HUD Publishes 2011 Income Limits

As promised by HUD, the income limits for 2012 were released on December 1st with a December 1, 2011 effective date. As per Revenue Ruling 94-57, income limits must be implemented on the effective date or 45 days from the published date, whichever is later, which means this year's limits must be implemented no later than January 14, 2012. To access the income limits click the appropriate links below:

Section 8 Income Limit Data Set

Multifamily Tax Subsidy Income Limit Data Set

Once you have retrieved your income limits, use the following table to correctly implement them at each of your properties:

FOR TAX CREDIT/BOND PROJECTS

In a HUD Hold Harmless Impacted Area and containing at least 1 building PIS on or before 12/31/08: Use HERA Special Limits. (NOTE: If the area was an impacted area but does not contain HERA Special Limits, it is because the HERA Special Limits were lower than the regular income limits. In this case, use the regular limits.)

Containing at least 1 building placed in service after 12/31/08 but before December 1, 2011: Use higher of previous year’s limits and new MTSP Regular Limits.

That has all of its buildings PIS on or after December 1, 2011: Use the new MTSP Regular Limits.

That are 9% rural Tax Credit within a state that has a state non-metro income limit lower than the national non-metro median income: Use NNMGI limit to calculate 50% limits.

Allocated GO Zone credits and PIS in 2006, 2007 or 2008: Use NNMGI limit to calculate 50% limits

HUD PROJECTS

Property defined as a HUD project: Use HUD dataset

SUBSIDY LAYERED PROJECTS

If MTSP project funded with any program basing eligibility on HUD’s income limits: Refer to specific unit funding label and apply the applicable income limit.

Example: Mixed-income Tax Credit property with some units labeled as using HUD dataset.

Units that are BOTH HUD/MTSP: Use lower of two datasets.

Units that are just MTSP: Use MTSP dataset.

Units that are just HUD units: Use HUD dataset.

Remember: When applying MTSP limits, use the HERA Special limits if property located in an impacted area and PIS before 12/31/08.

If property also eligible rural or GO Zone property: Must replace MTSP limits with NNMGI-based limits.

If you are new to the income limit implementation process or feel you need a refresher, we have an online course available at the Housing Credit Online Training Center titled Housing Credits 205: Income Limits, Rents and Utility Allowances.

Register for Housing Credits 205: Income Limits, Rents & Utility Allowances

This is one of our many courses available at the Housing Credit Online Training Center and will walk you through all of the new rules surrounding income limits, rents and utility allowances. Remember, these rules significantly changed in 2008, 2009 and 2010.

The cost of the course is only $249. But in an effort to help you implement the 2012 income limits, I will reduce the price until January 14, 2012. Your Price: Only $99. Click here to register now!