Agenda Packet_2022-04-05 - Laserfiche WebLink

Home Browse Search

m,onu ment Fairview Bridge Replacement and Street Improvements: Relocation Plan Revised 2021 State 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 Public Housing and Section 8 Income Limits that HUD released on April 1, 2021. HUD annually updates its Public Housing and Section 8 Income Limits to reflect changes in median family income levels for different size households and income limits 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 2009 pursuant to HCD's February 2013 Hold Harmless (HH) Policy. HCD's 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 year's highest level and, (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 referto HUD's briefing materials at httpsJ/www.huduser.gov/portal/datasetshl i121/IncomeLimitsMethodology- FY21.pdf. RUNJi►iM1T•TG76'. HUD Public Housing and 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 2021 FMR area definitions for California are unchanged from last year. HUD calculates Income Limits for every FMRareawith adjustments for family size and for areas with unusually high or low family income or housing -cost -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. The poverty guidelines are a simplified version of the federal poverty thresholds used for administrative purposes --for instance, determining financial eligibility for certain federal programs_ HUD compares the appropriate poverty guidelinewith 60% of the very low-income limit and chooses the greater of the two as the Extremely Low -Income limit. 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 low-income limit typically reflects 50 percent of median family income (MFI) and HUD's MFI figuregenerally equals two times HUD's 4-person very low-income limit. HUD may adjust the very low-income limit for an area or county to account for conditions that warrant special considerations. As such, the very low-income limit may not always equal 50% MFI. Low-income 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 Page2of 5 City Council 39 — 35 4/5/2022