Because of recent HUD publication of FY 2018 income limits changes in maximum incomes and rents in Portland projects acquired will be substantially higher than what would have previously been permitted, increasing the universe of projects that may be available for acquisition and/or the feasibility of constructing new projects.
The PDF document HERE and embedded below is a cheat sheet that highlights the Portland metro increase in 2BR rents and income maximums from FY 2017 to FY 2018 for 30%,50%, 60%, and 80% MFI levels. (Other household and bedroom sizes are included, but 2017-2018 $ differences are not calculated).
These maximums and increases are relevant to NEW inclusionary zoning projects, LIHTC projects, and Portland multifamily housing bond purchases and (likely) to the Metro wide bond issue being discussed for the November ballot. They may, subject to limits established at the state and local level, also be used to increase maximum rent levels for existing units under these programs. In all cases rents shown include utility allowances.
The FY 2018 increases in maximum rents and incomes are substantial, with maximum 2 BR rents increasing from $45 (30% MFI) to $120 (80% MFI) a month.
Note that because the ACS data used by HUD to calculate incomes is already available there is very likely going to be another substantial increase in Portland metro incomes (and therefore maximum allowable rents) in 2019, albeit somewhat less than the 8.9% increase from 2017 to 2018.
Two Continuing Challenges:
- A continuing challenge for Bond projects will be annual tracking of incomes and rents of individual tenants to insure that tenants with substantial income increases do not occupy units intended for low income occupancy.
- Since annual rent increases in Bond projects above 5% may be subjected to additional reviews at local or state levels, it will be important moving forward to capture and make available publicly the actual maximum rents for each project and unit size instead of relying on annually published Portland metro wide wide maximum rents for different income levels.
The 60% MFI 3 person (2 BR) max annual income increased from $40,380 to $43,980 or $3,600 (pg. 2).
This means that the maximum monthly rents increased from $1,010 to $1,110 or $90 a month. (pg. 1)
Originally created and posted on the Oregon Housing Blog.