Affordable housing for FHA multifamily mortgage insurance programs is defined as projects meeting either the minimum affordability requirement for Low Income Housing Tax Credits LIHTC) or the requirements for project-based Section 8.

To qualify under the LIHTC affordability requirement, rent and income restrictions must be imposed, monitored and enforced by a governmental agency for at least 15 years after Final Endorsement by means
of a recorded Regulatory Agreement requiring the project to meet either of the LIHTC restrictions, including income averaging as applicable: 20% of units at 50% of area median income (AMI); or 40% of
units at 60% of AMI.

Projects need not use LIHTCs to qualify for affordable underwriting so long as they meet the requirements for LIHTC affordability.

To qualify as affordable based on project-based Section 8, the project must have a Housing Assistance Payment contract covering 90% of the units with a minimum remaining term of 15 years.