colorado 2016 income limit and maximum rent tables published The US Department of Housing and Urban Development (HUD) released income limits for 2016 on March 28, 2016.
Income and rent limits for Colorado are now available on CHFA’s website.
IRS Revenue Ruling 94-57 allows LIHTC project owners to rely on the previous year’s income limits and maximum rents until 45 days after HUD has released new income limits. CHFA applies the same window to developments financed with loans through CHFA.
The new income and rent limits must be implemented no later than May 12, 2016.
exceptions for lihtc projects Since 2008, the IRS allows some LIHTC projects to use higher HERA limits and to be “held harmless” from decreases in limits. To identify the correct limits for your LIHTC project, it is essential to know its placed in service (PIS) date.
- In 2016, HERA limits are still in place in many counties. To apply HERA limits, a project must have PIS as of December 31, 2008. Because this IRS rule is implemented on a project basis, in some cases projects in the same county will use different limits.
- Remember, once your LIHTC project is placed in service, it is
not subject to any decrease in limits. To be “held harmless,” a LIHTC project must have PIS prior to the implementation date of the new limits. This year, LIHTC projects whose counties experienced a decrease in limits AND PIS before May 12, 2016, may continue to apply the limits they used in 2015.
- New projects that place in service on or after May 12, 2016, must use the 2016 income limits.
- Note: HERA and hold harmless limits
do not apply to properties that were not financed with LIHTC (e.g., properties with only HUD or CHFA loans). Projects that do not have LIHTC must use the 2016 limits.
attention lihtc and chfa loan projects Through 2014, CHFA’s income and rent tables used the HUD Section 8 income limits for households at 30 and 80 percent AMI. For 2015, the FY 2014 Consolidated Appropriations Act changed the way in which HUD calculates some Section 8 limits. Consequently, CHFA is no longer using the HUD Section 8 limits in CHFA’s income and rent tables. Instead, the 2016 limits for all households are calculated based on HUD’s Multifamily Tax Subsidy Income Limits.
utility allowance reminder Gross rents (tenant rent + utility allowance + non-optional fees) may not exceed the applicable maximum rent. As a reminder, updated utility allowances must be implemented by the first day immediately following the 90-day period that begins with the new utility allowance schedule’s effective date. For more information, see CHFA’s
Utility Allowance Memo.
If you have any questions, please contact your Program Compliance Officer or visit our website at the link included above.