Updated Multifamily Rent and Income Limits Now Available
The United States Department of Housing and Urban Development (HUD) published fiscal year (FY) 2023 income limits for the Section 8 program and the Multifamily Tax Subsidy Projects (MTSP) for Housing Tax Credits (HTC) and Tax-Exempt Bond financed properties. Minnesota Housing uses the HUD published limits to compute income and rent limits for Multifamily loan programs. Per HUD, these limits have an effective date of May 15, 2023.
Based on these updates, the following FY2023 income and rent limits are now available on our rent and income limits webpage:
- Section 8 limits and related transmittal notice
- MTSP rent and income limits, Tables A through N
- Deferred loan rent and income limits
- Affordable to Local Workforce rent limits
- Supportive Housing Standards
- Housing Infrastructure Bonds (HIB) income limits for senior housing
- Low and Moderate Income Rental program (LMIR) income limits
Please note that properties are not required to increase rents up to the new HUD determined limits.
Special Instructions for MTSP Limits
There is a 45-day grace period from the effective date to when the MTSP income and rent limits must be used for compliance purposes. The grace period ends June 29, 2023; however, the new limits may be used immediately.
Use the rent and income limit table based on your project’s placed in service (PIS) date. In addition, consider the following when selecting which table to use:
- If any building is part of a multiple-building project (line 8b is or will be checked “yes,” and owner has identified which buildings are part of the multiple-building project), then all buildings part of that multiple-building project use the same table.
- If buildings are not treated as a multiple-building project (line 8b is or will be checked “no”), then buildings may use different tables, depending on each building’s individual PIS dates.
- For acquisition/rehab credits, the earliest PIS date for a building governs.
For further information, review Revenue Procedure 94-57, which establishes a rent floor for every HTC project that received its credit allocation after 1989.
For a new project with a rent floor elected at the issuance of the carryover or the preliminary determination letter, and where the income limits are lower at PIS than at the establishment of the rent floor, the initial maximum rents will be the rent floor. However, the initial income limits used to determine resident eligibility will be those in effect at PIS. This means the limits used to calculate the maximum rents may be higher than those used to determine household eligibility. If this occurs, it will continue until the income limits for the current year are at least equal to those used to calculate the rent floor.
Updated HOME Investment Partnerships Program and National Housing Trust Fund Program Rent and Income Limits Now Available
The United States Department of Housing and Urban Development (HUD) also released the FY2023 HOME Investment Partnerships Program (HOME) and National Housing Trust Fund (NHTF) rent and income limits.
IMPORTANT: FY2023 limits are effective June 15, 2023. Owners must continue to use FY2022 HOME and NHTF limits until the effective date of June 15, 2023.
If FY2023 HOME or NHTF income or rent limits have decreased from last year’s limits, the new, lower limits must be used starting June 15, 2023.
Important reminders:
- Owners must get approval for rent increases on properties with a Minnesota Housing amortizing first mortgage. Contact your assigned asset manager with questions.
- Owners are not required to charge the maximum rent allowed or to increase rents based solely on publication of updated rent limits.
Questions?
Contact Renee Dickinson at renee.dickinson@state.mn.us or 651.296.9491.
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