HTC and Tax Exempt Bond
Rent and Income Limits

Overview
Each year the Department of Housing and Urban Development (HUD) publishes revised income limits. There is no deadline date for HUD to publish such limits, so the effective date varies from year to year.

These are not official Treasury income limits; however, they have been calculated in accordance with anticipated treasury standards. Calculations of the 30% to 45%, 55% and 60% income limits were extrapolated using the HUD-published 50% income limits with no rounding.

In accordance with IRS requirements, rent limits are based on an imputed formula of 1.5 persons per bedroom. For example, to calculate the one-bedroom rent limit: add the one person income limit to the 2 person income limit, divide by two, multiply by 30% and divide by twelve.

Rent is gross rent, which includes utilities paid by the tenant and other non-optional charges.

There is a forty-five (45) day grace period from the effective date to when the income and rent limits must be implemented.

Due to the Housing and Economic Recovery Act of 2008 (HERA), income limits for projects funded with tax credits and/or financed with tax exempt housing bonds (TE Bonds) are now calculated and presented separately from the Section 8 income limits. Beginning with the publication of FY2009 Median Family Income estimates and Income Limits, the section 8 income limits CAN NO LONGER be used for tax credit or TE Bond properties. The tax credit and TE Bond limits published by HUD can be found at the following link: http://www.huduser.org/datasets/mtsp.html

In 2009 HERA established a separate set of income and rent limits due to its hold harmless provisions. Projects placed in service prior to 1/1/2009 are considered "impacted" and are the only projects allowed to use the HUD-published "HERA Special" limits. Additionally, in 2010 HUD removed its hold harmless provisions for Section 8 limits which, while calculated and presented separately, are still the basis for MTSP limits. There were a number of counties in Minnesota where income limits decreased in 2010. However, projects placed in service on 1/1/2009 to 5/13/2010, are held harmless under HERA, and use the greater of the 2009 or 2010 limits. Projects placed in service on or after 5/14/2010 must use the regular 2010 limits as published by HUD even if they are lower than 2009.

To simplify the above as much as possible, Minnesota Housing now has three sets of income and rent limit tables. The Placed in Service (PS) date for a Project determines which table to use:

2010 Income and Rent Limit Tables
Table A - Housing Tax Credit & Tax Exempt Bond Income & Rent Limits - for projects placed in service on or before 12/13/2008
Table B - Housing Tax Credit & Tax Exempt Bond Income & Rent Limits - for projects placed in service on 1/1/2009 to 5/13/2010
Table C - Housing Tax Credit & Tax Exempt Bond Income & Rent Limits - for projects placed in service on or after 5/14/2010

Prior Year Rent & Income Limits

2009 Rent & Income Limits

2008 Rent & Income Limits

2007 Rent & Income Limits

2006 Rent & Income Limits

2005 Rent & Income Limits

2004 Rent & Income Limits

2003 Rent & Income Limits

2002 Rent & Income Limits

2001 Rent & Income Limits

Other Program Rent & Income Limits