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Program Terminology and Definitions
Government Programs Defined

Section 8, Project Based
Project-based means the subsidy is permanently attached to the development and stays with the apartment. The amount of rent each resident pays is adjusted according to the household's income. This means the Federal government, through the Section 8 program pays approximately 70% of the monthly rent for each qualifying household. Each resident is required to complete an annual certification to determine their monthly portion of rent, which is approximately 30% of the household income.

Section 8 Voucher/Certificate
The Section 8 Voucher allows the holder to take this subsidy program to use at any qualifying property. The voucher works in the same way as described in the Section 8 Project Based definition, except that the program is administered by an outside agency instead of the management company. A Section 8 Voucher or Certificate cannot be used at a Project Based Section 8 property. BDC Management Co. has several properties that accept Section 8 Vouchers.

Section 42 Program
Section 42 is a Federal, IRS governed program that allows owners to rent to households that meet program annual income guidelines. Section 42 properties are often referred to as affordable because the rents are usually much lower than what is considered market rate for a similar property. With Section 42, the rents are not adjusted according to household income, but are a set amount, and the household annual income cannot exceed the Section 42 program limit upon move in. Residents are required to complete an annual income certification. Please note: if all household members become students this may disqualify the household under this program.

Market Rate
Market rate properties do not have any particular State or Federal financing program attached to their rental criteria, so there are no limits on annual income or income certification process required of residents. Regular housing screening is completed and some properties may require a minimum monthly income in order to determine eligibility for a particular unit.

Section 202/Section 236
These are Federal government subsidy programs usually attached to a Section 8 property. The requirements for either of these programs is very similar to Section 8. Section 202 is generally found in a senior development, or a property that is designed to rent to disabled individuals. Within the Section 236 program, residents will pay a minimum of the basic rent not exceed the market rent at the development.