Affordable Housing:
What is Section 42?
Thank you for taking us, TEAM Management Property Management into consideration for providing you your next Home. Here at Some of our Properties Participate in Affordable Housing under Section 42 with WHEDA AND HUD.
IS SECTION 8 THE SAME THING AS SECTION 42? Similar guidelines, but No.
- Section 8 Housing:
Section 8 apartments are apartment homes managed by HUD. There is a voucher tied to each unit which states that the resident in that unit only pays 30% of their income toward their rent. The remainder of the rent is subsidized by tax dollars. There is a lengthy process to apply for Section 8 as well. - Section 42 Tax Credit Housing:
The Section 42 Program is not a government- subsidized rental program like section 8 is, so the rent that a Section 42 resident will pay is not based on a percentage of annual income, the rent for section 42 is capped at a fixed amount and includes utilities that are the resident’s responsibility, however all applicants must be income and program eligible , similar to residents who live in rental assistance developments. (More details listed below regarding section 42 income eligibility guidelines)
HOW DO I FIND OUT IF I AM ELIGIBLE FOR A SECTION 42 TAX CREDIT UNIT?
All applicants will be asked to complete forms which will request information regarding your income, family size and financial assets. This information will aid in determining your eligibility for the program.
WHAT DETERMINES MY ELIGIBILITY?
To qualify for living on a LIHTC property, you must meet income and student status requirements. Following program requirements, the property manager must verify the income and assets of all household members. Your maximum income level is based on the number of people in your household and the combined gross (before taxes/deductions) income. See your county restrictions. Once the total income on the property has been determined, the household income is compared with the income limit. Households below 25%, 50%, or 60% of area median income (AMI) can apply for Section 42 units.
All applicants will be asked to complete forms which will request information regarding your income, family size and financial assets. This information will aid in determining your eligibility for the program.
WHAT DETERMINES MY ELIGIBILITY?
To qualify for living on a LIHTC property, you must meet income and student status requirements. Following program requirements, the property manager must verify the income and assets of all household members. Your maximum income level is based on the number of people in your household and the combined gross (before taxes/deductions) income. See your county restrictions. Once the total income on the property has been determined, the household income is compared with the income limit. Households below 25%, 50%, or 60% of area median income (AMI) can apply for Section 42 units.
VERIFYING INCOME AND ASSETS
Income and Assets Verification for Residency: Verifying these required due to how the building was built with IRS Tax Code, to determine whether or not your income qualifies under a Section 42 community this determined by HUD for the county you reside in, which fall under laws mandated by our federal government.
INCOME
Income must be verified from all sources for each adult Household member, including but not limited to:
ASSETS:
Assets are your valuables other than personal items that must be considered when determining your family income. Examples include savings accounts, certificates of deposit, stocks and bonds. Personal items such as your car, furniture, etc. are not included.
Income and Assets Verification for Residency: Verifying these required due to how the building was built with IRS Tax Code, to determine whether or not your income qualifies under a Section 42 community this determined by HUD for the county you reside in, which fall under laws mandated by our federal government.
INCOME
Income must be verified from all sources for each adult Household member, including but not limited to:
- Standard Employment Wages
- Alimony
- Child Support
- Pensions
- Social security
- Rent Assistance Vouchers
- Unemployment Benefits
- W2/Public Assistance payments
ASSETS:
Assets are your valuables other than personal items that must be considered when determining your family income. Examples include savings accounts, certificates of deposit, stocks and bonds. Personal items such as your car, furniture, etc. are not included.
- Which Assets are counted as income?
All income is counted, including income on your assets such as checking accounts, savings accounts, lump sum settlements, profits from the sale of real estate, etc.
IF HOUSEHOLD IS DETERMINED TO BE INCOME ELIGIBLE:
The household must also meet the program’s Student Status Eligibility Requirements. Generally, any household in which all members are full-time students is not eligible for a LIHTC unit. However, there are some exceptions to this rule. During the application intake, property management will require all applicants to fill out forms to determine student eligibility based on the regulation and possible exceptions.
Household may not have any previous evictions or felonies from within the past 3 years. For more information about eligibility, check out the Qualifications page on each individual property website.
The household must also meet the program’s Student Status Eligibility Requirements. Generally, any household in which all members are full-time students is not eligible for a LIHTC unit. However, there are some exceptions to this rule. During the application intake, property management will require all applicants to fill out forms to determine student eligibility based on the regulation and possible exceptions.
Household may not have any previous evictions or felonies from within the past 3 years. For more information about eligibility, check out the Qualifications page on each individual property website.
HOW DO I APPLY FOR AFFORDABLE HOUSING?
Each of TEAM Management's properties has its own website with specific property details and application page to be completed to be considered for one of their units. If you are interested in applying to one of TEAM Management properties, you can find the full list of properties or see the lists of our properties based on the affordable program type:For more information on how to apply online, click here: How to Apply for TEAM Properties
Each of TEAM Management's properties has its own website with specific property details and application page to be completed to be considered for one of their units. If you are interested in applying to one of TEAM Management properties, you can find the full list of properties or see the lists of our properties based on the affordable program type:For more information on how to apply online, click here: How to Apply for TEAM Properties