HUD Releases Income Limits for FY 2015
On March 6, 2015, the Department of Housing and Urban Development (HUD) released FY 2015 income limits. Income limits are set by HUD to determine the eligibility of applicants for HUD’s assisted housing programs. Section 8 Fair Market Rent (FMR) area definitions are used to develop median family income estimates for each metropolitan area and non-metropolitan county. HUD income limits are calculated for every FMR area with adjustments for family size and for areas that have unusually high or low income-to-housing-cost relationships.
The release of the income limits had been postponed due to the 2014 Consolidated Appropriations Act, which defines “extremely low-income families” as very low-income families whose income does not exceed the greater of the federal poverty guidelines as published by the Department of Health and Human Services (HHS). HUD had decided to delay the FY 2015 income limits until HHS published the 2015 poverty guidelines so the income limits would not have to be adjusted twice.
Under the Housing and Economic Recovery Act of 2008, income limits used to determine qualification levels as well as set maximum rental rates for projects funded with Section 42 Low-Income Housing Tax credits (LIHTC) or Section 142 tax-exempt private equity bonds are now calculated and presented separately from the Section 8 income limits. These projects should use the Multifamily Tax Subsidy Project Income Limits, which can be found by clicking here. There is a 45-day grace period, which means these limits must be in use by April 20, 2015.