CHFA eNews: Multifamily
chfa enews - multifamily loan compliance 
January 10, 2014

HUD 2014 Income Limits and Maximum Rents Released

The US Department of Housing and Urban Development (HUD) released income limits for 2014 on December 18, 2013. 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 January 31, 2014.

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 2014, HERA limits are still in place in many counties. To apply HERA limits, a project must have PIS as of 12.31.2008. 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 income 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 01.31.2014 may continue to apply the limits they used in 2013.
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).

If you have any questions, please contact your Program Compliance Officer, or call Liz Smith at 303.297.7411, or visit our website.


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