HUD released the official 2023 HUD median family income limits this week, which you can view here.
How do median family income limits impact property owners?
There are two key things to note:
- Owners of properties participating in HUD’s Multifamily Housing Programs must utilize these limits when processing Move-Ins and Initial Certifications HUD Form 50059s effective May 15, 2023 or later.
- Owners must verify the appropriate income limits are loaded into their compliance software.
These income limits for HUD programs may vary from those published for the Low-Income Tax Credit or HOME Program. Owners should enter in the appropriate dollar figures in each of the fields, within their settings, instead of entering in the amounts for a given percentage limit and then having the software auto-calculate the remaining limits.
Keep in mind: revised income limits do not impact the eligibility of in-place residents. While the correct limits should display on all certifications generated after May 15, 2023, these limits only play a role in determining program eligibility for Move-Ins or Initial Certifications for certain households.
If you identify specific income limits within other written policies, like your Tenant Selection Plan or Screening Criteria, remember that these documents must be updated as well.
What’s noteworthy about 2023 median family income limits?
According to HUD’s Statement on FY 2023 Median Family Income Estimates and Income Limits, since 2011, median family income estimates have been based on data from the Census Bureau’s American Community Survey (ACS), and there has historically been a three-year lag between the ACS estimates and when the income limits take effect. However, the pandemic complicated this – standard 1-year estimates from the 2020 ACS were not released due to issues with data collection.
So: while FY 2023 median family income limits would typically be based on 2020 ACS estimates, HUD has based them on 2021 ACS data. Information is usually released in March or April, but 2023 information was just released this week.
Remind me: what are HUD median family income limits?
Every year, HUD reviews and estimates median family income for every county in the U.S. to define low-income status and resulting eligibility for many of its housing assistance programs.
Income limits are expressed as percentages of median family income, and they vary by the number of people in a household. They are usually defined as follows:
- Extremely low-income limits (ELIL), typically the greater of the federal poverty level or 30% of the median family income
- Very low-income limits (VLIL), typically 50% of the median family income
- Low-income limits (LIL), typically 80% of the median family income
Need assistance with HUD 2023 income limits?
The DeSilva Housing Group team has over 30 years of experience in affordable housing. Our President, Jenny DeSilva, is a recognized industry compliance expert with extensive consulting and training knowledge in HUD’s Multifamily Housing programs. We’d love to assist you with staying compliant when it comes to HUD 2023 income limits, as well as multiple other affordable housing statutes.
Find out more about DeSilva Housing Group’s services here, and view our Live Training sessions for HUD properties!
