This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
and their ages. Once the anticipated annual income in Section 6 of the Certificate has been totaled, you
should determine whether the occupants have "capital investments", including capital investments of any
children in the family, of more than $5,000 listed in Section 1) of the Certificate. If the "capital
investments" exceed $5,000, "anticipated annual income" will be the sum of the amount totaled in Section 6
of the Certificate plus the greater of, if any, (a) the actual amount of income in Section 7(b), minus the
amount of income enumerated in Section 7(c), if any, or (b) the "imputed amount of income" minus the
amount of income enumerated in Section 7(c), if any. The "imputed amount of income" is the value of the
assets listed in Section 7(a) of the Income Certification multiplied by the "current passbook savings rate"
as determined by the United States Department of Housing and Urban Development. The "anticipated
annual income" of Section 6 of the Certificate plus, if the capital investments exceed $5,000, the necessary
adjustments of Section 7 of the Certificate, as discussed in the preceding paragraph, should be entered in
the blank in Section 6 of the Certificate. If the amount entered into the blank in Section 6 of the Certificate
does not exceed (1) 42% of the median gross income for the area, in the case of an individual; (2) 48% of
the median gross income for the area in the case of a family of two; (3) 54% of the median gross income
for the area in the case of a family of three; or (4) 60% of the median gross income for the area in the case
of a family of four, then the occupants qualify as being within the "applicable income limit". The
appropriate line within action of the Certificate should be checked. (In the case of a family that has more
than four members, you should consult the Issuer for the applicable percentages.) If the amount entered in
the blank in Section 8 of the Certificate exceeds the applicable percent of median gross income in the area
described in the previous sentence, the occupants do not qualify as being within the "applicable income
limit".
The "applicable income limit" requirement must be met for the "qualified project period." Thus, 40
percent of the occupants at any one time must satisfy the "applicable income limit requirements" beginning
at the time when 10 percent of the units are first occupied. For example, if a project contains 200 units, the
"applicable income limit" restrictions need not be met until 20 units have been occupied. However, as soon
as 20 units have been occupied, 8 units must actually be occupied by occupants whose income is 60 percent
or less of the area median gross income, i.e., it is not sufficient that 8 units are reserved for individuals
whose income is 60 percent or less of the area median gross income.
It should be noted that a unit occupied by an individual or family whose income at the
commencement of such occupancy falls within the "applicable income limit" is treated as occupied by such
an individual or family during their occupancy of such unit, even though their income subsequently exceeds
the "applicable income limit," until their income exceeds 140 percent of the "applicable income limit", at
which time such unit will cease to be treated as occupied by a tenant who meets the "applicable income
limit." Further, if a tenant has occupied a unit for a length of time and decides to add a roommate, the
"anticipated annual income" of the new tenant when he/she first occupies the unit, and the "anticipated
annual income" of the existing tenant when he/she first occupied the unit must be aggregated to determine
whether the unit may continue to be certified as being occupied by individuals whose income falls within
the "applicable income limit." If, however, the occupants of a unit move into another unit in the project, the
second unit will be treated as occupied by an occupant whose income falls within the "applicable income
limit" only if the occupant qualified as being within the "applicable income limit" at the time of the move.
Moreover, if a qualifying occupant moves out of a unit, such unit is treated as occupied by an individual or
family whose income falls within the "applicable income limit" until reoccupied at which time the character
of the unit shall be redetermined.
Finally, if in Section 5 of the Certificate an occupant is unable to provide an Employer verification
because he/she is currently unemployed and the occupant is unable to provide a copy of his/her federal
income tax return because a return was not filed, such occupant may not be included as meeting the
"applicable income limit."
A-7Jump to an indexed page (744 of 744)