CHFA eNews: Multifamily
chfa enews - multifamily loan compliance
May 1, 2019

colorado 2019 income limit and maximum rent tables published

On April 24, 2019, the US Department of Housing and Urban Development (HUD) released updated Multifamily Tax Subsidy Program income limits. The 2019 income limit and maximum rent tables 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. Therefore, the new income and rent limits must be implemented no later than June 8, 2019. Please note the same timeframe applies to multifamily developments financed with loans through CHFA.

Exceptions for LIHTC projects: Since 2008, the IRS allows some LIHTC projects to use higher HERA Special 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 2019, HERA Special limits are in place in 21 Colorado counties. To apply HERA Special limits, a LIHTC project must have PIS as of December 31, 2008.

  • 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 June 8, 2019, may continue to apply the same limits they used in 2018.

  • New projects that place in service on or after June 8, 2019, must use the 2019 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). Multifamily projects that do not have LIHTC must use the 2019 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 no sooner and no later than the first day immediately following the 90-day period that begins with the new utility allowance schedule’s effective date.

To remain compliant when allowances increase and tenant rent must be decreased not to exceed the maximum rent, ensure that rents are lowered immediately following the 90-day period. Do not wait until a household is due for annual recertification to make this adjustment.

For detailed guidance, see CHFA’s Utility Allowance Memo.

Resolution Trust Corporation (RTC) 2019 income limit and maximum rents now available

The FDIC has released the RTC income limits for 2019, effective April 24, 2019. The 2019 RTC income and rent limit tables for Colorado are posted on CHFA’s website.

If you have any questions, please contact your Program Compliance Officer or visit our website.
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