HUD Publishes 2016 Income Limits
HUD recently published the FY 2016 income limits. Income limits are used to determine whether an applicant family is income-eligible for the specific subsidy program. Based on the median income for a specific geographical area, income limits are scaled for family sizes of one to eight persons. In order to qualify for the specific housing program, the family's income must be at or below the specified income limit for that program.
LIHTC sites utilize the Multifamily Tax Subsidy Projects (MTSP) income limits. These limits are set at 50 percent and 60 percent of median family income. HUD advises that the income limits are effective immediately for all HUD programs, whereas the IRS allows 45 days from the date of publication to implement the new limits. For tax credit purposes, the new limits must be in place by May 12, 2016.
It’s important to note that LIHTC sites are held harmless from income limit reductions. The limits for LIHTC and Bond programs may be found here.