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HUD to Publish Notice Changing Calculation of Income Limit Cap; Sets Annual Maximum Increase at 10%
The U.S. Department of Housing and Urban Development (HUD) will publish a notice in Wednesday's Federal Register setting an absolute annual cap of 10% on income limit increases for housing financed by low-income housing tax credits (LIHTCs), private-activity bonds (PABs) and for various HUD programs, including Section 8.
WASHINGTON–Jan. 9, 2024–The U.S. Department of Housing and Urban Development (HUD) will publish a notice in Wednesday's Federal Register setting an absolute annual cap of 10% on income limit increases for housing financed by low-income housing tax credits (LIHTCs), private-activity bonds (PABs) and for various HUD programs, including Section 8. Previously, the cap was 5% or twice the annual percentage change in median family income. This also establishes a cap of 10% on rent limit increase for LIHTCs and PABs. The notice also solidifies HUD's recent policy to calculate the cap–which changed two years ago–as “using the most recent unadjusted estimates of median family income provided by the Census Bureau via the ACS.” That means HUD will calculate fiscal year (FY) 2024 income limit caps based on the change in national family median income from 2021 to 2022. Click here to read the full industry alert from Novogradac at www.novoco.com
