Glossary

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 – Affordable housing is generally defined as housing on which the occupant is paying no more than 30% of gross income for housing costs, including utilities.

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.

Area Median Income – The area median income (AMI) for a household is the same as the income limits for families published in accordance with 42 U.S.C. 1437a(b)(2), available under the heading for “Access Individual Median Family Income Areas”. This information is available at https://www.huduser.gov/portal/datasets/il.html.

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.

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 is 0% – 30% of the median area income
• Very low income – Households where income is 30% – 50% of the median area income
• Low income – Households where income is 50% – 80% of the area median income
• Moderate income – Households where income is 80% – 120% of the area median income
• Gap income – Households where income is 120% – 140% of the area median income

The median income of any given area often changes over time. To view the latest figure in Collier County, please click here.

Linkage Fees – Fee charged to a non-residential development based upon the employment demand and affordable housing need created by new or re-development. Linkage Fees collected are place in a Housing Trust Fund (HTF).

Local 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.

Mixed-Income Housing – Includes diverse types of housing units, such as apartments, town homes, and/or single-family homes for people with a range of income levels. Mixed-income housing includes both market rate and below market rate as determined by the needs of the local community. Collier County is proposing development of mixed-income communities at low, moderate, and gap incomes along with market rate housing.

Severely Cost Burdened – Households that pay more than 50% of their gross income on housing costs, which includes mortgage principal, interest, property tax, and homeowner’s insurance, or rent and utilities.