Income restricted apartments are ideal for struggling single parents and families who are in dire need of affordable living space.
Living in any city in the United States can be challenging especially when the breadwinner of the family receives sufficient amount of income for the family. Rental prices are generally higher in urban areas and the sad fact is that the cost of renting invariably increases. Good thing that there are income restricted apartments, also known as subsidized housing, for those who cannot afford higher apartment rentals. Many cities in the United States have carried out housing policies that cater to poorer members of the society.
These income restricted apartments has been existing because of the tax breaks that are converted to incentives by the federal government. These are utilized to attract and acquire investors and developers to construct housing for tenants who have low income.
Developers can qualify for tax credits given by the United States Department of Housing and Urban Development when they build low-income housing. With these, developers can sell the credits to the banks or other private corporations that have invested and funded the housing project. The rental costs remain to be reasonably low because the return on investment arrive more on the tax credits than the monthly rental fees.
To protect the privilege of having income restricted apartments from the government, tenants are required to present proof of their annual income in order to continue their stay in the apartments. People with low and middle income can apply for income restricted apartments.
They are usually individuals and families who allot more than 30% of their income for house rentals based on the average income of the area or city they live in. With this, low income apartments are restricted to offer rates that are less than the normal market value in that particular area or don’t surmount 30% of an individual or family’s adjusted gross income. The income of these individuals is generally equal to 65% of the median income of the area.