1. (a) If the household income for residents in a qualified unit increases to more than one hundred forty percent (140%) of the current applicable income limit, the unit is considered an over-income unit but may continue to be counted as an LIHTC unit as long as two (2) conditions are met:

   1. (1) The unit must continue to be rent restricted; and
   2. (2) The next comparable size unit in the building must be rented to a qualified low-income tenant.
2. (b) The owner of an LIHTC building must rent to qualified residents all comparable units that are available or that subsequently become available in the same building until the applicable fraction (excluding the over-income units) is restored to the percentage on which the credit is based.

3. (c) Once the original applicable fraction of the building has been restored, the over-income unit may:

   1. (1) Remain rent restricted; or
   2. (2) Become a market-rate unit if the building is a mixed income building.

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