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April 8, 2024 | |||||
colorado 2024 income limit and maximum rent tables publishedOn April 1, 2024, HUD released updated Multifamily Tax Subsidy Program income limits. The 2024 income limit and maximum rent tables for Colorado are now available on CHFA’s website. IRS Revenue Ruling 94-57 allows Housing Tax Credit project owners to rely on the previous year’s income limits until 45 days after HUD has released new income limits. The same timeframe applies to developments financed with CHFA multifamily loans. Therefore, the 2024 income and rent limits must be implemented no later than May 16, 2024. Exceptions: The IRS allows two types of protection from rent decreases: HERA Special limits and the hold harmless rule. While only some Housing Tax Credit projects may use HERA Special limits, all Housing Tax Credit projects are “held harmless” from decreases in limits. To identify the correct limits for your project, you must know its placed-in-service (PIS) date.
Rent Increases: CHFA asks owners to be mindful of the impact on residents when considering any rent increases. CHFA does not require any owner to raise tenant rents, regardless of any increase in maximum rents, and owners may not attribute the cause of any tenant rent increase they implement to CHFA. Any rent increases associated with higher maximum rents or utility allowance decreases may be implemented at lease renewal only and in accordance with Colorado state and local law. For the Housing Tax Credit and CHFA Loan programs, CHFA does not permit mid-lease term rent increases, unless required by the Section 8, USDA Rural Development, or similar rental assistance programs. Utility Allowance Reminder: As a reminder, updated utility allowances must be implemented no sooner and no later than the first day immediately following the 90-day period that begins with the new utility allowance schedule’s effective date. To remain compliant when allowances increase and tenant rent must be decreased not to exceed the maximum rent, ensure that rents are lowered immediately following the 90-day period. Do not wait until a household is due for annual recertification to lower rents. For detailed guidance and exceptions, see CHFA’s Utility Allowance Policy for Housing Tax Credit and Multifamily Loan Developments. Rural Resort Community Limits: In November 2022, Colorado voters passed Proposition 123, a ballot measure authorizing the state to retain money from existing state tax revenue to support affordable housing investment. On behalf of the Office of Economic Development and International Trade (OEDIT), CHFA administers the Colorado Affordable Housing Financing Fund to support land banking, equity, and debt investment. For new programs under Proposition 123, rent and income limits at 130, 140, 150, and 160 percent AMI have been added for Colorado’s twelve rural resort communities. These include the following counties: Archuleta, Chaffee, Eagle, Grand, Gunnison, La Plata, Ouray, Pitkin, Routt, San Juan, San Miguel, and Summit. Please contact your CHFA Program Compliance Officer with any questions. You can find your officer’s contact information by searching on CHFA’s website by city and/or property name. More information is also available in CHFA’s Multifamily Program Compliance Manual, Section 4.1 Income Limits and Maximum Rents and Section 4.2 Rent Restrictions. |
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