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Housing TIF Districts <br /> December 6, 2000 <br /> Page 3 <br /> If the City does not want the project to be both rent and income restricted,the district could become a <br /> housing district(not qualified) and would only need to meet income requirements. The income limits for <br /> these districts,however,use HUD numbers and are often lower than those for a qualified housing <br /> district. A standard housing district requires that the rental housing have a certain percentage of its units <br /> with annual incomes less than a certain percentage of the county median income. Housing districts <br /> require that the income is adjusted for family size. The income restrictions are as follows(using HUD <br /> guidelines): <br /> INCOME RESTRICTIONS - ADJUSTED FOR FAMILY SIZE <br /> (HOUSING DISTRICT) - Hennepin County Area <br /> No. of Persons 50% of Median 60% of Median 80% of Median <br /> Income Income Income <br /> 1-person $23,000 $27,600 $35,150 <br /> 2-person $26,300 $31,560 $40,150 <br /> 3-person $29,550 $35,460 $45,200 <br /> 4-person $32,850 $39,420 $50,200 <br /> Source:Department of Housing and Urban Development <br /> The three options for income limits on a standard housing district are 20% of the units at 50% of median <br /> income,40% of the units at 60% of median income, or 50% of the units at 80% of median income. <br /> Usually, at the time we establish a district, the project needs to choose one of the options and meet those <br /> requirements for the life of the district. The income restrictions are not an assets test and most seniors do <br /> not have trouble meeting income restrictions. There are no rent restrictions for a standard housing <br /> district. <br /> SINGLE FAMILY OWNER-OCCUPIED HOUSING DISTRICT <br /> For single family developments, at least 95% of the houses assisted with tax increment must be occupied <br /> with persons at 100% of median income for a family of two or less and 115% of median income for <br /> families of three or more (rental housing would have stricter income limitations). Median income under <br /> this provision is the greater of the statewide median or the county median. For Hennepin County,the <br /> median income is$68,600 and the statewide median is$57,900. Therefore, the family of three or more <br /> could earn up to$66,585 (115%of$57,900)and still qualify to live in the homes. There is no restriction <br /> on the value of the homes built nor upon the income of the subsequent purchasers of the house. Houses <br /> not meeting the qualifications may be built,but not assisted with tax increment. <br />