If a propertys VLI Set-Aside has been met, but not the Total Set-Aside, can the remaining units be rented to VLI-eligible tenants and designated as LI units?
No. A Qualifying Unit’s designation reflects the income level of the tenant. Qualifying Units occupied by tenants with incomes less than or equal to the VLI income limit must be designated as VLI units, even if the VLI Set-Aside has already been met. Owners/managers are not required to designate additional VLI units if VLI Set-Asides have been met and only LI units are needed. However, they may choose to designate additional VLI units to be counted toward the Total Set-Aside. If they do so, they must remember that all VLI units are restricted by the applicable VLI rent.
Related Questions
- If a property has fully met its VLI set-aside, but still needs units to meet the Total Set- Aside, can a new VLI tenant be designated as an LI unit and the tenant charged an LI rent?
- If I rent unrestricted units to low income and very low income tenants (after I have met my Total Set Aside), must I designate their units as Qualifying Units?
- If a property’s VLI Set-Aside has been met, but not the Total Set-Aside, can the remaining units be rented to VLI-eligible tenants and designated as LI units?
