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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 household has more than eight members. Please refer to HUD's briefing material for additional information on family size adjustments. HCD Methodoloav State law (Health & Safety Code Section 50093, et. seq.) prescribes the methodology HCD uses to update the State Income Limits. HCD utilizes HUD's Public Housing and Section 8 Income Limits. HCD's methodology involves: (1) if necessary, increasing a county's median income established by HUD to equal California's non -metropolitan county 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, (3) applying to the median income the same family size adjustments HUD applies to the income limits, and (4) determining income limit levels applicable to California's moderate -income households defined by law as household income not exceeding 120 percent of county area median income. Area Median Income andincome Category Levels HCD, pursuant to federal and State law, adjusts median income levels for all counties so they are not less than the non -metropolitan county median income established by HUD ($69,700 for 2021). Next, HCD 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. Health and Safety Code section 50093 requires HCD to adjust the AMI for family size in accordance with adjustment factors adopted by HUD and illustrated on the previous page. This establishes that the MFI published by HUD equals the four - person AM I for California counties. A c u tely Io w-Income Levels Chapter 345, Statues of 2021 (Assembly Bill 1043) established California's acutely low-income levels. After calculating the 4-person area median income (AMI) level as previously described, HCD sets the maximum acutely low-income limit to equal 15 percent of the county's AM I, adjusted forfamily size. 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, adjusted for family size. Applicability of California's Official State Income Limits Applicability of the State Income Limits are subject to particular programs as program definitions of factors such as income, family, and household size vary. Some programs, such as Multifamily Tax Subsidy Projects (MTSPs), use different income limits. For MTSPs, separate income limits apply per provisions of the Housing and Economic Recovery Act (HERA) of 2008 (Public Law 110-289). income limits for MTSPs are used to determine qualification levels as well as set maximum rental rates for projects funded with tax credits authorized under Section 42 of the Internal Revenue Code (Code). In addition, MTSP income limits apply to projects financed with tax-exempt housing bonds issued to provide qualified residential rental development under Section 142 of the Code. These income limits are available at http://www.huduser.or-qfdatasetslmtsp.htrnl. City Council 39 — 37 4/5/2022 Page 4of 5