Common use of Income limitations Clause in Contracts

Income limitations. (1) Each family purchasing a home constructed or sub- stantially rehabilitated under a pro- gram must have a family income on the date of purchase that does not ex- ceed the following limitations: (i) For programs located in a metro- politan statistical area, the family in- come may not exceed the higher of: (A) The median family income for the metropolitan statistical area in which the program is located. At any time during the development of the program, the recipient may request HUD to modify this family income re- quirement. To obtain a modification, the recipient must submit a request by a unit of general local government in which the program is located, and sup- porting documentation demonstrating to HUD that such action is necessary to achieve or maintain neighborhood stability. If a modification is granted, HUD may permit up to 15 percent of the families that purchase homes under this part, to have a family income on the date of purchase that is between 100 and 115 percent of the median fam- ily income for the metropolitan statis- tical area. (B) The national median income. (ii) For programs that are not lo- cated in a metropolitan statistical area, the family income may not ex- ceed the national median income. (2) For the purpose of determining the median family income for the na- tion and metropolitan statistical areas, the recipient must use the most recent median family incomes developed by HUD under Section 8 of the United States Housing Act of 1937. Family in- come is the annual income as com- puted in accordance with 24 CFR 813.106.