Read our frequently asked questions

General

Who does AHAIN serve?

AHAIN serves management companies, apartment communities and vendors of the affordable housing industry throughout the state of Indiana, through networking and educational opportunities.

What type of organization is AHAIN?

AHAIN is a nonprofit trade association, classified as a 501(c)6.

What is the annual membership fee to join AHAIN?

Management Company/Developer membership is a yearly fee of $300. AHAIN Member Companies can identify and send eight corporate employees to AHAIN events at membership prices.

Associate membership dues are $150 per year.

Yearly “Property Training and Education Fees” are calculated at $4.50 per unit for the total number of owned and/or managed units in Indiana, up to a maximum of $270 per property.

What are some common acronyms associated with the affordable housing industry?

AHAIN – Affordable Housing Association of Indiana

HUD – Housing and Urban Development

USDA-RD – United States Department of Agriculture – Rural Development

CARH – Council for Affordable and Rural Housing

LIHTC – Low Income Housing Tax Credit

REAC – Real Estate Assessment Center (division of HUD)

EIV – Enterprise Income Verification

Will AHAIN assist me in finding affordable housing?

No, AHAIN does not assist individuals in finding affordable housing. Rather, AHAIN assists management companies and apartment communities in abiding by fair housing regulations.

Fair Housing

Why do we have Fair Housing laws?

These are laws that provide relief for victims of housing discrimination. Rights and remedies can be found in federal laws, as well as laws in the state where you live.

What are the accessibility standards?

The Fair Housing Act requires seven basic requirements that must be met to comply with the access requirements of the Act.

These requirements are:

An accessible building entrance on an accessible route.

Accessible common and public use areas.

Usable doors (usable by a person in a wheelchair).

Accessible route into and through the dwelling unit.

Light switches, electrical outlets, thermostats and other environmental controls in accessible locations.

Reinforced walls in bathrooms for later installation of grab bars.

Usable kitchens and bathrooms.

What housing is covered?

The Fair Housing Act covers most housing. In some circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a broker, and housing operated by organizations and private clubs that limit occupancy to members.

HUD

What is HUD?

The U.S. Department of Housing and Urban Development (HUD) was established in 1965 to develop national policies and programs to address housing needs in the U.S. One of HUD’s primary missions is to create a suitable living environment for all Americans by developing and improving the country’s communities and enforcing fair housing laws.

What is HUD public housing?

Public housing was established to provide decent and safe rental housing for eligible low-income families, the elderly, and persons with disabilities. Public housing comes in all sizes and types, from scattered single family houses to high-rise apartments for elderly families. There are approximately 1.2 million households living in public housing units. HUD administers Federal aid to local housing agencies (HAs) that manage the housing for low-income residents at rents they can afford.

What is the role of the Housing Agency (HA)?

An HA is responsible for the management and operation of its local public housing program. They may also operate other types of housing programs.

On-going functions:

Assure compliance with leases. The lease must be signed by both parties

Set other charges (e.g., security deposit, excess utility consumption, and damages to unit)

Perform periodic reexaminations of the family’s income at least once every 12 months; monitoring income restrictions

Transfer families from one unit to another, in order to correct over/under crowding, repair or renovate a dwelling, or because of a resident’s request to be transferred

Terminate leases when necessary

Maintain the development in a decent, safe, and sanitary condition

What does it mean when it says income restrictions apply?

Also known as subsidized housing or affordable housing, income-restricted apartments are often available for people earning about 50 percent of the geographical area’s median income, but qualifying depends on the area and federal, state or local programs.

What are income restricted apartments?

Income restricted apartments cater to those with low to moderate income. Income restricted apartments are part of HUD’s affordable housing initiatives. While the majority of income restricted apartments are rentals, in some markets you can purchase one.

LIHTC

What is LIHTC?

The Low-Income Housing Tax Credit (LIHTC) is the federal government’s primary program for encouraging the investment of private equity in the development of affordable rental housing for low-income households.

What is the LIHTC program?

The Low Income Housing Tax Credit (LIHTC) program is currently the country’s most extensive affordable housing program. The program was added to Section 42 of the Internal Revenue Code in 1986 in order to provide private owners with an incentive to create and maintain affordable housing.

What is a Section 42 property?

The Section 42 housing program refers to that section of the Internal Revenue Tax Code which provides tax credits to investors who build affordable housing. Investors receive a reduction in their tax liability in return for providing affordable housing to people with fixed or lower income.

What is tax credit housing?

The LIHTC program has provided critical financing for more than 2 million rental homes. According to the Affordable Housing Tax Credit Coalition: The LIHTC program effectively uses tax policy to help develop affordable rental housing for low and very low-income families.

How do tax credits work?

There are two types of low income housing tax credits, informally called 9% and 4% credits. 9% credits typically fund 70% or more of all eligible development costs, exclusive of land and some other costs and fees, like some site work and infrastructure costs. 4% credits are not competitive, but developments must meet a threshold score to receive tax credits. These credits fund about 40% of a development’s eligible costs so a greater portion of the project’s cost must be funded with hard and soft debt. Tax credits are sold to investors, either directly or through syndicators. The price at which $1 of LIHTC is sold varies, depending on the project and the real estate market.

What is the difference between a LIHTC syndicator and a LIHTC investor?

Investors provide capital and bear the economic risk of the transaction. Syndicators are intermediaries that assist investors in sourcing, underwriting and asset managing LIHTC investments for a fee.

Who lives in LIHTC-funded housing?

LIHTC housing is targeted to be affordable to households with incomes at or below 60 percent of the Area Median Income (AMI). Households served by LIHTC housing cannot exceed 60 percent AMI levels. Some residents who live in LIHTC housing use housing choice (Section 8) vouchers.

USDA

What is USDA RD?

The United States Department of Agriculture’s Office of Rural Development (USDA RD) is an agency which runs programs intended to improve the economy and quality of life in rural America.

How can USDA RD help the affordable housing industry?

USDA RD operates over fifty financial assistance programs for a variety of rural applications.

How does USDA RD help the multi-family rental community?

This Multi-Family Housing Rental Assistance program provides payments to owners of USDA-financed Rural Rental Housing or Farm Labor Housing projects on behalf of low-income tenants unable to pay their full rent.