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Housing TIF Districts <br /> December 6, 2000 <br /> Page 5 <br /> ATTACHMENT A <br /> DEFINITIONS OF THE FOUR TYPES <br /> OF HOUSING TIF DISTRICTS <br /> QUALIFIED HOUSING DISTRICT—RENTAL <br /> This is a housing district for a residential project in which the only properties receiving <br /> TIF assistance meet all the requirements for a low-income housing credit under federal <br /> law,regardless of whether the project actually receives a housing credit. The tax credit <br /> requirements are generally more stringent that the income requirements otherwise <br /> applicable to a housing TIF district. There is NO LGAIHACA penalty for a qualified <br /> housing district. <br /> QUALIFIED HOUSING DISTRICT—OWNER OCCUPIED <br /> In this case, 95% of the homes must be purchased by persons at or below 70% of median <br /> income and be adjusted by family size. Median income is the greater of area median or <br /> statewide median income. <br /> STANDARD MULTI-FAMILY RENTAL HOUSING DISTRICT <br /> Must be a facility intended for occupancy in part by persons or families of low and <br /> moderate income. Up to 20 percent of the fair market value of the improvements may be <br /> for uses other than low and moderate income housing. To maintain qualifications as a <br /> housing district, rental projects must satisfy the income requirements for qualified <br /> residential rental projects under Section 142(d) of the Internal Revenue Code, or 50 <br /> percent of the units must be occupied by individuals with income 80 percent or less of <br /> the area median income. The rental requirements apply for the life of the district. If the <br /> income requirements are violated, the district duration is reduced to that of an economic <br /> development district. A housing district is subject to an LGA/HACA penalty, which <br /> may be avoided with a 10% local contribution. <br /> SINGLE FAMILY OWNER-OCCUPIED HOUSING DISTRICT <br /> For owner-occupied housing, 95% of the units must be initially purchased by persons <br /> with income that is less than or equal to the income requirements for qualified mortgage <br /> revenue bonds under federal law. Generally, those requirements limit income to 100% <br /> of applicable median family income for 1 and 2 person households, 115% of median for <br /> 3 or more person households. The applicable median family income is the greater of the <br /> area or statewide median gross income. <br />