HUD released the Section 8 and the Multifamily Tax Subsidy Projects (MTSP) Income Limits with an effective date of April 1, 2018 (until superseded). These income limits are used by housing developers to determine eligibility for CHFA bond financing and tax credit programs. In addition, the tables are also used by developers, property managers, and owners to determine affordable housing occupant eligibility (based on income) and rent limits.
These newly released MTSP Income Limits must be implemented no later than May 16, 2018 for Low-Income Housing Tax Credit properties.
The Consolidated Appropriations Act of 2018 establishes Income Averaging as a new minimum set-aside election for new Low-Income Housing Tax Credit (LIHTC) developments. Rent limits for the 20%, 30%, 40%, 70% and 80% Area Median Income (AMI) bands have been incorporated into a workbook with the AMI bands that have been used in the past (25%, 50% and 60%) by CHFA.
The current Consolidated Application (ConApp) has not yet been revised to accommodate these changes for applicants requesting LIHTCs in conjunction with their CHAMP 12 application to DOH. Therefore, in addition to completing Exhibit 5.1 Rental Income Calculation Sheet in the ConApp workbook you will also need to complete a stand-alone Rental Income Calculation Worksheet for Income Averaging. Applications not contemplating using the income averaging set-aside do not have to complete this worksheet.
Please see Income Limits Information, at the bottom of this page, for the Section 8 Income Limits, the Area Definitions, the Income Limit Workbook and the stand-alone Rental Income Calculation Worksheet for Income Averaging (which includes instructions).