HUD Ends Hold-Harmless Policy for Calculating 2010 Section 8 Income Limits

May 20, 2010
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HUD published a May 17 notice in the Federal Register that ends its hold-harmless policy for calculating Section 8 income limits beginning with fiscal year 2010 income limits, but has set a floor on this decline. HUD will limit all Section 8 annual decreases to no more than 5 percent and limit all annual increases to 5 percent or twice the change in national median family income, whichever is greater.

HUD also decided that rents used in its HOME Investment Partnerships program will continue to be held harmless and that income limits for rural housing programs will continue their current hold-harmless policy, based on different area definitions.

For 2010 income limits for low-income housing tax credit projects and Section 142 projects financed with tax-exempt housing bonds, otherwise referred to as the Multifamily Tax Subsidy Projects (MTSPs), go to