New Jersey Adopts
New
Income Limits
|
|
2012 and 2013 Program Income Limits Published
The New Jersey Council on Affordable Housing (COAH) recently published the new income limits for New Jersey’s six housing regions. The income limits are used to determine the eligibility of low- and moderate-income households, to price new sales and rental units, and to index the maximum resale price of existing sales units.
The maximum income limits are based on the U.S. Department of Housing and Urban Development’s (HUD) Section 8 income limits for the state’s six housing regions, which are defined by COAH.
Income limits vary across housing regions and are also adjusted for family size. Low-income households are defined as earning less than 50 percent of the area median income for households of the same size within the same housing region. Moderate-income households are defined as earning between 50 and 80 percent of the area median income for households of the same size within the same housing region. COAH also calculates the income limits for very low income households earning 30 percent or less of median gross household income for special programs.
In 2012, affordable rents can be raised a maximum of 1.6%, and in 2013, they can be raised 1.4%. If increases were taken since 2011, then the increases taken must be deducted from the above-referenced amounts. A cumulative increase (as adjusted above) is allowed. These increases are based on the U.S. Consumer Price Index (CPI). However, as with market housing, developers, landlords may ask for less than the maximum permitted.
The maximum sales prices were increased for 2012, but remain the same for 2013, due to the decrease in the area median income for the latter year. The percentage increase varies according to region. You can access the COAH Income Chart for 2012 to see the increase in each region. You can also utilize our calculator to find out the estimated current maximum sales price for an existing affordable home.
The Fair Housing Act of 1985 requires municipalities to facilitate the effective creation of quality affordable housing for low- and moderate-income households throughout New Jersey.
HousingQuest Editor's Notes:
The income limits published by COAH apply only to COAH programs. The COAH Income limits do NOT apply to HUD or USDA properties, or those governed by Low Income Housing Tax Credits, all of which utilize federally issued limits that were published during last month.
Our Resale Calculator has being updated with the 2013 allowable increase, which is based on the change in the median income and varies by region.
* We are in the process of updating the web site, and there may be some delay in posting the new limits to each property application form form. We apologize for the inconvenience. |
