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2017 State Income Limits Briefing Materials California Code of Regulations, Title 25, Section 6932 using the 4 -person income limit as the base_ HUD's adjustments use the following percentages, with results rounded to the nearest $50 increment Number of Persons in Household: 1 2 3 4 5 6 7 8 Adjustments: 70% 80% 90% Base 108% 116% 124% 132% Income Limit Calculations for Household Sizes Greater Than 8 -Persons For households of more than eight persons, refer to the formula at the end of the table for 2017 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. Reference: FY 2017 HUD Income Limits Transmittal Notice PDR -2017-02 issued April 14, 2017 and HUD Income Limits Briefing Material dated March 21, 2017, both of which can be found at hffi3s://www.huduser-aov/DortaYdatasetsril.html- HCD Methodolo State law (Health & Safety Code Section 50093, et seq.) prescribes the methodology HCD uses to update its Official State Income Limits. HCD utilizes HUD's Section 8 Housing Choice Voucher Program Income Limits. HCD's methodology involves: (1) increasing counties' smaller median incomes established by HUD to equal Calffomia's non -metropolitan median income determined by HUD, (2) applying HCD's HH Policy, in effect since 2013, to not allow decreases in area median income levels and household income category levels, and (3) determining income limit levels applicable to California's moderate -income households defined by State law as household income not exceeding 120 percent of county area median income. Area Median income and Income Category Levels HCD, pursuant to federal and State law and its HH Policy, adjusts median income levels detemfined by HUD for a metropolitan county (county included in a metropolitan statistical area) and for a non -metropolitan county (county not included in a metropolitan statistical area). HUD, pursuant to Federal law (Section 567 of the 1987 Housing and Community Development Act) and policy, requires adjusting any county's smaller median income to equal HUD's higher determined State non -metropolitan median income (559,900). Next, HCD, for all counties, applies its HH policy to ensure area median income and income limits for all household income categories do not fall below any level achieved in the prior year. Moderate -Income Levels HCD is responsible for establishing California's moderate -income limit levels. After calculating the 4 -person area median income (AMI) level as previously described, HCD sets the maximum moderate -income limit to equal 120 percent of the county's AMI. Applicability of California's Official State Income Limits Applicability of these State Income limits is subject to particular programs as program definitions of such factors as inconfe, family, and household size, etc. vary. Some programs, Page 4 of 5 75B-48