HUD Delays Release of Income Limits
HUD recently announced that it would push back publication of its fiscal year (FY) 2015 income limits until after the publication of 2015 poverty guidelines issued by the Department of Health and Human Services (HHS). The income limits are used to determine income eligibility for HUD’s assisted housing programs, including public housing, Section 8, Section 202, and Section 811. Another indirect effect of the change is that the multifamily tax subsidy projects, or MTSP income limits, will also be delayed. These are the income limits used to determine qualification levels and maximum rental rates for LIHTC sites. The MTSP income limits are calculated in a way that’s consistent with HUD’s Section 8 limits, and they rely on the effective date of the Section 8 limits.
The reason for the delay involves the 2014 Consolidated Appropriates Act. In 2011, HUD had announced it would publish income limits each December. However, the 2014 Consolidated Appropriations Act defines "extremely low-income" households as very low-income families whose income does not exceed the greater of the federal poverty guidelines as published by HHS or 30 percent of area median family income. The extremely low-income household definition is mainly used for setting admission qualifications in the Housing Choice Voucher program. HUD anticipates that the FY 2015 income limits will be published in February 2015.