Note: Non-profit owned projects that meet one of the three criteria below can qualify…

• B. The project meets at least one of the following three characteristics:

  1. Vulnerable Populations.

The tenants of the project are a particularly vulnerable population, demonstrated by a high percentage (at least 50 percent) of the assisted units rented to elderly families, disabled families, or large families (large family is defined as a family of

Chapter Three – Published March 2023

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five or more persons). The 50 percent can be inclusive of all categories or the individual referenced populations; or

2. Vacancy Rates.

The project is in a low-vacancy market area (or in a rural area with no comparable rental housing) where there is a lack of affordable housing and where Housing Choice vouchers would be difficult to use.

The determination of a low vacancy area should be made using the most recent available data on the rental inventory, renter households, rental vacancy rates and other factors as appropriate. A market with a rental vacancy rate of 3 percent or less is considered a low vacancy area. The AE/CA must confirm the vacancy rate with HUD Economic and Market Analysis Section (EMAS); or

3. Community Support.

The project is a high priority for the local community as demonstrated by a contribution of State and/or local funds to the project. Evidence of community support may be in the form of tax credits, tax abatements, capital improvement funds, etc. that have been provided to the project within the last five years.