American Institute of Certified Planners (AICP) Practice Exam

What demographic is characterized as very low income under the income standards mentioned?

1. Individuals earning more than 60% of AMI

2. Individuals earning between 30-50% of AMI

3. Individuals earning no more than 50% of AMI

4. Individuals earning between 50-80% of AMI

The correct answer is: Individuals earning no more than 50% of AMI

Individuals earning no more than 50% of the Area Median Income (AMI) are classified as very low income. This classification is significant because it helps to identify populations who are most in need of affordable housing and other supportive services. The U.S. Department of Housing and Urban Development (HUD) uses this threshold to determine eligibility for various assistance programs, aiming to address housing insecurity and encourage the development of resources for those at the most financial disadvantage. The designation of very low income is crucial for planning purposes as it informs local governments and organizations about the level of economic vulnerability in the community, guiding policies and funding allocations towards services that meet the needs of these residents. Understanding the distinction between income brackets is vital for planners in addressing issues such as homelessness and access to affordable housing. The other income ranges mentioned do not fall under the very low-income category, making them less relevant when specifically discussing populations experiencing higher levels of economic hardship.