This page highlights some common words and phrases surrounding housing affordability. It may be useful as a reference in further understanding various housing topics.
Affordable Housing – Housing is considered affordable if a family or individual spends no more than 30% of their income to live there.
Approved Affordable Housing – Affordable housing that includes a long-term affordability restriction where the cost of housing and income of the household are known and monitored for a specific period of time.
Community Land Trust (CLT) – A way to separate land from homes for the purpose of transferring a title to a home without selling the land. The land remains with a non-profit that holds title to the land and manages the ground leases. The homes can be sold to other income qualified buyers during a 99-year ground lease. A CLT is typically managed by a non-profit that provides permanently affordable housing units by acquiring land and removing it from the price of the home.
Cost Burdened – Households that pay more than 30% of their gross income on housing costs, which includes mortgage principal, interest, property tax, and homeowner’s insurance, or rent and utilities.
Housing Trust Fund (HTF) – Established to collect and distribute funds for the creation of affordable housing, including purchasing land. Locally collected funds are dispersed using local guidelines and requirements.
Income Levels – In Collier County, affordable housing specifically includes the following income level targets for the area and are based on income categories determined by the Secretary of the U.S. Department of Housing and Urban Development:
- Extremely low income – Households where income does not exceed 30% of the median area income.
- Very low income – Households where income does not exceed 50% of the median area income
- Low income – Households where income is more than 50% of the area median income but does not exceed 80%
- Moderate income – Households where income is more than 80% of the area median income but does not exceed 120%
- Gap income – Households where income is more than 120% but does not exceed 140%