1. (a) HOME Developments must use the HOME Program Income and Rent Limits that are calculated annually by HUD's Office of Policy Development and Research (PDR). The limits are made available for each Metropolitan Statistical Areas (MSA), Primary Metropolitan Statistical Areas (PMSA) and Area, District or County by State.

   1. (1) Upon publication, the Department will determine which counties are in each MSA, PMSA, Area or District.

   2. (2) Generally, PDR publishes income limits in tables identifying the following Area Median Gross Income (AMGI) by household size:

      1. (A) 30 percent Limits;
      2. (B) Very Low-Income Limits which are generally 50 percent of median income, but not less than the State non-metropolitan median which will be shown as the 50 percent limit in the Department's income limits;
      3. (C) 60 percent Limits;
      4. (D) Low-Income Limits which are generally 80 percent of the median income, but capped at the national median income with some exceptions which will be shown as the 80 percent limits in the Department's income limits.

   3. (3) If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by PDR:

      1. (A) To calculate the 30 percent AMGI, the 50 percent AMGI limit will be multiplied by .60 or 60 percent.
      2. (B) To calculate the 40 percent AMGI, the 50 percent AMGI limit will be multiplied by .80 or 80 percent.
      3. (C) To calculate the 60 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.2 or 120 percent.
2. (b) PDR publishes High and Low HOME rent limits by bedroom size.
3. (c) PDR does not publish a 30 percent or 40 percent rent limits that certain HOME Developments are required to use. These limits will be calculated using the same formulas described in §10.1004 of this subchapter (relating to Housing Tax Credit Properties, TCAP, Exchange and HTF).
4. (d) In the event that PDR publishes rent limits after the HOME program income limits, the Department permits HOME Developments to delay the implementation of the 30 percent and 40 percent rent limits until the High and Low HOME rent limits must be used.

5. (e) NSP income limits are published annually by HUD for each county with tables identifying the 50 percent AMGI and 120 percent AMGI for household size. If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by HUD:

   1. (1) To calculate the 30 percent AMGI, the 50 percent AMGI limit will be multiplied by .60 or 60 percent.
   2. (2) To calculate the 40 percent AMGI, the 50 percent AMGI limit will be multiplied by .80 or 80 percent.
   3. (3) To calculate the 60 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.2 or 120 percent.
   4. (4) To calculate the 80 percent AMGI, the 50 percent AMGI limit will be multiplied by 1.6 or 160 percent.
6. (f) If the LURA for an NSP Development restricts rents, the amount of rent the Development Owner is permitted to charge will be the High or Low HOME rent published by PDR or calculated in the same manner described in §10.1004 of this subchapter using the HOME income limits.

Source Note:The provisions of this §10.1005 adopted to be effective January 2, 2014, 38 TexReg 9493.