What is the 80 rule?

Answer 1

This is half of a question I believe, and it could apply to many areas of the law. One example is something known as 80/20 financing which is used by real estate developers. It means that proceeds that are generated through the sale of tax-exempt bonds are used to create construction and mortgage loans. In return, the developer agrees to set aside from the market rate units being sold (or rented), 20% of the units for low income tenants. (80% market; 20% low income). There are specific City guidelines for the particular building areas that govern what "low income" means. For example, an individual earning no more than $17,600 a year in certain areas of NYC would be considered a qualifying low income resident.

Answer 2

The 80 rule, also known as the Pareto Principle, states that approximately 80% of the effects come from 20% of the causes. It suggests that a large majority of outcomes or results are driven by a small percentage of the inputs or efforts. It is often used in business and management to prioritize tasks, identify key factors, and allocate resources effectively.