CARH’S BROADCAST E-MAIL – Regulatory Alert

April 3, 2024

Yesterday, the U.S. Department of Housing and Urban Development (HUD) ) released Fiscal Year (FY) 2024 Income Limits for a variety of HUD housing programs, including the Housing Credit and Multifamily Bond programs. Income limits determine the top-most income level for households eligible to receive HUD rental assistance or to live in a property financed by any of these programs. In the case of the Housing Credit and Multifamily Bond programs, the income limits directly impact the rents owners may charge, as maximum rents are set at 30 percent of designated income limits by unit.

Beginning in 2009, HUD has restricted annual income limit growth by allowing increases only up to the greater of five percent or two times the percentage change in national median family income. This year, HUD instituted an overall 10 percent limit on increases, which it is calling a “cap-on-cap.” Specifically, the income limit in any given area can go up no more than 10 percent, even if the change in the national median family income would otherwise result in an increase above that amount. This means that for Housing Credit or Multifamily Bond-financed properties, rent increases also would be limited to no more than 10 percent.

CARH, along with other industry stakeholders, remain very concerned with the new methodology used by HUD to calculate the income limits and the annual cap. We commented in a letter on February 8, 2024, when HUD initially outlined their proposal. Yesterday, similar comments were circulated in response to final recommended limits by HUD. In the comments, the collective organizations stated the following: “Looking ahead, we urge HUD and the Biden Administration to support and embrace policies that expand housing supply and opportunity such as some of those included in the administration’s Housing Supply Action Plan. There is broad, bipartisan agreement that the only real way to lower housing costs is to increase housing supply in communities throughout the nation.”

For other news and information affecting the affordable rural housing industry, please visit the Newsroom on CARH’s website, www.carh.org.