APPENDIX A

SECTION 515 RENTAL HOUSING PROPERTIES IN PROXIMITY TO SELECTED

FEDERALLY SUBSIDIZED HOUSING PROPERTIES

Housing Assistance Council 43

Public HousingI

The public housing program of the Department of Housing and Urban Development (HUD) is
one of the nation’s oldest and largest subsidized rental options. Created by the 1937 Housing
Act, public housing is a hallmark of the New Deal. Public housing is owned and operated by
public housing authorities (PHAs). PHAs are operated and governed by locally appointed or
elected boards of commissioners. There are over 14,000 public housing developments around
the United States operated by 3,050 PHAs and containing more than 1.2 million units.1

Public housing is home to several million residents. Children live in over 40 percent of these
units. Approximately 19 percent of PHA residents are elderly. More than half the households
are headed by racial and ethnic minorities and nearly 40 percent are headed by women. The
demand for public housing far exceeds the supply. In many large cities, waiting list times can be
up to 10 years.2

Public housing is available for low-income households or those who make less than 80 percent of
the area median income. Like residents in many other federal housing assistance programs,
public housing occupants pay the highest of: (1) 30 percent of their monthly adjusted income;
(2) 10 percent of their monthly gross income; (3) their welfare shelter allowance; or (4) a PHA-
established minimum rent of up to $50.3

The Geography of HUD Public Housing and RD Section 515 Units

County Level Relationships

Among the 2,789 counties with a USDA Section 515 property, just over 1,811 (65 percent) also
have at least one HUD public housing authority property. Over 70 percent of metropolitan and
micropolitan counties with a Section 515 property also had at least one public housing property.
Approximately 56 percent of Section 515 counties outside core based statistical areas also had a
public housing property. On average, there are two public housing units to every Section 515
unit in these counties.

Distance Relationships

Among USDA Section 515 properties, 7,022 or 49.7 percent are within 10 miles of a public
housing property. These Section 515 properties near public housing developments include
214,924 (54.9 percent) of the Section 515 units.

I
The analysis includes approximately 96 percent of public housing properties – 13,819 properties encompassing
1,244,985 rental units – which were successfully geocoded.

44 Connecting the Dots

 Counties with USDA Section 515 Properties
and HUD Public Housing Properties

Legend

Counties
County Status
No Section 515 and PHA Property
Section 515 and PHA Property
No Section 515 Properties

USDA Section 515 Rental Properties

in proximity to HUD Public Housing Properties

Legend

HUD Public Housing

Section 515 Produced by the Housing Assistance Council
Washington, DC

Source:

Housing Assistance Council 45

HUD Project Based Section 8 Rental AssistanceI

HUD’s Project Based Rental Assistance – often referred to as project-based Section 8 – program
provides for privately owned multifamily housing for low-income family households through a
federal subsidy of the mortgage, rental assistance, or a combination of the two. Over 1 million
households live in homes with project-based assistance; two-thirds of these include elderly or
disabled family members. Original Section 8 project-based assistance contracts were between
the HUD and project owners for up to 40 years.4

Residents in units receiving project-based Section 8 assistance must have low incomes (less than
80 percent of area median income). Forty percent of new admissions are required to have very
low incomes (at or below 30 percent of area median income).5

The Geography of HUD Project Based Rental Assistance and RD Section 515 UnitsII

County Level Relationships

Among the 2,789 counties with a USDA Section 515 property, just over 1,766 or 63 percent also
have at least one project based Section 8 property. In these counties there are 8,482 project-
based Section 8 properties with 613,874 units. On average, there are 1.4 project based Section 8
units to every Section 515 unit in these counties.

Distance Relationships

On average, the nearest project-based Section 8 property is located 11.1 miles from a Section
515 property. Among USDA Section 515 properties, 7,590 or 53.7 percent are within 10 miles of
a project-based Section 8 property.

I
The analysis includes approximately 87 percent of project based Section 8 properties – 11,002 properties
encompassing 887,102 rental units – which were successfully geocoded.
II
Approximately 10 percent (1,464) of HUD project based Section 8 properties also have Section 515
funding and are included in the analysis as Section 515 properties. Project based Section 8 properties that
also have Section 202-811 funding were included in the analysis as Section 202-811 properties.

46 Connecting the Dots

 Counties with USDA Section 515 Properties
and Section 8 Project Based Properties

Legend

Counties
County Status
No Sec. 515 and Sec. 8 Project Based Property
Sec. 515 and Sec. 8 Project Based Property
No Section 515 Properties

USDA Section 515 Rental Properties

in proximity to Section 8 Project Based Properties

Legend

Section 8 Project Based

Section 515 Produced by the Housing Assistance Coun cil
Washington, DC

Source:

Housing Assistance Council 47

Low Income Housing Tax CreditI

The Low Income Housing Tax Credit (LIHTC), adopted by Congress in the 1986 Tax Reform Act,
is a reduction in the dollar amount of federal taxes owed by an individual or corporation in
exchange for its investment in low-income rental housing. The amount of tax reduction is tied
directly to the proportion of low-income persons among the residents of the housing produced.
To obtain the tax reduction, an investor provides the capital that is used to help develop the
project. The investor has no role in the development process or the management of the project
after it is rented up. A for-profit or nonprofit developer undertakes those tasks. The investor
receives a tax credit paid annually over a 10-year period and cannot withdraw its investment for
15 years.6

The tax credit program provides funding for two types of rental housing development:
construction of new buildings or substantial rehabilitation of existing buildings. New
construction can produce single-family houses, apartment buildings, duplexes, rowhouses or
townhouses. Rehabilitation can be performed on these same types of buildings, and conversion
of structures like warehouses, schools, and motels is also possible.7

As of 2004, there were approximately 25,000 LIHTC properties located across the United States
and Puerto Rico providing about 1.4 million units of housing. Approximately 90 percent of these
LIHTC units are occupied by low-income households.8

The Geography of Low Income Housing Tax Credit and RD Section 515 UnitsII

County Level Relationships

Among the 2,789 counties with a USDA Section 515 property, over 1,600 or 57.4 percent also
have at least one LIHTC property. More than seven out of ten metropolitan and micropolitan
counties with a Section 515 property also had at least one tax credit property. Outside core
based statistical areas, however, only 36 percent of Section 515 counties also had any Tax Credit
units. On average, in the counties that have both Section 515 and LIHTC properties, there are
three Section 515 properties to every one LIHTC property and four Section 515 units to every
one LIHTC unit.

Distance Relationships

On average, the nearest LIHTC property is located 14.1 miles from a Section 515 property.
Among USDA Section 515 properties with no LIHTC cross subsidy, 6,461 or 43.5 percent were
within 10 miles of an LIHTC project. These Section 515 properties within close proximity of a
tax credit development include about 206,000 units or 53 percent of the Section 515 units.

I
The analysis includes approximately 84 percent of LIHTC properties, which were successfully geocoded.
II
Approximately 21 percent (5,542) of LIHTC properties also have Section 515 funding and are included in
the analysis as Section 515 properties.

48 Connecting the Dots

 Counties with USDA Section 515 Properties
and Low Income Housing Tax Credit Properties

Legend

Counties
County Status
No Section 515 and LIHTC Property
Section 515 and LIHTC Property
No Section 515 Properties

USDA Section 515 Rental Properties

in proximity to Low Income Housing Tax Credit Properties

Legend

LIHTC
Section 515

Housing Assistance Council 49

HUD Section 202–811 Elderly and Supportive HousingI

Section 202 Supportive Housing for the Elderly. HUD’s Section 202 program provides capital and
operating funds to nonprofit organizations that develop and operate senior housing. Section 202
has two components. The first provides capital advances to nonprofit organizations for the
construction, rehabilitation, or acquisition of supportive housing for seniors. Additionally,
Section 202 provides rental assistance in the form of Project Rental Assistance Contracts (PRACs)
to subsidize the operating expenses of the developments.9

Residents of Section 202 housing must generally be at least 62 years old and have very low
incomes. The average Section 202 resident is 79 years old, and nearly 39 percent of this
program’s residents are over the age of 80. The average annual income of a resident is little
more than $10,000. According to HUD, elderly households with very low incomes are the
likeliest to pay more than they can afford for their housing.10

Section 811 Supportive Housing for Persons with Disabilities. HUD’s Section 811 program provides
funding to developers of housing for disabled, low-income households. Section 811 was created
through the National Affordable Housing Act of 1990, which separated housing for people with
disabilities from the Section 202 program.11

Section 811 provides capital advances in the form of forgivable no-interest loans to construct or
rehabilitate supportive housing for persons with disabilities. Additionally, Section 811 provides
for project rental assistance to cover the difference between the HUD-approved operating cost
per unit and 30 percent of a resident's adjusted income.12

There are approximately 7,924 Section 202-811 properties across the United States, accounting
for nearly 312,000 units of affordable rental housing for seniors and persons with disabilities.

The Geography of HUD Section 202-811 and RD Section 515 Units

County Level Relationships

Among the 2,789 counties with a USDA Section 515 property, just over 1,400 or 51 percent also
have at least one HUD Section 202-811 property. In these Section 515 counties, there are 5,676
Section 202-811 properties encompassing 195,676 units of rental housing for seniors or disabled
persons.

Distance Relationships

On average, the nearest Section 202-811 property is located 15.6 miles from a Section 515
property. Among USDA Section 515 properties, 29.5 percent are within 10 miles of a Section
202-811 property.

I
The analysis includes approximately 92 percent of Section 202-811 properties, which were successfully
geocoded.

50 Connecting the Dots

 Counties with USDA Section 515 Properties
and Section 202-811 Properties

Legend
states
No Section 515 Units

Counties
County Status
No Sec 515 and Sec 202-811
Sec 515 and Sec 202-811

USDA Section 515 Rental Properties

in proximity of HUD Section 202-811 Properties

Legend

Section 202-811
Section 515

Housing Assistance Council 51

HUD Section 236 LoansI

Under Section 236 of the National Housing Act, HUD subsidized the interest payments on
mortgages for rental or cooperative housing owned by private nonprofit or limited-profit
landlords and rented to low-income tenants.13 Section 236 replaced the Section 221(d) below
market interest rate (BMIR) program in 1968 and was itself discontinued in 1973.14

There are approximately 2,700 Section 236 properties accounting for nearly 330,000 units of
affordable housing.

The Geography of HUD Section 236 and RHS Section 515 Units

County Level Relationships

Only 620 of the 2,789 counties with a USDA Section 515 property also have at least one HUD
Section 236 property. Approximately one-third of metropolitan counties with a Section 515
property also have at least one Section 236 property, as well as 28 percent of micropolitan
counties. Only 5 percent of Section 515 counties outside core based statistical areas also have a
Section 236 property, however. On average, there is one Section 515 property to every one
Section 236 property and two Section 515 units to every one Section 236 unit in these counties.

Distance Relationships

On average, the nearest Section 236 property is located 28.1 miles from a Section 515 property.
Among USDA Section 515 properties, 1,984 or 14.0 percent are within 10 miles of a Section 236
property. These Section 515 properties within close proximity to Section 236 developments
include about 68,392 units or 17.4 percent of the Section 515 units.

I
The analysis includes approximately 95 percent of Section 236 properties, excluding 114 (approximately 5 percent)
that could not be successfully geocoded.

52 Connecting the Dots

 Counties with USDA Section 515 Properties
and HUD Section 236 Properties

Legend

Counties
County Status
No Section 515 and Section 236 Properties
Section 515 and Section 236 Properties
No Section 515 Properties

USDA Section 515 Rental Properties

in proximity to HUD Section 236 Properties

Legend

Section 236
Section 515

Housing Assistance Council 53

Section 538 Guaranteed Rural Rental Housing Program

Under the Section 538 program, USDA RD guarantees loans made by private lenders, generally
banks and savings and loans institutions, for the development of affordable rural rental housing
with at least five units. The program is used to guarantee permanent financing, or a combination
construction and permanent loan. A Section 538 guaranteed loan is often combined with other
financing sources such as Low Income Housing Tax Credits, a HOME grant or loan, state or local
assistance (including tax-exempt bond financing), or a second bank loan. Eligible borrowers
include individuals, nonprofit or for-profit corporations, partnerships, state or local public
agencies, limited liability companies, trusts, or Indian tribes. Tenants in the Section 538
program must have incomes at or under 115 percent of area median income at the time of initial
occupancy.15

Section 538, which was created by Congress in 1996, differs in some important ways from the
Section 515 program. Section 538 focuses on partnerships between USDA and qualified lenders,
whereas Section 515 makes loans directly to nonprofit or for-profit rural housing developers.
Section 538 is intended to provide decent, affordable rental housing for low- and moderate-
income rural with incomes that are generally higher than those served by Section 515. Income
calculations for Section 538 tenants do not take into account the deductions permitted under
Section 515. Units developed with Section 538 loans can be larger than those financed by
Section 515.16

The current Section 538 portfolio contains just under 150 properties, encompassing a little over
8,000 units of affordable rental housing. Section 538 properties are located in 115 counties
across the United States and almost all of these counties also have Section 515 properties.

The Geography of RD Section 538 and RD Section 515 Units

County Level Relationships

Only 113 of the 2,789 counties with a USDA Section 515 Property also have at least one RD
Section 538 property in the same county.

Distance Relationships

Distance relationships were not determined for Section 538 properties due to a lack of street
level data for geocoding purposes.

54 Connecting the Dots

 Counties with USDA Section 515
and Section 538 Properties

Legend
states
No Section 515 Units

Counties
County Status
No Secs 515 and Sec. 538
Sec. 515 and 538

Housing Assistance Council 55

APPENDIX A: ENDNOTES
1
National Low Income Housing Coalition, “Public Housing,” 2007 Advocates’ Guide to Housing
and Community Development (Washington, D.C.: National Low Income Housing Coalition, 2007).
2
Ibid.
3
Ibid.

4
National Low Income Housing Coalition, “Project Based Rental Assistance,” 2007 Advocates’
Guide to Housing and Community Development (Washington, D.C.: National Low Income Housing
Coalition, 2007).
5
Ibid.

6
National Low Income Housing Coalition, “Low Income Housing Tax Credit,” 2007 Advocates’
Guide to Housing and Community Development (Washington, D.C.: National Low Income Housing
Coalition, 2007).
7
Ibid.
8
Ibid.
9
National Low Income Housing Coalition, “Section 202 Supportive Housing for the Elderly,”
2007 Advocates’ Guide to Housing and Community Development (Washington, D.C.: National Low
Income Housing Coalition, 2007).
10
Ibid.
11
National Low Income Housing Coalition, “Section 811 Supportive Housing for Persons with
Disabilities,” 2007 Advocates’ Guide to Housing and Community Development (Washington, D.C.:
National Low Income Housing Coalition, 2007).
12
Ibid.

13
National Housing Law Project. Section 236 Program.
http://www.nhlp.org/html/hud/sec236.htm.

14
National Low Income Housing Coalition, “Project-Based Rental Assistance,” 2007 Advocates’
Guide to Housing and Community Development (Washington, D.C.: National Low Income Housing
Coalition, 2007).

15
Housing Assistance Council, Information Sheet: Guaranteed Rural Rental Housing Program
(Section 538), http://www.ruralhome.org/infoSheets.php?id=197.
16
Ibid.

56 Connecting the Dots