CARH’S BROADCAST E-MAIL – Regulatory Alert

April 1, 2025

The U.S. Department of Housing and Urban Development (HUD) ) released Fiscal Year (FY) 2025 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. The maximum increase for the FY 2025 cap is 9.2% and the annual average change in the Very Low Income (VLI) limits is 4.6%.

For FY 2025, HUD implemented geographic area definition changes as determined by the Office of Management and Budget Bulletin No. 23-01. Counties or towns of metropolitan areas may have changed. Please refer to the Area Definition Report for a listing of areas and their components.

These income limits are effective today, and, in the case of decreasing limits, must be implemented by May 16, 2025.

The FY 2025 Multifamily Tax Subsidy Projects (MTSP) Income Limits were also announced and go into effect today. MTSP Income Limits were developed to meet the requirements established by the Housing and Economic Recovery Act of 2008 (P.L. 110-289). The MTSP Income Limits are used to determine qualification levels as well as set maximum rental rates for properties funded with tax credits authorized under section 42 of the Internal Revenue Code (the Code) and properties financed with tax exempt housing bonds issued to provide qualified residential rental development under section 142 of the Code. (Note: The limits identified in the MTSP Income Limits tables and MTSP Documentation system as “HERA Special” Income Limits are only for use by properties in service in 2007 or 2008.)

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