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2019 State Income Limits Briefing Materials <br />California Code of Regulations, Title 25, Section 6932 <br />HCD Methodoloav <br />State law (Health & Safety Code Section 50093, et seq.) prescribes the methodology HCD uses to <br />update the State Income Limits. HCD utilizes HUD's Section 8 Income Limits. HCD's methodology <br />involves:. (i) if necessary, increasing a county's median income established by HUD to equal <br />California's non -metropolitan county median income determined by HUD, (2) applying HCO's HH Policy, <br />in effect since 2013, to not allow decreases in area med tan income levels and household income <br />category levels, (3) applying to the median income the same family size adjustments HUD applies to <br />the income limits, and (4) determining income limit levels applicable to California's moderate -income <br />households defined by law as household income not exceeding 120 percent of county area median <br />income. <br />Area Median Income and Income Category Levels <br />HCD, pursuant to federal and State law, adjusts median income levels for all to counties so they are not <br />less than the non -metropolitan county median income established by HUD ($84,800 for 2019)_ Next, <br />HCD, for all counties, applies its HH policy to ensure area median income and income limits for all <br />household Income categories do not fall helm any level achieved in the pdor year <br />Moderate -Income Levels <br />HCD is responsible for establishing Cal'domia's moderate -income limit levels. After calculating the 4- <br />person area median income (AMI) level as previously described, HCD sets the maximum moderate - <br />income limit to equal 120 percent of the county's AMI_ <br />Applicability of California's Official State Income limits <br />Applicability of the State Income Limits are subject to particular programs as program definitions of <br />factors such as income, family, and household size vary. Some programs, such as Multifamily Tax <br />Subsidy Projects (MTSPs), use different income limits_ For MTSPs, separate income limits apply per <br />provisions of the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). Income <br />limits for MTSPs are used to determine qualification levels as well as set maximum rental rates for <br />projects funded with tax credits authodzed under Section 42 of the Internal Revenue Code (Code). In <br />addition, MTSP income limits apply to projects financed with tax-exempt housing bonds issued to <br />provide quaffed residential rental development under Section 142 of the Code. These income limits are <br />available at httollwww_huduser ortildatasetslmtso html <br />Page 4 of 4 <br />33 <br />55B-44 <br />