A question many LIHTC properties have for us is who is and who is not considered a household member. A tenant’s income eligibility is determined by comparing the household’s gross annual anticipated income (per HUD guidelines) to the LIHTC 50% or 60% area gross median income limits that apply to the project. Let us go over a few of the more common situations so that you understand what income limits to use for the applicable household.
• All heads of household. This includes individuals who are absent.
• All co-heads and spouses. This includes individuals who are absent.
• Foster Children
• Foster Adults
• Children temporarily absent due to placement in a foster home
• Children away at school, but who live with the family during school recesses
• A person confined to a hospital or nursing home per family decision
• A son or daughter on active military duty only if this person leaves dependents or a spouse in the Unit.
• The IRS considers unborn children and children in the process of being adopted as household members in determining income limits.
Do NOT count the following in determining income limits:
• Live-in Attendants
• Visitors or Guests (the length of time someone can be considered a guest needs to be reviewed with the local and landlord law)
It is important that there be consistency in the file as to who is considered a household member. Be sure to review all documents prior to certification.