Industry Jargon Glossary
Community Development Tools & Funding
Core Federal Programs
Community Development Block Grant (CDBG)
The flexible federal funding source used by cities and counties to support local housing and development needs. CDBG funds are distributed by HUD to states and local governments to invest in affordable housing, infrastructure, and public services that benefit low- and moderate-income (LMI)* residents. Local governments often run grant or loan programs with CDBG funds, which can support nonprofits, home repairs, sidewalks, business districts, and more. These funds come with federal compliance requirements like environmental review, procurement standards, and Davis-Bacon* wages.
LMI (Low- and Moderate-Income): Refers to individuals or households earning less than 80% of the area median income, often used to determine eligibility for housing and community development programs.
Davis-Bacon: A federal rule requiring prevailing wages on construction projects funded with certain federal dollars.
HOME Investment Partnerships Program (HOME)
A federal program that supports affordable housing through funding for new construction, rehabilitation, and rental assistance. HOME is more narrowly focused than CDBG — it's only for housing. Funds go to local and state governments and often support nonprofit developers or housing authorities. HOME projects must serve LMI households and are subject to affordability periods and income verification rules. Many affordable rental projects layer HOME with tax credits or other funding.
Section 108 Loan Guarantee
A HUD-backed loan program that lets local governments borrow against future CDBG funds for larger projects. If a city or county needs more capital than it receives annually from CDBG, Section 108 lets it borrow up to 5 times its CDBG allocation, using that funding as a guarantee. It’s often used for redevelopment, infrastructure, or economic development projects that serve community priorities. Projects must still meet CDBG national objectives and undergo the same compliance review.
Tax-Based Incentives
Tax Increment Financing (TIF)
A public financing tool that uses future increases in property tax revenue to pay for current development costs. TIF works by freezing a district’s tax base and using the “increment” — the additional taxes generated as property values rise — to fund eligible expenses like site prep or public improvements. TIFs are common in downtowns or former industrial sites. Local governments must create a TIF district, typically requiring a development plan and community engagement. Rules vary by state, and school districts or taxing bodies will need to approve the plans.
Opportunity Zone
A federal incentive that allows investors to defer or reduce capital gains taxes by investing in designated low-income areas. Created by the 2017 federal tax law, Opportunity Zones (OZs) offer tax benefits for investments in qualifying census tracts. Projects can include real estate or business development. While OZs don’t come with direct funding, they can attract private investment if a project aligns with investor goals and is located in a designated zone.
Ownership, Land, & Equity Tools
Community Land Trust (CLT)
A nonprofit model that keeps land affordable by separating ownership of land and buildings. In a CLT, the organization owns the land and leases it to homeowners or renters through long-term agreements. This keeps housing permanently affordable by removing land from the speculative market. CLTs are often used for homeownership, but can also support rental housing, community farms, or commercial space. They require strong community governance and ongoing stewardship.
Land Bank
A public or nonprofit entity that acquires, holds, and repurposes vacant or tax-delinquent properties. Land banks help communities take control of problem properties and return them to productive use — whether for housing, green space, or redevelopment. They can clear title*, demolish unsafe buildings, and sell properties with reuse conditions. Land banks often work closely with code enforcement, planning departments, and community groups.
Clear Title: The legal process of resolving ownership issues or claims so that a property can be sold or transferred without disputes.
PILOT (Payment in Lieu of Taxes)
An agreement where a nonprofit or tax-exempt developer makes voluntary payments to a local government instead of property taxes. Since nonprofits and affordable housing entities often don’t pay property taxes, PILOT agreements help support local services without undermining tax exemption. They’re typically negotiated and may be required in exchange for local support, land, or infrastructure improvements.
Community Benefits Agreement (CBA)
A contract between developers and community groups outlining specific benefits a project will deliver to local residents. CBAs can include commitments to local hiring, affordable housing, open space, or small business support. They're negotiated before a project is approved (often tied to zoning or public subsidies) and give communities a direct voice in shaping outcomes. Enforcement depends on how the agreement is structured; local governments sometimes play a role in monitoring compliance.
Partnership & Planning Tools
Public-Private Partnership (P3)
A collaboration where public agencies and private developers share risks, costs, and responsibilities for delivering a project. P3s are used for complex or large-scale developments where no single partner can do it alone. A P3 might involve a city providing land or infrastructure while a developer finances and manages construction. These arrangements work best with strong contracts, aligned incentives, and shared goals. They’re common in infrastructure, housing, and district-scale redevelopment.
Qualified Census Tract (QCT)
A designation used to target federal housing and development resources to high-need areas. QCTs are census tracts where either 50%+ of households earn below 60% of the area median income, or the poverty rate exceeds 25%. They’re used to determine eligibility or priority for LIHTC, HOME, and other funding. Developers in QCTs may get bonus points in scoring systems or higher tax credit allocations.
HUD Consolidated Plan
A required planning document that outlines how a city or county will spend its CDBG, HOME, and other HUD funds. The “Con Plan” is updated every 5 years (with annual updates) and includes data, goals, and public input. Local governments use it to set priorities for affordable housing, infrastructure, and public services. Projects and partners that align with the Con Plan are more likely to be funded — and are often required to demonstrate that alignment in their applications.
Real Estate Development & Finance
Development Process
Predevelopment
The early-stage planning, research, and due diligence that happens before construction starts. Predevelopment includes all the behind-the-scenes work necessary to prepare a project: site studies, community meetings, engineering reports, architectural design, securing permits, and applying for funding. Local governments and nonprofits often seek funding to cover these costs, because they’re necessary but risky — many projects never get past this stage. Understanding predevelopment helps partners time their support and funding asks.
Entitlement
Getting legal approval to build your project under local zoning and land use rules. Entitlements include rezoning, variances, special use permits, and planning commission approvals — whatever it takes to make your project “legal” in that place. The process varies by municipality and can include public hearings, multiple rounds of review, and political input. For community projects, entitlement can cause delays or require compromise, so it's important to plan for it early.
Brownfield Remediation
The process of cleaning up and redeveloping properties that are contaminated with hazardous substances or pollutants. Brownfields are often former industrial sites or old factories, and cleaning them up can be expensive and complex. However, Brownfield remediation is essential for turning these properties into viable spaces for housing, parks, or commercial use. Various state and federal funding programs assist with the cost of cleaning up these sites, which often requires professional environmental expertise.
Zoning
Local government rules that control how land can be used and what can be built on it. Zoning designates areas of a city or county for different uses—residential, commercial, industrial, etc. Local zoning codes specify the kinds of activities allowed in each zone and can also regulate things like building height, density, and parking requirements. Understanding zoning is essential when developing real estate, as projects must comply with local laws to avoid delays or denials.
Site Control
The ability to demonstrate that you have legal permission to use a piece of land for your proposed development. Site control often comes in the form of ownership, lease agreements, or an option to purchase. Without site control, a project cannot move forward, and financing will be difficult to secure. For nonprofits, this can mean a lengthy negotiation process, but securing site control is essential for project planning and securing public or private funding.
Housing & Land Use Policy
Defining Need
Area Median Income (AMI)
A federal benchmark used to define who qualifies as “low-income” for housing programs. Each year, HUD sets AMI based on household size and geography. Housing programs use % of AMI to target income groups—e.g., “60% AMI” means a family earning 60% of the local median. Knowing what % of AMI your project serves is essential for grants, tax credits, and messaging.
Affordable Housing
Housing that is priced so that it is affordable for households earning 80% or less of the area median income (AMI). Affordable housing is a key issue in many communities where rising costs outpace income growth. Various funding programs—like tax credits, CDBG, or HOME—are available to support affordable housing development, but eligibility requirements often include income thresholds and other rules that developers must follow to qualify for assistance.
Workforce Housing
Housing for households with moderate incomes, typically ranging from 60% to 120% of AMI. Workforce housing is designed for people like teachers, police officers, and service workers who earn enough to work full-time but still struggle to find affordable housing in many markets. While it is not as heavily subsidized as “affordable housing,” workforce housing is often eligible for certain tax credits or low-interest loans.
Financing Housing
Low-Income Housing Tax Credit (LIHTC)
A federal tax incentive to finance the development of affordable rental housing. LIHTC is a major tool for financing affordable housing projects. Developers sell the credits to investors, who in turn lower their tax burden. In exchange, the developer receives equity to reduce financing costs and keep rents affordable. LIHTC is commonly paired with other financing mechanisms like HOME or CDBG to build or rehabilitate rental properties.
New Markets Tax Credit (NMTC)
A federal tax credit designed to encourage investment in low-income communities. The NMTC program is used to attract private investment to projects that benefit low-income areas. Investors can receive a tax credit over seven years, which reduces their overall tax liability. Projects that qualify for NMTC funding include real estate development, business ventures, and community services in areas with high poverty rates.
Agencies, Acronyms & Grant Systems
SAM (System for Award Management)
The official federal registration system required to apply for most public funding. Before applying for federal grants or contracts, your organization must be registered in SAM.gov. This verifies your legal status, assigns you a UEI (Unique Entity Identifier), and is checked when funding is awarded. Many community groups find this process burdensome, so technical assistance or fiscal sponsorship can help.
EDA (Economic Development Administration)
A federal agency that provides grants to local governments for community development and economic revitalization. The EDA’s mission is to help distressed communities become economically competitive by funding infrastructure, innovation, and capacity-building projects. Local governments, nonprofits, and educational institutions can apply for grants to support projects that foster sustainable economic growth.
HUD (U.S. Department of Housing and Urban Development)
A federal agency that administers programs for affordable housing, urban development, and homelessness. HUD provides grants, loan guarantees, and technical assistance to help local governments and nonprofits develop affordable housing, support homeless populations, and revitalize distressed neighborhoods. Many community development programs, including CDBG and HOME, are managed through HUD.
ARC (Appalachian Regional Commission)
A federal-state partnership that focuses on economic development and poverty reduction in the Appalachian region. ARC provides funding and technical assistance for projects that boost economic development, including infrastructure, workforce development, and health programs. The commission’s grants often target areas of Appalachia that face higher poverty rates and less access to federal funding.
CEDS (Comprehensive Economic Development Strategy)
A locally-driven planning document required for receiving federal economic development funds. A CEDS outlines the region’s economic challenges, opportunities, and strategies to improve job creation and community vitality. It is often used by local governments to coordinate development efforts and attract federal funding from agencies like EDA (Economic Development Administration).
DCED (Pennsylvania Department of Community and Economic Development)
A state agency responsible for promoting economic development and community revitalization in Pennsylvania. DCED offers programs and funding to municipalities, nonprofit organizations, and private entities for projects ranging from affordable housing to business development to infrastructure upgrades. The agency plays a central role in managing state-level funding programs, including those for brownfield redevelopment, community revitalization, and energy efficiency.
Electronic Single Application (ESA)
Pennsylvania’s required online system for applying to most state funding programs. The ESA portal is where municipalities, nonprofits, and businesses must submit applications for programs managed by the PA Department of Community and Economic Development (DCED). It standardizes the process and tracks required documentation. Users should create an account and review program guidelines in advance to ensure timely and complete submissions.