Office of Public and Indian
Housing and local housing authorities, the Section 8 Project-Based Voucher program allows
Glossary of Housing Acronyms and Terms
local housing authorities to contract with property owners to ensure that Section 8 voucher
holders to will occupy up to 25 percent of a building's units. When assisted tenants move and
take their vouchers with them, new voucher holders replace them.

Section 8 Rental Certificate Program - HUD contracts with PHAs and IHAs, which issue
rental certificates to very low income families. The families may find a suitable home, and
assistance payments are made to the property owners. A certificate pays the difference between
the recipient’s unit’s actual rent and 30 percent of the tenant’s income. Generally, the rent for
the units may not exceed the fair market rent (FMR), which is set at roughly the 45th percentile of
local rents.

Section 8 Rental Voucher Program - HUD contracts with local public housing agencies
(PHAs) and Indian Housing agencies (IHAs), which issue rental vouchers to very low income
families. A voucher pays the difference between a payment standard (similar to the FMR) and
30 percent of the tenant’s income. If the actual rent exceeds or is less than the payment standard,
the tenant pays the excess or keeps the difference.

Section 9 Operating Subsidies - Section 9(a) of the U.S. Housing Act of 1937 authorizes HUD
to make annual contributions to Public Housing Authorities to pay for the operation of public
housing rental units. The payments are called Operating Subsidy

Section 10b - This section of the Federal Home Loan Bank Act allows organizations that are not
members of the Federal Home Loan Bank (“non-members,” such as HFAs) to collect advances
from the Federal Home Loan Banks for affordable housing activities. Amendment was enacted
in 1992 pursuant to NCSHA advocacy.
(B) Securities issued, insured, or guaranteed by the United States Government or any agency
thereof (including without limitation, mortgage-backed securities issued or guaranteed by the
Federal Home Loan Mortgage Corporation, the Federal National Mortgage Corporation, and the
Government National Mortgage Association).

Section 23 Leased Housing - Program established by the Housing Act of 1965 enabling local
housing authorities to provide public housing by leasing existing private housing from private
owners for occupancy by public housing tenants. Federal legislation passed in 1970 expanded
Section 23 permitting housing authorities to lease newly constructed housing as well as existing
structures. The maximum term of a lease for existing housing is 15 years; for new housing, a
term is 20 years. Public housing tenants in leased housing pay the same rent that would be paid
for authority-owned housing; the difference is made up by the authority with federal
contributions and special subsidies, called Housing Assistance Payments.

Section 106a - Technical assistance to nonprofit sponsors of Federally-assisted housing
programs and counseling to tenants and homeowners, authorized by the Housing and Urban
Development Act of 1968.

Section 106b - Loans to nonprofit sponsors of Federally-assisted housing programs, authorized
by the Housing and Urban Development Act of 1968
Glossary of Housing Acronyms and Terms

Section 108 – The loan guarantee provision of the CDBG program. Section 108 provides
communities with a source of financing for economic development, housing rehabilitation,
public facilities and large-scale physical development projects.

Section 142 of the Internal Revenue Code - Tax law establishing and defining exempt facility
bond programs (multifamily housing bonds).

Section 167(k) Election - Section 167(k) is any election available before the Tax Reform Act of
1986 which allowed building owners to amortize rehabilitation costs over 60 months.

Section 184 – Loan Guarantee Program

Section 202 Elderly or Disabled Housing - Enacted by Congress as part of the Housing Act of
1959 and originally provided direct loans, for the purpose of constructing housing for low-
income elderly and the disabled, to non-profits with a 40-year note and mortgage. An
amendment in 1990 changed the statute to a grant program and an amendment in 2000 allowed
for the refinancing of the original loans issued prior to 1990. Most of the loans are secured by
Project Rental Assistance Contracts (PRAC), which are essentially Section 8 Housing Assistance
Payment contracts, with an original term of 20-40 years and an expectation of HUD renewal for
a term of one to five years.

Section 202, Direct Loans for Housing for the Elderly or Handicapped (1974-1990) or
Section 202/8 - In 1974, the Section 202 program was revived, revised to include Section 8
funds for 100 percent of project units, and extended to cover chronically mentally ill persons.
This program provides loans for the construction or rehabilitation of housing for the elderly (and
handicapped/disabled) which is linked with a Section 8 HAP contract. The loan is generally a 40-
year loan with a 20-year rental subsidy attached when the contract is signed. This program is
currently inactive.
The Section 8 subsidy for many of these projects will be expiring shortly - this is key to
understanding the scope of the discussion concerning Section 8 contract renewals and/or

Section 202 Mandatory Conversion - Requires Public Housing Authorities to demolish or sell
certain public housing units which cannot be reasonably operated or revitalized due to their
deteriorated condition

Section 202/PRAC - The Section 202 Program was enacted by Congress in 1959 to provide
housing assistance for the elderly and disabled. In 1990, Congress placed housing for the
handicapped under a separate program called Section 811.
This program provides Federal financial assistance to private nonprofit organizations for the
purpose of providing supportive housing for the elderly, to finance site acquisition, the
Glossary of Housing Acronyms and Terms
construction, reconstruction, or rehabilitation of structures for housing for the elderly. The
financial assistance is (1) a capital advance for construction/development which is interest free
and does not have to be repaid so long as the housing remains available for the very low-income
elderly for a minimum of 40 years and (2) a dwelling unit rental subsidy program are arranged as
a Project Rental Assistance Contract (PRAC), no longer through Section 8. Initially, the PRAC
fills the gap in project operating budget shortfalls, supplementing the rental payments received
by tenants. Originally the PRAC was a 20-year contract, but as a result of the Rescissions Act of
1995, all projects funded since FY95 have a lesser 5 year term. Sponsors are encouraged to
design 202 facilities with services in mind. Projects must provide the necessary services for the
occupants from a range of services which may include, but is not limited to, meals, health,
continuing education, welfare, counseling, homemaking, recreational, informational and
transportation services.

Section 203 – Basic FHA Single Family mortgage insurance program.

Section 203(k) Rehabilitation Mortgage Insurance - Mortgage insurance program for one- to
four-family properties under which HUD insures loans to finance: rehabilitation of an existing
property; purchase and rehabilitation of a property; or rehabilitation and refinancing of the
outstanding indebtedness of a property.

Section 207 Basic Mortgage Insurance Program – While HUD insured very few loans under
Section 207, the requirements of the Section 207 program were used as the foundation of most of
the other multifamily insurance programs. This program is currently authorized but not in use.

Section 207NH Section 207 Nursing Homes – The Section 207 Nursing Home Program served
as the foundation program for the underwriting and insuring of nursing home loans.

Section 213 Limit - Amendment to the Housing Act of 1937 in the Housing Act of 1969
provides that the rent of a public housing tenant may not exceed 25% of the family's adjusted
income (also known as "Brooke Amendment"). Amended in 1981 to be 30% of monthly adjusted
income, or 10% of monthly annual income, or the welfare rent in "As-paid" states, whichever is

Section 214 (Section 8) – Section 214 of the Housing and Community Development Act of
1980, as amended

Section 214 Covered Programs (Section 8) – is the collective term for the HUD programs to
which the restrictions imposed by Section 214 apply. These programs are set forth in §5.500

Section 220-Urban Renewal Housing – Coupled with the Urban Renewal Program in the late
1950’s, the Section 220 Program provided multifamily housing insurance for newly constructed
Glossary of Housing Acronyms and Terms
or rehabilitated properties located in approved urban renewal areas as defined under Title 1 of
the Housing Act of 1949. This program is currently authorized but infrequently used.

Section 221(d)(2) – FHA Single Family Mortgage Insurance for low/moderate income families.

Section 221(d)(3) and Section 221(d)(4) – Programs under which FHA insures multifamily
mortgages, originated by private, HUD-approved lenders, to facilitate the new construction or
substantial rehabilitation of multifamily rental or cooperative housing for low and moderate
income persons. Substantial rehabilitation is more particularly defined as repair costs greater
that 15% of the project replacement cost or the replacement of 2 or more major
components/systems (e.g. roofing, ventilation). The principal difference between the (d)(3) and
(d)(4) programs is the amount of insured mortgage available to different types of sponsors.
Under 221(d)(3), a nonprofit sponsor may receive an insured mortgage for the full amount of the
HUD/FHA estimated replacement cost of the project. Profit motivated sponsors using Section
221(d)(3) and all types of sponsors under Section 221(d)(4) can receive a maximum mortgage of
90 percent of the HUD/FHA replacement cost estimates.

Section 223(a)(7) Refinancing for Insured Properties – Program under which FHA insures
multifamily mortgages in connection with the refinance of projects currently insured by FHA.
The term of the new mortgage may not exceed the remaining term of the existing mortgage
except in special cases and the maximum mortgage limitation is the lesser of: (1) the original
principal amount of the existing insured mortgage; (2) the unpaid principal balance of the
existing insured mortgage plus the cost of required repairs, improvements, outstanding debt
incurred in connection with capital improvements, prepayment penalties, and loan closing costs;
or (3) the amount that can be supported by 90% (95% of owner is non-profit) of net operating

Section 223(c) Refinancing for HUD-Held Mortgages/Properties – This program provided for
refinancing of a property taken into HUD inventory following payment by FHA of an insurance
claim. This program is currently active.

Section 223(e) – FHA mortgage insurance with housing in order declining neighborhoods.

Section 223(f) – Program under which FHA insures multifamily mortgages, originated by
private, HUD-approved lenders, to facilitate the purchase or refinancing of existing multifamily
rental housing that has been completed or substantially rehabilitated for at least 3 years prior to
the date of the application for mortgage insurance. The maximum mortgage limitation for a
purchase transaction is the lesser of: (1) 85% of acquisition cost; (2) 85% of HUD appraised
value; or (3) the amount that can be supported by 85% of net operating income. The maximum
mortgage limitation for a refinance transaction is the lesser of (1) the amount that can be
supported by 85% of net operating income; (2) 85% of HUD appraised value; or (3) the greater
Glossary of Housing Acronyms and Terms
of the cost to refinance or 80% of HUD appraised value.

Section 231 Elderly Housing – Mortgage insurance for housing constructed or rehabilitated
primarily for elderly persons.

Section 232 - Program which authorizes the Federal Housing Administration (FHA) to insure
mortgages for up to 90 percent of value for the new construction or substantial rehabilitation of
nursing homes, board and care homes, and assisted living facilities, as well as combinations of
these types of projects.. Facilities must serve 20 or more patients who require skilled nursing
care and related medical services or need minimum, continuous care by skilled personnel.

Section 235 – FHA single family mortgage insurance with subsidies on interest for
low/moderate income families.

Section 236 Interest Reduction Program (IRP) – Program that subsidizes multi-family
housing properties through an interest rate reduction on the projects mortgage loan. The Section
236 subsidy is the difference between the monthly payment of a mortgage loan at a stated
interest rate and the monthly payment at a rate of 1%, thus giving the owner an extraordinarily
low effective mortgage rate of 1%. HUD makes the interest rate reduction payments to the
mortgagee or its agent on a monthly basis. That subsidized difference is known as an interest
reduction payment (IRP).

Section 236 Market Rent - One of four possible rent variables used to determine individual
tenant rent payments - for Section 236 projects only. Section 236 market rent is budget-based and
determined using the mortgage payments at the market interest rate, the mortgage insurance
premiums paid by the owner, and the owner’s share of utility costs paid for the unit. (See also,
Basic Rent, Fair Market Rent, and Adjusted Annual Income.)

Section 312 Rehabilitation Loan Program - provides low-interest loans for the rehabilitation of
housing in certain Federally-aided areas.

Section 501(c)(3) - Section of the Internal Revenue Code designating a nonprofit corporation
with tax-exempt status.

Section 502 Program-Insured - A single family housing direct loan program that provides
opportunities for very low- and low-income families and individuals to purchase, construct or
rehabilitate their own homes with a direct loan from Rural Development. The homeowner's
monthly mortgage payment is based on their income.
Glossary of Housing Acronyms and Terms
Section 502 Program-Guaranteed - The loan guarantee program provides guarantees to
lenders. Lenders may approve loans up to 100 percent of the appraised value for moderate
income applicants. An approved lender originates the loan and the agency will guarantee 90
percent of the mortgage.

Section 504 Program-Insured Loans and Grants - RHS program that provides loans and
grants to very low-income homeowners for home repair, primarily to remove health and safety

Section 504 - A section of the Rehabilitation Act of 1973, as amended, that provides that "No
otherwise qualified individual with handicaps in the U.S.... shall, solely by reason of his
handicap, be excluded from the participation in, be denied the benefits of, or be subject to
discrimination under any program or activity receiving Federal financial assistance." Section 504
sets minimum accessibility requirements for all PHA development projects using Federal funds.
Information on Disability rights in HUD Programs is available on the HUD website:

Section 515 Program - Section 515 Rural Rental Housing Program provides RHS with the
authority to make loans for new construction to any individual, corporation, association, trust,
Indian tribe, public or private nonprofit organization, consumer cooperative, or partnership very-
low, low, or moderate income persons or families, including elderly persons and persons with

Section 516 Farm Labor Loans and Grants - This program provides decent, safe, and sanitary
housing for domestic farm labor in areas where a need for farm labor exists.

Section 523 - RHS program that provides administrative funding to nonprofit organizations
sponsoring self-help housing development. Also provides loans for the development of self-help
housing sites.

Section 533 Housing Preservation Grants - Also known as the Housing Preservation Grant
(HPG) program. RHS program providing grants to organizations for rehabilitation of ownership
or rental housing for low- and very low-income households.

Section 538 Rural Rental Housing Guaranteed Loan Program – Program offered by the
United States Department of Agriculture Rural Development (USDA) that guarantees
payment of 90% of any losses realized on defaulted multi-family mortgage notes. Bond
proceeds are used to fund the mortgage loan from a USDA-qualified lender to the owner of the
multi-family housing facility that finances the costs of the facility. In addition to funding the
USDA guaranteed mortgage loan, bond proceeds may fund debt service reserves and issuance
costs that are outside the mortgage loan.

Section 542(c) - Program which enables HUD and State and local housing finance agencies
(HFAs) to provide new risk sharing arrangements to help those agencies provide more insurance
Glossary of Housing Acronyms and Terms
and credit for multi-family loans. Participating qualified HFAs can assume risk through two
different levels of participation. Under Level I, an HFA agrees to insure 50%-90% of the loan
amount while under Level II an HFA agrees to insure less than 50% of the loan amount. HFAs
will often choose to take on a greater amount of risk required by Level I in order to be able to use
their own underwriting criteria and establish loan terms without prior HUD approval.

Section 608 Veteran/War Housing – One of the earliest multifamily insurance programs, this
program was designed to spur post World War II housing development. Used primarily during
the late 1940s, it is common to find these properties reinsured under many of the newer
insurance programs which were initiated in the late 1960s and early 1970s.

Section 811 Supportive Housing for Persons with Disabilities - Program administered by
HUD under which capital advances are made to eligible nonprofit sponsors to finance the
development of rental housing with supportive services for disabled persons.

Section 1031 - A section of the U.S. Internal Revenue Service Code that allows investors to
defer capital gains taxes on any exchange of like-kind properties for business or investment
purposes. Taxes on capital gains are not charged on the sale of a property if the money is being
used to purchase another property – the payment of tax is deferred until property is sold with no

Section 1245 – A part of the IRS code stating that depreciable property that has been sold at a
price in excess of depreciated or salvage value may qualify for favorable capital-gains tax

Section 1250 – A section of the IRS code stating that a gain from selling real estate that has
been subjected to accelerated depreciation should be treated as ordinary income instead of a
capital gain

Secured Creditor (Bankruptcy) - A creditor holding a claim against the debtor who has the
right to take and hold or sell certain property of the debtor in satisfaction of some or all of the

Secured Debt (Foreclosure) - A debt on which a creditor has a lien. The creditor can institute a
foreclosure or repossession to take the property identified by the lien, called the collateral, to
satisfy the debt if you default. Compare unsecured debt.

Secured Debt (Bankruptcy) - Debt backed by a mortgage, pledge of collateral, or other lien;
debt for which the creditor has the right to pursue specific pledged property upon default.
Examples include home mortgages, auto loans and tax liens.

Securities and Exchange Commission (SEC) – The Federal Agency responsible for
supervising and regulating the securities industry. Generally, municipal securities are exempt
Glossary of Housing Acronyms and Terms
from the SEC’s registration and reporting requirements. However, the SEC has responsibility
for the approval of Municipal Securities Rulemaking Board rules, and has jurisdiction, pursuant
to SEC Rule 10b-5, over fraud in the sale of municipal securities.

Securities Industry and Financial Markets Association (SIFMA) - As a result of the merger
in 2006 between The Securities Industry Association (SIA) and The Bond Market Association
(TBMA), we are now The Securities Industry and Financial Markets Association (SIFMA).

Securitization - The pooling of real estate mortgages and trust deeds to act as collateral for the
sale of securities to public and private investors.

Security Agreement - A document or section of a note that contains a description of the loan
collateral. It establishes the lender's rights to the collateral in the event of default on the loan.

Security Deed - This deed is used, rather than a mortgage, to give a lender a security interest in
the property. A security deed, as opposed to a mere mortgage, passes legal title to the land while
reserving unto the debtor the equitable title to use and enjoy the conveyed land subject to
compliance with debt obligations.

Security Deposit (Section 8) – A dollar amount (maximum set according to the regulations)
which can be used for unpaid rent or damages to the owner upon termination of the lease.

Security Instrument - The mortgage or trust deed that is the evidence of the pledge of real
estate as security, as distinguished from the note or other credit instrument.

Security Interest - An interest a lender takes in the borrower's property to assure repayment of a
debt. If the borrower defaults, the lender can sell the collateral to satisfy the debt.

Seisen (Legal) - an old feudal term for having both possession and title of real property. The
word is found in some old deeds, meaning ownership in fee simple (full title to real property).

Self-Amortizing Mortgage - A self-amortizing mortgage is a real estate property loan that's paid
off at maturity, as long as all payments are made as scheduled. Normally this would be a fixed-
rate mortgage, but adjustable-rate mortgages can be self-amortizing also. In a fixed-rate
structure, the payment amount would be fixed; an adjustable-rate mortgage would have a
fluctuating payment amount.

Self-Help Homeownership Opportunity Program (SHOP) - The Self-Help Homeownership
Opportunity Program enables families to become homeowners with an investment of "sweat
equity" – contributing their own labor to help with such tasks as painting, landscaping, carpentry
and roofing. HUD grants will provide subsidies averaging $10,000 to lower the price of each
home. Families unable to afford a home and having incomes below 80 percent of the area
median income are eligible to receive HUD assistance under SHOP. HUD web site at
Glossary of Housing Acronyms and Terms
Self-Help Housing - Generally, a model of housing production in which purchasers reduce the
cost of their homes by contributing "sweat equity" — their own labor in the construction of their
own homes. In rural areas, much self-help housing is produced with technical assistance funded
by the RHS Section 523 program, and many self-help purchasers receive mortgages from the
RHS Section 502 program. RHS uses the "mutual self-help" method, in which participants build
homes in groups of six to twelve, working on each others' homes until all are completed.

Selling Group – A group of bond dealers which the Issuer determines needs to be a part of the
group which sells the bonds to investors. Selling Group Members generally cannot be included
in Priority Orders and their orders are treated as Member Orders.

Senior Lien Bonds – Bonds which are structured so that they will be repaid with the first funds
available prior to all of the debt service requirements of an issue or issues of Junior Lien Bonds.

Senior Lien - the first security interest (lien or claim) placed upon property at a time before
other liens, which are called "junior" liens.

Senior Loan - A real estate loan in the first priority position

Senior Manager – The member of the underwriting group primarily responsible for structuring
the transaction and marketing the bonds. When there is only one Senior Manager, the Senior
Manager is the Book Running Senior Manager. When there is more than one Senior Manager,
they are Co-Senior Managers and only one of them is the Book Running Senior Manager.

Sequestration - The cancellation of budgetary resource provided by discretionary
Appropriations or direct spending law. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Serial Bond – A bond which is typically sold as a relatively short maturity and which has a
principal payment only paid on its maturity date.

Serious Delinquency - When a single-family mortgage that is 90 days or more past due, or a
multifamily mortgage that is two months past due

Service Coordinator - Service coordination is the activity of linking a resident to needed
supportive services or medical services which may be provided by private practitioners or
agencies in the general community. Additionally, the term may cover case management, both
formal and informal, in which the service coordinator assesses service needs of the resident and
determines eligibility for public services, and makes resource allocation decisions.
HUD funding may be used/obtained for the hiring of service coordinators in the following
assisted housing projects: Section 8 (including Section 515/8), 202, 202/8, 202/PRAC, 221(d)(3)
and Section 236 for the elderly, disabled or family households. Funding was initially provided in
two ways, through a national competition with other properties for a limited amount of Section 8
funding, or through the use of the property’s residual receipts, budget-based rent increases or
special rent adjustments. The 1995 Rescission Act took back funds already awarded to 12
facilities for their service coordinators. The first of the 5-year grants issued in 1992 will begin
Glossary of Housing Acronyms and Terms
expiring in 1998, and will require $3.6 million annually to sustain the first wave of contract
Public housing also may provide service coordination which may be directed to family needs
such as job-training and placement programs, child care, and for assisting residents/communities
faced with problems resulting from mixed populations.

Servicer - An organization that collects principal and interest payments from borrowers and
manages borrowers' escrow accounts. The servicer often services mortgages that have been
purchased by an investor in the secondary mortgage market.

Servicing – The collection of payments on a mortgage. Servicing by the lender also consists of
operational procedures covering accounting, bookkeeping, insurance, tax records, loan-payment
follow-up, delinquency follow-up, and loan analysis.

Servicing Agreement – The agreement between the Issuer, the Trustee, and the Lenders which
explains the terms under which mortgage loans will be purchased by the Servicer or Master
Servicer as well as the responsibilities of the Servicer throughout the life of the mortgage loans.

Servicing Release Premium – the amount of money that the Servicer or Master Servicer will
pay for the right to service the mortgage loans.

Servicing Strip - Servicing strip is a security that's backed by mortgage servicing fees.
Theoretically, mortgage servicing fees are a long-term stream of cash flows. As such, the
securities backed by these fees trade on the secondary market, similar to the way in which
mortgage-backed securities trade.

Servient Tenement - Land on which an easement exists in favor of an adjacent property (called
a dominant tenement or estate); also called a servient estate. If property A has a right-of-way
across property B, property B is the servient tenement. The servient owner may not use the
property in such a way as to interfere with the reasonable use of the dominant owner.

Set-Back (LIHTC) - The minimum distance which a wall, face or window is required to be
from a property boundary or another window to a habitable room. It is measured as the
horizontal distance between the proposed wall or window and boundary or other window.

Set Off (Bankruptcy) - A counter claim to discharge or reduce the debt.

Set-up Charges (Section 8) – In a manufactured home space rental charges payable by the
family for assembling, skirting and anchoring the manufactured home.

Settlement Statement - a document required by the Real Estate Settlement Procedures Act
(RESPA). It is an itemized statement of services and charges relating to the closing of a property
transfer. The buyer has the right to examine the settlement statement 1 day before the closing.
This is called the HUD 1 Settlement Statement.
Glossary of Housing Acronyms and Terms
Several Liability (Legal) - referring to responsibility of one party for the entire debt (as in "joint
and several") or judgment when those who jointly agreed to pay the debt or are jointly ordered to
pay a judgment do not do so. A person who is stuck with "several liability" because the others do
not pay their part may sue the other joint debtors for contribution toward the payment he/she has

Severalty - Sole ownership of real property.

Severely Distressed Public Housing - Section (j)(2) of the Public Housing Reform Act defines
severely distressed public housing as a public housing project (or building in a project) that:
(A) (i) requires major redesign, reconstruction or redevelopment, or partial or total demolition, to
correct serious deficiencies in the original design (including inappropriately high population
density), deferred. maintenance, physical deterioration or obsolescence of major systems and
other deficiencies in the physical plant of the project;
(ii) is a significant contributing factor to the physical decline of and disinvestment by public and
private entities in the surrounding neighborhood;
(iii) (I) is occupied predominantly by families who are very low-income families with children,
are unemployed, and dependent on various forms of public assistance; or
(II) has high rates of vandalism and criminal activity (including drug-related criminal activity) in
comparison to other housing in the area;
(iv) cannot be revitalized through assistance under other programs, such as the program for
capital and operating assistance for public housing under this Act, or the programs under sections
9 and 14 of the United States Housing Act of 1937 (as in effect before the effective date under
section 503(a) of the Quality Housing and Work Responsibility Act of 1998), because of cost
constraints and inadequacy of available amounts; and
(v) in the case of individual buildings, is, in the Secretary's determination, sufficiently separable
from the remainder of the project of which the building is part to make use of the building
feasible for purposes of this section; or
(B) that was a project described in subparagraph (A) that has been legally vacated or demolished,
but for which the Secretary has not yet provided replacement housing assistance (other than
tenant-based assistance).

Shared Appreciation Loan (LIHTC) - A form of financial assistance for homeownership, in
which the homebuyer must repay the original loan amount plus some percentage of the home
price appreciation in lieu of interest. This approach helps to reduce the need for new subsidy
monies to help future homebuyers as housing costs increase. Shared appreciation loans are often
structured as a silent second mortgage that does not need to be repaid until the home is sold.

Shared Appreciation Mortgage (SAM) - provides for reduced mortgage interest rates in return
for a share in any future appreciation in the underlying property. (Also see Equity Sharing)

Shared Equity (LIHTC) – Shared Equity is an approach to homeownership that balances
ongoing housing affordability and individual asset accumulation. Under shared equity, a public
or philanthropic entity provides funding to help a family purchase a home. In return, the entity
shares in any home price appreciation that occurs while the family lives there, preserving the
buying power of the subsidy in the face of rising home prices, and allowing an initial investment
Glossary of Housing Acronyms and Terms
in homeownership to help one generation of homeowners after another. In some forms of shared
equity, such as community land trusts, the public's share of appreciation stays in the home,
enabling it to be sold for an affordable price. In other forms, such as shared appreciation
mortgages, the public's share of appreciation is used to give a larger loan to the next homebuyer
to make a home of their choice affordable.

Shared Equity Mortgage (SEM) - A home loan in which the lender is granted a share of the
equity thereby allowing the lender to participate in the proceeds from resale. After satisfying the
unpaid balance of the loan, the borrower splits the residue of the proceeds with the lender.
Shared equity plans often require the lender to buy a portion of the equity by providing a portion
of the down payment.

Shared-Equity Transaction - A transaction in which two buyers purchase a property, one as a
resident co-owner and the other as an investor co-owner

Shared Housing (Section 8) – A unit occupied by two or more families. The unit consists of
both common space for shared use by the occupants of the unit and separate private space for
each assisted family. A special housing type See §982.602 to §982.618

Shared System - A government-wide system used by agencies where they have information/data
definitions common to all users to effectively and efficiently support particular functions.
(JFMIP Framework) HUDCAPS Core Financial System Standard Accounting Interface, dated

Shelter Plus Care (S+C) Program - Provides grants for rental assistance for homeless people
with disabilities through four component programs: Tenant, Sponsor, Project, and SRO Rental

Sheriff’s Deed (Foreclosure) - A deed given at the sheriff's sale in foreclosure of a mortgage

Sheriff’s Sale (Foreclosure) - (1) An auction held by the sheriff following a writ of execution to
seize and sell real property to satisfy a judgment, after notice to the public has been posted. (2) A
sheriff’s sale is used in judicial foreclosure and is the auction sale of real property used to secure
a defaulted mortgage sold as a result of a foreclosure judgment.

Short Sale - This is where your lender has agreed to accept less than the full balance owed to
them on the loan when your property is sold.

Short Term Rate - A reduced rate for title insurance applicable in cases where the owner of a
property has been insured previously or where any lender has been insured somewhat recently on
the property

Silent Second Mortgage (LIHTC) - An important technique for making homeownership
affordable while recycling public dollars, a silent second mortgage is a secondary home loan
issued by a home-buying program to supplement a family's primary mortgage that does not need
to be repaid until the home is resold (or in some cases, refinanced). Because no payments are due
Glossary of Housing Acronyms and Terms
on the loan until the home is resold or refinanced, it has the same effect as a grant on housing
affordability for a purchaser. But because the loan is repaid upon resale, the funds can be
recycled to help the next homebuyer. When used as part of a shared equity strategy, silent second
mortgages are known as shared appreciation loans.

Simple Assumption - A loan assumption in which the original borrower remains secondarily
liable should the individual who assumed the loan defaults on the loan.

Simple Interest - Interest computed on principal alone, as opposed to compound interest.

Simple-Interest Mortgage - A simple-interest mortgage is a real estate property loan that
accrues interest daily rather than monthly. The daily interest rate is calculated by dividing the
stated interest rate by 365 days; the resulting percentage is then applied to the outstanding
balance. A simple-interest mortgage will result in higher total interest costs relative to a
traditional mortgage. This is because traditional mortgages accrue interest based on 12, 30-day
months, which equates to 360 versus 365 days.

Simultaneous Priority - Two or more liens recorded one right after the other in the same
transaction, against the same property, are of equal parity unless there’s a written indication on
one of them as to their respective priorities.

Single Family – Usually refers to one-to-four family unit housing.

Single, Integrated Financial Management System - A unified set of Financial Systems and the
financial portions of Mixed Systems encompassing the software, hardware, personnel, processes
(manual and automated), procedures, controls, and data necessary to carry out financial
management functions, manage financial operations of the agency, and report on the agency's
financial status to central agencies, Congress, and the public. Unified means that the systems are
planned for and managed together, operated in an integrated fashion, and linked together
electronically in an efficient and effective manner to provide agency-wide financial system
support necessary to carry out the agency's mission and support the agency's financial
management needs. (JFMIP Framework) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Single Person (Section 8) – A person living alone or intending to live alone

Single-Room Occupancy (SRO) - The Section 221(d) program provides mortgage insurance for
multifamily properties consisting of single-room occupancy (SRO) apartments. These apartments
are intended for people--usually a single person--who have a source of income but are priced out
of the rental apartment market. HUD Web site at

Single Room Occupancy Housing (Section 8) – A unit that contains no sanitary facilities or
food preparation facilities, or contains wither, but not both, types of facilities. A special housing
type: See §982.602 to 982.605
Glossary of Housing Acronyms and Terms
Sinking Fund – A fund accumulated by an issuer over a period of time to be used for retirement
of debt, either periodically or at one time.

Sinking Fund Redemption – The principal amount of a term bond which must be repaid on a
specific interest payment date

Site Appraisal and Market Analysis (SAMA) – Required for commitment of FHA mortgage
insurance on most Multifamily Projects and large subdivisions.

Site and Neighborhood Standards Review - Undertaken by the Office of Fair Housing and
Equal Opportunity (FHEO) in the local HUD Field Office, this review ensures that the site on
which the public housing project is proposed to be located is not within a racially or
economically impacted area in which the project would cause a significant increase in the
proportion of minority to non-minority residents in the area. There is an important exception: In
accordance with 941.202(c)(2) and/or applicable program regulations, no Site and Neighborhood
Standards Review is required in cases where public housing replacement units are to be
constructed on the original site or in the surrounding neighborhood of demolished public housing

Site Based Waiting List - A type of sub-jurisdictional waiting list, the use of which allows a
PHA and/or its developer to market a particular development and take applications for units at
that development that are separate from the PHA-wide application process and central waiting
list. A site-based waiting list allows a PHA to target its marketing and to attract applicants who
otherwise might not consider living in public housing. Any use of a site-based waiting list must
first be incorporated into the PHA's Agency Plan and approved by HUD.

Situs - Location

Skeleton Filing (Bankruptcy) - Term applied when not all the proper paperwork for a
bankruptcy case has been filed.

Skip Payment Clause - A provision of some mortgage contracts that allows the borrower to skip
monthly payments up to the amount of payments that have previously been paid ahead of

Slander of Title - The false and malicious oral or written statements disparaging an owner's
property title, which can result in actual financial damage to the owner.

Small Business Administration (SBA) - The SBA offers a wide variety of assistance to small
and small disadvantaged businesses. HUD contracting offices work closely with the SBA in
seeking small business suppliers. Local SBA offices frequently can direct firms to agencies that
purchase the products they offer. The SBA can also provide names and addresses of prospective
military and civilian agency customers. Information about the SBA's programs and services are
available for the internet at: SBA Web site at
Glossary of Housing Acronyms and Terms
Smart Growth (LIHTC) - Broadly speaking, smart growth refers to a set of development
principles that link environmental, social, and economic objectives together to create vibrant,
safe, and healthy places to live. Smart growth development generally seeks to takes advantage of
existing infrastructure to preserve farmland and open space; encourages multi-modal
transportation options by concentrating development around public transit corridors; integrates
housing and other land uses together; and provides a range of choices in the development of the
built environment to promote affordability.

Social Security Number (SSN) – The nine-digit number that is assigned to a person by the
Social Security Administration and that identifies the record of the person’s earnings reported to
the Social Security Administration. The term dies not include a number with a letter as a suffix
that is used to identify an auxiliary beneficiary.

Soft Cost (LIHTC) - A cost to the developer of a property that is indirect (i.e. not related to land
or materials). Examples include architect and legal fees, insurance payments, and property taxes.
Lengthy review and permitting processes can significantly increase development time, leading to
substantial increases in a project's soft costs that reduce housing affordability.

Soldiers and Sailors Civil Relief Act (Foreclosures) – The Soldiers and Sailors Civil Relief
Act is a law prohibiting foreclosures while a person is serving in the military and within three
months thereafter except by court order.

Source Database - An operational, production database or a centralized warehouse that feeds
into a target database. DAMA web site at

Source Evaluation Board - The HUD group of officials responsible for evaluating proposals on
competitive contracts of more than $500,000

Sources of Program Requirements (Regulating Documents) (LIHTC) – Section 42 of the
Internal Revenue Service, IRS Regulations found in 26 CFR Section 1.42, IRS Revenue Rulings
and Revenue Procedures, HUD’s Occupancy Handbook 4350.3 REV-1 Chg. 2, additional
program rules prescribed by the Authority, representations in a development’s application and
provisions included in the Agreement as to Restrictive Covenants: all regulate how low-income
housing properties are to be operated.

South Carolina Aging in Place Coalition (SCAIPC) – Aging in Place - not having to move
from one’s present residence in order to secure necessary support services in response to
changing needs. All people who desire to remain in their residence as they age can do so. The
South Carolina Aging In Place Coalition is a non-profit organization advocating for people to
prepare to remain in their residence---independently, comfortably and safely.

South Carolina Association of Community Development Corporations - The South Carolina
Association of Community Development Corporations is a state-wide trade association of non-
profit, community-based development corporations within the state's economically distressed
communities. The SCACDC places particular emphasis on promoting development in
Glossary of Housing Acronyms and Terms
communities that have been left out of the economic mainstream, especially minority

South Carolina Association of Non-Profit Homes for the Aging (SCANPHA) - The South
Carolina Association of Non-Profit Homes for the Aging was formed in the 1980’s and became a
Joint Membership state with AAHSA (American Association of Homes and Services for the
Aging). From only a handful of facilities, the membership has grown to include non-profit
CCRCs, CRCFs, nursing homes, and retirement housing. SCANPHA also has Associate
Members comprised of businesses, and Affiliate Members made up of individuals with an
interest in long term care.

South Carolina Association of Non Profit Organizations (SCANPO) – The South Carolina
Association of Nonprofit Organizations (SCANPO) was formed in 1997 by a group of nonprofit
leaders from across the state. It is the only statewide network that brings together charitable
nonprofit organizations to strengthen the effectiveness of the state's nonprofit sector.

South Carolina Code of Laws Title 31 Chapter 1 State Housing Law - Making provision for
housing families of low income and to provide for the elimination of congested and unsanitary
housing conditions which exist in certain areas of the State and which are a menace to the health,
safety, morals, welfare and reasonable comfort of the citizens of the State of South

South Carolina Code of Laws Title 31 Chapter 13 State Housing Finance and Development
Authority (Enacting Legislation - South Carolina State Housing Finance and Development
Authority created.

South Carolina Community Economic Development Act (2007 Report) - In 2000, the State
General Assembly passed the South Carolina Community Economic Development Act authorizing
the appropriation of $5 million over 5 years ($1 million annually) to state certified community
development corporations (CDCs) and community development financial institutions (CDFIs). The
purpose of the appropriation is to support CDCs and CDFIs whose primary function it is to develop
projects and activities that enhance economic opportunities and wealth creation in the community
through community economic development (CED).

South Carolina Council on Homelessness (SCCH) - is comprised of key leadership agencies
that provide services and funds to homeless individuals, programs or organizations. The purpose
of the council is to provide the leadership and cooperation necessary for an integrated approach
to addressing the comprehensive needs of homeless individuals and families.
Glossary of Housing Acronyms and Terms
South Carolina Emergency Housing Plan (June 2008) – Following a catastrophic event,
emergency housing will be required as a result of large parts of the population being displaced
from their homes for extended periods (over 30 days).

South Carolina Homeless Coalition (SCHC) - The role of the South Carolina Homeless
Coalition is to provide advocacy for homeless persons and affordable housing issues. The
Coalition's leadership was instrumental in creating the South Carolina Blueprint to End
Homelessness and other local plans designed to stop homelessness.

South Carolina Housing and Homeless Programs through SCDMH - The Housing and
Homeless Programs of the South Carolina Department of Mental Health provide technical
assistance and funding through vendor contracts to organizations, primarily non-profit
organizations, that provide housing and services to persons with severe and persistent mental
illnesses. Our mission is to provide people with mental illness the opportunity to live
independently in the community of their choice with dignity and respect.

South Carolina Priority Investment Act (PIA) – The South Carolina Priority Investment Act
Implementation Guide for Local Governments empowers cities and counties with information
for implementing the Priority Investment Act (PIA) adopted by the General Assembly in 2007.
Other innovative planning and zoning tools that local governments may consider while
implementing the PIA are highlighted in the Guide to advance the PIA’s central themes of
enhanced government efficiency, improved quality of life, sustainable development intensities
and land use patterns, and a focus on affordable housing.

South Carolina Rural Development Council (SCRDC) – Created by a National Rural
Economic Development Initiative in 1990, State Rural Development Councils (SRDC) were
formed to coordinate rural development efforts among federal departments and agencies and to
establish effective collaboration with states, local governments and the private sector. The state
councils work to develop strategies for applying available federal, state and private sector
resources to achieve long-term rural economic development. State councils serve as forums for
identifying issues affecting effective collaboration between the federal, state and local
governments in rural economic development. They attempt to resolve those problems that can be
resolved at the state level, and they refer issues requiring national legislative and regulatory
changes to the National Rural Development Partnership in Washington, DC.

Southeastern Affordable Housing Management Association (SAHMA) - the Southeastern
Affordable Housing Management Association is a nonprofit organization whose members are
owners and managers of privately-owned, government-regulated housing throughout the

Special Admission (Section 8) – Admission of an applicant that is not on the PHA waiting list
or without considering the applicant’s waiting list position.
Glossary of Housing Acronyms and Terms

Special Applications Center (SAC) - Special Applications Center. This HUD office, located in
Chicago, processes a variety of applications, including demolition and disposition applications
developed under Section 18 of the Act. Information about the SAC can be found on HUD's

Special Assessments - A special tax imposed on property, individual lots or all property in the
immediate area, for road construction, sidewalks, sewers, street lights, etc.

Special Deposit Account - An account that is established for rehabilitation mortgages to hold
the funds needed for the rehabilitation work so they can be disbursed from time to time as
particular portions of the work are completed.

Special Forbearance – a loss mitigation option where the lender arranges a revised repayment
plan for the borrower that may include a temporary reduction or suspension of monthly loan

Special Hazard Insurance (Foreclosure) – An insurance policy which provides for the physical
repair of properties associated with mortgage loans which go into default and are sold through
the foreclosure process.

Special Housing Types (Section 8) – See subpart M of part 982. Subpart M state the special
regulatory requirements for: SRO housing, congregate housing, group homes, shared housing,
cooperatives (including mutual housing), and manufactured homes (including manufactured
home space rentals).

Special Lien - A lien that binds a specified piece of property, unlike a general lien, which is
levied against all one's assets. It creates a right to retain something of value belonging to another
person as compensation for labor, material, or money expended in that person's behalf. In some
localities it is called "particular" lien or "specific" lien. (See lien.)

Special Limitation - A fee simple estate may also be qualified by a special limitation. The estate
ends automatically upon the current owner's failure to comply with the limitation. The former
owner retains a possibility of reverter. If the limitation is violated, the former owner (or his or
her heirs or successors) reacquires full ownership, with no need to reenter the land or go to court.
A fee simple with a special limitation is also called a fee simple determinable because it may end
automatically. The language used to distinguish a special limitation-the words "so long as" or
"while" or "during"-is the key to creating this estate.

Special or Limited Warranty Deed - In contrast to a general warranty deed, a special warranty
deed limits the liability of the grantor by warranting only what the deed explicitly states. A
special warranty deed has practically the same effect as a quitclaim deed. Special warranty deeds
are generally used by corporations or other entities that want to avoid assuming the liability of a
general warranty deed. Like the general warranty deed, the special warranty deed should contain
the appropriate language such as "conveys and specially warrants." Usually, the grantor warrants
that he or she did nothing to impair title during the period the grantor held the title. While a
Glossary of Housing Acronyms and Terms
special warranty deed may contain covenants of title, these covenants will usually cover only
those claims arising by, through, or under the grantor.

Special Needs – Groups which have special housing needs in South Carolina. These populations
include: Elderly persons, homeless persons, persons with development or physical disabilities;
persons with mental illnesses; persons with chemical dependencies; persons with HIV/AIDS, and
migrant/agricultural workers.

Special Needs Housing - Housing developed for and occupied by people with a variety of
disabilities who are at risk of homelessness but may not have been literally or chronically

Special Risk Insurance Fund – One of four FHA funds used primarily for higher risk programs
(e.g. Section 235; Section 223(e).

Special Tax Bond – A bond secured by a special tax, such as a gasoline tax.

Special Warranty Deed - A deed in which the grantor warrants or guarantees the title only
against defects arising during the period of his or her tenure and ownership of the property and
not against defects existing before that time. Such a deed is usually identified by the language
"by, through, or under the grantor, but not otherwise." A special warranty deed is often used
when a fiduciary such as an executor or trustee conveys the property of his or her principal,
because the fiduciary usually has no authority to warrant against acts of his or her predecessors
in title.

Specific Lien - A lien affecting or attaching only to a certain, specific parcel of land or piece of

Specified Welfare Benefit Reduction (Section 8) – Those reductions of welfare benefits (for a
covered family) that may not result in a reduction of the family rental contribution. A reduction
of welfare benefits because of fraud in connection with the welfare program, or because of
welfare sanction die to noncompliance with a welfare agency requirement to participate in an
economic self-sufficiency program.

Spending Authority - A collective designation for authority provided in laws other than
Appropriation Acts to obligate the government to make payments. It includes: Contract
Authority, Authority to Borrow, and a form of Entitlement Authority. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Split-Fee Financing - A form of joint venture participation where the lender purchases the fee
land under the proposed development project and leases it to the developer. The lender also
finances the improvements to be constructed on this leasehold.

Sponsor Debt - A loan made to a project from a sponsor. Typically these are 2nd, 3rd, or 4th
mortgages that are cash flow contingent and have accruing interest.
Glossary of Housing Acronyms and Terms
Spot Zoning - Zoning that sets aside certain areas for purposes different from the general area

Spouse (Section 8) – The marriage partner of the head of household.

Spread – In bond underwriting, the difference between the price realized by the issuer and price
paid by investors

Sprawl (LIHTC) - The process in which the spread of development across the landscape far
outpaces population growth. The landscape sprawl creates has four dimensions: 1) a population
that is widely dispersed in low-density development; 2) rigidly separated homes, shops, and
workplaces; 3) a network of roads marked by huge blocks and poor access; and 4) a lack of well-
defined, thriving activity centers, such as downtowns and town centers. Most of the other
features usually associated with sprawl – the lack of transportation choices, relative uniformity of
housing options, or the difficulty of walking – are a result of these conditions. Families' search
for affordable housing is one factor contributing to sprawl.

Springing Interest - a future right to title to real property created by a deed or will. Example: "I
give title to my daughter Mabel for her lifetime, and, on her death, title to my grandson Rex."
Rex has a springing interest in the property.

Stalking (Section 8) – To follow, pursue, or repeatedly commit acts with the intent to kill,
injure, harass, or intimidate another person; and to place under surveillance with the intent to kill,
injure, harass, or intimidate another person; and in the course of, or as a result of, such following,
pursuit, surveillance, or repeatedly committed acts, to place a person in reasonable fear of death
of, or serious bodily injury to, or to cause substantial emotional harm to that person; a member of
the immediate family of that person; or the spouse or intimate partner of that person.

Stand Alone Indenture – A type of Indenture in which each issuance of bonds will be
completely independent from all other issues of bonds which the Issuer may have outstanding.

Standard and Poor’s Rating (S&P Rating) – (AAA or lower) provides investors with a current
assessment of the creditworthiness of a bond issuer with respect to a specific debt issue.

Standard General Ledger (SGL) - A uniform listing of accounts and supporting transactions
that standardizes federal agency accounting and supports the preparation of standard external
reports. SGL Chart of Accounts (1) provides control over all financial transactions and resource
balances, (2) satisfies basic reporting requirements of OMB and Treasury, and (3) integrates
proprietary and budgetary accounting. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Standard Payment Calculation - The method used to determine the monthly payment required
to repay the remaining balance of a mortgage in substantially equal installments over the
remaining term of the mortgage at the current interest rate.
Glossary of Housing Acronyms and Terms
Standard Query - A stored procedure of a recently executed query. Technically, a standard
query may be stored on the desktop as "canned" SQL and passed as dynamic SQL to the server
database to execute. This is undesirable unless the stored query is seldom executed. DAMA web
site at

Standard Uniform Application - An application developed by FNMA and FHLMC that is
widely used in the mortgage industry.

Standard Voucher - The HUDCAPS document that records the reduction or liquidation of a
fund or advance and accruals. Final PAS to HUDCAPS Interface Design - Revised, September
29, 1998

Standardized Forms (LIHTC) – Per guidance issued by the IRS, State agencies can determine
how documents are maintained and may mandate the use of standardized forms to document an
owner’s compliance with the requirements under Treas. Reg. Section 1.42-5.

Standby Credit Enhancement Instrument – Enhancement offered by FNMA and Freddie Mac
that is only drawn upon when the borrower fails to pay in full the required payment under the
mortgage note. Unlike Direct-Pay Credit Enhancement, Standby Credit Enhancement does not
directly guarantee debt service payments to bondholders. Instead, FNMA or Freddie Mac covers
the mortgage payments in the event of a mortgage payment default, delinquency or recovery of
payments upon an event of a bankruptcy.

State Allocating Cap - each state is entitled to award annually tax credits in an amount equal to
$1.25 per capita. Most projects seeking tax credits must compete for tax credits from this pool of
funds. (Projects which have been awarded tax-exempt bond financing are automatically eligible
to receive 4 percent tax credits without competing against other projects, and the amount of tax
credits reserved for these projects does not count against the state’s annual allocation cap.) In
recent years, however, the demand for tax credits has rapidly increased, while the number of tax
credits available has not. Many tax credit advocates seek an increase in the state allocating cap.

State and Local Tax Policies - Barriers and solutions which impact housing affordability, and
include laws related to property taxes, tax assessments, transfer taxes, and sales taxes on building
materials. It also refers to tax abatements or concessions and homestead exemptions.

State-Assisted Public Entity - means a unit of general local government in a non-entitlement
area which is assisted by a State as required in Sec. 570.704(b)(9) and Sec. 570.705(b)(2).

State Homeless Coordinator - means a state contact person designated by a state to receive and
disseminate information and communications received from the Interagency Council on the
Homeless in accordance with Section 210(a) of the Stewart B. McKinney Act of 1987, as

State Housing Credit Ceiling - The state housing credit ceiling is the maximum LIHC amount a
state may allocate in a given year. It is calculated at $1.75 per resident.
Glossary of Housing Acronyms and Terms
State Income/Stated Asset Mortgage (SISA) – A type of reduced documentation mortgage
program which allows the borrower to state on the loan application what their income and assets
are without verification by the lender; however, the source of the income is still verified.

State Recipient - State PJs can award their HOME funds to units of local governments to run
HOME locally. Any unit of local government designated by a State to receive HOME funds is
called a "State recipient." The State is responsible for ensuring that HOME funds allocated to
State recipients are used in accordance with the HOME regulations and other applicable laws.

State Tax Lien - A lien attaching to property for nonpayment of state income tax.

State Wage Information Collection Agency (SWICA) (Section 8) – The state agency,
including any Indian tribal agency, receiving quarterly wage reports from employers in the State,
or an alternative system that has been determined by the Secretary of Labor to be as effective and
timely in providing employment-related income and eligibility information.

Statement of Financial Affairs (Bankruptcy) - A series of questions the debtor must answer in
writing concerning sources of income, transfers of property, lawsuits by creditors, etc. (There is
an official form a debtor must use.)

Statement of Intention (Bankruptcy) - A declaration made by a chapter 7 debtor concerning
plans for dealing with consumer debts that are secured by property of the estate

Statistical Analysis Software (SAS) – (Now simply referred to as SAS)- Originally called
statistical analysis software, SAS is software that allows users to perform a range of statistical
analyses. Some of the HUD USER data sets are available in SAS.

Statute of Limitations - A law pertaining to the period of time within which certain actions
must be brought to court. The law is intended to protect the vigilant against stale claims by
requiring the prompt assertion of claims; thus a complaint or action must be brought within a
specified time of the occurrence of the cause of action. After the time period expires, the claim
may not be enforced in court. The theory behind the statute of limitations is that there must be
some end to the possibility of litigation.

Statutory Lien - An involuntary lien. It includes tax liens, judgment liens, and mechanic liens.

Statutory Redemption (Foreclosure) - The right of a borrower to regain property that was
foreclosed, according to written law

Statutory S.C. Health Care Power of Attorney (Legal) - This document gives the person you
name as your agent the power to make health care decisions for you if you cannot make the
decisions for yourself. This power includes the power to make decisions about life-sustaining
treatment. Unless you state otherwise, your agent will have the same authority to make decisions
about your healthcare, as you would have.
Glossary of Housing Acronyms and Terms

Stay (Bankruptcy) - The filing of a bankruptcy case, under any chapter of the Bankruptcy
Code, triggers an injunction against the continuance of any action by any creditor against the
debtor or the debtor's property. An automatic stay in bankruptcy proceedings immediately stops
any lawsuit filed against the debtor and virtually all actions against their property by a creditor,
collection agency or government entity. The automatic stay may be a reason for persons to file
bankruptcy when they are being evicted or foreclosed on, being found in contempt for failure to
pay child support or losing such utility services, welfare or unemployment benefits, their driver's
license or job, etc.

Steering - The illegal practice of channeling home seekers to particular areas, either to maintain
the homogeneity of an area or to change the character of an area, which limits their choices of
where they can live.

Step Coupon Bond – A Current Interest Bond in which the interest rate on the bond is typically
lower during the Origination Period and then increases at the end of the Origination Period. Step
Coupon Bonds are typically used to reduce the cost of Negative Arbitrage during the Origination

Step-Rate Mortgage - A mortgage that allows for the interest rate to increase according to a
specified schedule (i.e., seven years), resulting in increased payments as well. At the end of the
specified period, the rate and payments will remain constant for the remainder of the loan.

Step-Up - Step-Up is an apprenticeship-based employment and training program that provides
career potential for low-income persons by enabling them to work on construction projects that
have certain prevailing wage requirements. Step-Up encourages work by offering
apprenticeships through which low-income participants earn wages while learning skills on the
job, supplemented by classroom-related instruction. Step-Up provides a vehicle for achieving
compliance with the objectives of Section 3 of the HUD Act of 1968, which requires that
preference be given to public housing residents, participants in HUD's Youthbuild programs, and
other low- and very low-income persons in the metropolitan area in employment, contracting,
and other economic opportunities. More information can be found on HUD's website:

Stewart B. McKinney Homeless Assistance Act – The Stewart B. McKinney Homeless
Assistance Act is a program to ensure that Homeless children and youth have access to the
education and other services that such children and youth need to ensure that they have an
opportunity to meet the state student performance standards to which all students are held.

Stigmatized Property - A stigmatized property is one that has acquired an undesirable
reputation due to an event that occurred on or near it, such as violent crime, gang-related activity,
illness or personal tragedy. Because of the potential liability to a licensee for inadequately
researching and disclosing material facts concerning a property's condition, licensees should seek
competent counsel when dealing with a stigmatized property. Some states restrict the disclosure
of information about stigmatized properties. In other states, the licensee's responsibility may be
Glossary of Housing Acronyms and Terms
difficult to define because the issue is not a physical defect, but merely a perception that a
property is undesirable.

Stock Order – A type of Member Order where a firm purchases Bonds for their own account.
Stock Orders have the lowest priority and are only filled if there are no Group Net Orders or
Priority Orders.

Storefront Offices - Storefront Offices are HUD offices that have been moved to the street
corner where people can come in and use computers to obtain the latest information about home
loans, housing assistance, and job creation programs. Storefront Offices replace some HUD
offices that are hidden from the public in high-rise Federal Buildings. HUD web site at

Straw man – A person to whom title to property or a business interest is transferred for the sole
purpose of concealing the true owner and/or the business machinations of the parties. Thus, the
straw man has no real interest or participation but is merely a passive stand-in for a real
participant who secretly controls activities. Sometimes a straw man is involved when the actual
owner is not permitted to act, such as a person with a criminal record holding a liquor license. 2)
an argument which is intended to distract the other side from the real issues or waste the
opponent's time and effort, sometimes called a "red herring" (for the belief that drawing a fish
across a trail will mislead hunting dogs).

Strict Foreclosure - In a strict foreclosure procedure, after a delinquent borrower has been
notified and the proper papers have been filed, the court designates a specific period during
which the balance of the default must be paid in full. If the payment is not made, the borrower's
equitable and statutory redemption rights are waived and the court awards full legal title to the
lender. There is no deficiency judgment in strict foreclosure cases. (See Foreclosure, Judicial
Foreclosure, Non-judicial Foreclosure)

Stripped MBS (SMBS) - securities created by "stripping" or separating the principal and
interest payments from the underlying pool of mortgages into two classes of securities, with
each receiving a different proportion of the principal and interest payments.

Student Loan (Bankruptcy) - a loan which was granted to the debtor and guaranteed by the
federal government which must be listed in the bankruptcy schedules and is deemed a non-
priority unsecured debt; however, it "survives" the bankruptcy discharge unless an adversary
proceeding is brought and the order is granted after trial.

Sub-Escrow - Are fees charged by the escrow company for allowing the borrower to be able to
sign all the loan documents in the Escrow office instead of having to go to the lenders office.

Sub-prime – Sub-prime mortgages are made to borrowers with poor credit histories who do not
qualify for prime interest rates. To compensate for the increased credit risk, sub-prime lenders
charge a higher rate of interest.
Glossary of Housing Acronyms and Terms
Sub-Prime Loan - "B" Loan or "B" paper with FICO scores from 620 - 659. "C" Loan or "C"
Paper with FICO scores typically from 580 to 619. An industry term to used to describe loans
with less stringent lending and underwriting terms and conditions. Due to the higher risk, sub-
prime loans charge higher interest rates and fees.

Sub-Recipient (HOME) - A public agency or nonprofit organization selected by a participating
jurisdiction to administer all or a portion of the participating jurisdiction’s HOME Program. A
public agency or nonprofit organization that receives HOME funds solely as a developer or
owner of housing is not a sub-recipient.

Subject to Clause - This is a clause in a deed where property useage rights may be stated.
Example: "Subject to all rights of way, easements and protective covenants of record".

Subject to Mortgage - When a grantee takes title to a real property "subject to mortgage," he is
not responsible to the holder of the promissory note for the payment of any portion of the amount
due. The most he can lose in the event of a foreclosure is his equity in the property." (See also
"Assumption of Mortgage" in this section.) The original maker of the note is not released from
his responsibility to pay off the obligation.

Sublease - the lease to another of all or a portion of premises by a tenant who has leased the
premises from the owner. A sublease may be prohibited by the original lease, or require written
permission from the owner. In any event, the original tenant (lessee) is still responsible for
paying the rent to the owner (landlord/lessor) through the term of the original lease and sublease.

Submortgage - A submortgage is a loan taken by a mortgage lender, where a customer's
mortgage (which was made by the lender) is pledged as the collateral

Subordinate Financing - Any mortgage or other lien that has a priority that is lower than that
of the first mortgage. The subordinate loan has a claim to payment in a foreclosure only after the
first mortgage is paid.

Subordinate Lien Bonds – See “Junior Lien Bonds”

Subordination - allowing a debt or claim which has priority to take second position behind
another debt, particularly a new loan. A property owner with a loan secured by the property who
applies for another loan to make additions or repairs usually must get a subordination of the
original loan so the new obligation is in first place. A declaration of homestead must always be
subordinated to a loan.

Subordination Clause – A clause in an agreement which states that the current claim on any
debts will take priority over any other claims formed in other agreements made in the future.
Subordination is the act of yielding priority.

Subpart F - Refers to 24 CFR Part 941.600, Subpart F, which allows a Public Housing
Authority to use a combination of private financing and public housing funds to develop public
Glossary of Housing Acronyms and Terms
housing units. Ownership of resulting mixed-finance developments can be held by a third party
as well as the Housing Authority.

Subrogation - The substitution of one creditor for another, with the substituted person
succeeding to the legal rights and claims of the original claimant. Subrogation is used by title
insurers to acquire from the injured party rights to sue in order to recover any claims they have

Subsidized Second Mortgage - An alternative financing option known as the Community
Seconds mortgage for low- and moderate-income households. An investor purchases a first
mortgage that has a subsidized second mortgage behind it. The second mortgage may be issued
by a state, county, or local housing agency, foundation, or nonprofit corporation. Payment on the
second mortgage is often deferred and carries a very low interest rate (or no interest rate). Part or
all of the second mortgage debt may be forgiven depending on how long the buyer remains in the

Subsidized Housing – Subsidized housing is a generic term covering all federal, state or local
government programs that reduce the cost of housing for low- and moderate-income residents.
Housing can be subsidized in numerous ways—giving tenants a rent voucher, helping
homebuyers with down-payment assistance, reducing the interest on a mortgage, providing
deferred loans to help developers acquire and develop property, giving tax credits to encourage
investment in low- and moderate-income housing, authorizing tax-exempt bond authority to
finance the housing, providing ongoing assistance to reduce the operating costs of housing and
others. Public housing, project-based Section 8, Section 8 vouchers, tax credits, the State
Housing Trust Fund, and Seattle Housing Levy programs are all examples of subsidized housing.
Subsidized housing can range from apartments for families to senior housing high-rises.
Subsidized simply means that rents are reduced because of a particular government program. It
has nothing to do with the quality, location or type of housing. In fact, a number of Seattle's
subsidized housing developments have received local and national design awards.

Subsidized Project – A multi-family housing project (with the exception of a project owned by
a cooperative housing mortgage corporation or association) which receives the benefit of subsidy
in the form of:
    • Below-market interest rates pursuant to Section 221(d)(3) and (5) or interest reduction
        payments pursuant to Section 236 of the National Housing Act, or
    • Rent supplement payments under Section 101 of the Housing and Urban Development
        Act of 1965, or
    • Direct loans pursuant to Section 202 of the Housing Act of 1959,or
    • Payments under Section 23 Housing Assistance Payments Program pursuant to Section
        23 of the United States Housing Act of 1937 prior to amendment by the Housing and
        Community Development Act of 1974,
    • Payments under the Section 8 Housing Assistance Payments Program pursuant to Section
        8 of the United states Housing Act after amendment by the Housing and Community
        Development Act unless the project is owned by a Public Housing Agency, or
    • A Public Housing Project.
Glossary of Housing Acronyms and Terms
Subsidized Units - Housing units for which capital costs are written down by public subsidy
funds, and for which occupancy is governed by income restrictions.

Subsidy - Generally, a payment or benefit made where the benefit exceeds the cost to the
beneficiary. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Subsidy Standards (Section 8) – Standards established by a PHA to determine the appropriate
number of bedrooms and amount of subsidy for families of different sizes and compositions

Substandard Housing - A dwelling unit that is either dilapidated or unsafe, thus endangering
the health and safety of the occupant, or that does not have adequate plumbing or heating

Substantial Abuse (Bankruptcy) - Taking frequent requests regarding an individual debtor to
file a bankruptcy petition

Substantial Improvement - Substantial improvement is used in connection with determining
the eligibility of an existing building for the LIHTC. It is any amount incurred during a 24-
month period equal to or exceeding 25 percent of the adjusted basis of the building as of the first
day of such period.

Substantial Rehabilitation – repair, preservation or improvement of a dwelling unit, the value
of which is at least 25 percent of the after-rehabilitation value of the dwelling unit, including
land value.

Substantive Consolidation (Bankruptcy) - Putting the assets and liabilities of two or more
related debtors into a single pool to pay creditors. (Courts are reluctant to allow substantive
consolidation since the action must not only justify the benefit that one set of creditors receives,
but also the harm that other creditors suffer as a result.)

Substitution of Entitlement - Replaces one eligible veteran with another on an existing
Veterans Administration loan. The entitlement is restored to the original veteran. (See Veterans
Administration Loan)

Substitution of Trustee - A document through which the lender (beneficiary), owner, or holder
of the note (loan) replaces a new Trustee in the Deed of Trust

Substitution of Trustee and Full Reconveyance - A combined document where the lender
substitutes a new Trustee and the new trustee executes the Reconveyance or releases the loan
that was a lien against real property.

Succession - the statutory rules of inheritance of a dead person's estate when the property is not
given by the terms of a will, also called laws of "descent and distribution."
Glossary of Housing Acronyms and Terms
Successors - Those who succeed to or to whom the corporation's rights in the property are

Suggestion of Bankruptcy - Suggestion of bankruptcy is a document filed with a court to put it
on notice that the defendant in a pending lawsuit has filed a bankruptcy case. A party can file a
suggestion of bankruptcy whenever a party believes that the bankruptcy or automatic stay
provision of bankruptcy code has an effect on a state court case. The suggestion of bankruptcy
will include the name of court in which the bankruptcy was filed and the bankruptcy case
number. The party must identify the bankruptcy trustee and give instructions on the disposition
of any monies of the debtor held by the court. A copy of the suggestion of bankruptcy is served
on each party to the law suit.
Upon the filing of a notice or suggestion of bankruptcy, all action against the debtor is stayed for
a specified period unless otherwise ordered by the court. The plaintiff must pove that the lawsuit
in question is not subject to bankruptcy or that the plaintiff has sought relief from the automatic
stay. Failure to such proof within a time set by the court will typically result in a dismissal
without prejudice of the claim against the defendant who filed bankruptcy. Suggestion of
bankruptcy rules vary by local area.

Suit for Possession (Legal) - A court suit initiated by a landlord to evict a tenant from leased
premises after the tenant has breached one of the terms of the lease or has held possession of the
property after the lease's expiration.

Suit to Quiet Title (Legal) - A court action intended to establish or settle the title to a particular
property, especially when there is a cloud on the title.

Suitable Property - means that HUD has determined that a particular property satisfies the
criteria listed in Sec. 581.6.

Super Notice of Funding Availability (Super NOFA) – Each year, the U.S. Department of
Housing and Urban Development (HUD) issues a super Notice of Funding Availability (NOFA)
for the Department's Housing, Community Development, and Empowerment programs. This
SuperNOFA announces the availability of HUD program funds covering 32 grant programs,
including the Supportive Housing, Shelter Plus Care, and Section 8 Moderate Rehabilitation
Single Room Occupancy programs; the Housing Opportunities for Homeless Persons with AIDS
(HOPWA); Section 202 Supportive Housing for the Elderly; and Section 811 Supportive
Housing for Persons with Disabilities.

Super Sinker – A type of bond which is retired very quickly because all or most of the
mortgage loan prepayments are directed to redeem this bond first.

Supplemental Appropriation - An act appropriating funds in addition to those in an annual
Appropriation Act. Supplementals may sometimes include items not appropriated in the regular
bulls for lack of timely authorizations. (GAO) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97
Glossary of Housing Acronyms and Terms
Supplemental Indenture – A document which either changes the provisions of the existing
Stand Alone Indenture or which is created to effect the issuance of a new issuance of bonds
under a Master Indenture.

Supply-Side (LIHTC) - Supply-side housing policies seek to increase the supply of affordable
homes. Government agencies may either add to the housing stock directly, such as by building
public housing, or may provide incentives for private developers to produce more homes – for
example, through the low-income housing tax credit. Efforts to reduce regulatory barriers to the
development or rehabilitation of housing also operate on the supply-side of the equation; such
efforts promote housing affordability by freeing the market to better respond to increases in
housing demand.

Supportive Housing Program (SHP) - The Supportive Housing Program, a federal program,
authorized by Title VI of the Stewart B. McKinney Homeless Assistance Act of 1987, promotes
the development of supportive housing and supportive services, including innovative approaches
that assist homeless persons in the transition from homelessness and enable them to live as
independently as possible. SHP funds may be used to provide transitional housing, permanent
housing for persons with disabilities, innovative supportive housing, supportive services, or safe
havens for the homeless. HUDWEB, Continuum of Care and Veterans Programs Glossary-

Supportive Housing for the Elderly (Section 202) - Capital advances to eligible, private,
nonprofit sponsors to finance the development of rental housing with supportive services for the
elderly. HUD provides capital advances to finance the construction, rehabilitation or acquisition
with or without rehabilitation of structures that will serve as supportive housing for very low-
income elderly persons, including the frail elderly, and provides rent subsidies for the projects to
help make them affordable.

Supportive Service - Supportive service is any service provided under a planned program of
services designed to enable residents to remain independent and avoid placement in a hospital,
nursing home or intermediate care facility.

Supremacy Clause - Provision under Article IV, Section 2 of the U.S. Constitution, providing
that federal law is superior to and overrides state law when they conflict.

Surety - 1) A person who agrees to be responsible for a debt or obligation of another. (2) The
pledge or agreement by which one undertakes responsibility for the debt or obligation of another.

Surety Bond - An agreement by an insurance or bonding company to be responsible for certain
possible defaults, debts or obligations contracted for by an insured party; in essence, a policy
insuring one's personal and/or financial integrity. In the real estate business a surety bond is
generally used to ensure that a particular project will be completed at a certain date or that a
contract will be performed as stated.

Surplus - Budget Surplus is the amount by which the government's budget receipts exceed its
budget Outlays for a given period, usually a fiscal year. A Total Surplus is the amount by which
Glossary of Housing Acronyms and Terms
the sum of the government's on-budget and off-budget receipts exceed the sum of its on-budget
and off-budget outlays for a given period, usually a fiscal year. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Surplus Property - means any excess real property not required by any Federal landholding
agency for its needs or the discharge of its responsibilities, as determined by the Administrator of

Surplus Property Program to Assist the Homeless (Title V) - Homeless organizations pay
operating and repair costs on the surplus properties that are leased rent free and "as is." Leases
may run from 1 to 20 years, depending on the availability of the property and other factors.
Surplus properties may also be deeded to the organizations. The program provides no funding.
For the name and contact at these agencies, call the nearest HUD field office or the HUD toll-
free number 800-927-7588.

Surplus Revenues – Those funds within an Indenture which are available to pay debt service on
an interest payment date but are not needed to pay the scheduled debt service.

Surrender - Giving up leasehold rights by a tenant in exchange for a release from future
obligations under a lease.

Survey - A drawing or map showing the precise legal boundaries of a property, the location of
improvements, easements, rights of way, encroachments, and other physical features.

Survivorship - All rights of a joint tenant passes to the surviving joint tenant.

Suspension (Section 8) – Stopping the clock on the term of a family’s voucher after the family
submits a request for approval of the tenancy. If the PHA decides to allow extensions or
suspensions of the voucher term, the PHA administrative plan must describe how the PHA
determines the length of any extension or suspension. This practice is also called “tolling.

Sustainable Development – Development that maintains or equity, economic opportunity, and
community well-being while protecting and restoring the natural environment upon which
people and economics depend. Sustainable Development meets the needs of the present without
compromising the ability of future generations to meet there own needs.

Swap – A transaction in which an investor sells one security and simultaneously buys another
with the proceeds, usually for about the same price.

Swap Program - A Freddie Mac program where lower yield mortgages are exchanged for
Participation Certificates.

Swaption – An option that gives the buyer the right, but not the obligation, to enter into an
interest rate swap with predetermined underlying specifications at some future date. Swaptions
can be either “payer” or “receiver” swaptions. In a “payer” swaption, the buyers pay an upfront
premium for the right to enter a swap where it pays a fixed rate in return for receiving payments
Glossary of Housing Acronyms and Terms
based on a floating rate from the seller. In a “receiver” swaption, the buyer pays an upfront
premium for the right to enter a swap where it receives a fixed rate from the seller in return for
making payments based on a floating rate.

Sweat Equity – Using labor to build or improve a property as part of the down payment.

Syndicate – A group of underwriters formed to purchase collectively (underwrite) a new bond
issue from the Issuer and offer it for resale to the general public. The syndicate is organized for
the purposes of sharing the risks of underwriting the issue and for obtaining sufficient capital to
purchase an issue. One of the underwriting firms will be designated as the Syndicate Manager or
Lead Manager to administer the operations of the Syndicate.

Syndication - the process of “selling” tax credits to an investor in return for capital or equity.

TAC – Technical Assistance Center

TALC – Total Annual Loan Cost

TANF – Temporary Assistance to Needy Families

TANs - Tax Anticipation Notes

TARC – Troubled Agency Recovery Center (under PIH)

TASS – Tenant Assessment Subsystem

TBE – Tenants By Entirety

TBRA – Tenant-based Rental Assistance

TDC - Total Development Cost

TDHEs - Tribally Designated Housing Entities

TDS - Total Debt Service Ratio

TEFRA - Tax Equity and Fiscal Responsibility Act of 1982

TI – Tenant Improvement

TIC – True Interest Costs

TIC - Tenants In Common
Glossary of Housing Acronyms and Terms
TIF – Tax Increment Financing

TILA - Truth-in-Lending Act

TIN – Tax Identification Number

TIP – Treasury Investment Program

TLI – Targeted Lending Initiative (of Ginnie Mae)

TOD – Transit-Oriented Development

TPA – Transfer of Physical Assets

TPL – Third Party Liability

TQM – Total Quality Management

TR – Tenant Rent

TRA – Tax Reform Act

TRACS – Tenant Rental Assistance Certification System (Project based Section 8)

TSA - Tax-Sheltered Annuity

TTP – Total Tenant Payment

341 Meeting (Bankruptcy) - The meeting of creditors required by section 341 of the
Bankruptcy Code at which the debtor is questioned under oath by creditors, a trustee, examiner,
or the U.S. trustee about his/her financial affairs-Also called creditors' meeting.

Tacking - Adding or combining successive periods of continuous occupation of real property by
adverse possessors. This concept enables someone who has not been in possession for the entire
statutory period to establish a claim of adverse possession.

Takedown – The portion of the Underwriter’s Fee paid to the members of the Underwriting
Group for selling the bonds.

Takeout Loan - A permanent loan on real property, which takes out the interim, construction

Taking - The concept of taking comes from the Takings clause of the fifth amendment of the
United States Constitution. The clause reads, "nor shall private property be taken for public use,
without just compensation." This means that when land is taken for public use through the
Glossary of Housing Acronyms and Terms
government's power of eminent domain or condemnation, the owner must be compensated. (See
Eminent Domain)

Tandem Plans - Programs administered by GNMA which provide for the commitment to
purchase Federally-issued and conventionally-financed Single Family and Multifamily
mortgages. Mortgages are either held in the GNMA portfolio or sold to other investors including

Target Population – A group of individuals a project will serve, i.e. abuse victims, veterans,
homeless, etc.

Targeted Area – Census tracts determined to be areas of chronic economic distress pursuant to
Section 143(g) of the Federal Tax Law.

Targeting - Requirements of the HOME Program relating to the income or other characteristics
of households that may occupy HOME-assisted units.

Tax Abatement (LIHTC) - The reduction or elimination of property taxes, granted to owners of
specific properties for a designated period of time in order to stimulate a specified public benefit.

Tax Anticipation Notes (TANs) – Notes are issued by states or municipalities to finance current
operations in anticipation of future tax receipts.

Tax Credit Syndicator (LIHTC) - After a developer has received an award of low-income
housing tax credits, the developer will work with a syndicator to find investors to buy the credits.
Those funds are then used to subsidize the costs of affordable rental homes. By matching buyers
and sellers of low-income housing tax credits, syndicators play an essential role in generating
equity for affordable rental homes.

Tax Credit Price - the amount of money per tax credit dollar which a syndicator or investor
agrees to pay into a project in return for the right to claim the tax credits.

Tax Credit Rate - the rate used to calculate tax credits on a project, approximately 4 percent for
acquisition and federally subsidized new construction and rehabilitation and approximately 9
percent for non-federally subsidized new construction and rehabilitation; the rate is designed to
produce a present value of either 70 percent of the eligible development costs over time or 30
percent of the eligible development costs over time (the ten years of the credit period).

Tax Credit Syndication (LIHTC) - Owners of an LIHTC project may sell (syndicate) the tax
credits to investors, for example, limited partners who contribute equity for the project in return
for the use of the tax credit and other tax benefits generated by the project. The project developer
usually retains an ownership interest in the project, for example, serving as the general partner.
The investors are usually not involved in the management of the project, but will be concerned
that the project is maintained in compliance with the Plan, application process Procedures, the
Code and any tax credit regulations promulgated thereunder. If not, they may be subject to
recapture and penalties.
Glossary of Housing Acronyms and Terms

Tax Deed – A deed executed by the tax collector to the state when property taxes are unpaid and
the property is sold for the payment of back taxes. A tax deed is used to convey title to the buyer.

Tax Deferred Exchange (1031 Exchange) - Under Section 1031 of the Internal Revenue Code,
some or all of the realized gain from the exchange of property may not need to be immediately
recognized for tax purposes. Both properties in an exchange must be held for productive use in
trade or business or for investment and must be of a like-kind.

Tax Delinquent Property (LIHTC) - A property for which property taxes and/or municipal
bills are severely past due.

Tax Escalation Clause - A provision in a lease for the tenant to pay for any increase in real
estate taxes imposed on the leased property.

Tax Exempt Private Activity Bonds (LIHTC) - Private activity bonds are bonds issued by
state or local governments to fund private activities that have a public benefit. The federal
government provides each state with a certain amount of authority – known as bond cap – to
issue tax-exempt private activity bonds for specified purposes, including homeownership, rental
housing, health care, education, and manufacturing. States decide how much of their bond cap to
allocate to each qualifying use. Private activity bonds are important sources of financing for
affordable homes. When used to finance homeownership, they are known as mortgage revenue
bonds. When used to finance qualifying rental developments, they automatically qualify a
development for 4 percent low-income housing tax credits.

Tax-Exempt Security - Tax-exempt security is a mutual fund or bond that produces income
which isn't subject to federal income taxes. Tax-free municipal bonds are an example. These are
fixed-income securities issued by state, county, city, or local governments. Mutual funds that
invest strictly in tax-exempt securities would also be tax-exempt.

Tax Hold Back - When property taxes are included with the mortgage payments, lenders
withhold funds from the disbursement to cover interim or final taxes payable to municipality.
The amount depends on the month that the mortgage was funded and the dates when interim and
final taxes are due. Tax hold backs are used to pay for the current year’s taxes while monthly tax
installments are used to pay the tax bill for the following year.

Tax Increment Financing (TIF) (LIHTC) - A financing source for housing and other public
improvements in designated underdeveloped areas. Communities can borrow against the
incremental tax revenue expected to be received after completion of the improvements to provide
initial funding of the investments.

Tax Lien - A charge against property, created by operation of law. Tax liens and assessments
take priority over all other liens.

Tax Lien Certificate - A tax lien certificate is a document issued by a local government at an
auction for a property that has a tax lien against due to the failure of the property owner to pay
Glossary of Housing Acronyms and Terms
property taxes. The buyer is essentially purchasing the right to collect past due taxes. Certain
states allow the tax lien to become a first lien on the property, which is then turned around and
sold at auction as a tax lien certificate.

Tax Participation Clause - A provision in a lease stipulating that the tenant will pay all or part
of the real estate taxes on the leased property-Also called a tax stop clause.

Tax Reform Act 0f 1986 (TRA) - The U.S. Congress passed the Tax Reform Act (TRA) of
1986 to simplify the income tax code, broaden the tax base and eliminate many tax shelters and
other preferences.

Tax Risk – The risk that federal tax law changes affect the federal tax-exemption status of
interest rates or that the marginal income tax level decreases. In either case, the value of tax-
exemption would decrease. As a result, tax-exempt rates would trade at a higher percentage of
taxable rates. The extreme case is that interest is no longer tax-exempt, thereby resulting in rates
on previously tax-exempt variable rate debt trading at or higher than interest rates on taxable
variable rate debt. Clients who use a fixed rate swap based on 67% LIBOR to hedge tax-exempt
variable rate debt are exposed to tax risk because if the tax-exempt status of the clients’ variable
rate bonds changes or tax rates decline, the rate that the client must pay on its bonds will likely
be higher than the 67% of LIBOR that it receives in the swap. Clients who use BMA-based
swaps are NOT exposed to tax risk.

Tax Shelter Registration - Certain partnerships or other investments with significant tax
benefits must register as tax shelters with the Internal Revenue Service and certain state tax

Taxable Bond – A bond where the interest is not exempt from Federal Income Tax

Taxpayer Relief Act of 1997 - An act that made significant changes in the capital gain
provisions which eliminated the two year limitation for the $250,000 capital gain involving the
sale of a principal residence, the rollover provision, and the senior exemption and made changes
in long- term capital gain treatment.

TEFRA Hearing – A public hearing preceding IDB issuance which allows for persons to
express their views on both the issuance of the bonds and the location of the proposed facility

Temporary Assistance to Needy Families (TANF) - Temporary Assistance for Needy
Families: This Federal program, administered by state and local governments, has replaced the
former Aid to Families with Dependent Children (AFDC) Program.

Tenancy - the right to occupy real property permanently, for a time which may terminate upon a
certain event, for a specific term, for a series of periods until cancelled (such as month-to-
month), or at will (which may be terminated at any time). Some tenancy is for occupancy only as
in a landlord-tenant situation, or a tenancy may also be based on ownership of title to the
Glossary of Housing Acronyms and Terms
Tenancy Addendum (Section 8) – For the Housing Choice Voucher Program, the lease
language required by HUD in the lease between the tenant and the owner

Tenancy At Will - A form of ownership by husband and wife whereby each owns the entire
property. In event of the death of one, the survivor owns the property without probate.

Tenancy by the Entirety - A type of joint ownership of property that provides right of
survivorship and is available only to a husband and wife.

Tenancy in Common - A type of joint tenancy in a property without right of survivorship.
Contrast with tenancy by the entirety and with joint tenancy.

Tenancy in Severalty - Ownership of a property by one person, rather than held jointly with
others. Also called Sole Tenancy

Tenancy of Sufferance - A tenancy (or estate) in which a person wrongfully holds or occupies a
property after the expiration of a lease without the consent of the landlord. No notice of
termination is required for the landlord to evict the tenant.

Tenancy for Years - A tenancy for a definite period of time. The tenant must vacate the
property at the end of the lease unless an extension or new lease has been agreed upon.

Tenant (Section 8) – The person or persons (other than a live-in aide) who executes the lease as
lessee of the dwelling unit.

Tenant Assistance Payment - The monthly amount HUD pays toward the tenant’s rent and
utility costs, includes the Rent Supplement, RAP and Section 8 regular monthly payments.

Tenant-Based Rental Assistance (Section 8) - Payments made to qualified low- and very-low
income persons which is not tied to a facility, but is portable (stays with the qualified person) in
the form of a Section 8 certificate or voucher.

Tenant-Based Rental Assistance (TBRA) (HOME) - A form of direct rental assistance in
which the recipient tenant may move from a dwelling unit with a right to continued assistance.
Includes security and utility deposits associated with the rental of dwelling units.

Tenant Income Certification (LIHTC) – When properly executed, the Tenant Income
Certification is the document which summarizes household eligibility, both initial and on an
ongoing basis. Certifications are required for all LIHTC units.

Tenant Estoppel Certificate - A tenant estoppel certificate is used to verify the current status of
the tenant and landlord’s rights and obligations under an existing lease when a landlord is
seeking a loan on the leased property. The estoppel certificate identifies the tenant and landlord;
the leased property location; the lease commencement date, termination date and option period,
if any; the status of rent, prepaid rents and security deposits; status of any defaults by the
Glossary of Housing Acronyms and Terms
landlord, among other information. It usually contains a statement by the borrower indicating the
amount owed on their mortgage loan along with the interest rate.

Tenant Rent (Section 8) – (Formerly called Net Family contribution.) The amount payable
monthly by the family as rent to the owner (including a PHA in other programs). Where all
utilities (except telephone) and other essential housing services are supplied by the owner,
Tenant Rent equals Total Tenant Payment. Where some of all utilities (except telephone) and
other essential housing services are not supplied by the owner and the cost thereof is not included
in the amount paid as rent to the owner, Tenant Rent equals Total Tenant Payment less the
Utility Allowance.

Tenant Rent to Owner (Section 8) – See “Family Rent to Owner”

Tenant Rental Assistance Certification System (TRACS) – TRACS is a HUD computer
system developed to help improve financial controls over assisted housing programs by
automating manual procedures and incorporating automated controls.

Tenants By Entirety (TBE) – When a property is owned by two or more tenants. If one owner
dies, the survivor takes the whole estate.

Tenants In Common (TIC) - When a property is owned by two or more tenants. If one owner
dies, the other does not automatically take the entire estate.

Tender Bond – A tender or “put” bond gives the investor the option to tender the bond to the
issuer at par on a specified date. A premium is paid for a tender bond because the put option
affords protection against erosion of principal during periods of rising interest rates.

Tender Offer – A proposal by the bondholder to sell his bond to the issuer or the issuer’s
representative for a stated price.

Tenement - a term found in older deeds or in boiler-plate deed language which means any
structure on real property. 2) old run-down urban apartment buildings with several floors reached
by stairways.

Term Bonds – A bond which has scheduled Sinking Fund Redemptions which occur on dates
other than the Maturity Date

Term of Lease (Section 8) – The amount of time a tenant agrees in writing to live in a dwelling

Term Mortgage - A type of loan having a stated length (normally under 5 years), which only
interest is paid and at the expiration of the term, the entire principal is paid.
Glossary of Housing Acronyms and Terms
Termination Value – The amount that the issuer must pay or receive if it wants to terminate a
swap early. This amount is based on the mark-to-market value, but includes the bid-ask spread
for the swap provider.

Testate - dying with a will (a testament). It is compared to "intestate," which is dying without a

Testator - A man who makes or has made a will.

Testatrix - A woman who makes or has made a will.

Testing - A legitimate and necessary method of uncovering and detecting housing
discrimination, it is a controlled method for measuring and documenting variations in the quality,
quantity and content of information and services offered or given to various home seekers by
housing or housing service providers.

Third Party Origination - a process by which a lender uses another party to completely or
partially originate, process, underwrite, close, fund, or package the mortgages it plans to deliver
to the secondary mortgage market.

Thirty-Day Notice - a notice by a landlord to a tenant on a month-to-month tenancy or a
holdover tenant to leave the premises within 30 days. Such notice does not have to state any
reason and is not based on failure to pay rent. The landlord's service of the notice and the tenant's
failure to vacate at the end of 30 days provide the basis for a lawsuit for unlawful detainer
(eviction) and a court judgment ordering the tenant to leave. While this is a common notice
period, it does not apply in all states or all circumstances, such as local rent control ordinances.

Three-Day Notice - a notice to pay delinquent rent or quit (leave or vacate) the premises given
by a landlord to a tenant, which in most states gives the tenant three days to pay or get out.
Service of the notice and failure of the tenant to pay or vacate within three days provide the basis
for a lawsuit for unlawful detainer (eviction) for unpaid rent and a court judgment ordering the
tenant to leave. While the three-day notice period is common it does not apply in all states or in
all circumstances, such as local rent control ordinances.

Title I of the Housing and Community Development Act of 1974 (CDBG) - Title I of the
Housing and Community Development Act of 1974, which authorized assistance to community
by block grants in place of categorical grants.

Title I National Housing Act - Title I of the National Housing Act, which provides FHA
insurance for home improvement and mobile home loans.

Title VI – Loan Guarantee Program

Title - (1) A combination of all the elements that constitute the highest legal right to own,
possess, use, control, enjoy and dispose of real estate or an inheritable right or interest therein.
(2) The rights of ownership recognized and protected by the law.
Glossary of Housing Acronyms and Terms

Title Abstract - a history of the chain of title

Title Binder - A written evidence of temporary title insurance coverage in force for a limited
period of time, which is to be replaced by a permanent policy

Title Covenants - Covenants ordinarily inserted in conveyances and in transfers of title to real
estate for the purpose of giving protection to the purchaser against possible insufficiency of the
title received. A group of such covenants known as "common law covenants" includes:
covenants against encumbrances; covenants for further assurance (in other words, to do whatever
is necessary to rectify title deficiencies); covenants of good right and authority to convey;
covenants of quiet enjoyment; covenants of seisin; covenants of warranty. (See Warranty or

Title Defect - an outstanding claim on a property that limits the ability to sell the property-Also
referred to as a cloud on the title

Title Examination - Title examination is a close examination of all public records that affect the
title to the real estate you are purchasing. The search involves reviewing past deeds, wills, and
trusts to make sure the title has passed correctly to each new owner. The examiner tries to verify
that all prior mortgages, judgments, and other liens have been paid in full.

Title Insurance Endorsements - This is an endorsement of insurance against losses that may
result from claims of previously unknown ownership in insured property.

Title Insurance Policy - A contract of title insurance under which the insurer, in keeping with
the terms of the policy, agrees to indemnify the insured against loss arising from claims against
the insured interest.

Title Plant - Also called "abstract plant" in some areas. A geographically filed assemblage of
title information that helps in expediting title examinations, such as copies of previous attorneys'
opinions, abstracts, tax searches and copies or take-offs of the public records.

Title Report - the written analysis of the status of title to real property, including a property
description, names of titleholders and how title is held (joint tenancy, etc.), tax rate,
encumbrances (mortgages, liens, deeds of trusts, recorded judgments), and real property taxes
due. A title report made when the report is ordered is called a "preliminary report," or a "prelim,"
and at time of recording an up-to-date report is issued which is the final title report. The history
of the title is called an "abstract." A title report is prepared by a title company, an abstractor, an
attorney or an escrow company, depending on local practice. Normally a title report's accuracy is
insured by title insurance which will require the insurance company to either correct any error or
pay damages resulting from a "cloud on title," encumbrance or title flaw in the title which was
not reported.

Title Search - An examination of municipal records to determine the legal ownership of
property. Usually is performed by a title company or attorney.
Glossary of Housing Acronyms and Terms

To-Wit - that is to say. Example: "the passengers in the vehicle, to wit: Arlene Jones, Betty
Bumgartner and Sherry Younger."

Tombstone – An advanced announcement of a probable sale of bonds (or stocks) which
provides information as to size of prospective offering, maturities and terms of serial and term
bonds, nature of surety, etc., and identifies the Bond Counsel and Underwriters.

Tort - A wrongful act; a violation of a legal right.

Total Bond Indebtedness – Total general obligation debt issued by a municipality, regardless of
the purpose

Total Debt Service Ratio (TDS) - Total debt service ratio, or TDS, is the percentage of an
individual's income that must be used to make debt payments and mortgage payments, including
insurance and taxes. This ratio is commonly evaluated when an individual applies for a mortgage
loan. A lower TDS is better, as this means the borrower has more capacity to withstand
unexpected circumstances

Total Development Cost (TDC) - Total Development Cost: a technical term used by HUD to
refer to the use of HUD public housing funds as applied toward the cost of developing a public
housing project (or the public housing units in a mixed finance project), including costs
associated with administration, professional services, relocation, demolition and abatement,
infrastructure improvements, as well as the actual cost of construction of improvements to the
"TDC Limit" refers to the maximum amount of such funding that HUD will approve for
development of specific public housing units in a given location. Note, however, that because the
TDC limit applies only to the costs of development of public housing that are paid directly with
HUD public housing funds, a PHA may exceed the TDC limit using non-public housing funds
such as CDBG, HOME, low-income housing tax credit equity, private donations, and private
TDC limits for new construction are published regularly by HUD for various building types and
unit sizes (by number of bedrooms) in specific market areas. Determination of the TDC limit for
a project is made by multiplying the HUD-published TDC limit applicable to each type and size
public housing unit in the project, by the number of such units in the project. Non-public housing
units are excluded from the calculation of TDC limits. Rehabilitation costs paid directly from
HUD public housing sources are calculated using 90 percent of the published TDC limits for
new construction, based on the number of public housing units after rehabilitation and
The TDC limit for a project is made up of the following components:
1. Housing Cost Cap (HCC): HUD's published limit on the use of public housing funds for the
cost of constructing the public housing units, which includes unit hard costs, builder's overhead
and profit, utilities from the street, finish landscaping, and a hard cost contingency.
2. Community Renewal: The balance of funds remaining within the project's TDC limit after the
housing construction costs (as defined in HCC, above) are subtracted from the TDC limit. This is
Glossary of Housing Acronyms and Terms
the amount of public housing funds available to pay for PHA administration, planning,
infrastructure and other site improvements, community and economic development facilities,
acquisition, relocation, demolition and remediation of units to be replaced on site, and all other
development costs.
Three types of costs may be excluded when calculating the TDC limit, even if they are paid for
with public housing funds:
1. costs of Community and Supportive Services,
2. costs of demolition and environmental remediation attributable to demolished public housing
units not replaced back on the original site, and
3. extraordinary Site Costs, as approved by HUD. See Notice PIH 2001-22 for a further
explanation of TDC. Appended to the notice are the FY 2001 TDC limits. The Notice is
available at on the Grant Administration Page.

Total Expense Ratio - Total obligations as a percentage of gross monthly income. The total
expense ratio includes monthly housing expenses plus other monthly debts. Used to help qualify
a potential borrower for a home loan

Total Tenant Payment (TTP) (Section 8) – The total Amount of the HUD rent formula
requires the tenant to pay toward rent and utilities

Trade Documentation – Swaps transactions are governed by a package of documents that
includes the Master Agreement, the Schedule to the Master, the Credit Support Annex and the
   a) The Master Agreement is a standardized agreement that is formulated by ISDA and
      adopted by most counterparties in the derivatives market to govern swaps transactions.
   b) The Schedule to the Master amends the Master with specific terms for Cross-Default
      thresholds, Events of Default, Credit Events and other issuer-specific terms.
   c) The Credit Support Annex provides any terms for posting collateral including margin
      requirements, mark-to-market frequency and collateral thresholds.
   d) The Confirmation defines the terms of the specific swap transaction. It is prepared
      following the oral agreement of the terms (this is typically over the telephone and the call
      is recorded and saved by the provider for several months).

Trade Equity - When a piece of property is used in a swap for a down payment on a property.
For example, trading a car for a down payment on a house.

Tranche - In structured finance, a tranche (misspelled as traunch or traunche) is one of a number
of related securities offered as part of the same transaction. The word tranche is French for slice,
section, series, or portion. In the financial sense of the word, each bond is a different slice of the
deal's risk. Transaction documentation (see indenture) usually defines the tranches as different
"classes" of notes, each identified by letter (e.g. the Class A, Class B, Class C securities). The
term "tranche" is used in fields of finance other than structured finance (such as in straight
lending, where "multi-tranche loans" are commonplace), but the term's use in structured finance
may be singled out as particularly important. Use of "tranche" as a verb is limited almost
exclusively to this field.
Glossary of Housing Acronyms and Terms
Transaction Tracking - Captures data to identify, record, and report transactions arising from
individual financial events. Transaction tracking includes the functions of
receivables/collections, payables/disbursements, payroll, travel, property accounting, and
inventory accounting. (JFMIP Framework) HUDCAPS Core Financial System Standard
Accounting Interface, dated 9/30/97

Transfer - Shifting of all or part of the Budget Authority in one Appropriation or Fund Account
to another, as specifically authorized by law. (GAO) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

Transfer (Bankruptcy) - Any mode or means by which a debtor disposes of or parts with
his/her property.

Transfer of Ownership (Also known as “Transfer”) - any means by which ownership of a
property changes hands. These include purchase of a property, assumption of mortgage debt,
exchange of possession of a property via a land sales contract or any other land trust device.

Transfer of Physical Assets (TPA) - A procedure in which a property is transferred to a new
owner, subject to approval by HUD or RHS, depending on the pre-existing financing.

Transfer on Death Deed - A transfer on death deed allows a property owner to directly transfer
the ownership of real estate at the owner's death to whomever the owner designates by name. It
is a method for avoiding probate of real estate when the owner doesn't need the tax benefits of a
trust. However, any estate taxes that may be due are not avoided.

Transfer (Bankruptcy) - Any mode or means by which a debtor disposes of or parts with
his/her property.

Transfer Taxes - State and local taxes charged for the transfer of real estate. Usually equal to a
percentage of the sales price.

Transfers (LIHTC) – SCSHFDA has taken the position that a transfer between buildings may
occur only when a qualified household moves from a qualified low-income unit into a “Vacant
Never Rented” unit. In this instance, the units swap status and the previously qualified unit
becomes “Vacant Never Rented”. At any other time, a move between buildings is considered a
move-out from the original unit and a move-in for the new unit. A complete initial certification is
required for the new unit and the move-in date on the initial certification will be the first date of
occupancy in the new unit. The household must meet the applicable income limit in effect on the
date of occupancy in the new unit.

Transformers - Rules applied to change data. DAMA web site at

Transient Housing (HUD) – Housing units intended for occupancy for periods of less than 30
days or housing where the occupants are provided customary hotel services such as room service
for food and beverages, maid service, furnishing and laundering of linen, and bell person service.
Glossary of Housing Acronyms and Terms
Transitional Housing – Housing that is designed to provide housing and appropriate supportive
services to persons including (but not limited to) de-institutionalized individuals with disabilities,
homeless individuals with disabilities, and homeless families with children. Its purpose must
facilitate the movement of individuals and families to independent living within a set time

Transitional Housing for Homeless (LIHTC) - A housing unit does not qualify for the LIHTC
program as a low-income unit if it used on a transient basis. An exception exists for certain
transitional housing for the homeless if the units contain sleeping accommodations, bathroom
and kitchen facilities and are located in a building (1) in which a governmental entity or qualified
nonprofit organization provides residents with temporary housing and supportive services
designed to assist them in locating and retaining permanent housing and (2) which is used
exclusively to facilitate the transition of homeless individuals (as the term is used in Section 103
of the Stewart B. McKinney Homeless Assistance Act) to independent living within 24 months.
The qualified basis of a building that provides transitional housing for the homeless may be
increased by the amount of the eligible basis of the building that is used throughout the year to
provide supportive services designed to assist residents in locating and retaining permanent
housing to the extent that this amount does not exceed 20 percent of the building's other qualified

Transitional Housing Program - Provides funds for the construction, acquisition, or
rehabilitation of residential housing for low-income individuals and families having an
immediate need for temporary or transitional housing.

Transit Level of Service - means characteristics of transit service provided which indicate its
quantity, geographic area of coverage, frequency and quality (comfort, travel, time, fare and

Transit-Oriented Development (TOD) (LIHTC) - Transit-oriented development is the creation
of mixed-use development centered around a public transit hub to maximize the number of
people who can utilize public transportation services to meet their daily travel needs.

Treasury Account Identification Code - A code assigned by Treasury, that is composed of a
department or agency code, codes that provide the period of availability of the appropriation or
fund account and a four-digit basic account symbol. Example: 28 7 0230. (OMB Circular A-34,
Page 16, Paragraph 11.7)

Treasury Index - An index that is used to determine interest rate changes for certain adjustable-
rate mortgage (ARM) plans. It is based on the results of auctions that the U.S. Treasury holds for
its Treasury bills and securities or is derived from the U.S. Treasury's daily yield curve, which is
based on the closing market bid yields on actively traded Treasury securities in the over-the-
counter market. See adjustable-rate mortgage (ARM).

Tribally Designated Housing Entities (TDHE) - NAHASDA defines a "Tribally Designated
Housing Entity" as an existing IHA - unless the Tribe authorizes another entity to receive grant
amounts and provide affordable housing for Indians. A TDHE may be authorized or established
Glossary of Housing Acronyms and Terms
by one or more Indian tribes to act on behalf of each such tribe authorizing or establishing the
housing entity.

Triggering Data - Data that selects and loads data on a scheduled basis. DAMA web site at

Triple Exemption - Securities on which the interest is exempt from federal, state, and local
income taxes.

Triple Net Lease - a lease in which the lessee's (tenant's) rent includes a share of real property
taxes, insurance and maintenance as well as the basic rent. A "triple-net-lease" is standard in
leases of commercial property in shopping centers and malls.

Troubled Agency Recovery Center (TARC) - Troubled Agency Recovery Centers are
administered by the Office of Troubled Agency Recovery (OTAR). The mission of the TARCs is
to develop and implement intervention strategies for housing authorities that have been
designated as "Troubled," in order to achieve a passing PHAS score within one year of the
Troubled designation. The two TARCs are located in HUD's Cleveland and Memphis offices. If
a HOPE VI Grantee has been determined to be Troubled, responsibility for the PHA, including
the HOPE VI Field Office role, will be assigned to a TARC for one year. Each PHA partnered
with a TARC has one year to recover, show "substantial improvement," or be referred for
receivership. TARC service would continue during any receivership. If substantial improvement
is demonstrated, the PHA has another year to work on recovery before a receivership is
necessary. Once the PHA improves and is no longer designated as Troubled, responsibility for
the PHA will be returned to the Field Office. OTAR’s website is is:

True Interest Costs (TIC) – A method of calculating bids for new issues of municipal securities
that takes into consideration the time value of money.

Trust Agreement - A written agreement under which a grantor transfers legal ownership of
property to another person or organization charged with administering the property for the
benefit of a third person or persons.

Trust Deed – (1.) A formal document which outlines the terms of a trust agreement. (2.) A
common way to structure real estate purchases, where the title to a property is held in trust until
the loan for the property is paid.

Trust Estate – The mortgage loans, mortgage-backed securities, insurance policies and other
assets which are pledged to the repayment of bonds under the terms of the Indenture.

Trustee (Bankruptcy) - The representative of the bankruptcy estate who exercises statutory
powers, principally for the benefit of the unsecured creditors, under the general supervision of
the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is
a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases
and some chapter 11 cases. The trustee's responsibilities include reviewing the debtor's petition
Glossary of Housing Acronyms and Terms
and schedules and bringing actions against creditors or the debtor to recover property of the
bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes
distributions to creditors. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee
and the additional responsibilities of overseeing the debtor's plan, receiving payments from
debtors, and disbursing plan payments to creditors.

Trustee – The entity which is responsible for managing the Trust Estate under the terms of the

Trustee Deed in Lieu of Foreclosure/Upon Sale - Document recorded to evidence the transfer
of real property from the defaulting trustor (borrower) to the beneficiary (lender) in lieu of

Trustee in Bankruptcy - a person appointed by a bankruptcy court to supervise the affairs of a
person or business which is in bankruptcy, determine both assets and debts, marshal (gather) and
manage the assets if necessary, and report to the court. Most trustees in bankruptcy are full-time
professionals and are paid from the estates of the debtors.

Trustee’s Counsel – A lawyer or firm of lawyers which is responsible for looking after the
interest of the Trustee.

Trustee’s Deed - A deed is the written document which transfers title (ownership) or an interest
in real property to another person. A trustee's deed is a deed to be executed by a person serving
as a trustee in their appointed capacity. A trustee's deed is often used, for example, by a trustee in
bankruptcy to sell real property of the debtor.

Trustee’s Deed Upon Sale (Foreclosure) - A document signed by the Trustee that transfers
ownership of the foreclosed property to the successful bidder at a Trustee’s Sale.

Trustee’s Sale (Foreclosure) - A sale at auction by a trustee under a deed of trust, pursuant to
foreclosure proceedings.

Trustee’s Sale Guarantee (Foreclosure) - A written guarantee from a title company assuring
the accuracy and completeness of information provided by that company and necessary to
process a non-judicial foreclosure.

Trustor - The borrower of money secured by a trust deed. One who transfers his bare legal title
to a trustee to be held as security until he has performed his obligation to a lender under terms of
a note secured by a deed of trust.

Truth in Lending (TILA) - Truth in Lending, also known as TILA, is federal legislation that
addresses predatory lending practices. Under TILA, lenders must provide loan applicants with
basic loan information, such as annual percentage rate (APR), minimum payment, annual fees,
credit insurance fees, etc. This information, which is provided before loan funding, assists the
applicant in budgeting and in comparing competitive loan offers. One of its key provisions
allows a consumer to cancel a home-improvement loan, second mortgage or other loan if the
Glossary of Housing Acronyms and Terms
home was pledged as security (except for a first mortgage or first trust deed) until midnight of
the third business day after the contract was signed.

Truth-in-Lending Statement (Regulation Z) - A federal government regulation that provides
details of the cost of obtaining a mortgage loan. Lenders must provide this shortly after the loan
application has been completed.

Turnkey - Housing initially financed and built by private sponsors and purchased by Housing
Authorities for use by low-income families under the Public Housing Program.

Two-Step Mortgage - an adjustable-rate mortgage (ARM) that has one interest rate for the
first five to seven years of its term and a different interest rate for the remainder of the term.

Two-to-Four Family Property - A property that consists of a structure that provides living
space (dwelling units) for two to four families, although ownership of the structure is evidenced
by a single deed.

UA – Utility Allowance

UA – Urbanized Area (Bureau of the Census)

UCC – Uniform Commercial Code

UCC-1 - a financing agreement form for using personal

UDAG - Urban Development Action Grant, discontinued HUD program

UFAS – Uniform Federal Accessibility Standards

UIV – Up-Front Income Verification

UPCS – Uniform Physical Condition Standards

URA - Uniform Relocation Assistance and Real Property Acquisition Act of 1970

URAR – Uniform Residential Appraisal Report

URP – Utility Reimbursement Payment

USCIS – U.S. Citizenship and Immigration Services

USDA – U.S. Department of Agriculture
Glossary of Housing Acronyms and Terms
USPAP – Uniform Standards of Professional Appraisal Practice

USRD – The United States Rural Development Service (USDA)

Umbrella Partnership Real Estate Investment Trust (UPREIT) - A limited partnership in
which the General Partner is a Real Estate Investment Trust, and which has the ability to
exchange partnership interests as an alternative to a cash transaction, resulting in deferral of tax

Undelivered Order - The value of goods and services ordered and Obligated which have not
been received. This term is synonymous with unliquidated obligations. (GAO) HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Underbid (Foreclosure) - A minimum bid that only reflects the lenders actual cost in the
defaulted loan and does not include the unpaid interest. Executed when the lender believes that
they will not be out bid at the trustee’s sale. If another bidder does bid for the property the lender
will instruct the trustee to increase its opening bid to include any unpaid interest.

Undersecured Claim (Bankruptcy) - A debt secured by property that is worth less than the full
amount of the debt.

Underutilized - means an entire property or portion thereof, with or without improvements
which is used only at irregular periods or intermittently by the accountable landholding agency
for current program purposes of that agency, or which is used for current program purposes that
can be satisfied with only a portion of the property.

Underwrite – To purchase a bond or note issue from the issuing body to resell it to the general

Underwriting Requirements (LIHTC) - The tests or standards used by a lender when deciding
whether to approve a loan. These may include a minimum credit score, maximum debt-to-
income ratio, and other measures of a borrower's creditworthiness and the risk involved in
extending a loan.

Underwriter (Bonds) – The Underwriter is a Bond Dealer or group of Bond Dealers which the
Issuer commissions to find investors to purchase the Issuer’s bonds.

Underwriter’s Counsel (Bonds) – A lawyer or group of lawyers responsible for looking after
the interests of the Underwriter or Underwriting Group.

Underwriter’s Expenses (Bonds) – The portion of the Underwriter’s Fee which will be utilized
to pay the Underwriter’s costs of structuring and selling the Issuer’s transaction.

Underwriter’s Fee (Bonds) – The compensation paid to the underwriting team for structuring
and marketing a bond issue. The Underwriter’s Fee is sometimes paid as a separate fee or
sometimes as a discount on the purchase price paid by the underwriters for the bonds.
Glossary of Housing Acronyms and Terms

Underwriter’s Spread (Bonds) – When the Underwriter’s Fee is paid in the form of a reduced
purchase price on the bonds the fee is called the Underwriter’s Spread because the Underwriter’s
make their fee when they sell the bonds to investors at the full price.

Underwriting Team (Bonds) – The Underwriting Team is the group of Underwriters which the
Issuer has hired to complete the underwriting of the Issuer’s bonds.

Undisclosed Bankruptcy - A bankruptcy case that was pending during the foreclosure period
that involved debtors who were party to the foreclosure. Because the automatic stay may have
been in effect during the time, this may invalidate certain foreclosure proceedings and cause a
delay in the foreclosure sale process.

Undisclosed Heir – An undisclosed heir is a person who claims the right to a piece of property
after the death of an owner without a will.

Undisclosed Spouse - An unidentified marital partner who can claim the right to a piece of

Undivided Interest - A fractional ownership without a physical division into shares

Undue Hardship (Bankruptcy) - The most widely used test for evaluating undue hardship in
the dischargeability of a student loan includes three conditions: (1) the debtor cannot maintain––
based on current income and expenses––a minimal standard of living if forced to repay the loans;
(2) there are indications that the state of affairs is likely to persist for a significant portion of the
repayment period; and (3) the debtor made good faith efforts to repay the loans.

Unexpended Balance - Sum of the Obligated and Unobligated Balances HUDCAPS Core
Financial System Standard Accounting Interface, dated 9/30/97

Unexpired Budget Authority - Budget Authority which is available for incurring new

Unfilled Customer Order - The dollar amount of orders (Reimbursable Order) accepted from
other accounts within the government for goods and services to be furnished on a reimbursable
basis. For transactions with the public, these orders are amounts advanced or collected for which
the account or fund has not yet performed the service or incurred its own obligations for that
purpose. (GAO) HUDCAPS Core Financial System Standard Accounting Interface, dated

Uniform Commercial Code (UCC) – As of January 1, 1965, this codification of commercial
law was passed and then adopted by most states and which establishes a unified and
comprehensive scheme for the regulation of commercial security transactions in personal
property and superseded the existing statutes on and bulk transfers, chattel mortgages,
conditional sales, trust receipts, assignment of accounts receivable and others in this field.
Glossary of Housing Acronyms and Terms
Uniform Partnership Act (UPA) - Most states have adopted the "Uniform Partnership Act"
(UPA), which permits real estate to be held in the partnership name. The "Uniform Limited
Partnership Act" (ULPA) has also been widely adopted. It establishes the legality of the limited
partnership entity and provides that realty may be held in the limited partnership's name. Profits
and losses are passed through the partnership to each partner, whose individual tax situation
determines the tax consequences.

Uniform Relocation Assistance (URA) - The Uniform Relocation Act sets forth the relocation
assistance requirements with respect to the displacement of any family, individual, business,
nonprofit organization, or firm as a direct result of acquisition, rehabilitation, or demolition
undertaken during most Federal or Federally-funded land acquisition programs. An important
exception was introduced by the Quality Housing and Work Responsibility Act of 1998
(QHWRA). Relocation assistance that must be provided in connection with demolition of public
housing developments is described in Section 18 of the 1937 Housing Act, as revised by
QHWRA, Section 531, unless said demolition is approved by HUD as part of a HOPE VI
Revitalization Plan, in which case the URA does apply. HOPE VI Grantees with mixed-finance
projects that require temporary relocation or cause permanent displacement must prepare and
implement a HOPE VI Relocation Plan in accordance with applicable requirements. Relocation
information is available on the HOPE VI website:

Uniform Residential Appraisal Report (URAR) – The most common appraisal form in use
which is also know as a form appraisal and is used to document the methods used to determine
the market value of single-family residences and planned unit developments.

Uniform Settlement Statement - The special form known as HUD-1 that itemizes all charges to
he paid by a borrower and seller in connection with the settlement is required to be given to the
borrower, lender and seller at or before settlement by the settlement agent in a transaction
covered by RESPA.

Uniform Standards of Professional Appraisal Practice (USPAP) – A code developed and
many times modified by the Appraisal Foundation that governs licensed and certified appraisers
which guides them in the development of the appraisal process and the content of the report.

Unit (Section 8) – Residential space for the private use of a family. The size of a unit is based
on the number of bedrooms contained within the unit and generally ranges from zero (0)
bedrooms to six (6) bedrooms.

Unit Fraction - The unit fraction is the fraction obtained by dividing the number of low-income
units in a building by the total number of units in the building (whether or not occupies).

Unit of General Local Government - means any city, town, township, parish, county, village,
or other general purpose political subdivision of a State; Guam, the Northern Mariana Islands,
the Virgin Islands, American Samoa, the Federated States of Micronesia and Palau, the Marshall
Islands, or a general purpose political subdivision thereof; and any agency or instrumentality
Glossary of Housing Acronyms and Terms
thereof that is established pursuant to legislation and designated by the chief executive to act on
behalf of the jurisdiction with regard to provisions of the National Affordable Housing Act

Unit Trust – A fixed portfolio of municipal securities sold to investors in “units” that represents
an undivided ownership interest in the portfolio. The number of units in a trust is fixed at the
time of issuance.

United States Government Standard General Ledger (SGL) - A uniform chart of accounts
and pro forma transactions used to standardize federal agency accounting and to support the
preparation of standard external reports required by central agencies. OMB and Treasury
Financial Management Service regulations require agencies to use the Standard General Ledger
(SGL) to accumulate and report standard financial data. The SGL chart of accounts identifies and
defines budgetary, proprietary, and memorandum accounts to be used in agencies' accounting
systems. The SGL is generic for the federal government and is not intended to reflect any single
federal agency's accounting system. (JFMIP Framework) HUDCAPS Core Financial System
Standard Accounting Interface, dated 9/30/97

United States Citizenship and Immigration Services (USCIS) - A branch of the agency
formerly known as the INS (Immigration and Naturalization Service), now reorganized under the
Department of Homeland Security (DHS). USCIS is primarily responsible for handling
immigration benefits, such as applications for asylum, work permits, green cards, and

United States Rural Development Service (USRD) – (formerly the Rural Economic and
Community Development, and more formerly the Farmer’s Home Administration). An agency
within the United States Department of Agriculture, or other agency created or chartered by the
United States to which the powers of the Rural Development Service have been transferred.

United States Trustee (Bankruptcy) - An officer of the U.S. Department of Justice responsible
for supervising the administration of bankruptcy cases, estates, and trustees; monitoring plans
and disclosure statements; monitoring creditors' committees; monitoring fee applications; and
performing other statutory duties.

Unity of Title - Unity of title is a term used in relation to joint ownership of property. Unity of
title means that all owners must receive their interest/title through the same event or from the
same source. It is one of the requirements needed to determine that a joint tenancy exists. Other
unities required to find joint tenancy are unity of time, meaning that all tenants must receive their
interests in the land at the same time, unity of interest, in which all the joint tenants have equal
undivided interests/shares in the land that is jointly held, and unity of possession, meaning that
each joint tenant or owner has “the right to possess the whole".

Universal Design - Universal design incorporates the characteristics necessary for people with
physical limitations into the design of common products and building spaces, so that that are
Glossary of Housing Acronyms and Terms
comfortably usable by all people, not just people with disabilities. This method of design also
makes products and homes more widely marketable and profitable.
Examples of universal design features:
• Lowered light switches
• Levered door knobs
• Stair-less building entries
• Wider doorways

Unlawful Detainer (Legal) - An action at law to evict a person or persons occupying real
property unlawfully

Unlimited Tax Bond - A bond secured by the pledge of taxes which is not limited by rate or

Unliquidated Claim (Bankruptcy) - A claim for which a specific value has not been

Unobligated Balance - Portion of Obligational Authority which has not been obligated.
HUDCAPS Core Financial System Standard Accounting Interface, dated 9/30/97

Unscheduled Debt (Bankruptcy) - A debt that should have been listed by the debtor in the
schedules filed with the court but was not. (Depending on the circumstances, an unscheduled
debt may or may not be discharged.)

Unsecured Claim (Bankruptcy) - A claim or debt for which a creditor holds no special
assurance of payment, such as a mortgage or lien; a debt for which credit was extended based
solely upon the creditor's assessment of the debtor's future ability to pay.

Unsecured Credit - Any credit that is not secured by property (such as a house). A credit card is
unsecured credit, a mortgage loan is secured.

Unsecured Non-Priority Claim (Bankruptcy) – An Unsecured Non-Priority Claim is a claim
that is not associated with collateral and does not survive a complete bankruptcy. (One noted
exception, however, is a federally guaranteed student loan.)

Unsecured Priority (Bankruptcy) - a claim or debt that is not secured to any collateral;
however, said debt would survive a Chapter 7 and must be paid 100% in Chapter 13.

Unsuitable Property - means that HUD has determined that a particular property does not
satisfy the criteria in Sec. 581.6.

Unusual Expenses (Section 8) – Prior to the change in the 1982 regulations, this was the term
applied to the amounts paid by the family for the care of minors under 13 years of age or for the
care of disabled or handicapped family household members, but only where such care was
necessary to enable a family member to be gainfully employed.
Glossary of Housing Acronyms and Terms
Unutilized Property - means an entire property or portion thereof, with or without
improvements, not occupied for current program purposes for the accountable executive agency
or occupied in caretaker status only.

Update - A function not allowed in a data warehouse. DAMA web site at

Up Front Charges - the fees charged to homeowners by the lender at the time of closing a mortgage
loan. This includes points, broker's fees, insurance, and other charges.

Up-Front Income Verification (UIV) (Section 8) – UIV is the verification of income, before or
during a family reexamination, through an independent source that systematically and uniformly
maintains income information in computerized form for a large number of individuals (VG, p. 7)

Upset Bid (Foreclosure) - A recorded bid placed after a foreclosure sale has ended that is higher
than the highest bid received at the actual foreclosure sale.

Upset Price (Foreclosure) - Also known as reserve price. It is the opening minimum bid for a
property at a foreclosure auction sale. Generally, it is the total amount of the defaulted loan, and
any interest incurred.

Upzoning - The process, often controversial, of changing the zoning in an area, usually to allow
greater density or commercial use. Sometimes the term is used to mean the opposite - changing
the zoning in a broad area to limit growth and density.

Urban Development Action Grant (UDAG) - Program administered by the Assistant Secretary
for Community Planning and Development, used to provide funding for projects in
economically-distressed cities.

Urban Forestry - HUD encourages Grantees to make enhancements to the natural environment
such as tree and shrub planting to address natural resource issues such as erosion, storm water
management, and water quality that will result in physical improvements to the site; convert
public open space now devoid of green vegetation to a natural, inviting, and more livable
environment; and plan for the sustainability of such resources after the revitalization activities
are completed. Through a Memorandum of Understanding (MOU) between the Department of
Agriculture and HUD, technical assistance to develop a natural resource stewardship program is
available to public housing authorities. The text of the MOU can be found on the "Revitalization
Grants" page of the HOPE VI website. Further information about this initiative can be found on
the U.S. Forest Service website:

Urban Homesteading - The Housing and Community Development Act of 1974 authorized sale
of publicly-owned properties to qualified individuals at minimal cost based on individual's
agreement to rehabilitate and occupy the property for a set period of time. This program was
expanded by the Housing and Community Development Act of 1987, which authorized resident
management and ownership of public housing (see "Resident Ownership").
Glossary of Housing Acronyms and Terms
Urban Revitalization Demonstration - Original name of the HOPE VI program

Urbanized Area (UA) – The Bureau of the Census defines an urbanized area by population
density. Each UA includes a central city and the surrounding densely settled territory that
together have a population of 50,000 or more and a population density exceeding 1,000 people
per square mile. A “county” is a political distinction and is not incorporated in the Bureau of the
Census’ classification scheme, so one UA may cover parts of several counties.
Under this definition, all persons living in UAs and in places (cities, towns, villages, etc.) with a
population of 2,500 or more outside of UAs are considered the urban population.

U.S. Trustee (Bankruptcy) - An officer of the Justice Department responsible for supervising
the administration of bankruptcy cases, estates, and trustees; monitoring plans and disclosure
statements; monitoring creditors' committees; monitoring fee applications; and performing other
statutory duties.

U.S. Vets - U.S. VETS is the largest organization in the country dedicated to helping homeless
veterans, and a nationally recognized leader in the field of service delivery to veterans.

Useful Life - shall mean a period of 10 years upon construction completion and issuance of an
occupancy permit applicable to a residential rental, transitional or homeownership property
acquired, constructed or rehabilitated (including architectural and engineering fees), or
maintained (i.e., operating costs or replacement reserves), in whole or in part, with Youthbuild
implementation grant funds (as used in section 455(a), Youthbuild Program Requirements, of the

Utilities Attributable to the Unit (Section 8) – (Applies only to RAP units.) HUD’s estimate of
the average monthly utilities (except telephone) that will be consumed by an energy-conscious
household and paid by the project. This concept is used only in the RAP formula that was in
effect prior to May 1, 1983.

Utility Allowance (UA) (Section 8) – If the cost of utilities (except telephone) and other housing
services for an assisted unit is not included in the tenant rent but is the responsibility of the
family occupying the unit, an amount equal to the estimate made or approved by a PHA or HUD
of the monthly cost of a reasonable consumption of such utilities and other services for the unit
by an energy-conservative household of modest circumstances consistent with the requirements
of a safe, sanitary, and healthful living environment.

Utility Allowance (LIHTC) - The utility allowance is the amount, determined by the Secretary
of the Department of the Treasury, to be the average cost of tenant utilities.

Utility Hook-Up Charge (Section 8) – In a manufactured home space rental: Costs payable by a
family for connecting the manufactured home to utilities such as water, gas, electrical and sewer
Glossary of Housing Acronyms and Terms
Utility Reimbursement (Section 8) – In the voucher program, the utility reimbursement is the
portion of the housing assistance payment which exceeds the amount of rent to owner.

Utility Reimbursement Payment (URP) (Section 8) – (Applies only to Rent Supplement, RAP,
Public Housing, and Section 8 Tenants.) The amount the owner pays the tenant to help the
family pay its utility bills. The project receives HUD assistance payments to cover this
reimbursement. It is the amount by which the Utility Allowance exceeds the TTP.

VA – U.S. Department of Veterans Administration

VAP – Variable Payment (Mortgage)

VAWA – Violence Against Women Reauthorization Act of 2005

VCA - Voluntary Compliance Agreement

VISTA – Volunteers in Service to America

VPM – Variable-Payment Mortgage

VRDNs – Variable Rate Demand Notes

VRM – Variable Rate Mortgage

VSO – See Veterans Service Organizations

VA Guaranty - An insurance contract in which the Veterans Administration (VA) insures that
the named lender will recover a specific percentage of the loan amount from the insurer in the
event that the loan goes bad.

VA Loan - The Veterans Administration (VA) has been assisting veterans in purchasing homes
since 1944. The program is available to veterans, active-duty personnel, and to some members of
the reserve and National Guard. The VA provides lending institutions with a guaranty that loans
made to veterans will be repaid in full if a veteran defaults on their loan. The VA does not issue
loans, it guarantees or insures loans provided by private lenders to eligible veterans for the
purchase of a home. Veterans who receive a VA guaranteed loan are required to occupy the
residence that they purchase.

VA Specified Bid (Foreclosure) - On VA insured loans, the VA tells the beneficiary how much
the opening bid should be at the trustee’s sale. This amount is lower than the amount advertised
in the Notice of Sale.

Vacancy Allowance - An estimate of the amount of rent that may be foregone because of unoccupied
Glossary of Housing Acronyms and Terms

Vacancy Loss Payments (Section 8) – (Applies only to pre-10/2/95 HAP Contracts in the
Rental Certificate Program). When a family vacates its unit in violation of its lease, the owner is
eligible for 80% of the contract rent for a vacancy period of up to one additional month, (beyond
the month in which the vacancy occurred) if s/he notifies the PHA as soon as s/he learns of the
vacancy, makes an effort to advertise the unit, and does not reject any eligible applicant except
for good cause.

Vacancy Rate (LIHTC) - Means the percentage loss from gross rental income due to vacancy
and collection losses.

Vacant Unit Rule (LIHTC) – Tax Credits may still be claimed on units vacated by qualified
low-income households as long as the unit is suitable for occupancy and reasonable marketing
attempts are continuing to re-occupy the vacant tax credit units with households having a
qualifying income before any units of comparable size or smaller (in comparison to the vacant
LIHTC unit) in the project are rented to non-qualifying households.

Value of the Building - means the monetary value assigned to a building by an independent real
estate appraiser, or as otherwise reasonably established by the grantee or the State recipient.

Variable Expenses - Costs or payments that may vary from month to month, for example,
gasoline or food.

Variable Rate Bonds (or “Floating Rate Bonds”) – Bonds on which the coupon rate can either
change to a non-predetermined rate on a known date or dates, or on which the coupon rate can
change to a known rate on an unknown date or dates.

Variable Rate Demand Notes (VRDNs) - debt instrument that represents borrowed funds that
are payable on demand and accrue interest based on a prevailing money market rate, such as the
prime rate. The interest rate applicable to the borrowed funds is specified from the outset of the
debt, and is typically equal to the specified money market rate plus an extra margin. Because
money market interest rates, such as the bank prime rate, are variable over time, the interest rate
applicable to this type of demand note is variable as well. Every time the prevailing money
market rate changes, a variable rate demand note's interest rate is adjusted accordingly. As the
name implies, these debt instruments are payable on demand. This means that the lender of the
funds can request repayment of the entire debt amount at its discretion, and the funds must be
repaid once the demand has been made.

Variable Rate Mortgage (VRM) - A mortgage loan for which the interest varies according to
an index.

Variance - Permission obtained from governmental zoning authorities to build a structure or
conduct a use that is expressly prohibited by the current zoning lows; an exception from the
zoning laws. A variance gives some measure of elasticity to the zoning game.
Glossary of Housing Acronyms and Terms
Vehicle Miles Traveled (LIHTC) - The number of miles that residential vehicles are driven
each day. When housing is located far from employment centers and public transit, vehicle miles
traveled generally increase, along with environmental pollutants.

Vendor - Entity initially receiving HUD funds as a result of orders placed, contracts awarded,
services received, and similar transactions during a given period. The vendor may or may not be
the entity who is the ultimate beneficiary of HUD funds and who entered into an agreement or
contract with HUD. HUDCAPS Core Financial System Standard Accounting Interface, dated

Vendor Take-Back Mortgage - Vendor take-back mortgage is a first or second purchase
mortgage that is financed by the home seller. If the buyer doesn't qualify for a traditional
mortgage, the seller can finance part or all of the purchase to facilitate the sale. Generally, a
vendor take-back mortgage is priced below market value so that it's affordable for the buyer

Verification Report – A report or opinion prepared by a certified public accountant verifying
that the monies and securities deposited with a Trustee in connection with bonds are sufficient to
pay principal of, any premium on, and interest on such bonds at the time(s) specified in the Bond
Indenture or Escrow Agreement

Very Large Lower-Income Family (Section 8) – Prior to the change in the 1982 regulations
this was described as a lower-income family which included eight or more minors.

Very Low Income Family (Section 8) – A Low-Income Family whose Annual Income does not
exceed 50% of the median income for the area, as determined by HUD, with adjustments for
smaller and larger families. HUD may establish income limits higher or lower than 50% of the
median income for the area on the basis of its finding that such variations are necessary because
of unusually high or low family incomes. This is the income limit for the Housing Choice
Voucher Program.

Vested Remainder - the absolute right to receive title after a presently existing interest in real
property terminates. A "vested remainder" is created by deed or by a decree of distribution of an
estate given by will. Example: "Title to the Hard Luck Ranch to my son, Sean, subject to a life
estate to my brother, Douglas." Sean has a "vested remainder" which is an absolute right, Sean
could sell to another person at this time, with occupancy delayed until title would pass to him.

Veteran – Head of household, spouse or surviving spouse who was a person who has served in
the active military, naval, or air service, for at least 180 days and who was discharged or released
under conditions other than dishonorable.

Veteran Resource Center (HUDVET) - The HUD Veteran Resource Center (HUDVET) was
created as a result of a unique partnership between National Veteran Service Organizations and
Glossary of Housing Acronyms and Terms
Veteran Service Organization Officers - Individuals recognized by veterans service
organizations who are qualified to file claims for veterans to the Department of Veterans Affairs
for benefits such as compensation, pension, and medical treatment.

Veterans Administration (VA) – An agency of the United States of America, or any successors
to its functions

Veterans Service Organizations (VSO) - This up-to-date, database driven website allows you
to view VSO information in a variety of ways.

Viager - Viager is a real estate financing arrangement similar to a reverse mortgage. A
homeowner sells his home to another party, who pays an immediate down payment and regular
monthly payments. The seller lives in the home as long as he chooses. When he moves or dies,
the other party takes physical possession of the home. This arrangement is also called a reverse
annuity mortgage or charitable remainder trust.

Violent Criminal Activity (Section 8) – Violent criminal activity is any illegal criminal activity
that has as one of its elements the use, or threatened use of physical force against the person or
property of another.

Visitability - Grantees are encouraged to incorporate visitability standards where feasible in new
construction and substantial rehabilitation projects, both rental and for-sale. Visitability standards
allow a person with mobility impairments access into the home, but do not require that all
features be made accessible. The two standards of visitability are:
1.     at least one entrance to the home is at grade (no steps); and
2.     the entrance door and all interior passage doors are at least 2 feet 10 inches wide,
allowing 32 inches of clear passage space.
Allowing use of 2'10" doors is consistent with the Fair Housing Act (at least for the interior
doors), and may be more acceptable than requiring the 3 foot doors that are required in fully
accessible areas under the Uniform Federal Accessibility Standards for a small percentage of
units. A visitable home also serves persons without disabilities, such as a mother pushing a
stroller, or a person delivering a large appliance.
Copies of the Uniform Federal Accessibility Standards are available from the Office of Fair
Housing and Equal Opportunity, U.S. Department of Housing and Urban Development, Room
5230, 451 Seventh Street, SW, Washington, DC 20410. More information on accessibility,
adaptability, and visitability may be obtained by calling HUD on (202) 708-2333 or the TTY
telephone number, 1-800-877-8339 (Federal Information Relay Service). There is also
information and examples on the following website:

Vocational Rehabilitation Department (South Carolina) - The South Carolina Vocational
Rehabilitation Department is an employment agency for people with disabilities. Many of our
clients are highly motivated but need help developing work skills. After eligibility is established,
each client participates in an assessment to determine which vocational rehabilitation services are
needed to help the client prepare for employment.
Glossary of Housing Acronyms and Terms

Vocational Rehabilitation Program - Veterans and service members are eligible for vocational
rehabilitation if certain conditions are met (check with the Department of Veterans Affairs or a
Veteran Service Organization Officer). An eligible disabled veteran may receive employment
assistance, self-employment assistance, training in a rehabilitation facility, college, or other
training facility.

Volume Cap (LIHTC) - The volume cap is the maximum amount of LIHTCs and tax-exempt
bonds each state is allowed to allocate annually. The tax credit volume cap is $1.75 per state
resident. The bond volume cap is $75 per person per state, with a $225 million minimum per
state. Beginning in 2003, the volume cap will be indexed to inflation

Voluntary Bankruptcy - the filing for bankruptcy by a debtor who believes he/she/it cannot pay
bills and has more debts than assets. Voluntary bankruptcy differs from "involuntary
bankruptcy" filed by creditors owed money to bring the debtor before the bankruptcy court.

Voluntary Claim - A legal claim against property for payment of a debt and placed upon the
property with the consent of the owner.

Voluntary Compliance Agreement (VCA) (HUD) - A conciliation agreement signed by a
complainant to resolve a complaint. The complainant does not have to agree to the terms of a
Voluntary Compliance Agreement (VCA) and does not sign the agreement. Occasionally a
situation will arise when a complainant is dissatisfied with monetary relief to which the
Department otherwise would agree in resolution of a complaint. The right of the Department to
conduct a Department initiated complaint (either a Secretary-initiated complaint investigation or
a compliance review) of facts and issue not covered in the Agreement should be stated explicitly
in the Agreement. HUD Directive Number: 96-1, Subject: Multi-jurisdictional Complaints issued
May 24, 1996

Voluntary Conveyance - Voluntarily signing over to a lender the property pledged as collateral
on a defaulted loan. (See Deed-in-lieu of Foreclosure)

Voluntary Lien - A voluntary lien by the owner such as a mortgage, as opposed to involuntary
liens (taxes)

Voluntary Petition (Bankruptcy) - A document recorded to evidence the filing of bankruptcy
by a petitioner

Voluntary Transfer (Bankruptcy) - A transfer of a debtor's property with the debtor's consent

Volunteers in Service to America (VISTA) - Volunteers in Service to America, a federal
volunteer service that places people of all ages in community-based organizations. Now known
as Americorps.

Voucher (Housing Choice Voucher) (Section 8) – A document issued by a PHA to a tenant
family selected for admission to the Housing Choice Voucher Program. The Voucher describes
Glossary of Housing Acronyms and Terms
the program and the procedures for PHA approval of a unit selected by the family. The voucher
also states obligations of the family under the program.

Voucher Holder (Section 8) – A family holding a voucher with an unexpired term (search time)

Voucher Program (Section 8) – The Housing Choice Voucher Program

WCR – “Women’s Council of Realtors”

WTW – Welfare-to-Work

Waiting List Admission (Section 8) – An admission form the PHA waiting list

Waiver - The intentional and voluntary giving up of rights or claims.

Waiver of Exemption - A loan contract clause that contains a waiver or limitation of the
borrower's right to exempt his or her personal or real property from attachment, execution or
other legal process in the event of a default. This credit practice was prohibited by federal
regulation in 1985.

Waiver of Lien – A waiver of lien is a written evidence in many states from contractor (or
supplier of material or service) surrendering the right of lien to enforce collection of debt against

Warehouse - A closing-cost fee representing the lender's cost of holding a borrower's loan
temporarily prior to being sold on the secondary mortgage market.

Warehouse Agreement – An agreement in which a third party purchases mortgage loans or
mortgage-backed securities and holds them for ultimate sale to the Trustee on a prescribed date.
Warehouse Agreements are typically utilized to allow for an Issuer to obtain a higher rate of
interest on the Acquisition Fund Investment Agreement, thus reducing negative arbitrage.

Warrant - An official document that the Secretary of the Treasury issues pursuant to law and
that establishes the amount of monies authorized to be withdrawn from the central accounts that
Treasury maintains. (GAO) HUDCAPS Core Financial System Standard Accounting Interface,
dated 9/30/97

Warranty Deed - A deed used to convey real property and contains warranties of title and quiet
possession and by which the grantor agrees to defend the property against the lawful claims of third
persons. It is commonly used in many states but in others the grant deed has replaced it due to the modern
practice of securing title insurance policies which have reduced the importance of express and implied
warranty in deeds.
Glossary of Housing Acronyms and Terms
Weak Market (LIHTC) - In general, a weak market is one in which the number of sellers is
greater than the number of buyers. In the housing context, weak-market cities may have falling
or depressed home values and, in some cases, property abandonment.

Weed and Seed - Operation Weed and Seed is a multi-agency strategy that "weeds out" violent
crime, gang activity, drug use, and drug trafficking in targeted neighborhoods and then "seeds"
the target area by restoring these neighborhoods through social and economic revitalization. Law
enforcement activities constitute the "weed" portion of the program. Revitalization, which
includes prevention, intervention, and treatment services, and then neighborhood restoration,
constitutes the "seed" element. Community policing is the bridge that links the Weed and Seed
elements. More information can be found on the Weed and Seed website:

Welfare Assistance (Section 8) – Income assistance from Federal or State welfare programs,
including assistance provided under TANF and general assistance-Does not include assistance
directed solely to meeting housing expenses, nor programs that provide health care, child care or
other services for working families. FOR THE FSS PROGRASM (984.103(b)), “welfare
assistance” includes only cash maintenance payments from Federal or State programs designed
to meet a family’s ongoing basic needs, but does not include food stamps, emergency rental and
utilities assistance, SSI SSDI, or Social Security.

Welfare Reform (Federal) - The Personal Responsibility and Work Opportunity Reconciliation
Act of 1996, P.L. 104-193, replaces the Aid to Families with Dependent Children (AFDC)
program with a block grant program called Temporary Assistance to Needy Families (TANF).
Every state receives a TANF allocation and has a great deal of discretion on how to use it. The
Act requires states to impose work requirements on TANF recipients and made numerous other
changes, including restricting federal aid to legal immigrants.

Welfare Rent (Section 8) – This concept is used ONLY for Section 8 Certificate tenants who
receive welfare assistance on an “AS-PAID” basis. It is not used for the Housing Voucher
   1.      If the agency does NOT apply a ratable reduction, this is the maximum a public
           assistance agency COULD give a family for shelter and utilities, NOT the amount the
           family is receiving at the time the certification or recertification is being processed.
   2.      If the agency applies a ratable reduction, welfare rent is a percentage of the maximum
           the agency could allow.

Welfare-to-Work (WTW) Family (Section 8) – A family assisted by a OHA with Voucher
funding awarded to the PHA under the HUD welfare-to-work voucher program (including any
renewal of such WTW funding for the same purpose)

Wellstone Notice - Notice required to be given by owners of prepayment-eligible projects, prior
to prepaying the subsidized mortgage or terminating mortgage insurance. Must be given to
tenants, HUD, and state/local government, at least 150 days but no more than 270 days prior to
Glossary of Housing Acronyms and Terms

Whole Loans – Mortgage loans which are not included in mortgage-backed securities. Whole
loans do not have a GNMA, FNMA or FHLMC guaranty.

Wild Deed - An improperly recorded deed

With Full Recourse - A term used in the secondary mortgage loan market. It refers to a written
clause in a sales agreement by which a lender sells mortgages to an investor. It means the
seller/lender will fully reimburse the buyer/investor for any losses resulting from the purchased
loans. This may be accomplished by the seller taking back any loans that become delinquent.

With Partial Recourse - A secondary mortgage market term referring to a clause in the sales
contract by which lenders sell their mortgage loans to investors. It means the seller/lender is
obligated to reimburse the buyer/investor for an agreed-on portion of any losses resulting from
default or other problems in the purchased loans.

With Prejudice (Legal) - A final and binding decision by a judge about a legal matter that
prevents further pursuit of the same matter in any court. When a judge makes such a decision, he
dismisses the matter "with prejudice."

Without Prejudice (Legal) - Legal term signifying that something is being done, proposed, or
said without abandoning a claim, privilege, or right, and without implying an admission of
liability. (1) When used in a document or letter, these words mean that what follows cannot (a)
be used as an evidence in a court case, (b) be taken as the signatory's last word on the subject
matter, and (c) be used as a precedence. Contents of such documents normally cannot be
disclosed to the courts but, when a party proposes to settle a dispute out-of-court, it is the
genuineness of the effort that determines whether the proposal can disclosed or not, and not if the
words 'without prejudice' were used. (2) When a court case is dismissed, or a court order is
issued, without prejudice, it means that a new case may be brought or a new order issued on the
same basis as the dismissed case or the original order. See also with prejudice.

Without Recourse - A term used in the secondary mortgage market. It is a clause in a sales
contract by which a lender sells mortgage loans to an investor. It means the seller/lender is under
no obligation to reimburse the buyer/investor for any losses resulting from the purchased loans.

Women’s Council of Realtors (WCR) - A NAR group that provides educational programs and
publications for women REALTORS® whose primary interest is in residential brokerage.

Words of Purchase - Words which specifically name the person to whom land is being conveyed.

Workforce Development Boards - These local entities, which replace Private Industry
Councils, distribute Job Training Partnership Act (JTPA) funds from the Department of Labor.
Glossary of Housing Acronyms and Terms
Workforce Housing (LIHTC) - Workforce housing is housing for the occupations needed in
every community, including teachers, nurses, police officers, fire fighters and many other critical

Working Capital - The excess of current assets over current liabilities.

Workout Agreement (Foreclosure) - A mutual effort by a borrower and lender to avoid
foreclosure or bankruptcy following a default; generally involves substantial reduction in the
debt service burden during an economic depression.

Workout Assumption – A Workout Assumption is the assumption of an existing mortgage by a
qualified, third-party borrower from a financially distressed borrower. By having someone else
assume the mortgage, the financially distressed borrower is relieved of its obligation of repaying
the mortgage. The assumption must be approved by the mortgagee.

Wraparound Mortgage - A mortgage that includes the remaining balance on an existing first
mortgage plus an additional amount requested by the mortgagor. Full payments on both
mortgages are made to the wraparound mortgagee, who then forwards the payments on the first
mortgage to the first mortgagee.

Writ of Attachment (Legal) - A written order issued in the course of a lawsuit directing the
sheriff or other law officer to attach the property of the defendant so it can be used to satisfy the
demands of the plaintiff if necessary.

Writ of Execution (Legal) - A written order issued to carry out the judgment or decree of a

Write-Down - In low-income housing development, it generally means an up-front subsidy
provided by a government agency or other owner of property that reduces the asking price of a
property to make it affordable to low-income people.

YARDI – property management software

YTM - Yield To Maturity

Year Acquired - The date you acquired your existing mortgage, used to determine your
remaining balance.

Year-End Statement - A report sent to the borrower each year. The report shows how much
was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at
the end of the year.

Yield – The dividends or interest paid on a particular security expressed as a percentage of cost
price, or as related to the maturity of a bond.
Glossary of Housing Acronyms and Terms

Yield Burning – The process of blending pools of mortgage loans or mortgage-backed securities
at different rates to lower the mortgage yield so that the mortgage loans which secure the bonds
will not exceed the 1.125% spread.

Yield Curve – A graph which plots the yields on securities with equivalent quality but different
maturities, at a given point in time. The vertical axis represents the interest rates, while the
horizontal axis depicts the years to maturity. The term structure interest rate, as reflected by the
yield curve, will vary according to market conditions, resulting in a variety of yield curve

Yield Drag – The mathematical result of lowering the overall bond yield by having to blend the
bond rates of long- and short-term bonds. Long-term bonds are often associated with short-term
bonds in order to create the ability to ultimately issue several series of bonds under a plan which
allows bond redemption flexibility or to create the ability to earn investment income on the
short-term bonds which the Issuer can keep.

Yield Rate - A rate of return on an investment expressed as a percentage which is arrived at by
taking the annual net income from the property and dividing it by the cost or market value of the

Yield Spread Premium - A form of compensation that a mortgage broker, acting as the
intermediary, receives from the original lender for selling an interest rate to a borrower that is
above the lender's par rate for which the borrower qualifies. The yield spread premium must be
disclosed on the HUD-1 Form when the loan is closed.

Yield-to-Call - The hypothetical return which is projected to be earned on a bond, assuming that
the issuer calls it on the first date permitted.

Yield-to-Maturity - The hypothetical return which is projected to be earned on a bond,
assuming that the bond is held to maturity.

Youthbuild - HUD's Youthbuild Program provides grants to organizations that provide
education and job training to young adults ages 16 to 24 who have dropped out of school.
Participants must spend half of their time building or rehabilitating housing for homeless people
or other low-income families. Youthbuild provides a vehicle for achieving compliance with the
objectives of Section 3 of the HUD Act of 1968, which requires that preference be given to
public housing residents, participants in HUD's Youthbuild programs, and other low- and very
low-income persons in the metropolitan area in employment, contracting, and other economic
opportunities. More information can be found on HUD's website:

Glossary of Housing Acronyms and Terms
Zero Capital Gains Rate - The capital gains tax rate of 0% that is charged to individuals who
sell property in an “enterprise zone". The zero capital gains rate can be applied by a given
level of government in order to prompt investment in a given area.

Zero Coupon Bond (or “Capital Appreciation Bond”) – A type of bond in which the Issuer
pays no interest to the investor until the bond’s redemption. Interest accrues at the agreed-upon
rate and the total dollars which an investor receives upon redemption is based on how long the
bond remains outstanding.

Zero Down-Payment Mortgages - A zero-down-payment mortgage is a real estate property
loan that finances 100 percent of the purchase price. A borrower who funds a zero-down-
payment mortgage will be required to purchase private mortgage insurance.

Zero Income Applicants/Tenants (LIHTC) – All contributions to the household, monetary or
not, from a source outside of the household are considered to be income, with the exceptions of
food and child care paid directly to the childcare provider. Program regulations require that all
income from all income sources be disclosed, verified and included on the Tenant Income
Certification. Even if receiving rental assistance, households with zero income or with income
insufficient to cover reasonable basic living expenses are required to provide a statement
outlining how these basic living expenses are currently being paid. If gift or recurring
contributions are disclosed, verifications must be obtained for these contributions and this
income must be included in certified income.

Zero Lot Line - system of subdividing that permits building on lot lines, e.g., row houses.

Zoning – The designation by a city or county authorities of the eligible uses of property or
eligible kind of activities in a specific geographic area.

Zoning Code (LIHTC) - Local codes regulating the use and development of property. Zoning
ordinances typically divide a community into land use districts or "zones," represented on zoning
maps, and specify the allowable uses within each of those zones. For example, some
communities divide land into industrial zones, commercial zones, and one or more residential
zones. Some zones also may permit a mix of uses. Zoning codes establish development standards
for each zone, such as minimum lot sizes, maximum heights of structures, building setbacks, and
yard sizes. Overly rigid zoning codes that don’t allow for multifamily homes or higher density
development may present obstacles to affordable homes.

Zoning, Land Development, Construction and Subdivision Regulations - Rules and
regulations that affect the use of land. It also contains rules and regulations that permit an owner
to divide his land into smaller tracts. These activities include barriers, such as exclusionary
zoning, as well as solutions, such as bonus density zoning. It also includes private restrictions on
the use of property, such as deed restrictions.

Zoning Variance - A one-time modification of existing zoning law.

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