Sign Up For Novogradac Industry Alert Emails


Wednesday, May 12, 2010 - 4:15AM

The U.S. Department of Housing and Urban Development (HUD) will eliminate the hold-harmless policy in estimating Section 8 income limits, according to a pre-publication copy of a notice posted online today. The notice says this change will allow Section 8 income limits to decrease beginning with the fiscal year (FY) 2010 income limits, but HUD will limit all annual decreases to no more than 5 percent and limit all annual increases to 5 percent or twice the change in national median family income, whichever is greater. The notice, which still must be published officially in the Federal Register, follows notices of September 14, 2009, and October 7, 2009, that solicited public comment on HUD’s proposal to discontinue its hold-harmless policy. In the new notice, HUD discusses the comments received about the proposed policy change, including questions regarding how this policy change will impact multifamily tax subsidy projects (MTSPs) financed with low-income housing tax credits (LIHTCs). HUD also announced that rents used in its HOME Investment Partnerships program (HOME) will continue to be held harmless and that income limits for rural housing programs will continue their current hold-harmless policy, based on different area definitions.

Learn more about Novogradac's expertise and many services