(a) HOME, HOME-ARP, HOME Match and TCAP RF units must use the HOME Program Income and Rent Limits that are calculated annually by HUD's Office of Policy Development and Research (PDR). The limits are made available for each Metropolitan Statistical Areas (MSA), Primary Metropolitan Statistical Areas (PMSA) and Area, District or County by State.
  (1) Upon publication, the Department will determine which counties are in each MSA, PMSA, Area or District.
  (2) Generally, PDR publishes income limits in tables identifying the following Area Median Gross Income (AMGI) by household size:
    (A) Extremely Low-Income Limits which are generally 30% of median income, which will be shown as the 30% limit in the Department's income limits;
    (B) Very Low-Income Limits which are generally 50% of median income, which will be shown as the 50% limit in the Department's income limits;
    (C) 60% Limits; and
    (D) Low-Income Limits which are generally 80% of the median income, but capped at the national median income with some exceptions which will be shown as the 80% limits in the Department's income limits.
  (3) If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by PDR:
    (A) To calculate the 30% AMGI, the 50% AMGI limit will be multiplied by .60 or 60%.
    (B) To calculate the 40% AMGI, the 50% AMGI limit will be multiplied by .80 or 80%.
    (C) To calculate the 60% AMGI, the 50% AMGI limit will be multiplied by 1.2 or 120%.
(b) PDR publishes High and Low HOME rent limits by bedroom size.
(c) PDR does not publish a 30% or 40% rent limits that certain HOME, HOME-ARP and TCAP RF Developments are required to use. These limits will be calculated using the same formulas described in §10.1004 of this subchapter (relating to Housing Tax Credit Properties, TCAP, Exchange and SHTF).
(d) In the event that PDR publishes rent limits after the HOME program income limits, the Department permits HOME, HOME-ARP and TCAP RF Developments to delay the implementation of the 30% and 40% rent limits until the High and Low HOME rent limits must be used.
(e) NSP income limits are published annually by HUD for each county with tables identifying the 50% AMGI and 120% AMGI for household size. If not published, the Department will use the following methodology to calculate, without rounding, additional income limits from the HOME Program income limits released by HUD:
  (1) To calculate the 30% AMGI, the 50% AMGI limit will be multiplied by .60 or 60%.
  (2) To calculate the 40% AMGI, the 50% AMGI limit will be multiplied by .80 or 80%.
  (3) To calculate the 60% AMGI, the 50% AMGI limit will be multiplied by 1.2 or 120%.
  (4) To calculate the 80% AMGI, the 50% AMGI limit will be multiplied by 1.6 or 160%.
(f) If the LURA for an NSP Development restricts rents, the amount of rent the Development Owner is permitted to charge will be the High or Low HOME rent published by PDR or calculated in the same manner described in §10.1004 of this subchapter using the HOME income limits.
(g) The LURA for HOME-ARP may require the rent and income limit to follow a different Department program during the state affordability period. In that case, rent will be calculated in the manner of the program identified in the LURA and described in this subchapter.

Source Note: The provisions of this §10.1005 adopted to be effective May 4, 2023, 48 TexReg 2182; amended to be effective February 26, 2024, 49 TexReg 1069