Friday, July 1, 2016
What are Affordable Housing and HUD?
T. Eric Galloway is a diverse businessman with experience as a lawyer, judicial clerk, and business executive. Currently, T. Eric Galloway serves as a Trustee for the Galvan Foundation, a nonprofit charitable organization, and as the president of the Lantern Group, an affordable housing developer. Both organizations are based in New York.
Affordable housing is generally defined as housing for low to middle-income households, and has a low enough cost that it does not affect the household’s ability to pay for other needs. To be officially defined as affordable housing, a property’s cost must not take up more than 30 percent of a tenant’s income. This is because households that pay more than this threshold will have difficulty meeting other obligations, such as food and clothing.
The United States Department of Housing and Urban Development (HUD) estimates that nearly 12 million households pay greater than 50 percent of their income on housing costs. To assist with state and local efforts to build enough capacity of affordable housing, HUD maintains several national programs. The Home Investment Partnership Program (HOME) which provides grants and direct housing assistance, and the National Housing Income Trust which supports capital programs to build housing stock around the United States.