What are the general rent and income requirements for a Qualified Low-Income Housing Project?
At a minimum, Section 42 of the Code requires that you irrevocably elect and comply with one of the following Minimum Low-Income Housing Set-Asides: • a minimum of forty percent (40%) of the Total Housing Units in the Project must be rented to Residents with Incomes at or below sixty percent (60%) of the Area Median Gross Income adjusted for household size (the “40/60 test”); or • a minimum of twenty percent (20%) of the Total Housing Units in the Project must be rented to Residents with Incomes at or below fifty percent (50%) of the Area Median Gross Income adjusted for household size (the “20/50 test”). The Minimum Low-Income Housing Set-Aside election applies to all Low-Income Housing Units in a Project. The amount of Credit awarded to a Project is based on the percentage of Low-Income Housing Units in the Project (i.e. the Applicable Fraction). Hence, the higher the percentage of Low-Income Housing Units in a Qualified Project, the more Credit the Project may receive. You may also
