The Department of Housing & Urban Development (HUD) has published the income limits to be used by Low-Income Housing Tax Credit properties for which the Average Income (AI) Minimum Set-Aside is elected. As expected, the AI limits use the HUD calculation of Very Low-Income as the starting point for determination of each of the AI income designations (20, 23, 40, 50, 60, 70, and 80 percent).
For the AI test under §42(g)(1)(c), the 20, 30, 40, 50, 60, 70, and 80 percent of AMGI income limitations will be calculated as follows:
- 20% limit: 40% of the 50% limit as published by HUD;
- 30% limit: 60% of the 50% limit as published by HUD;
- 40% limit: 80% of the 50% limit as published by HUD;
- 50% limit: HUD published VLI limit;
- 60% limit: 120% of the 50% limit as published by HUD;
- 70% limit: 140% of the 50% limit as published by HUD; and
- 80% limit: 160% of the 50% limit as published by HUD.
HUD had been awaiting clear guidance from the IRS before publishing the limits, and this guidance was issued on January 29, 2020.
The AI limits may be found at www.huduser.gov/portal/datasets/il/il2019/select_Geography_incavg.odn.