Owners must review income limits published annually to ensure the appropriate income limits and rents (if applicable) are being utilized to benefit the property.
Virginia Housing provides the income limits for its Conventional Loan Programs, and calculated rent limits for Tax Credit and Tax Exempt properties in the Virginia Housing portfolio.
Tax Credit and Tax Exempt Bond Program
Low Income Housing Tax Credit and Tax Exempt Bond properties must use the Multifamily Tax Subsidy Project (MTSP) income limits or the Average Income Test income limits as applicable.
Rents on qualified Tax Credit units are restricted. There is no regulation on rent restrictions for Tax Exempt Bonds. Tax Credit maximum allowable rent is based on the number of bedrooms and AMI as established annually by HUD. If a household pays for utilities, the maximum rent must be adjusted by the applicable utility allowance.
The current calculated rent applicable for projects with a 9% Tax Credit Allocation or 4% Tax Exempt Bond financing can be found here.
Conventional Loan Program Income Limits
Virginia Housing Conventional Loan programs include Tax Exempt or Taxable Bond, Mixed Use/Mixed Income ("MUMI"), REACH, SIP, and SPARC, financing. Income, rent, or occupancy restrictions are imposed by Federal guidelines for the Tax Exempt Bond program and Virginia Housing's enabling legislation, which requires that upon initial occupancy, a household's gross annual or adjusted annual income does not exceed the income limit(s) included in the Regulatory Loan Agreement.
Virginia Housing uses the annual HUD published Section 8 income limits to calculate the income limits applicable for Virginia Housing Conventional Loan properties at 50%, 80%, 100%, 120%, and 150%. These limits are not Adjusted for Family Size (AFS), meaning that the income limits are not based upon the number of people in the household as published in the HUD Section 8 income limits chart.
The owner is responsible for ensuring the appropriate income and rent is applied in the property to avoid non-compliance.
Resources for Income and Rent Limits
HUD Multifamily Tax Subsidy Program Limits (MTSP)
HUD Section 8 Program Limits
Novogradac Rent and Income Limits Calculator
Fair Market Rents
Fair Market Rents
Virginia Housing Resources
Program Income Limits Memo
FY2021 Program Limits Calculator
FY2021 MTSP and HERA Special Rent Limits
Conventional Loan Program Income Limits
For additional information on HERA Special Income limits, Average Income or Archived income and rent information, click here.
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