Rent & Utilities Restrictions

Low-Income Housing Tax Credit Restrictions on Rent & Utilities

2 Alternative Tests:

  • 20-50 Test – Requires that 20% of the units must be set aside for persons and families at or below 50% of area median gross income. This test must be satisfied for the 15 year compliance period to continue to earn the full credit.
  • 40-60 Test – Requires that 40% of the units must be set aside for persons and families at or below 60% of area median gross income. This test must be satisfied for the 15 year compliance period to continue to earn the full credit.
    • The area median gross income test is based on a family size of 4 with adjustments for family size.
    • Persons or families meeting the gross income tests will be deemed to continue to meet such tests until gross income exceeds 140% of the applicable income limitation detailed below:
APPLICABLE INCOME LIMITATION
(MARICOPA COUNTY FY 2007 MEDIAN INCOME $59,100)
 
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
60%
25,260
28,860
32,460
36,060
38,940
41,820
44,700
47,580
50%
21,050
24,050
27,050
30,050
32,450
34,850
37,250
39,650


140% LIMITATION ON
APPLICABLE INCOME LIMITS
 
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
50%
29,470
33,670
37,870
42,070
45,430
48,790
52,150
55,510
60%
35,364
40,404
45,444
50,484
540,516
58,548
62,580
66,612
  • Rents for the units meeting the 20-50 test (or 40-60 test) must be equal to or less than 30% of either 50% or 60% of area median gross income.
  • Gross rent typically includes utility allowances.
  • For HUD regulated buildings use HUD determined utility allowance.
  • For non-regulated buildings use the utility allowance prescribed by the local public housing authority or utility company
ALLOWABLE RENTS *
 
0 Bdrm Rent
1 Bdrm Rent
2 Bdrm Rent
3 Bdrm Rent
4 Bdrm Rent
60%
631
676
811
937
1,045
50%
526
563
676
781
871
*Utility allowances must be subtracted from allowable rents.