Tax Credit Income Limits

Due to the Housing and Economic Recovery Act of 2008 (HERA), income limits for projects funded with tax credits are now calculated and presented separately from the Section 8 income limits.  Beginning with the publication of FY2009 Median Family Income estimates and Income Limits, the Section 8 income limits CAN NO LONGER BE USED for tax credit properties.  The tax credit limits published by HUD are available here:  http://www.huduser.org/datasets/mtsp.html

Project owners need to pay attention to when their rent election is effective and when the project is placed in service in order to use the correct income and rent limits, especially because HUD is currently publishing only the HERA Special limits and the MTSP income limits, without the hold harmless provisions.

The Placed-in-Service Date will be the guiding factor in determining income limits.

Before Jan. 1, 2009 - Projects located in HERA Counties* are eligible for the HERA Special income limits if the projects existed On or Before Dec. 31, 2008.  They are also eligible for the hold-harmless provisions. 

Standard Income Limits (As of 5/14/10)     HERA Income Limits* (As of 5/14/10)

* 2010 HERA Counties include: Adams, Burleigh, Cass, Cavalier, Dunn, Eddy, Griggs, Hettinger, Logan, Nelson, Rolette, Sheridan, Towner and Wells.

On or After Jan 1, 2009, and Before May 14, 2010** - These projects are not eligible to use the HERA Special income limits, but their rent and income limits are still eligible for the hold-harmless provisions.  The projects can therefore use 2009 income and rent limits if those limits are higher than the published 2010 limits. 

Standard Income Limits (As of 5/14/10)     Standard Income Limits (1/1/09 to 5/14/10)

After May 14, 2010** - These projects must use the current income limits published by HUD.  These projects are eligible for hold-harmless provisions, however the floor for their rent and income limits in future years will be the 2010 limits instead of the 2009 like projects placed in service earlier.

Standard Income Limits (As of 5/14/10)

For more information about program compliance, contact the Property Management Division.

** May 14, 2010, is the effective date of the 2010 income limits.