The utilization of the 4% Low-Income Housing Tax Credit (LIHTC) has reached a new high, with affordable housing rehabilitations surpassing ground-up development. This milestone signifies a strategic shift towards revitalizing existing housing stock to address affordability challenges in communities across the United States. The LIHTC program plays a vital role in promoting the development of affordable housing by providing tax incentives to developers who invest in low-income housing projects.
Similarly, the Housing Trust Fund (HTF) program plays a critical role in addressing housing affordability challenges for low-income families across the United States. Effective June 1, 2024, significant updates are set to take place regarding the program’s income limits, impacting grantees and participants alike. Until the 2024 income limits come into effect, grantees are advised to continue using the 2023 income limits to ensure consistency in their operations.
Both programs prioritize serving extremely low-income families or those with incomes at or below the poverty line. In fiscal years where the total allocation is less than $1 billion, grantees must allocate 100% of their HTF grant to benefit these vulnerable populations. Conversely, when the allocation exceeds $1 billion, at least 75% of the grant must serve extremely low-income families or those at or below the poverty line, with the remainder supporting very low-income families.
The LIHTC program has seen a growing emphasis on leveraging it to rehabilitate existing affordable housing units, rather than focusing solely on new construction. This approach not only maximizes the impact of available resources but also helps preserve existing affordable housing stock, preventing displacement and ensuring housing stability for residents.
Similarly, the HTF program relies on income limits calculated using methodologies established by the U.S. Department of Housing and Urban Development (HUD). These limits are based on HUD estimates of median family income and the Federal Poverty Line, ensuring consistency and accuracy in determining eligibility for housing assistance.
To assist grantees and participants in navigating changes, HUD will provide updates on the 2024 income limits through its mailing list and the HUD Exchange platform. Grantees are encouraged to stay informed and sign up for the HUD Exchange Mailing List to receive timely updates and access resources related to HTF program guidelines and income limits.
As the housing landscape continues to evolve, it is essential for stakeholders to remain proactive and adaptable in their approach to affordable housing initiatives. By staying informed and collaborating effectively, we can work towards creating inclusive and sustainable housing solutions that benefit individuals and families in need.
To support stakeholders in navigating these changes seamlessly, Housing and Development Software (HDS) is set to release an update for Multifamily users, specifically addressing the Income Limit and Download Tool. This update, scheduled for release in the week of May 20th, 2024, empowers users with enhanced access to crucial income limit data, including the newly updated 2024 income limits for the HTF program.
Users will seamlessly receive this update through the Income Limit and Download Tool Service provided by HDS, ensuring they have convenient access to the latest income limit information published by HUD.
If you have any questions or need assistance with this update, please contact us today.