55B - AA FOR RESO RELOCATION PLAN FOR WARNER AVE

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2D19 Slate Income Limits Briefing Materials California. Code of Regulations, Title 25, Section 6932 Overview The Department. of Housing and Community Development (HCD), pursuant to Health & Safety Code Section 50093(c), must file updates to its State Income Limits with the Office of Administrative Law. HCD annually updates these income limits based on U_S_ Department of Housing and Urban Development (HUD) revisions to the Section 6 Income Limits that HUD released on April 24, 2019. HUD annually updates its Section 8 Income Limits to reflect changes in median family income levels for different size households and income Ilm its for extremely low-, very low-, and low-income households_ HCD, pursuant to statutory provisions, makes the following additional revisions: (1) If necessary, increase a county's area median income to equal California's non -metropolitan median income, (2) adjusts area median income and household income category levels to not result in any decrease for any year after 2000 pursuant to HCD's February 2013 Hold Harmless (HH) Policy Hi HH Policy was implemented to replace HUD's HH Policy, discontinued in 2009, to not decrease income limits and area median income levels below a prior years highest lowland, (3) determines income limits for California's moderate -income category. Following are brief summaries of technical methodologies used by HUD and HCD in updating income limits for different household income categories. For additional information, please refer to HUD's briefing materials at. htlos7lwmv.huduser.covloortalldalasetsliUlillgllncomeLlmitsMethodolocv- FY19.odf. HUD Methodology HUD Section 8 Income Limits begin with the production of median family incomes. HUD uses the Section 8 program's Fair Market Rent (FMR) area definitions in developing median incomes, which means developing median incomes for each metropolitan area, parts of some metropolitan areas, and each non -metropolitan county. The 2019 FMR area definitions for California are unchanged from last year. HUD calculates Section 8 Income Limits for every FMR area with adjustments for family size and for areas with unusually high or low family income or housing -cast -to -income relationships. Extremely Low-income In determining the extremely low-income limit, HUD uses the Federal Poverty Guidelines, published by the Department of Health and Human Services. HUD compares the appropriate poverty guideline with 60% of the very low-income limit and choose the greater of the two. The value may not exceed the very low-income level. Very Low-income The very low-income limits are the basis for all other income limits. The very lore -income limit typically reflects 50 percent of median family income (MFI) and HUD's MFI figure generally equals two times HUD's 4�person verylow-income Iimlt HUD may adjustthe very low-income limit for an area or county to account for conditions that warrant special considerations. As such, the very low-i ncame limit may not always equal 50% MFI. Lowdnceme In general, most low-income limits represent the higher level of: (1) 80 percent of MFI or, (2) 80 percent of state non -metropolitan median family income. However, due to adjustments that HUD sometimes makes to the very low-income limit, strictly calculating low-income limits as 80 percent of MFI could produce unintended anomalies inconsistent with statutory intent (e.g, very low-income limits being higher than lowdncome Iimits).Therefore, HUD's briefing materials specify that, with some exceptions, the lowincome limit reflect 160 percent of the very low-income limit. Page 2 of 4 31 55B-42