2012 Income Limits for HUD and Tax Credit Programs Now Available
On Dec. 1, the U.S. Department of Housing and Urban Development (HUD) announced the 2012 income limits for Section 8, PRAC-and other family programs. Effective Dec. 1, 2011, HUD multi-family property managers must use the new income limits posted on HUDUser. The new income limits must be used for all new move-in transactions starting with move-ins effective Dec. 1.
According to HUD, beginning with FY 2010 Income Limits published on May 14, 2010, the agency eliminated its long standing “hold harmless” policy, but limited all annual decreases to 5% and all annual increases to 5 percent or twice the change in the national median family income, whichever is greater. HUD has maintained these limits to increases and decreases in income limits for FY 2012.
A “Frequently Asked Questions” page has also been set up.
Please note that due to the Housing and Economic Recovery Act of 2008 (Public Law 110-289), these income limits may not be applicable to projects financed with Section 42 Low Income Housing Tax Credits (LIHTC) or section 142 tax exempt private equity bonds. These projects should use the Multifamily Tax Subsidy Project Income Limits.
The 2012 income limits for these properties were also posted on Dec 1.
New income limits for Low Income Housing Tax Credit (LIHTC) properties are found under Multifamily Tax Subsidy Project Income Limits on the HUDUser web site and includes a search feature by specific state or locality. The MTSP (tax credit) income limits must be implemented within 45 days.
The MTSP income limits are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under section 42 of the Internal Revenue Code (IRC) and projects financed with tax exempt housing bonds issued to provide qualified residential rental development under section 142 of IRC.
Note: The limits identified in the MTSP Income Limits tables and MTSP Documentation system as "HERA Special" Income Limits are only for use by projects in service in 2007 or 2008.