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Asset Management

Income and Rent Limits

The MTSP limits are for use by Low Income Housing Tax Credit (LIHTC) and multifamily bond projects ONLY. Novogradac & Company, LLP has taken a leading role in sorting through the income limit issues, as a courtesy to the LIHTC industry, Novogradac & Company LLP has made available, free of charge and subject to the disclaimers shown on the firm’s website, the Rent and Income Limit Calculator.

 

Launch the Rent & Income Limit Calculator

 

Prior to launching the Rent and Income Limit Calculator you will need to be prepared to answer the following questions:

  • Has the owner irrevocably elected to treat this as a multi-building project on IRS Form 8609 (see line 8b on IRS Form 8609)?
  • What is the county in which the project is located?
  • Is the project substantially bond-financed?
  • Is the project located in a rural area as defined in section 520 of the Housing Act of 1949 Rural Housing Services: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp&NavKey=property@12
  • What is the project’s Placed-In-Service (PIS) date (see line 5 on IRS Form 8609)?
  • What did the owner irrevocably elect as the Minimum Set-Aside (MSA) for the project (see line 10c on IRS Form 8609)?
  • What additional income and/or rent restrictions did the owner pledge for this project (see application and/or Land Use Restrictive Covenant)?
  • What are the bedroom sizes within the project?
  • What is the total utility allowance for each bedroom size within the project based on tenant-furnished utilities?

Projects constructed and/or rehabilitated using other funding sources should also consult with the various program income/rent guidelines. For example, if a project has been constructed utilizing both LIHTC and HOME funds, both program limits should be analyzed and the most restrictive limits would apply. Kentucky Housing Corporation also has available on the Web site a link to the 2010 HOME Income and Rent Limits, and SMAL Rent Limits.

* Special Note: Projects utilizing KHC Risk Sharing loan funds should follow the MTSP limits; however, HOME unit income/rent limits should follow the most restrictive of the charts.

KHC Disclaimer: Novogradac & Company LLP is a national certified public accounting and consulting firm with 12 offices nationwide. One of the firm’s major emphases is in tax-credit assisted development and renewal, including the Low-Income Housing Tax Credit (LIHTC). For more information about Novogradac & Company LLP, go to http://www.novoco.com/company/index.php.