The 2022 Income Limits for HUD programs were released on April 18, 2022 and can be found at: https://www.huduser.gov/portal/datasets/il.html#2022
HUD income limits are effective immediately; however, before the new income limits can appear on a HUD 50059 certification form, they must be entered into your software. This is done in one of three ways:
- Software vendor enters all 2022 income limits and project staff just needs to ensure the proper limit is selected;
- Owner/Agent enters the applicable 2022 income limits into the software for the project staff; or
- Project staff enters the applicable 2022 income limits into the software directly.
If you are not sure whether this responsibility falls to you, please check with your supervisor and/or software vendor.
HUD publishes Extremely Low, Very Low, and Extremely Low
Income limits for one to eight persons for each metropolitan area, parts of some metropolitan areas and each non-metropolitan county.
Since income limits only apply at move-in and some initial certifications, it is not necessary to go back and reprint any completed Annual Recertifications or Interim Recertifications effective after April 18, 2022. Any Annuals or Interims effective after that date and not currently completed, should reflect the new income limits.
For move-in and initial certifications effective on or after April 18, 2022, the new limits should be utilized. Please keep the following scenarios in mind until your new income limits are entered into your software.
- It is possible that you have processed an applicant and extended a unit offer to a household who is now no longer income-eligible due to a decrease in income limits. In RHIIP Listserv Post #293, HUD’s Office of Multifamily Housing clarified that the household is still eligible since the offer was extended. Please document the file with a clarification that details when the unit offer was made and that the income limits became effective after that date and before the move-in date.
- It is possible that you processed a move-in or initial certification effective 4/18/2022 or later BEFORE the new income limits became available in your software. NCHM recommends that you go back and process a correction to the move-in or initial certification after the income limits are available in the software. Please document the file with a clarification that states the correction was done to reflect the current income limits. This correction will need to be signed by the residents 18 and older and management and submitted to TRACS.
LIHTC and Tax-Exempt Bond Limits
HUD also published the Multifamily Tax Subsidy Project (MTSP) limits on April 18, 2022. They are found at: https://www.huduser.gov/portal/datasets/mtsp.html
MTSP limits are published for one to eight persons from 20% to 80% of Area Median Income for each metropolitan area, parts of some metropolitan areas and each non-metropolitan county. In addition, HERA special limits at 50% and 60% of AMI are published for certain areas with HUD hold harmless impacted projects placed into service by December 31, 2008. If you are not sure which income limits apply to your property, please check with your supervisor.
The IRS regulations for implementing the new income limits are different than HUDs. Owners/Agents are given 45 days after publication or the effective date to begin using the limits. Since both dates were April 18, 2022, Owners/Agents have until June 2, 2022, to begin using the new limits, however, projects placed into service after 2008 and prior to the publication of the 2022 income limits and non-impacted projects are held harmless at the highest level. In other words, if the 2022 Income Limits for your area were lower than any year’s since your building was placed in service, you are allowed to use the highest year’s income limits. This provides protection for the owner by ensuring that the income limit and rent limits will never go down.
Following the 2022 MTSP Income Limits and the 2022 MTSP HERA Special Income Limits, you will find a chart entitled Determination of Maximum Income Limits. This chart will help you determine your which year’s Income Limits are in effect based on the Placed in Service Date of your property.
Questions about Income Limits may be directed to Lisa Thompson at firstname.lastname@example.org.