The US Department of Housing & Urban Development (HUD) defines Affordable Housing as housing where the occupant is paying no more than 30% of gross income on housing, including utilities.  Households paying more than 30% of gross income on housing are considered “housing or cost burdened”.  

States and local governments determine eligibility for Affordable Housing.  Commonly, households earning 80% of the Area Median Income (AMI) is the threshold for eligibility.  In Connecticut, 80% of AMI is the threshold.

Every year, the US Dept of Housing & Urban Development (HUD) calculates and publishes the AMI for every geographic region in the country using data from the US Census-based American Community Survey.

Per HUD:  

• Low-income households earn less than 80% of AMI; 
• Very low-income households earn less than 50% of AMI; 
• Extremely low-income households earn less than 30% of AMI.  

Per CT General Statute 8-30g, Affordable Housing is defined as: 

1. housing that costs less than 30% of the income of a household earning 80% of the Area Median Income; and 
2. either, 
   1. has been deed restricted to ensure the housing unit will remain Affordable for a period of forty years, or, 
   2. are ownership units that are currently financed by the CT Housing Finance Authority (CHFA) or US Dept of Agriculture (USDA).    

CT General Statute 8-30g was enacted in 1989 seeking to increase the supply of Affordable Housing in the State of CT.  8-30g requires all municipalities in CT to achieve 10% of its housing stock as Affordable Housing as defined by the State.  In towns that have less than 10% Affordable Housing, 8-30g allows a developer to override local zoning regulations and build housing as long as 30% of the units are guaranteed to remain Affordable. 

Yes.  1.68% of Madison’s total housing stock is considered Affordable as defined by Statute 8-30g.  (September 2023)

The Area Median Income (AMI) in Madison = $111,900.00 (2023 HUD)

Households earning not more than 80% of Area Median Income (AMI) are eligible for Affordable Housing in Madison.

• 80% of AMI in Madison = $89,520.00 (2023 HUD).

To not be “housing or cost burdened”, total housing costs are less than 30% of the income of a household earning 80% of the Area Median Income (AMI). AMI in Madison = $111,900.00 (2023 HUD).

• 80% of $111,900.00 (AMI) = $89,520.00.
• 30% of $89,520.00 = $26,856.00.
• In Madison, 30% of 80% of AMI = $26,856.00 yearly or $2238.00 monthly for total housing costs, including utilities.

• Government assisted = 90 units
• Tenant rental assistance = 3 
• Single family CHFA/USDA mortgages = 9 
• Deed restricted units = 33 

TOTAL ASSISTED = 135 = 1.68% of all housing units in Madison

** as of September 2023