Calculating For Additional Set Asides
Written by Jennifer Borland, Spectrum Enterprises
Many properties have included in the extended low income housing commitment set asides in addition to 40/60 or 20/50. Most often Spectrum sees properties that include units set aside at 40%, 30%, 20%. How are the income limits for these set asides calculated?
Given the 50% limits, determining additional set aside limits isn’t very hard:
40% = 50% x 0.8
30% = 50% x 0.6
20% = 50% x 0.4
Using limits for a property placed in service prior to 2009 in Portland, Maine:
1 person 2 person 3 person
50% $27,300 $31,200 $35,100
x 0.8 x 0.8 x 0.8
40% $21,840 $24,960 $28,080
1 person 2 person 3 person
50% $27,300 $31,200 $35,100
x 0.6 x 0.6 x 0.6
30% $16,380 $18,720 $21,060
1 person 2 person 3 person
50% $27,300 $31,200 $35,100
x 0.4 x 0.4 x 0.4
20% $10,920 $12,480 $14,040
Spectrum recommends having your housing credit agency approve limits before implementing.