Rent & Utilities Restrictions

Low-Income Housing Tax Credit Restrictions on Rent & Utilities

2 Alternative Tests:

  • 20-50 Test – Requires that 20% of the units must be set aside for persons and families at or below 50% of area median gross income. This test must be satisfied for the 15 year compliance period to continue to earn the full credit.
  • 40-60 Test – Requires that 40% of the units must be set aside for persons and families at or below 60% of area median gross income. This test must be satisfied for the 15 year compliance period to continue to earn the full credit.
    • The area median gross income test is based on a family size of 4 with adjustments for family size.
    • Persons or families meeting the gross income tests will be deemed to continue to meet such tests until gross income exceeds 140% of the applicable income limitation detailed below:
APPLICABLE INCOME LIMITATION
(MARICOPA COUNTY FY 2009 MEDIAN INCOME $65,900)
 
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
60%
27,660
31,620
35,580
39,540
42,720
45,840
49,020
52,200
50%
23,050
26,350
29,650
32,950
35,600
38,200
40,850
43,500


140% LIMITATION ON
APPLICABLE INCOME LIMITS
 
1 Person
2 Person
3 Person
4 Person
5 Person
6 Person
7 Person
8 Person
50%
32,270
36,890
41,510
46,130
49,840
53,480
57,190
60,900
60%
38,724
44,268
49,812
55,356
59,808
64,176
68,628
73,080
  • Rents for the units meeting the 20-50 test (or 40-60 test) must be equal to or less than 30% of either 50% or 60% of area median gross income.
  • Gross rent typically includes utility allowances.
  • For HUD regulated buildings use HUD determined utility allowance.
  • For non-regulated buildings use the utility allowance prescribed by the local public housing authority or utility company
ALLOWABLE RENTS *
For Allowable Rents, please see tables posted on Arizona Department of Housing's website:  http://www.housingaz.com/ShowPage.aspx?ID=134
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
*Utility allowances must be subtracted from allowable rents.