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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 Questions and Answers In Los Angeles, as well as several other counties in the state, why does the very low-income limit not equal 50%of the AMI (or the low-income limit not equal 80%of theAMI)? There are many exceptions to the arithmetic calculation of income limits. These include adjustments for high housing cost relative to income, the application of state nonmetropolitan income limits in low-income areas, and national maximums in high -income areas. In Los Angeles County, the magnitude of these adjustments results in the low-income limit exceeding theAM1. Th ese exceptions are detailed in the FY 2021 income Limits Methodology Document, https://www.huduser.gov/portal/datasets/iI.html#2021_data. For f urtherinformation on the exact adjustments made to an individual area of the country, please see HUD's FY 2021 Income Limits Documentation System. The documentation system is available at https:l/www.huduser.gov/portal/datasets/il.html#2021 query. Once the area in question is selected, a summary of the area's median income, Very Low -Income, Extremely Low -Income, and Low-income Limits are displayed. Detailed calculations are obtained by selecting the relevant links. Why don't the income limits for my area reflect recent gains? Although HUD uses the most recent data available concerning local area incomes, there is still a lag between when the data are collected and when the data are available for use. For example, FY 2021 Income Limits are calculated using 2014-2018 5-year American Community Survey (ACS) data, and one- year 2017 data where possible. This is atwo-year lag, so more current trends in median family income levels are not available. How does HUD calculate Median Family Income (MFI)? HUD estimates Median Family Income (MFI) annualiyfor each metropolitan area and non -metropolitan county. The basis for HUD's median family incomes is data from the Americans Community Survey, table B19113 - MEDIAN FAMILY INCOME IN THE PAST 12 MONTHS. A Consumer Price index (CPI) forecast as published by the Congressional Budget Office is used in the trend factor calculation to bring the 2018 ACS data forward to the middle of FY 2021. For additional details concerning the use of the ACS in HUD's calculations of MFI, please see our FY 2021 Median Family Income methodology document, at tK!p_§J/www. h u d user. qov/po rtal/d atasets/i 1. h tml#2021 data. Additionally, full documentation of all calculations for Median Family Incomes are available in the FY 2021 Median Family Income and the FY 2021 Income Limits Documentation System. These systems are available at https://www.huduser.gov/portal/datasets/i1.html#2021_cluery. Why didn't the income limits for mycountychange from last year? HCD's Hold Harmless Policy likely prevented the income limits from decreasing from last year's levels and has maintained them despite a decrease in median income and/or income limits published by HUD. Why do the income limits orarea median incomeformycounty not match what was published by HUD? H C D adjusts each county's area median income to at least equal the state non -metropolitan county median income, as published by HUD. Further, HCD's Hold Harmless Policy prevents any decrease in income limits or median family income published by HUD to be applied to State Income Limits. City Council 39 — 38 4/5/2022 Page 5 of 5