The 2016 income limits for both HUD programs and Multifamily Tax Subsidy Projects (MTSP) have been issued by HUD with an effective date of March 28, 2016. Please check with your states to see if they have also issued their own income limits based on the limits published by HUD.
- Throughout the country, many counties will see a decrease in their 2016 income limits compared to the prior year.For the MTSP limits, please keep in mind the concept of hold harmless.The hold harmless provision prevents the current year income limit and associated rent limit for the county that the project is located in from falling below the limits that were established in the prior year. In years where the income limits increase, the project is allowed to increase the income limits to the higher amount. The hold harmless concept does not apply to Section 8 or other HUD-assisted projects using the HUD income and rent limits.It only applies to projects that utilize the MTSP income limits.
- If your project was placed in service prior to 1/1/2009 and was eligible for hold harmless in either 2007 or 2008, you may be eligible for a higher income limit under the HERA Special guidelines.These HERA Special income limits are published by HUD annually.
- For rent limits, you will also need to know the rent floor that was established at either the date of the carryover allocation or the date the project was placed in service.The rents for a project cannot fall below the established rent floor.
- Please keep in mind that your project has 45 days to implement the new income limits from the effective date that they were published.
If you have any questions regarding the income limits, please feel free to contact an expert at SVA Certified Public Accountants. Our experience and knowledge can guide you through the certification process.