55B - AA FOR RESO RELOCATION PLAN FOR WARNER AVE

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2019 State Income Limits Briefing Materials California Code of Regulations, Title 25, Section 6932 HUD may apply additional adjustments to areas with unusually high or low housing -costs -to -income relationships and for other reasons. This could result in low-income limits exceeding MFI. Median Family lncornelArea Median Income HUD references and estimates the MFI in calculating the income limits. California law and State Income Limits reference Area Median Income (AMI)that, pursuant to Health & Safety Code 60093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program. HUD's calculations of Section 8 Income Limits begin with the production of MFI estimates. This year, MFI estimates use the 2016 American Community Survey. HUD then adjusts the survey data to account for anticipated income growth by applying the Consumer Price Index inflation forecast published bylhe Congressional Budget Office through mid-2019. HUD uses the MFI to calculate very low-income limits, used as the basis to calculate Income limits for other income categories. For additional information, please see HUD's methodology describing 2019 MFI's at httosfhvwwhuduser covinorta.11datasetslillill9!Medians-Methodolo v-FY79r.odf_ Adjustment Cakulafions HUD may apply adjustments to areas with unusually high or low family income, uneven housing-cost-ta income relationship, or other reasons_ For example, HUD applies an increase if the four -person very, low-income limit would Otherwise he less than the amount at which 35 percent of it equals 85 percent of the annualized two -bedroom Section 6 FMR (or 401° percentile rent. in 6fP percentile FMR areas). The purpose is to increase the income limit forareas where rental -housing costs are unusually high in relation to the median income. In certain cases, HUD also applies an adjustment to the income limits based on the state non - metropolitan median family income level. In addition, HUD restricts adjustments so income limits do not increase more than five percent of the previous years very low-income figure OR twice the increase in the national MFI, whichever is greater Forthe 2019 income limits, the maximum increase is 1C%from the previous year. This adjustment does not apply to the extremely low-income limits. Please refer to HUD briefing materials for additional information on the adjustment calculalions. Income Limit Calculations far Household Sizes Other Than ..Person The income limit statute requires adjustments for family size. The legislative historyand conference committee report indicates that Congress intended that income limits should be higher for larger families and lower far smaller families_ The same family size adjustments apply to all Income limits, except extremely low-income limits, which are set at the poverty income threshold. They are as follow Number of Persons in Household: 1 2 3 4 5 6 7 8 Adjustments, 70% 80% 90% Base 11 116% 124% 132% Income Limit Calculations for Household Sizes Greater Than &Persons For households of more than eight persons, refer to the formula at the end of the table for 2019 Income Limits. Due to the adjustments HUD can make to income limits in a given county, table data should be the only method used to determine program eligibility. Arithmetic calculations are applicable only when a household has more than eight members. Please refer to HUD's briefing material for additional information on family size adjustments. Fage H of 4 32 55B-43