The houses will be owned by families who already live in the neighborhood and whose income is between 55 and 80 percent of the area median, which is $52,000 a year for a family of four.

Four years ago it applied for permission to build 600 rental apartments of which 180 would be for people with incomes not exceeding $42,880, or 80 percent of the state-calculated area median of $53,600.

Terms: Loans are for up to 33 years (38 for those with incomes below 60 percent of the area median and who cannot afford 33-year terms).

Section 8 assistance is limited to families with incomes of less than 80 percent of the local area median, and in Milwaukee that percentage equals $53,760.

Three-fourths of vouchers now go to households with income at 30 percent or less of the area median ($19,500 per year in Dallas).

Borrowers with income of 80% or less of the area median may be eligible for 33- year direct loans and may receive interest credit to bring the interest rate to as low as 1%.

Borrowers with income of up to 115% of the area median may be eligible for 30-year guaranteed loans from private lenders.

Families that apply would have to have incomes 60 percent or lower than the area median, $68,500 for a family of four.

In addition, the household income cannot exceed the area median of $66,500.

Because their income fell below 80 percent of the area median, the Lessers also received a 7.25 percent, 30-year mortgage, which at the time was 1 percent less than the prevailing rate.