Understanding Affordable Housing Terminology: A Plain-Language Guide

By Terrica Lewis

When folks talk about affordable housing, it can sound like alphabet soup: AMI, LIHTC, CDBG, PSH. For people living these realities, the jargon just builds walls between communities and decision-makers. I believe in breaking that down. Because if we can all speak the same language, then we can all sit at the same table to push for real solutions.

Here’s my plain-language guide to some of the most common housing terms — what they mean, and why they matter for families like mine, right here in Wake County.

1. Affordable Housing / Housing Affordability

In Simple Terms: Housing is considered “affordable” if you spend no more than 30% of your income on rent or mortgage and utilities. More than that, and you’re stretched too thin.

Why It Matters: Affordable housing means families can still afford food, childcare, healthcare, and transportation. In Wake County, far too many families — including teachers and first responders — are cost-burdened and struggling to stay where they work.

2. Cost-Burdened

In Simple Terms: If you spend more than 30% of your income on housing, you’re cost-burdened. Over 50%? That’s “severely cost-burdened.”

Why It Matters: Being cost-burdened means you’re one crisis away from eviction or foreclosure. In Wake, most renters are in this category, and it explains why stability feels out of reach for so many households.

3. AMI (Area Median Income)

In Simple Terms: The “middle” income in a region. Half the households earn more, half earn less. HUD uses it to set program eligibility.

Why It Matters: AMI drives how “affordable” gets defined. The problem is that in high-cost areas like ours, 80% AMI can still mean over $100,000 a year — which leaves out many low-income families. Garner, for example, faces a 766-unit shortage for households under 60% AMI.

4. NOAH (Naturally Occurring Affordable Housing)

In Simple Terms: Older apartments or houses that are affordable because of age or condition, not subsidies.

Why It Matters: NOAH is disappearing as developers flip and raise rents. Preserving NOAH is one of the cheapest, smartest ways to keep families housed.

5. Homelessness / Unhoused

In Simple Terms: Not having a safe, stable place to live — whether on the streets, in shelters, or bouncing between temporary spaces. “Unhoused” emphasizes it’s a system failure, not an individual one.

Why It Matters: Ending homelessness is a Wake County priority, but we still see growing numbers. True prevention requires safe, affordable homes — not just temporary shelters.

6. Housing First

In Simple Terms: Get people into housing first, then offer support services. Don’t make sobriety or treatment a precondition.

Why It Matters: Stable housing is the foundation for everything else. It’s cost-effective and it works. Wake’s “Bridge to Home” model is rooted in Housing First principles.

7. Permanent Supportive Housing (PSH)

In Simple Terms: Affordable long-term housing + wraparound services for people with chronic homelessness or disabilities.

Why It Matters: This model has proven to work, keeping vulnerable residents stably housed. CASA’s King’s Ridge in Raleigh is a strong local example.

8. Transitional Housing

In Simple Terms: Temporary housing to help people move from homelessness to permanent homes.

Why It Matters: Not a long-term fix, but a crucial stepping stone for families who need stability and support before they can move on.

9. Limited English Proficiency (LEP)

In Simple Terms: When someone doesn’t primarily speak English and has limited ability to read, write, or understand it.

Why It Matters: Without translated forms and services, people with LEP can’t access housing programs or defend their fair housing rights. Equity requires language access.

10. Fair Housing / AFFH (Affirmatively Furthering Fair Housing)

In Simple Terms: Fair Housing = no discrimination in housing. AFFH = taking proactive steps to undo segregation and build inclusive communities.

Why It Matters: These laws make sure everyone has a fair shot. In Wake, AFFH is about ensuring neighborhoods open up opportunities instead of locking people out.

11. HUD Grant Programs (CDBG, HOME, HOPWA, ESG)

In Simple Terms: Buckets of federal funding for housing and community needs.

• CDBG: Flexible funds for rehab, infrastructure, and services.

• HOME: Builds and preserves affordable housing.

• HOPWA: Housing for people with HIV/AIDS.

• ESG: Emergency help for homelessness prevention and shelters.

  Why It Matters: These are the financial lifelines for local housing efforts. Where counties direct these funds reveals their true priorities.

12. Public-Private Partnerships (P3s)

In Simple Terms: When government and private businesses or nonprofits team up to fund and build housing.

Why It Matters: Most affordable housing projects require complex financing. P3s bring the resources together to make it possible.

13. NIMBY (Not In My Backyard)

In Simple Terms: When neighbors oppose affordable housing being built near them.

Why It Matters: NIMBYism slows down or blocks projects we desperately need. Overcoming it requires honest engagement, education, and transparency.

14. Rehabilitation / Preservation

In Simple Terms: Fixing and upgrading older homes so they’re safe and affordable — and keeping them that way.

Why It Matters: Preserving affordable housing is often cheaper and faster than building new units. Wake has even launched a $50M preservation fund to keep affordability in place.

15. Gap Financing

In Simple Terms: Extra money that fills the gap between what a project costs and what traditional financing covers.

Why It Matters: Without gap financing, many affordable housing projects wouldn’t happen. Garner used it for Tryon Station Apartments to make rents truly affordable.

16. Landlord Engagement

In Simple Terms: Working with landlords so they’ll accept housing vouchers and assistance.

Why It Matters: Even with a voucher, families can’t find housing if landlords refuse. Wake’s Landlord Engagement Unit helps expand available options.

17. Continuum of Care (CoC)

In Simple Terms: A network of agencies that coordinate services for people experiencing homelessness, from outreach to permanent housing.

Why It Matters: CoCs ensure that resources are used effectively and people get the right help at the right time. Wake County recently took on the lead role to improve coordination.

Closing

These terms aren’t just definitions — they’re the building blocks of housing justice. When communities, advocates, and governments share the same language, we can push past confusion and focus on solutions. Because at the end of the day, housing is not about acronyms — it’s about people, families, and the places we all call home.