CARH’S BROADCAST E-MAIL – Regulatory Alert

March 29, 2016

On March 28, 2016, the Department of Housing and Urban Development (HUD) released Fiscal Year (FY) 2016 income limits. Click here for links to median family income, income limits and accompanying information and tables from HUD. These income limits went into effect on March 28.

Income limits are set by HUD to determine the eligibility of applicants for HUD’s assisted housing programs. Section 8 Fair Market Rent (FMR) area definitions are used to develop median family income estimates for each metropolitan area and non-metropolitan county. HUD income limits are calculated for every FMR area with adjustments for family size and for areas that have unusually high or low income-to-housing-cost relationships.

Low-income families are defined as families whose incomes do not exceed 80 percent of the median family income for the area. Very low-income families are defined as families whose incomes do not exceed 50 percent of the median family income for the area. Income limits for non-metropolitan areas may not be less than limits based on the State non-metropolitan median family income level.

The FY 2014 Consolidated Appropriations Act (P.L. 113-76) defines extremely low-income families whose income do not exceed the greater of 30 percent of the median family income for areas or the federal poverty guidelines as published by the Department of Health and Human Services. The poverty guidelines are capped by the very low-income limit. The Secretary of Agriculture is to be consulted prior to establishing income limits for rural areas, since these limits also apply to certain Rural Development programs.