News | 2023 HUD & Tax Credit Income Limits Are Out! Also a Bonus Tax Credit Tool!May 15, 2023
HUD has released the 2023 income limits for their programs and the tax credit/bond programs. They are effective 05/15/2023.
Please see this BLOG POST for a "Back to Basics" review of how to select the correct income limits for your LIHTC properties.
According to the tax code, these must be implemented within 45 days for LIHTC properties - by 6/28/2023. In the past, this allowed a property to prepare in the case of a decrease in income (and rent) limits. In the modern era, this has less meaning for existing projects. This is because income limits hold harmless and will either stay the same or increase every year. However, projects that are receiving an allocation of credits or that will be placed in service within these 45 days will be able to select the most favorable 2022 or 2023 limits to start with. For allocations in this timeframe, the limits selected will affect the gross rent floor. For projects that will place in service in the 45 days, it will affect the income and rent limits that the project will lease up with and hold harmless to in 2024, if necessary.
Please note: the HOME, CDBG, NSP, and HTF programs are NOT covered by these limits. These are published by HUD-CPD and generally follow in a month or two. Similarly, Rural Development programs have limits based on HUD's limits but are effective at a time RD assigns. Watch this space for those announcements.
How do we know if HERA Special, National Nonmetropolitan Rural or held harmless limits apply to our tax credit properties?
Check it out HERE! The above topic is just one of many to be discussed at this year's Compliance Summit Events.
There is a very good chance that the topic of this post is covered in an online on-demand course at Costello University.
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