UPC Housing Policy & Affordable Housing 2 â Questions and Answers
Question 1: 'Workforce housing' typically refers to housing affordable to households earning:
- Below 30% of Area Median Income (AMI)
- Between 30% and 50% of Area Median Income (AMI)
- Between 80% and 120% of Area Median Income (AMI) (Correct answer)
- Above 150% of Area Median Income (AMI)
Correct answer: Between 80% and 120% of Area Median Income (AMI)
Workforce housing targets middle-income earnersâoften teachers, nurses, and first respondersâwho earn too much to qualify for subsidized programs but too little to afford market-rate housing.
Question 2: Which of the following is an example of a 'supply-side' housing subsidy?
- Section 8 Housing Choice Vouchers
- Earned Income Tax Credit (EITC)
- Housing Assistance Payment contracts for existing units
- Low-Income Housing Tax Credits (LIHTC) (Correct answer)
Correct answer: Low-Income Housing Tax Credits (LIHTC)
Supply-side subsidies like LIHTC reduce construction or rehabilitation costs to increase the overall stock of affordable units, as opposed to demand-side subsidies that help individual renters.
Question 3: A 'density bonus' in housing policy refers to:
- Allowing developers to build more units than normally permitted in exchange for including affordable housing (Correct answer)
- A financial penalty imposed on developments built below the minimum density allowed by zoning
- An incentive that encourages homeowners to subdivide single-family lots
- Additional floor area ratio granted automatically for achieving green building certification
Correct answer: Allowing developers to build more units than normally permitted in exchange for including affordable housing
Density bonuses incentivize affordable housing inclusion by permitting developers to exceed standard density limits when they reserve a required percentage of units as affordable.
Question 4: 'Naturally occurring affordable housing' (NOAH) is best described as:
- Housing specifically constructed with government subsidies for low-income residents
- Older, unsubsidized rental housing that is affordable due to its age and condition rather than regulatory restriction (Correct answer)
- Rural housing built without formal permitting processes
- Units set aside under local inclusionary zoning ordinances
Correct answer: Older, unsubsidized rental housing that is affordable due to its age and condition rather than regulatory restriction
NOAH properties are market-rate rentals that remain affordable due to age, modest amenities, or locationâwithout formal affordability deed restrictions or public subsidies.
Question 5: Under the Fair Housing Act of 1968, which of the following is one of the seven federally protected classes?
- Students
- Smokers
- Veterans
- Familial status (Correct answer)
Correct answer: Familial status
Familial status (families with children under 18) is one of the seven protected classes under the Fair Housing Act, along with race, color, national origin, religion, sex, and disability.
Question 6: The Community Reinvestment Act (CRA) of 1977 primarily:
- Funds the construction of public housing in urban areas
- Establishes rent control regulations for federally financed housing
- Requires federally insured banks to meet the credit needs of low- and moderate-income communities where they operate (Correct answer)
- Provides mortgage insurance programs for low-income first-time homebuyers
Correct answer: Requires federally insured banks to meet the credit needs of low- and moderate-income communities where they operate
The CRA requires federally regulated banks to serve the credit needs of the entire communities they operate in, including low- and moderate-income neighborhoods, to prevent redlining.
Question 7: In affordable housing planning, 'AMI' stands for:
- Annual Mortgage Index
- Adjusted Market Income
- Area Median Income (Correct answer)
- Affordable Market Index
Correct answer: Area Median Income
Area Median Income (AMI) is the midpoint household income for a metropolitan area or county, calculated annually by HUD and used as the primary benchmark for housing assistance eligibility.
UPC Housing Policy & Affordable Housing 2
'Workforce housing' typically refers to housing affordable to households earning: