In general, most four-person low-income limits are the higher of 80 percent of the area median family income or 80 percent of the State non-metropolitan median family level. Because the very low-income limits are not always based on 50 percentof median, calculating low-income limits as 80 percent of median would produce anomalies inconsistent with statutory intent (e.g., very-low income limits could be higher than low-income limits). The calculation normally used, therefore, is to set the four-person low-income limit at 1.6 (i.e. 80%/50%) times the relevant four-person very low income limit. The only exception is that the resulting income limit may not exceed the U.S. median family income level ($61,500 for FY 2008) except when justified by high housing costs. Use of very low-income limits as a starting point for calculating other income limits tied to Section (3)(b)(2) of the U.S. Housing Act of 1937 has the effect of adjusting low-income limits in areas where the very low-income limits have been adjusted because of unusually high or low housing-cost-to-income relationships.
In accord with the Very Low-Income Limits (based on 50% of MFI), the Low-Income limits are subject to a Hold Harmless policy.
Very Low-Income Limit
|Area||US Median Family Income||Comparison||Result|
|Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area||$61,500||Is $55,900 > $61,500?
4 Person LIL
|Area||2BR FMR||Annual 2BR FMR||Annual 2BR FMR*
|35% of US Median Income||Comparison||Result|
|Detroit-Warren-Livonia,%20MI%20HUD%20Metro%20FMR%20Area||$805||$9,660||$13,138||$21,525||Is $13,138 > $21,525?
Subsequent to the comparisons above, Low-Income Limits are calculated for each person size family between 1 and 8 persons. As is done with the Very Low-Income Limits, the 1 Person Limit is calculated by multiplying the 4-Person limit by 70%, the 2 person is obtained by multiplying the 4-Person limit by 80%, the 3 person by multiplying the 4-Person by 90%, the 5 Person by multiplying the 4-Person by 108%, the 6 Person by multiplying the 4-Person limit by 116%, the 7 Person by multiplying the 4-Person limit by 124%, and the 8-person by multiplying the 4-Person limit by 132%. Typically, if an area is subject to the Hold Harmless provisions at the Very Low-Income (50%) level, this will carry over to the Low-Income (80%) level. However, to ensure that there are no discrepencies due to rounding, following the calculation of each person sized income limit, a comparison is made to the FY 2007 value to determine if a "hold harmless" policy is to be invoked for Low-Income Limits. The results are as follows:
|Final FY2007 for Hold Harmless||$39,150||$44,750||$50,350||$55,900||$60,400||$64,850||$69,350||$73,800|
|Hold Harmless Invoked||For VLIL||Yes||Yes||For VLIL||Yes||For VLIL||Yes||For VLIL|
|FINAL FY2008 Low-Income Limits||$39,150||$44,750||$50,350||$55,900||$60,400||$64,850||$69,350||$73,800|
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