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HUD Announces 2024 Income Limits–Cap for VLI Increase is Set at 10%

Tuesday, April 2, 2024 - 9:08AM

The U.S. Department of Housing and Urban Development (HUD) Monday night released income limits to determine eligibility for HUD-assisted programs and low-income housing tax credit (LIHTC) properties for 2024. HUD publishes income limits for public housing, Section 8, Section 221(d)(3) and Section 236 properties, as well as Multifamily Tax Subsidy Project (MTSP) income limits that determine eligibility for LIHTC and tax-exempt private activity bond (PAB)-financed properties. The average change in HUD’s Very Low-Income limit (VLI) across the HUD areas was 5.5%. 

HUD implemented its new 10% ceiling on the annual cap for VLI–which means the income limit for properties that use VLI, including LIHTC and PAB-financed properties, will not be allowed to increase by more than 10%, unless a LIHTC development is eligible for HERA Special, which is not subject to the HUD cap. The new income limits are effective April 1 and, in the case of decreasing income limits, must be implemented by May 16.

A Notes from Novogradac blog post will take a deeper dive on the data and the April 16 Tax Credit Tuesday podcast will focus on the income limits announcements. The limits will also be discussed at the Novogradac 2024 Affordable Housing Conference.

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