CARH’S BROADCAST E-MAIL – Regulatory Alert
Today, the Department of Housing and Urban Development (HUD) released Fiscal Year (FY) 2020 Income Limits. These income limits are effective as of tomorrow, April 1, 2020.
Income limits are set by HUD to determine the eligibility of applicants for HUD’s assisted housing programs. Section 8 Fair Market Rent (FMR) area definitions are used to develop median family income estimates for each metropolitan area and non-metropolitan county. HUD income limits are calculated for every FMR area with adjustments for family size and for areas that have unusually high or low income-to-housing-cost relationships.
Low-income families are defined as families whose incomes do not exceed 80 percent of the median family income for the area. Very low-income families are defined as families whose incomes do not exceed 50 percent of the median family income for the area. Income limits for non-metropolitan areas may not be less than limits based on the State non-metropolitan median family income level.
The FY 2020 Multifamily Tax Subsidy Projects (MTSP) Income Limits were also announced and go into effect today. MTSP Income Limits were developed to meet the requirements established by the Housing and Economic Recovery Act of 2008 (P.L. 110-289) that allows 2007 and 2008 projects to increase over time. The MTSP Income Limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under section 42 of the Internal Revenue Code (the Code) and projects financed with tax exempt housing bonds issued to provide qualified residential rental development under section 142 of the Code. (Note: The limits identified in the MTSP Income Limits tables and MTSP Documentation system as “HERA Special” Income Limits are only for use by projects in service in 2007 or 2008.)