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2015 State Income Limits Briefing Materials <br />California Code of Regulations, Title 25, § 6932 <br />Median Family Income /Area Median Income <br />HUD estimates and references Median Family Income (MFI) in calculating its income <br />limits. California law and income limits reference Area Median Income (AMI) that, <br />pursuant to H &SC 50093(c), means the median family income of a geographic area <br />estimated by HUD for its Section 8 Program. <br />HUD's calculations of Section 8 Income Limits begin with the production of MFI estimates. <br />FY 2015 MFI estimates use 5 -year survey data (American Community Survey (ACS) <br />2008 -2012 and Puerto Rico Community Survey (PRCS) 2007 -2011) augmented by 2012, <br />1 -year ACS and PRCS data. HUD then adjusts the survey data to account for anticipated <br />income growth by applying the Consumer Price Index (CPI) inflation forecast (through the <br />mid -point of 2015) that the Congressional Budget Office published in August 2014. HUD's <br />determination of MFI is used to calculate very low- income limits that are then used as the <br />basis to calculate income limits for other income categories. <br />Income Limit Calculations for Household Sizes Other Than 4- Persons <br />Income limits for all income categories are adjusted for household size so that larger <br />households have higher income limits than smaller households. For all income categories, <br />income limits for household sizes other than 4- persons are calculated <br />using the 4- person income limit as the base. HUD's adjustments use the following <br />percentages, with results rounded to the nearest $50 increment: <br />Number of persons in Household: 1 2 3 4 5 6 7 8 <br />Adjustments: 70% 80% 90% Base 108% 116% 124% 132% <br />Income Limit Calculations for Household Sizes Greater Than 8- Persons <br />For households of more than eight persons, refer to the formula at the end of the table <br />for 2015 Income Limits. Due to the adjustments HUD can make to income limits in a given <br />county, table data should be the only method used to determine program eligibility. <br />Arithmetic calculations are applicable only when a household has more than eight <br />members. <br />Reference: FY 2015 HUD Income Limits Transmittal Notice PDR- 2015 -02 issued <br />March 6, 2015 and HUD Income Limits Briefing Material dated March 10, 2015 <br />http:/Mww.huduser.org/portal/datasets/iI/il1 5/index.htmi <br />http:t/www.hLiduser.org/portai/datasets/11/ilI5/HUD—sec8_15.pdf <br />HCD Methodology <br />State law (Health & Safety Code Section 50093, et. seq.) prescribes the methodology the <br />Department uses to update its Official State Income Limits. The Department utilizes <br />HUD's Section 8 Housing Choice Voucher Program Income Limits. HCD's methodology <br />involves: (1) increasing some counties' median income levels established by HUD, <br />(2) increasing some 4- person very-low income limits established by HUD, (3) applying its <br />Hold Harmless (HH) Policy, in effect since 2013, to not allow decreases in area median <br />income levels and household income category levels, and (4) determining income limit <br />levels applicable to California's moderate - income households defined by State law as <br />household income not exceeding 120 percent of county AMI. <br />Page 4 of 5 <br />55A -54 <br />