Income averaging is an important new feature in the low-income housing tax credit (LIHTC) program.
Established as part of the Consolidated Appropriations Act of 2018, income averaging allows LIHTC-qualified units to serve households up to 80% of the area median income (AMI) so long as the average income at the property is no more than 60% of the AMI.
To help the industry learn more about this new option, Jen Brewerton, vice president of compliance at Dominium, one of the nation’s largest affordable housing firms, has been sharing what she’s learned in a series of articles. The first examines why there’s no “cliff” when one unit at an income-averaging property falls out of compliance. The series also examines the advantages of the option and looks at how Community Housing Development Corp., a Minnesota nonprofit, is hoping to utilize income averaging.
Click on the link below to see Brewerton’s series.
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