1. (a)

   1. (1) The Department of Housing and Urban Development publishes the Multifamily Tax Subsidy Projects (MTSP) income limits annually.
   2. (2) The Internal Revenue Service requires these income limits, adjusted for family size, to be used when determining eligibility of LIHTC tenants at move-in.
   3. (3) The minimum set-aside election establishes whether the fifty percent (50%) or sixty percent (60%) AMGI limit applies to the development's tax credit units.

2. (b)

   1. (1) The Department of Housing and Urban Development’s L50 Very Low-Income amounts equal the fifty percent (50%) AMGI limits for households of one (1) to eight (8) persons.

   2. (2)

      1. (A) The sixty percent (60%) AMGI limit must be calculated from the fifty percent (50%) limits.
      2. (B) The sixty percent (60%) AMGI limit equals one hundred twenty percent (120%) of the Department of Housing and Urban Development Very Low-Income amount for the corresponding family size.
      3. (C) Owners must calculate the sixty percent (60%) limits by multiplying the fifty percent (50%) AMGI figures by one and two-tenths (1.2).

3. (c)

   1. (1) When the Department of Housing and Urban Development publishes new MTSP income limits, owners are required to implement the new income limits no later than forty-five (45) days after the effective date.
   2. (2) Any fluctuations in the income limits will have a corresponding impact on maximum gross rent amounts.

   3. (3)

      1. (A) When determining income levels for qualifying tenants, the correct family size must be determined.
      2. (B) A family includes all occupants of the unit.
      3. (C) Owners should closely monitor family size.
4. (d) Note. Owners and managers must review development files to determine if the Department of Housing and Urban Development or United States Department of Agriculture Rural Development restrictions also apply or if owner agreed to other income restrictions.

Codification Notes: "LIHTC" means low-income housing tax credit.