A new HUD notice sets an absolute annual cap of ten percent on income limit increases for housing financed by LIHTCs, private-activity bonds (PABs) and for various HUD programs, including Section 8. Previously, the cap was five percent or twice the annual percentage change in median family income.
This also establishes a cap of ten percent on rent limit increase for LIHTCs and PABs. The notice also solidifies HUD’s recent policy to calculate the cap, which changed two years ago, as “using the most recent unadjusted estimates of median family income provided by the Census Bureau via the ACS.” That means HUD will calculate fiscal year (FY) 2024 income limit caps based on the change in national family median income from 2021 to 2022. Comments on the notice are due by February 8, NH&RA plans to submit comments.
