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186 <br />Foreclosure <br />A specific legal process in which a lender attempts to recover the balance of a loan from <br />a borrower who has stopped making payments to the lender by forcing the sale of the <br />asset used as collateral for the loan. Foreclosure re|ief, recovery, rnitigation, and counseling <br />programs in response to the impacts of the Great Recession are still a high priority for <br />governments and housing -focused nonprofits. <br />Funding Gaps <br />Amajor partoffinanoingaffordab|ehouoingi000vehngfundinggapo.Afundinggapiothe <br />difference between the cost a developer pays to produce the housing and the available, <br />secured financial resources to help pay for costs. Three primary types of funding gaps are: <br />• Affordability Gap: occurs when the housing cost is higher than a household can afford to <br />pay at the targeted income level. <br />* Multifamily Underwriting Gap: occurs when the financing sources secured for an <br />affordable or m ixed-income project are less than the total development cost, or TDC. <br />* Value Gap: occurs when the cost to construct an affordable unit is greater than the <br />purchase price 0rrent that the local market will bear. <br />General Obligation, orG.[).Bond <br />A municipal bond backed by the credit and taxing power of the issuing jurisdiction rather <br />than the revenue from a given project. <br />Goals for Affordable and Life -Cycle Housing (the G0GU <br />To compete for Livable Communities Act (LCA) funding, communities must negotiate long- <br />term affordable and life -cycle housing goals with the Council. <br />Guaranteed Loan <br />Aloan guaranteed hv8third party inthe event that the borrower defaults. The loan iSquite <br />often guaranteed by a government agency which will purchase the debt from the lending <br />financial institution and take on responsibility for the |08n. <br />Holding Costs <br />Costs incurred by a developer if the property oha idle. Typical examples of holding costs <br />include interest on loans, taxes, and property maintenance and security. <br />HOME Investment Partnerships Program <br />This HUD program provides grants to states and localities that communities use, often in <br />partnership with local nonprofit groups, to fund a wide range of activities that build, buy, <br />and/or rehabilitate affordable housing for rent or homeownership, or to provide direct rental <br />assistance to low-income people. <br />Housing Choice Voucher (see Section 8 Housing Choice Voucher) <br />Appendices <br />