Definitions and Acronyms

An accessory dwelling unit (ADU) is a second dwelling unit created on a lot with a house, attached house or manufactured home. The second unit is created auxiliary to, and is smaller than, the main dwelling. ADUs can be created in a variety of ways, including conversion of a portion of an existing house, addition to an existing house, conversion of an existing garage or the construction of an entirely new building.

The cost of purchasing the land or land and buildings to be developed.

A project where the purchase of land and buildings and construction rehabilitation of the property are both included in the loan request.

Describes the relationship between household income, housing costs, and established standard of affordability. The standard for "Affordable" means the following:

1. For rental housing: the agency utilizes the HUD affordability standard, which states that the rent plus expenses associated with occupancy, such as tenant paid utilities or fees, does not exceed 30% of the gross household income, based on unit size, at the level of the rent restriction.
2. For homeownership units: the purchase price, for which the sum of debt service and housing expenses (including an allowance for utilities and other required ownership fees), when compared to the annual gross income for a family, adjusted for family size, does not preclude conventional mortgage financing.

Housing that is affordable to persons or families whose income is at or below either 60% or 80% of AMI.

The property's market value based on the probable condition of the property after completion of the proposed rehabilitation or construction as determined by a certified fee appraiser or Prosper Portland staff.

Area Median Income

Large organizations, most often public or nonprofit, that are primarily anchored in place—colleges and universities, hospitals and health-care facilities, utilities, faith-based organizations, museums, and arts centers. Anchor institutions are key drivers of local and regional economic opportunity. Anchor institutions offer stable jobs, many with career ladders and good wages and benefits, and strong purchasing power of goods and services.

The property's current market value as determined by a certified fee appraiser or the most recent assessed value by the County Assessor as verified or modified by Prosper Portland staff.