Compliance

The Multifamily Tax Subsidy Projects (MTSP) income limits are for use by Low-Income Housing Tax Credit (LIHTC) and multifamily bond projects ONLY.  

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, a Rent and Income Limit Calculator.

To access the Rent and Income Limit Calculator, you will need 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)?
• In what county is the project 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?
• 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 project's bedroom sizes?
• What is the total utility allowance for each bedroom size 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.
• HOME Income Limits
• Rent Limits
• SMAL Rent Limits - 80%
• SMAL Rent Limits - 120%

• Sample Forms

• Required Documentation

Below are examples of how KHC staff will approach the evaluation of an Entity or Development Team member(s). The categories and point deductions are provided as examples for how a deduction in capacity is determined. Please be advised that the list is not all-inclusive. KHC typically looks back for a period of three years from the date of application submission for relevant capacity-related issues. However, KHC reserves the right to look back further, depending on the significance of the past capacity violation. KHC, in its sole discretion, will determine what warrants a capacity deduction and how many points should be deducted for each violation.

• Capacity Scorecard and Deductions