The Consolidated Appropriations Act of 2018 establishes Income Averaging as a new minimum set-aside election for new Low-Income Housing Tax Credit (LIHTC) developments. Applicants requesting LIHTCs in conjunction with an application to DOH under CHAMP 12 may utilize income averaging.
The current Consolidated Application (ConApp) has not yet been revised to accommodate these changes. In order to provide accurate information in the ConApp, applicants utilizing income averaging are requested to choose the closest AMI band to what they intend to include and input the proper rental income information corresponding to the rent limit they intend to use on Exhibit 5.1, Rental Income Calculation Worksheet in the ConApp workbook provided.
All applicants that choose to utilize income averaging are required to provide a completed, stand-alone Rental Income Calculation Worksheet for Income Averaging that can be found on our website. This exhibit will allow the selection of income bands in ten-percent increments from 20% to 80%, as well as a 25% income band.
Rent limits for the new percentage increments have been built into a workbook with our current limits and are available on our website.
Please keep in mind that applications must also meet the minimum set-aside requirements for the use of tax-exempt bonds, as well as those outlined in the CHFA Qualified Allocation Plan.
