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RENT & INCOME LIMIT CALCULATOR UPDATED

Tuesday, September 9, 2008 - 7:30AM

One of the provisions of the Housing and Economic Recovery Act of 2008 allows low-income housing tax credit (LIHTC) projects located in a rural area—as defined in section 520 of the Housing Act of 1949—to use the greater of area median gross income (AMGI) or national non-metropolitan median income for rent and income determinations. This provision applies to all 9 percent LIHTC properties for rent and income determinations made after July 30, 2008; this change does not apply to bond-financed properties.

To reflect this change, Novogradac & Company has updated the Rent and Income Limit Calculator© to include the rural areas that can use the national non-metro income and rent limit. An intermediary step has been added to the calculator that includes a link to the U.S. Department of Agriculture (USDA) web site that can be helpful in determining if a property is located in a rural area.

Users should note that Novogradac & Company does not certify the accuracy and/or applicability of the USDA web site; USDA may change its determination of which projects qualify as rural during the course of a year. Property owners should periodically check with USDA to determine the continued rural eligibility of an LIHTC project. The Rent and Income Limit Calculator is designed to be a quick reference tool; before using the figures provided by the Rent and Income Limit Calculator, users are urged to read the explanatory and disclaimer language fully and to check with the applicable state housing agency to confirm the information matches the numbers and policies of that state agency. The updated calculator is available online at www.novoco.com/products/rentincome.php.

To learn more about how this and other provisions of the Housing Act will affect LIHTC property compliance, join Novogradac & Company LLP at one of our upcoming LIHTC Property Compliance Workshops.

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