HUD released their annual income limits for 2024 (available HERE) that determine income eligibility of applicants for HUD’s housing assistance programs and are used to determine the maximum rents allowed for the HOME and LIHTC programs. HUD also published FAQs with the 2024 Income Limits, which provide answers to several key questions below (see attachment):
- What is new for the income limit methodology in 2024?
- Why is HUD making this “cap-on-cap” change?
- How many areas does the cap impact in 2024?
- Does the “cap-on-cap” mean owners of LIHTC properties won’t have enough rent revenue to maintain their properties?
- Does this mean the developers of LIHTC properties won’t seek credits or build housing?
- Will the “cap on cap” mean that people whose incomes are still low but rising faster than income limits will be ineligible for federal housing assistance?