Definitions

Affordable housing: Housing that costs no more than 30% of a household’s gross income, including rent or mortgage, utilities, taxes, and insurance.

Area Median Income (AMI): The midpoint income for a geographic area, where half of households earn more and half earn less. AMI is used to determine eligibility for housing programs and to define affordability levels (e.g., 60% AMI for low-income housing). AMI varies by county and is updated annually by the U.S. Department of Housing and Urban Development (HUD).

Bond issuer: The entity that needs money (e.g., a city, state, or housing developer).

Bond investor: The person or institution that buys the bond, essentially lending money to the issuer.

Bond interest (coupon): The issuer pays the investor regular interest at stated intervals during the duration of the bond.

Bond maturity: When the bond term ends, the issuer repays the original amount (called the principal or face value).

Capacity building: Efforts to strengthen the skills, resources, and systems of local organizations and governments to plan, fund, and implement housing projects effectively.

Community Development Block Grant (CDBG): A flexible federal grant program that supports community development activities including housing rehabilitation, infrastructure, and public services. In Wisconsin, CDBG funds are administered by the Division of Energy, Housing, and Community Resources (DEHCR) of the Department of Administration (DOA).

Community Housing Development Organization (CHDO): A nonprofit, community-based organization certified by HUD to develop affordable housing. CHDOs are eligible for special set-aside funding under the HOME program. Wisconsin currently has very few CHDOs operating outside of Milwaukee.

Community land trust (CLT): A nonprofit model that holds land in trust to ensure long-term housing affordability. Residents own their homes but lease the land, keeping costs lower and preserving affordability over time.

Fair Market Rent (FMR): HUD’s estimate of the cost to rent a moderately priced unit in a given area. FMRs are used to determine payment standards for housing vouchers and eligibility for other housing programs.

Gap financing: Supplemental funding used to cover the difference between the total cost of a housing project and the amount that can be raised through traditional financing sources.

Greenfield development: The construction of new housing on previously undeveloped land, typically in rural or suburban areas, where no existing buildings or infrastructure are present. These projects often aim to transform vacant or underutilized parcels into functional, livable communities.

HOME Investment Partnerships Program (HOME): A federal block grant program administered by HUD that provides funding to states and localities to create affordable housing for low-income households. Funds can be used for building, buying, or rehabilitating housing, and for direct rental assistance.

Housing ecosystem: The network of public, private, and nonprofit entities involved in planning, financing, developing, and maintaining housing. A healthy ecosystem includes developers, lenders, local governments, nonprofits, and community members working in coordination.

Idle Sites Redevelopment Program: A WEDC grant program that supports the redevelopment of underused or abandoned properties, often used to create new housing or mixed-use developments in rural communities.

Indian Housing Block Grant (IHBG): A HUD program that provides funding to federally recognized Tribes and Tribally designated housing entities to develop, operate, and maintain affordable housing in Native communities.

Infrastructure readiness: The availability of essential services–such as water, sewer, roads, and broadband–that support new housing development. Lack of infrastructure is a major barrier in many rural communities.

Low-Income Housing Tax Credit (LIHTC): A federal tax incentive program that encourages private investment in affordable rental housing. Developers receive tax credits in exchange for setting aside units for low-income tenants for a minimum of 15 years.

Missing middle housing: A range of multiunit or clustered housing types–such as duplexes, fourplexes, and cottage courts–that are compatible in scale with single-family homes and help diversify housing options in rural areas.

Section 8 Housing Choice Voucher Program: A federal rental assistance program that helps low-income families afford housing in the private market. Vouchers are administered locally by public housing authorities and can be used for a wide range of housing types.

Tax Incremental District (TID): A designated geographic area within a municipality where future increases in property tax revenue are used to fund public improvements and development projects that stimulate economic growth.

Tax Increment Financing (TIF): A public financing tool that allows municipalities to invest in infrastructure and development by capturing future increases in property tax revenue within a designated area.

Thrive Rural Wisconsin: An Office of Rural Prosperity initiative that supports rural prosperity through investments in housing, infrastructure, and economic development, often in partnership with local governments and nonprofits.

U.S. Department of Agriculture (USDA) Rural Development housing programs: A suite of federal programs that provide loans, grants, and guarantees for housing in rural areas. These include Section 502 Direct Loans for homebuyers, Section 504 Home Repair loans and grants, and Multifamily Housing programs.

Workforce housing: Housing that is affordable to households earning between 60% and 120% of the area median income (AMI), often targeted to essential workers like teachers, health care staff, and tradespeople.