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A low-income geographic area refers to specific regions identified by certain criteria related to income and poverty levels. These areas are typically defined using population census tracts or equivalent county divisions. To qualify as a low-income geographic area, a tract must meet one or more of the following conditions:
The poverty rate is at least 20 percent.
In metropolitan areas, at least 50 percent of households earn less than 60 percent of the area median gross income.
In non-metropolitan areas, the median household income does not exceed 80 percent of the statewide median household income.
There is a significant population of low-income individuals, limited access to investment capital, or other signs of economic distress.
Table of content
Legal Use & context
The term "low-income geographic area" is commonly used in various legal contexts, particularly in economic development and social welfare programs. It plays a crucial role in programs aimed at providing financial assistance, investment opportunities, and resources to underserved communities. This term is relevant in the following legal areas:
Economic development
Housing and urban development
Small business investment programs
Users can manage related forms or procedures using templates from US Legal Forms, which are designed by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are a couple of examples of low-income geographic areas:
A neighborhood in a metropolitan city where over 50 percent of households earn less than 60 percent of the median income.
A rural county where the median household income is significantly below the state average, indicating economic challenges. (hypothetical example)
Relevant laws & statutes
The definition of low-income geographic areas is primarily outlined in:
15 USCS § 689 - Small Business Investment Program
This statute provides the framework for identifying and supporting low-income areas through various investment programs.
State-by-state differences
Examples of state differences (not exhaustive):
State
Criteria Variation
California
Uses local median income data for specific programs.
Texas
Focuses on both urban and rural areas with different thresholds.
New York
Incorporates additional factors like housing costs.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Key Differences
Low-Income Area
Regions with a high percentage of low-income households.
Broader definition, not limited to census tracts.
Economic Distress Area
Regions facing significant economic challenges.
Focuses more on economic conditions than income levels.
Common misunderstandings
What to do if this term applies to you
If you live in or are involved with a low-income geographic area, consider the following steps:
Research available programs and resources that support low-income areas.
Explore US Legal Forms for templates that can help you navigate legal processes related to economic development.
If your situation is complex, consult a legal professional for tailored advice.
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