A secondary dwelling unit created within or as an extension of an existing dwelling that contains separate bath and kitchen facilities.

The conversion of nonresidential properties such as schools, hospitals, motels, warehouses, office buildings, etc. into residential or mixed uses.

Housing that costs no more than 30% of a household’s income is considered to be “affordable” for that household. More specifically, “affordable housing” meets this 30% standard for low-income households (i.e., households earning below 80% of the country's median income). For owners, housing costs include principal, interest, property taxes, and hazard insurance. For renters, costs include rent and tenant-paid utilities (except telephone and cable).

A particulate material which is made up of sand or crushed stone. Aggregates are used in materials such as concrete and are a fundamental part of building foundations.

The various features offered at a living community that helps provide social, cultural, educational, and spiritual opportunities. Potential amenities will differ from property to property, but may include a community room, wellness center, and other features.

The gradual repayment of a mortgage by installments.

A loan for which equal payments are due on a regular periodic basis, usually monthly. The payments include varying amounts of principal and interest. sometimes called “level payment” loans, as opposed to deferred payment loans due only on resale or loans repaid with unequal periodic payments of principal and interest.

A report made by a qualified person setting forth an opinion or estimate of value. The term also refers to the process by which this estimate is obtained.

An opinion of value reached by an appraiser based upon knowledge, experience, and a study of pertinent data.

The process of refilling trenches or holes created during excavation, especially around foundations.

Has several meanings as used in the low-income housing industry. The most common is “capitalizing a loan fund,” i.e. raising grants or low-interest loans for a fund from which loans are made to third parties. In real estate development, the term can also mean characterizing certain expenses such as loan interest and professional fees as capital costs, not ordinary operating expenses.

The occasion where the sale of real estate and/or the making of a loan is finalized. Sometimes called “settlement.”

A term broadly used to describe any efforts to improve housing, infrastructure, education, social services and employment in lower income areas.

A loan that is forgivable if certain conditions are met (e.g., compliance with an affordability restriction for the full length of its term).

A form of ownership in which individuals own a unit of housing in a multi-unit complex. The individual owners also jointly own and share financial responsibility for the common areas in the complex.

Housing accommodation that offers separate rooms or apartments but provides shared activities of daily living with other residents.

Broadly, all costs incurred in bringing a building to completion (primarily labour and materials costs), not including land acquisition, financing, sales costs or other soft costs.

In the low-income housing industry, a term often used to refer to any loan made with non-subsidy sources. Among private, single-family lenders, a term to describe a loan that is made with a minimum 20% down payment and conventional underwriting criteria - a maximum 80% loan-to-value ratio.

Households that pay more than 30% of their gross income on housing costs, which includes mortgage principal, interest, property tax, and homeowner’s insurance, or rent and utilities.

Cost-burdened households spend more than 30% of their income on housing-related costs are considered cost burdened. Extremely cost-burdened households spend more than 50% of their income on housing-related costs.

In single-family lending, the percentage of borrower’s income that will be spent on all installment debt after a home purchase, refinancing, or home renovation financing. The conventional ratio is 36% of income. Some loan products and insured loans allow a higher ratio.

Principal and interest payments on a loan usually paid monthly.

The transfer of title of a mortgage property from the owner to a mortgage lender to avoid foreclosure and further collection actions.

A limitation placed in a deed limiting or restricting the use of the real property.

(a.k.a. deferred payment second mortgage or soft debt) – A non-amortizing loan, usually at 0% interest, on which no repayments are due until sale or some other point in the future. They are usually made by a public or nonprofit agency to a lower income homebuyer or a developer of low-income housing. Sometimes called a “deferred payment loan,” a “DPL,” or a “soft second mortgage.”

The approval of a land use proposal that involves the decision-maker’s judgement in the freedom to decide what should be done in a particular circumstance. Decision-makers are, for example, a city council in the case of a general plan amendment or a rezoning, or an architectural review board.

Grants or low interest loans given to lower income homebuyer’s help to fund down payment and/or closing costs - usually in the range of GHs10,000 to GHs50,000. Less commonly, the term is used to refer to any second mortgage financing in any amount.

The interest or value which an owner has in real estate over and above the current indebtedness; usually referred to as the owner’s interest. Proceeds from tax credits invested in an affordable housing project are a form of equity.

The generic term for various forms of home financing in which a homeowner shares their property appreciation with another party. The term technically only applies when the other party has an ownership interest in the property.

One or more persons occupying a home and living as a single housekeeping unit irrespective of blood relationship, as distinguished from a group occupying a hotel, club house.

For a home purchase or a real estate project, usually the largest loan and one that gives the lender the most security. In case of foreclosure and sale, the first mortgage lender gets the money before any other lender is paid off. Also called a “first deed of trust” loan in some areas of the country.

A mortgage loan for which the interest rate does not change over time.

An agreement in which a lender postpones foreclosure on a mortgage loan to allow the borrower time to catch up on overdue loan payments.

A process through which higher-income households move into an area and housing costs rise, changing the character of the neighborhood. Gentrification can include three dimensions:

1) the displacement of lower-income residents;

2) the physical transformation of a neighborhood - mostly through the upgrading of its housing stock and commercial spaces; and

3) the changing cultural character of a neighborhood.

An outright gift of cash with no conditions or stipulations.

A whole‐building and systems approach to design and construction that employs building techniques that minimize environmental impacts and reduce the energy consumption of buildings while contributing to the health and productivity of its occupants.

Development that uses environmentally friendly building practices and energy efficiency. There are a number of public and private incentives for green development, and increasingly, nonprofit developers use green construction as a way of increasing the expendable resources of lower income persons.

Undeveloped land.

All persons, whether related or unrelated, living in a housing unit.

In single-family lending, the percentage of a borrower’s income that will be spent on the housing payment after a home purchase, refinancing, or home renovation refinancing. This includes payments of loan principal, interest, real estate taxes, and insurance (called PITI).

Fees imposed on new development that are used to pay for the infrastructure or affordable housing needs generated by that development.

A monetary payment made instead of meeting a regulatory requirement. Commonly used to refer to a fee paid by a developer who does not provide an otherwise required affordable housing unit under an inclusionary housing programme.

A local zoning ordinance that either requires or encourages a developer to include affordable housing as part of a development, or contribute to a fund for such housing. The bylaw may provide incentives such as increased density, reduced parking requirements, or expedited permitting in exchange for the affordable housing.

A requirement that a certain percentage of units in new housing developments be made affordable to lower- and/or moderate-income households.

The practice of building on vacant or undeveloped parcels in dense areas, especially urban and inner suburban neighborhoods. Promotes compact development.

In single-family lending, the percentage of borrower’s income that will be spent on all installment debt after a home purchase, refinancing, or home renovation financing. The conventional ratio is 36% of income. Some loan products and insured loans allow a higher ratio.

In the strictest sense, a nonprofit organization that sells affordable homes but retains ownership of the land under them in order to control, through the lease, the long-term affordability of the homes. The lease ensures that the home is resold to a low-income family, sold at a below-market price, and/or sold with a share of the appreciated value going to the nonprofit.

The term is used more loosely to describe programs that subsidize fee simple homeownership for low-income families and impose similar kinds of long-term affordability controls.

Discretionary permits governed by a locality’s zoning, subdivision, or other local code necessary for development of real property.

Financing for an affordable housing project that includes several subsidy sources (for example, Tax Credits)

In affordable housing, this means using one source of funds in a project to encourage investment by another source.

A document recorded in public records that represents a debt owed on the property. Examples of liens include: a recorded mortgage deed, a lien for unpaid taxes, and a mechanic’s lien representing construction work on a property that was not paid for.

A linkage or impact fee may be assessed on new industrial, commercial, or office development that increases the affordable housing burden on the surrounding community. The fees are used to create affordable housing. (Alternatively, housing units may be provided as part of the development).

The ratio between the proposed loan amount and the appraised value of a property that money is being borrowed for. For instance, if a proposed loan equals 85% of appraised value, the loan-to-value ratio is 85%. Some lenders will sometimes lend up to 95% or 97% of value, typically only if mortgage insurance is provided. The maximum ratio for conventional loans is 80%.

Development that includes housing affordable to various income levels.

Projects that combine different types of development such as residential, commercial, office, industrial and institutional into one project.

Insurance provided by a private institution or public agency that insures a lender in whole or in part from losses due to a default on a loan. Lenders typically require mortgage insurance only for loans that are not considered conventional (see “conventional financing”). Borrowers pay the premiums.

A loan secured by a mortgage deed, meaning the property owner has agreed to give the property to the lender if monthly payments are not made, so the property can be sold to pay off the loan. First deed of trust loan means the same thing.

The Lender of a mortgage loan.

The borrower of a mortgage loan.

Notice recorded after completion of construction and final inspections for Building Code compliance.

Improvements outside the boundaries of a property (including improvements within adjacent street rights of way as well as more distant streets, sewers, or other infrastructure) which enhance its value and are often required as a condition of property development to offset that project’s impacts.

Any construction of buildings or other improvements within the boundaries of a property which increases its value.

Once a loan has been underwritten, the act of processing the loan through closing, providing the loan funds and setting the loan up for servicing.

A housing unit containing more people than is permitted by various laws.

Usually, a first mortgage loan made on a larger real estate project such as an apartment acquisition, where two or more lenders provide the funds. In proportion to their funds provided, the share risk, repayments and any proceeds of sale in the event of a default. A common way to get lenders to finance multi-family deals that cannot immediately be sold to the secondary market.

Non-governmental, private, for-profit businesses and non-profit organizations.

The process of returning a property to a state of utility, through repair or alteration.

A term used to describe any financing used in conjunction with first mortgage loans from conventional financing institutions - for example, a down payment grant, a deferred payment loan, or an amortizing second mortgage loan.

Or “loan servicer.” A company that collects payments due on mortgage loan, often the lender that originated the mortgage loan, even if the lender sold the loan to another entity.

The act of collecting loan payments, accounting for them, making reports and managing escrowed funds for taxes and insurance.

Households that pay more than 50% of their gross income on housing costs, which includes mortgage principal, interest, property tax, and homeowner’s insurance, or rent and utilities.

Efficiency units which may or may not include separate bathroom or kitchen facilities.

A form of housing that is typically aimed at residents with low or minimal incomes. In some cases, an SRO “units” nothing but a bedrooms that share kitchen and bath facilities with others in the building. In other cases, an SRO unit is complete with its own bath and cooking facilities, so that its occupant can living independently.

An approach to planning and development that promote a more efficient use of land to reduce sprawl using compact development patterns that are less dependent on the automobile and include a range of housing options and improve the balance of jobs and housing within the community or the region.

A jargon term for non-bricks-and-mortar costs of a real estate development project. Includes architectural costs, surveys, appraisals, other fees, holding costs, etc.

A jargon term for subsidy funds from public or charitable sources used in a real estate development project. There are degrees of “soft.” The softest funding consists of grants and deferred payment loans. Less soft are low interest, amortizing loans.

Any form of affordable housing development financing that is not an amortizing loan or private-activity bond, such as a grant, a conditional loan, or a residual receipts loan.

A loosely defined term for affordable or no-cost residential facilities for people with special medical problems, the homeless or people enrolled in self-sufficiency programs. In the broadest sense, it includes emergency shelters, longer-term shelters, transitional housing, halfway houses and group homes.

In single-family mortgage lending, a second or third mortgage loan with a lien that is subordinate to a first or second mortgage loan. In the event of default and foreclosure, subordinated loans are repaid only after other debts with a higher claim have been satisfied.

There are two general types of housing subsidies:

1) development subsidies (supply side) to help construct or acquire housing, and

2) operating subsidies (demand side) that supplement the amount that residents can pay.

Typically refers to financial assistance that fills the gap between the cost of affordable housing development/operations and the mortgage or sales income supported by income restricted rentals or homeownership sales. Affordable rents and home sales prices are determined by financing program eligibility requirements.

In general, any unit that suffers from some type of physical defect, such as electrical wiring that is not up to code or lack of plumbing.

The process of evaluating a loan application to determine if it meets credit standards and any other special requirements (as with special loan products for low-income borrowers). The underwriting process determines whether or not a loan will be approved, and on what terms and conditions.

Criteria used by lenders to determine how large a loan a prospective borrower can afford. The housing payment ratio (for “front” ratio) is the maximum percentage of monthly household income that can be paid for principal, interest, taxes and insurance (PITI). The installment debt ratio (or “back” ratio) is the maximum percentage of income that can be paid for total installment debt (including PITI, car loans, etc.).

Ratios for conventional loans are 28% for PITI, and 36% for all installment debt, often expressed as 28/36. Many special loan products allow ratios of 33/38 or even higher increasing the amount of the monthly payment and, thus, the amount that can be borrowed.

A mortgage loan for which the interest rate may change over time in relationship to some index such as the market price of long-term Bank of Ghana (BoG) Treasury obligations.

The classification of land by a) types of uses permitted and prohibited and b) by densities and intensities permitted and prohibited in a given district, including regulations regarding building location on lots.

A body of regulations adopted by a city or a country that governs land use, dividing up the jurisdiction’s territory into residential, commercial, industrial, and other districts, in which various uses are allowed by right or with the issuance of a use permit, and in which standards for such physical aspects as setbacks from property lines, building heights, and parking ratios are set forth.