What happens if income increases after the homeowner moves into his or her affordable home?
This is only a concern for renters. Purchasers of affordable homes do not need to have their income recertified after initial certification. The guidelines of the PeopleTrust Affordable Homes Program, and of most rental affordability programs, allow for tenants’ incomes to increase after move-in, up to what is defined under federal guidelines as “140% of 60% of MFI.” In 2010, 60% of MFI for a single person is just under $32,000 in Austin. Therefore, a single tenant could see his/her income increase after move-in to approximately $44,000 without affecting his/her eligibility to rent a PeopleTrust Affordable home. (The MFI benchmarks change every year, so these figures are approximate and used as examples only.) If the annual income certification shows that a tenant’s income increases to above “140% of 60% of MFI,” then the tenant is no longer eligible for PeopleTrust’s Affordable Homes Program and will need to pay market rate rents.
