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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 higher than low-income limits). Therefore, HUD's briefing materials specify that, with some exceptions, the low-income limit reflect 160 percent of the ve ry low- inco me limit. HUD may apply additional adjustments to areas with unusually high or low housing -costs -to -income relationships and for other reasons. This can result in low-income limits exceeding MFI in certain counties. Median Family IncomelArea 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 50093(c), means the MFI of a geographic area, estimated by HUD for its Section 8 Program. HUD's calculations of Income Limits begin with the production of MFI estimates. This year, MFI estimates use the 2018 American Community Survey. HUD then adjusts the survey data to account for anticipated income growth by applying the Consumer Price Index inflation forecast published by the Congressional Budget Office through the midpoint of FY 2021. HUD uses the MFI to calculate very low-income limits, used as the basis to calculate income limits for other income categories. MFI's are calculated at the family level only, not the per person level as is done for income limits. The average family size is over 3, so, by convention, HUD equates the median family income for an area with a four -person family for the purposes of calculating income limits. For additional information, please see HUD's methodology describing 2021 MFI's at https://www.huduser.gov/portal/datasets/iIli121/Medians-Methodology-FY21.pdf. A djus tmen f Calculations HUD may apply adjustments to areas with unusually high or low family income, uneven housing -cost -to - income relationship, or other reasons. For example, HUD applies an increase if the four -person very low-income limit would otherwise be less than the amount at which 35 percent of it equals 85 percent of the annualized two -bedroom Section 8 FMR (or 40th percentile rent in 501h percentile FMR areas). The purpose is to increase the income limit for areas 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 year's very low-income figure OR twice the increase in the national MFI, whichever is greater. For the 2021 income limits, the maximum increase is 5% 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 calculations. Income Limit Calculations for Household Sizes Other Than 4-Persons The income limit statute requires adjustments for family size. The legislative history and conference committee report indicates that Congress intended that income limits should be higher for larger families and lower for 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 follows: 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 2021 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 City Council '-age 3ON- 36 4/5/2022