Blended Occupancy Rental Properties
Understanding the concept of blended occupancy or mixed-finance housing can be critical for property managers. The mixed housing program is usually found in urban areas and provides various benefits to those who qualify.
Different types of properties can come under the category of blended occupancy. Still, they all have one common goal: to help people who may not be able to afford market-rate housing have a chance to live in safe, decent, and affordable housing.
To have single family home of the topic, we created this blog to help you understand everything there is to know about managing a property with a blended occupancy.
What Is Blended Occupancy?
In the simplest of terms, blended occupancy is a type of housing created when two or more financing sources are used to create one project. Simple to understand, but there's a lot to unpack here legally.
The regulations involved in Blended Occupancy are compiled in a handbook released by the U.S. Department of Housing and Urban Development, called the HUD 4350.3 Occupancy Handbook.
Blended occupancy is a complicated topic encompassing multiple facets of the mixed-finance housing program. It's critical to understand what these different factors are to gain a basic understanding of this complex concept.
Definition of Terms
Here are some definitions you’ll need to familiarize yourself with before moving on:
Blended Occupancy Specialist
A Blended Occupancy Specialist (BOS) is a housing professional knowledgeable about the regulations and procedures associated with mixed-finance housing or blended occupancy. They are specially trained to help property managers comply with these rules.
A BOS ensures that all rules between the different house financing programs don't overlap and that each program's goals are met. They also ensure that the housing meets all quality standards and legal compliances.
HOME
HOME Investment Partnerships Program, or simply HOME, is a federal assistance program provided by the U.S. Department of Housing and Urban Development (HUD). This program aims to provide affordable housing opportunities to low and moderate-income families.
HOME funds can finance the acquisition, rehabilitation, or new housing construction for low and extremely low-income households. Borrowers can also use it to provide rent subsidies, down payment assistance, and other forms of homebuyer assistance.
LIHTC
The Low-Income Housing Tax Credit (LIHTC) is a federal tax credit program that encourages developers to create and rehabilitate affordable rental housing for low and moderate-income households.
This low tax credit housing program works by giving tax credits to developers of qualified rental housing projects. Creditors can sell these tax credits to private investors to raise capital for the development or rehabilitation of the property. Investors can claim the LIHTC over ten years once the establishment is active.
Project-Based Rental Assistance (PBRA)
PBRA is a housing assistance program that provides subsidies to eligible tenants renting units in specific housing developments. With this program, private owners are contracted to rent some or all of the units in their developments to low-income families.
Project-Based Vouchers (PBV)PBVs are HYPERLINK "https://housingconnect.org/programs/project-based-vouchers/" \l ":~:text=The project-based voucher (PBV) program is one part,unit in which you live."affordable housing vouchers that help pay rent in privately-owned rental units. PBV is a component of the Housing Choice Vouchers (HCV) program. PBVs are attached to a specific housing unit and can