DHCD Announces "Hold Harmless" Income Limit Policy - July 23, 2013

DHCD has adopted a new "hold harmless" income limit policy for developments that do not have federal subsidies.  (Low Income Housing Tax Credit and Tax-Exempt Bond-financed projects are already protected under a HUD hold-harmless policy.)  As outlined in a memo dated July 22, the policy will apply to both rental and homeownership developments placed in service prior to December 11, 2012, or at the discretion of the funding agency,  new developments that received funding commitments prior to December 11, 2012.

The new policy responds to declines in the HUD income limits for 14 of 19 income limit areas in Massachusetts in 2013, relative to 2012, due to an end to HUD's hold harmless policy for Section 8 limits combined with a decline in the national median family income (by law, HUD 80% of area median income limits generally can't exceed the national median family income).