Income Based vs. Income Restricted Housing: What's the Difference?

     Did you know that both income restricted and income based housing exist in Colorado?  AND did you know that there's a difference between the two?  Both of these types of communities are designed to help people of limited means, like educators,  afford housing, but there are some key differences that it's important to be aware of.
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     First of all, the sponsor for the two different programs is different.  Affordable or income restricted housing is through the government funded US Department of Urban Housing and Development.  These homes or apartments are in designated areas owned by the government and the property must be used for this purpose for at least 30 years.  Income based housing is owned by an independent contractor who designates 20-40% of the units in a given building for rent to low income individuals or families.

    Another difference is how a tenant or owner can qualify for the housing.  For HUD housing the household's income must be at least 60% of the neighborhood's median while for income based it must be just 50%.
     It's also important to note that through HUD's affordable housing program, there are many properties available for sale.  Stapleton is a big neighborhood for

affordable housing projects.  However, if you buy a home through HUD's affordable housing be aware that there will be a sale limit, or a "price restriction" on its resale value.  
     Alternatively, some new income based units are in the works in the popular RiNo neighborhood. The city is working with developers to exchange higher height restriction limits for affordable housing units.  Rental based affordable housing complexes exist in Globeville, Curtis Park, and Five Points. Some other complexes to look into are the Park Avenue West Apartments and Mercy Housing.

     The bottom line here is that, whether you are looking to rent or buy, Denver has numerous affordable housing options available.  And more are popping up all the time!  Questions?  Contact me.  I can help you buy or put you in touch with the right people to help you rent.