|(a) Under the Code, HTC Development Owners elect a
minimum set-aside requirement of 20/50 (20% of the Units restricted
at the 50% income and rent limits), 40/60 (40% of the Units restricted
at the 60% income and rent limits), or the average income test.
(b) HTC projects must meet the required election under
IRC §42(g) no later than the end of the first year of the Credit
(c) An Owner that elects the average income test under
IRC §42(g) must disperse 20%, 30%, 40%, 50%, 60%, 70%, and 80%
Unit designations across all Unit Types to the greatest extent feasible,
and in a manner that does not violate fair housing laws.
(d) Until and unless the Internal Revenue Service or
the Treasury Department issues conflicting or additional guidance,
the Department will examine the actual gross rent and income of all
households to determine if a Project that elected the average income
test are at or below the federal minimum of 60% AMI.