Community Investment: Loan
Qualifications
A loan supporting rental housing
would be qualified if it provided
housing or affordable rents to
low-and-moderate income households,
or if the rental unit was located in
a target area.
For loans qualified by Income:
For
both urban and rural areas, at least
51% of the units in the project
would need to be occupied by, or the
rents affordable to, families with
incomes at or below 115% of the area
median income (AMI) for a family of
four. An affordable rent should not
exceed 30% of the AMI for families
with incomes at or below 115% of the
area median income. (see HUD income guidelines)
For loans qualified by Target
Area:
A loan would be eligible if it is
located in a targeted area. There are
several targeted areas, but the one
most commonly used is targeted by
income. For both rural and urban
areas, a loan would be eligible if
the project was located in a census
tract with income at or below 115%
of the median income for the area.
To determine the income for a census
tract, members can utilize the Geocoding/Mapping System on the
FFIEC website.
Other targeted areas include:
- Federal Champion Community
as designated by the Secretary
of HUD or Secretary of the USDA
- Federal Enterprise Community
as designated by the Secretary
of HUD or Secretary of the USDA
- Federal Empowerment Zone as
designated by the Secretary of
HUD or Secretary of the USDA
- Indian Area as designated by
the Native American Housing
Assistance and
Self-Determination Act
