Updated Multifamily Rent and Income Limits Now Available
The United States Department of Housing and Urban Development (HUD) published fiscal year (FY) 2024 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 April 1, 2024.
Based on these updates, the following FY2024 income and rent limits are now available on our Multifamily Rent and Income Limits webpage:
- Section 8 limits and related transmittal notice
- MTSP rent and income limits, Tables A through P
- 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. The grace period ends May 17, 2024; 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 the 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”), buildings may use different tables, depending on each building’s PIS date.
- 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 income limits used to determine resident eligibility will be those in effect at the PIS date. This means the limits used to calculate the maximum rents may be higher than those used to determine household eligibility. This will continue until future income limits increase to the amount used to calculate the rent floor or higher.
HOME Investment Partnerships Program and National Housing Trust Fund Program Rent and Income Limits Published
HUD released the FY2024 HOME Investment Partnerships Program (HOME) and National Housing Trust Fund (NHTF) rent and income limits on Monday, April 29, 2024. However, owners must continue to use FY2023 HOME and NHTF limits until June 1, 2024, when the new limits become effective. A separate eNews will be sent when these limits are available on our website.
Important Reminders
- Owners must get approval for rent increases on properties with a Minnesota Housing amortizing first mortgage. If you have questions, contact your assigned asset manager.
- Owners are not required to charge the maximum rent allowed or to increase rents based solely on the publication of updated rent limits.
Questions?
Contact Renee Dickinson at renee.dickinson@state.mn.us or 651.296.9491.
About Minnesota Housing
Minnesota Housing, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2023, the Agency distributed $1.85 billion in resources and served 69,500 households. Visit our website to learn more.
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